1. Payment of a Development Contribution shall be made either:
   
   
   1. Prior to the issue of a Certificate under Section 224 of the Resource Management Act 1991; or
   2. Prior to the issue of a building consent; or
   3. At the time otherwise specified as a condition of a resource consent with appropriate certainty and financial arrangements.
   
   Where contributions are in the form of land the land shall be shown to be vested on the survey plan for approval under Section 223 of the Act.
2. As an alternative to the payment of a contribution the Council may require the provision of works and services to at least an equivalent value provided that the objectives and policies of the District Plan are not compromised. Council may accept the provision of land in accordance with the Council's Reserve Strategy as payment or part payment of the required reserve contribution. Such a contribution must be to an equivalent value to that required by this Plan.
3. The value of any contribution shall be determined at the time a resource consent or other consent is granted by Council. Where payment or vesting is delayed for a year or more, it shall be adjusted annually on the anniversary of the consent in accordance with the provisions of this District Plan.
4. Where an activity does not proceed and the consent lapses or is cancelled, the financial contribution shall be refunded in accordance with Section 110 of the Resource Management Act 1991, upon application by the person who paid the contribution.
5. GST is payable on all contributions.
6. Any spare capacity for future demand, which is built into the work or service completed by the developer/subdivider at the Council’s request shall be paid for by Council. Payment for such works or services shall be by either works, services, money or a combination of these. Such arrangements shall be negotiated and agreed by both parties prior to certification of compliance with conditions of subdivision consent pursuant to Section 224 of the Act, or any other such compliance certification required by Council.
7. Contributions in excess of that required will be recorded as a credit that runs with the land. Such a credit will only be in respect of the service for which the contribution was paid and only in respect of subdivision/development of specified land which is in the immediate vicinity.

Explanation

Council has implemented the contributions rules to enable the costs associated with new growth to be borne by the new consumers over the ongoing years. In devising the rules, Council has ensured that the calculations fairly and reasonably apply the fees that can be directly attributable to the new population. The District wide apportionate of reserves contributions is based on the understanding that the entire community has the opportunity to benefit from such facilities on a district wide basis. The urban and rural communities are being treated similarly on the grounds that they have similar reserve and recreational needs.

The engineering services fees are charged on a site basis because it is clear who benefits from the services.

Contributions are taken principally at the time of subdivision to enable Council to receive funds in advance of development to assist in the earlier provision of services for the new population.

All fees are based on Council works programmes for the ten year review period. The detail of the calculations can be found in Council's 1995 discussion documents on the matter. In the event that a works programme or the contributions accounts are reviewed and refinements are necessary a change to the District Plan shall be promoted. To ensure the costs are relative to the rate of inflation the actual contribution values are to be reviewed in the light of the Cost Construction Index as part of the Annual Plan process.