Introduction

DC charges change because the costs of infrastructure change. New projects, price increases, inflation and updated population growth all impact the final charge.

Why is this needed?

  • Council must update DCs at least every three years so that charges match real project costs and growth pays for growth.
  • Our historic practice has tended to under-recover the costs of growth.
  • Council will undertake several new water and wastewater projects from its Water Service Delivery Plan in 2026/27 to deliver safe, compliant and financially sustainable water services.
  • Some towns have received water or wastewater upgrades in recent years, or have upgrades planned for the near future, that contain a growth portion to be funded from DCs.
  • Population trends are updated for a medium-high projection based on the 2023 census.

What options did Council consider?

These are the reasonable and practicable options that Council has considered.

  • Agree with the 2026/27 charges as proposed.

    This is Council's preferred option. Under this option, Council would adopt the schedule of 2026/27 charges as proposed in the table above.

    This option will

    • Ensure charges are accurate, fair and transparent.
    • Ensure DCs capture known and actual growth costs
    • Ensures that growth pays for growth.

    Do you support this option? Let us know! 

  • Cap the increase in charges

    Under this option, Council could cap one or all of the charges.

    A cap is when Council sets the final DC at a level lower than that produced by the calculation. For example, by capping the community infrastructure charge at $4,000 (including GST) to reduce DCs by $1,918 per HUE. This transfers costs from developers to ratepayers, moving away from the principle that growth pays for growth.

    Agree with this option? Tell us what you think! 

  • Phase-in the charges

    Under this option, Council would phase-in the increase in charges over time.

    A phase-in is when Council stages the increase in a DC over two or more years. For example, it could decide that the maximum increase in 2026/27 will be $4,000 and cap DCs for water and wastewater in communities facing a higher increase in 2026/27. This phase-in also transfers costs from developers to ratepayers, again moving away from the principle of growth paying for growth.

    Agree with this option? Tell us what you think! 

  • Other change

    Under this option, you may request some other change to the schedule of charges. Please explain the change you want to see and why you want it.

    Tell us what you think! 

What are the proposed charges?

Proposed 2026/27 Development Contributions

2026 DFC Policy

Water

Waste water

Community

Infrastructure

Roading

Total per HUE

(inc. GST)

Ashburton (inc. Lake Hood)

$2,589

$2,952

$5,918

$859

$12,319

Fairton

$2,589

$5,918

$859

$9,366

Hinds

$6,806

$5,918

$859

$13,583

Methven

$8,012

$1,446

$5,918

$859

$16,235

Methven-Springfield

$8,012

$5,918

$859

$14,789

Mount Somers

$20,854

$5,918

$859

$27,630

Rakaia

$5,793

$489

$5,918

$859

$13,058

Rest of District

$5,918

$859

$6,777


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 across the eight locations was $2,975. Figures in both tables are GST inclusive.

What are the current charges?

2024 DFC Policy

Water

Wastewater

Community

Infrastructure

Total per HUE

(inc. GST)

Ashburton (incl. Lake Hood)

$1,941

$2,625

$6,179

$10,745

Fairton

$1,941


$6,179

$8,120

Hinds

$1,260


$6,179

$7,439

Methven

$5,105

$1,215

$6,179

$12,499

Methven-Springfield

$4,930


$6,179

$11,109

Mount Somers

$21,510


$6,179

$27,689

Rakaia



$6,179

$6,179

Rest of District



$6,179

$6,179