Issue 3: Our Key Water Infrastructure - Development Contributions

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Consultation has concluded

We’re proposing an increase to development contributions to reflect the increased costs from the revised waters programme.

In the last LTP, Council reintroduced development contributions. They had been removed for a period of six years, when population growth was slow. Now growth has ramped up, bringing many new opportunities and challenges for our district.

As more people move into our district, more demand is put on our infrastructure. More people now rely on our water pipes, reservoirs, wastewater treatment plants, local roads and community facilities.

Much of our infrastructure wasn’t designed to cope with the population growth we expect to see in the coming years. Whether or not we decide to amend the LTP, we’ll need to look at what we’re charging as development contributions – these plans impact the type, location and timing of new infrastructure.

The level of development contributions depends on the location of new subdivisions, dwellings or commercial/industrial buildings – some areas need more capacity or services than already exist. For example, in Tara-Ika growth areas, the new residential development needs new pipes and roads and also to connect with Council’s existing network. It wouldn’t be fair to charge the rest of Levin for this.

Why are Development Contributions needed?

The Local Government Act lets councils collect funds from the developer or landowner when they subdivide, connect services or apply for consents. We can use these funds to cover the costs that come with population growth – it means that those who are increasing the demand on our infrastructure will pay to increase its capacity.





As part of our 2024 LTP, we’ll do a full review of our Development Contributions Policy, which will partly be driven by the Government’s Three Waters Reform. Under these reforms, from 1 July 2024, we’ll no longer be collecting development contributions for stormwater, water supply or wastewater treatment.




Our proposed approach

Option 1 - Increase Development Contributions (Council’s preferred option)

Option 1 proposes to increase the amount charged to developers, to ensure they pay their fair share towards the cost of growth.

This option does not change the wording of the current policy except for the amount we collect per additional unit of demand created. We are not proposing to change how or when we collect development contributions.

In this proposal $32 million is budgeted, whereas last time it was $13 million. The table provided sets out the proposed increase in development contributions and new totals for each area, which reflect the increased spend to meet the growth demands.

Option 2 - No Change to Development Contributions

This is not Council’s preferred option as it would mean other ratepayers in the district would pay for the increase in costs to deliver infrastructure that doesn’t directly benefit them.





Did you know? 

The wastewater contribution for Ōhau and the water supply contribution for Ōhau and Waitārere Beach will only apply from when that service becomes available.







Submissions closed

Further information on all issues and topics can be found in the LTP 2021-2041 Amendment and Annual Plan 2023/24 Consultation Document.

Submissions to the LTPA and Annual Plan closed at 4pm on Monday 1 May 2023. Hearings will take place on 10-11 May 2023 followed by deliberations on 31 May & 1 June 2023. Council will receive all submissions before this to inform that discussion and subsequent decisions. Elected Members will adopt the final Long Term Plan Amendment and Annual Plan on 28 June 2023.


We’re proposing an increase to development contributions to reflect the increased costs from the revised waters programme.

In the last LTP, Council reintroduced development contributions. They had been removed for a period of six years, when population growth was slow. Now growth has ramped up, bringing many new opportunities and challenges for our district.

As more people move into our district, more demand is put on our infrastructure. More people now rely on our water pipes, reservoirs, wastewater treatment plants, local roads and community facilities.

Much of our infrastructure wasn’t designed to cope with the population growth we expect to see in the coming years. Whether or not we decide to amend the LTP, we’ll need to look at what we’re charging as development contributions – these plans impact the type, location and timing of new infrastructure.

The level of development contributions depends on the location of new subdivisions, dwellings or commercial/industrial buildings – some areas need more capacity or services than already exist. For example, in Tara-Ika growth areas, the new residential development needs new pipes and roads and also to connect with Council’s existing network. It wouldn’t be fair to charge the rest of Levin for this.

Why are Development Contributions needed?

The Local Government Act lets councils collect funds from the developer or landowner when they subdivide, connect services or apply for consents. We can use these funds to cover the costs that come with population growth – it means that those who are increasing the demand on our infrastructure will pay to increase its capacity.





As part of our 2024 LTP, we’ll do a full review of our Development Contributions Policy, which will partly be driven by the Government’s Three Waters Reform. Under these reforms, from 1 July 2024, we’ll no longer be collecting development contributions for stormwater, water supply or wastewater treatment.




Our proposed approach

Option 1 - Increase Development Contributions (Council’s preferred option)

Option 1 proposes to increase the amount charged to developers, to ensure they pay their fair share towards the cost of growth.

This option does not change the wording of the current policy except for the amount we collect per additional unit of demand created. We are not proposing to change how or when we collect development contributions.

In this proposal $32 million is budgeted, whereas last time it was $13 million. The table provided sets out the proposed increase in development contributions and new totals for each area, which reflect the increased spend to meet the growth demands.

Option 2 - No Change to Development Contributions

This is not Council’s preferred option as it would mean other ratepayers in the district would pay for the increase in costs to deliver infrastructure that doesn’t directly benefit them.





Did you know? 

The wastewater contribution for Ōhau and the water supply contribution for Ōhau and Waitārere Beach will only apply from when that service becomes available.







Submissions closed

Further information on all issues and topics can be found in the LTP 2021-2041 Amendment and Annual Plan 2023/24 Consultation Document.

Submissions to the LTPA and Annual Plan closed at 4pm on Monday 1 May 2023. Hearings will take place on 10-11 May 2023 followed by deliberations on 31 May & 1 June 2023. Council will receive all submissions before this to inform that discussion and subsequent decisions. Elected Members will adopt the final Long Term Plan Amendment and Annual Plan on 28 June 2023.