Amendment to the Revenue & Financing Policy

Council also needs to make a small 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. In future, it may also allow Council to fund the growth share of other expenditure on the roading network.

Why is this needed?

  • Right now, the Council cannot charge developers for the cost of new roads.
  • We have a new connecting road to pay for as our share of the second Ashburton Bridge project.
  • We use this funding tool to pay for the growth share of other infrastructure, so it makes sense to use it to pay for the growth share of roads.
  • If we don’t change the rule, ratepayers would have to pay more

What options did Council consider?

These are the reasonable and practicable options that Council considered.

  • Option A: Amend the Revenue and Financing Policy

    This is Council's preferred option. It will enable Council to collect a new roading development contribution. We prefer this because:

    • It will match what most other Councils already do. Around two-thirds of Councils collect DCs and most of them collect roading DCs.
    • It is fairer — new development helps pay for the costs it creates.
    • It is consistent with how we fund other growth infrastructure.
    Do you agree? Tell us what you think! 

  • Option B: Don't amend Revenue & Financing Policy

    Under this option, Council cannot collect its new roading development contribution. This is not preferred because:

    • The Council cannot charge development contributions for roads.
    • Ratepayers would have to pay the full cost of the connecting road for the Second Ashburton Bridge.
    Do you agree? Let us know!