Development contributions (DCs) are payments that developers make when they build new houses, businesses or subdivisions. The money helps pay for new infrastructure (like the Second Ashburton Bridge connecting road) or infrastructure with greater capacity to cater for future growth, such as the water treatment plants at Methven and Mount Somers.
Our growing district leads to increased costs of infrastructure, and historically the development contributions we've charged have been set at a level that did not fully recover the costs of growth. So, we need a policy rethink that will ensure that growth pays for growth and ratepayers aren't unfairly burdened.
We are proposing to change both our Development & Financial Contributions (DFC) Policy and our Revenue & Financing (RFP) Policy so that we have the right tools in our funding toolkit.
Council is proposing a new district roading contribution to help us pay for the growth share of the Second Ashburton bridge connecting road. It may also be used to help fund future roading projects that cater for growth.
As the district grows, more cars, trucks and other traffic will use the new connecting road over the next thirty years. Without a development contribution, meeting the costs of growth falls entirely on ratepayers.
Council is proposing to commence taking DCs at the subdivision stage effective from 1 July 2027.
Ashburton currently chooses to collect DCs when someone applies for building consent, rather than at subdivision. This leads, in some cases, to builders and purchasers of sections facing charges they did not expect when they seek to build. Almost every Council in New Zealand that collects DCs, collects them at the first point they can, usually subdivision.
Most of our development contributions will increase from 1 July 2026. Compared with 2024 charges, these changes range from a reduction of $59 for Mount Somers to an increase of $6,879 for Rakaia. The average increase proposed across eight locations is $2,975.
DC charges change because the costs of infrastructure change. New projects, price increases, and inflation all impact the final charge.
Council also needs to make a change to its Revenue & Financing Policy, so we can add development contributions to the list of ways the Council can pay for roading projects.
Since 2006, Council has used development contributions (DCs) to help pay the growth share of water supplies, wastewater systems and community infrastructure. This change will let Council collect DCs to help pay for the growth share of the Second Ashburton Bridge connecting road and other roading projects in future.
The DFC Policy has been updated to make other changes that support the key changes outlined above, and to respond to changes in legislation or the operating environment.
These changes include:
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Have questions or want to learn more about a project, contact us below:
| Phone | 03-307 7700 |
|---|---|
| info@adc.govt.nz | |
| Website | www.ashburtondc.govt.nz |
| In writing | 2 Baring Square East, Ashburton 7700 |
