What are financial contributions?

    The Resource Management Act 1991 allows councils to provide in their District Plans for the ability to impose a condition on a resource consent requiring a financial (cash) contribution for the purpose of contributing to infrastructure required to service a particular development and managing the effects of development on the environment.

    A financial contribution assists with the costs of providing infrastructure for growth. Council’s District Plan allows financial contributions to be charged for water, wastewater, stormwater, ecological protection, transportation and recreation and leisure.

    There are 19 financial contributions models that have been used to calculate financial contributions across the District. The calculations are supported by disclosure tables that detail growth related projects included in the calculations.

    Are financial contributions increasing?

    Yes, most are due to higher infrastructural costs. 

    Most Council’s in Aotearoa, New Zealand are dealing with ever increasing costs of providing infrastructure. 

    Western Bay is no different.

    What specific proposed projects are affecting financial contribution increases?

    • The Katikati Ocean Outfall replacement is a new project prioritised because of the existing outfall’s early failing. High estimated costs have an element that will benefit growth, and this is reflected in an increase financial contribution for the Katikati area.
    • The Te Puke Wastewater Treatment Plant costs are higher than previously estimated in the Long Term Plan 2021-31.
    • Ōmokoroa transportation and stormwater costs have been reviewed and again reflect higher costs than previously estimated.
    • Some increased costs have been offset by updated external funding streams e.g. the Government Infrastructure Acceleration Funding.

    What is the impact of Plan Change 92?

    Plan Change 92 is now operative acros the Western Bay. Plan Change 92 is following the prescribed Medium Density Residential Standards process, redefining Household Equivalents that are used in the financial contribution calculations to reflect the impacts of higher density developments planned in the Ōmokoroa and Te Puke areas.