Long Term Community Plan 2012-2022 - Hurunui District Council

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www.hurunui.govt.nz Policy Introduction Most of the policies that are included in this section have been reviewed and updated, hence their inclusion into this Plan. These policies are: • Development Contributions Policy • External Liability Management Policy • Investment Policy • Internal Financing Policy • Rates Remissions on Biodiversity Policy • Reserves Funding Policy • Revenue and Financing Policy • Treasury Risk Management Policy A new policy was developed in light of the Canterbury earthquakes and the reminder that from time to time, situations beyond anyone’s control can significantly impact on our ability to pay rates. It is the: • Rate Remissions on Land Affected by Natural Calamity Another policy has been added for your information as it is an important one regarding Council decision making. This policy sets out guidelines and requirements around what we must consider when making decisions. It is the: • Significance Policy We do have many other policies in place that are not included in this Plan. Our policy manual can be located on our website. 200
Development Contributions Policy Introduction Any growth in the District will impact on the existing reserves, sewerage, water, stormwater, roading, township infrastructure and recreation facilities. To ensure that the expected population growth does not adversely affect residents the Council has identified a number of infrastructural developments needed to cope with this growth. The Local Government Act 2002 (LGA) allows councils to collect ‘Development Contributions’, which are contributions of land or money made by developers towards the cost of providing new infrastructure, or increased capacity in existing infrastructure as a result of growth. Councils can also collect Financial Contributions under the Resource Management Act 1991 via rules in the District Plan. A Council cannot however take both Development Contributions and Financial Contributions for the same purpose. The type of contribution must be stipulated in the Development Contributions Policy. The Hurunui District Council has decided that growth in the District will be funded from 3 main sources: • Financial Contributions (levied under the Resource Management Act), which are designed to offset adverse effects of a particular development, and are identified in the Hurunui District Plan. • Development Contributions (charged under the Local Government Act 2002) which are for growth related projects that are identified in the Hurunui Long Term Community Plan. • Existing ratepayers and residents through rates and loans. Review of Development Contributions Policy Council’s Development Contributions Policy as outlined in the 2009-2019 LTCCP was based on a number of assumptions, of which growth projections formed a key component. Council directed that the Policy should provide for a significant increase in development in the Amberley Township, and adjustments to the Policy were made accordingly. However, in the intervening period, the amount of growth has been significantly lower than anticipated and as a result, the level of Development Contributions received has been lower than budgeted. Hurunui Community Long Term Plan 2012 - 2022 review concluded that the methodology was sound, and based on experience sourced from other Councils, suggestions were made to simplify the methodology. One of the key suggestions was to consider rationalising the number of collection areas for contributions. For metropolitan Councils, this is relatively easy to achieve as each new development will generally receive the same benefit from the growth projects identified as the next development. Due to the geography of the Hurunui District and the specific requirements for individual areas, Council felt that this could not be easily achieved. A further suggestion was for the Council to reinstate an interest component to the calculation of the contribution. This suggestion was made in the light that a number of the growth related projects will occur ahead of receiving a sufficient level of development contributions and as a result, there will normally be a holding cost attached to the project. When this was reviewed as part of the 2009-2019 LTCCP, the Council favoured the use of an inflation component rather than an interest component, which meant that the individual development contribution will increase on an annual basis to match the increase in inflation, so as a result, the developer who pays a contribution in four years’ time will pay a higher level of contribution than the developer who pays now. The Council considered that the inclusion of an interest component would result in further increases to the individual contributions and decided against it. Updated growth projections based on Statistics New Zealand data have been provided which are at a more conservative rate of development than was provided for in the 2009-2019 LTCCP due to the Council not making specific adjustments to particular areas. It is important to note that due to the earthquake in Christchurch in February 2011 that the census scheduled for 8 March 2011 was not undertaken and as a result, the population projections have not been updated. The census has now been scheduled for 5 March 2013 and the population projections can be re-assessed at that stage. Key Changes made to Methodology As a result of the review, the Council has made some changes to the methodology. In general, the Council has retained the projects that are subject to the methodology, so those projects that were identified in the 2009-2019 methodology have been continued, however, due to the lower level of growth that has resulted in the last three years, some projects have been deferred for a longer period. As preparation for the 2012-2022 LTP, the Council contracted Pricewaterhouse Coopers, in conjunction with the Council’s legal advisers, Buddle Findlay, to undertake a comprehensive review of out Development Contributions Methodology. The The Council has, in some cases, reduced the portion of the project that relates to growth, reflecting that some of the projects (particularly in relation to Community Infrastructure and Reserves) will benefit the wider community rather than 201
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Hurunui Community Long Term Plan 20
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About the Plan Introduction The Loc
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How Your Rates are Spent The Counci
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Water Supply Overview Water Supply
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Financial Introduction Purpose of t
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Independent Auditor’s Report Huru
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Phone: 03 314 8816 Fax: 03 314 9181
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Long Term Community Plan 2012-2022 - Hurunui District Council

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