Media release

Council considers development contributions review ruling

March 22, 2007

North Shore City Council yesterday received the High Court decision on a judicial review of its development contributions policy. 

The decision finds that the council made certain errors of law in relation to the policy, but upholds the council's approach to development contributions for reserves, which had also been challenged.

The Court's decision does not invalidate the policy or its supporting documents, nor prevent the council from requiring contributions on an ongoing basis.

Taking on board the judge’s comments, the council says it will review its policy to address a number of the issues raised.

The Court's decision also invites the council to work with with the plaintiffs and others in the development community to look for solutions to aspects of the policy that were in dispute.

The council is currently considering whether it wishes to appeal any aspect of the decision.

Councillors will be briefed on the findings next week after which time a further statement will be issued.

New Zealand’s fourth largest local authority has been a strong advocate of the legislative change to the Local Government Act that allowed development contributions to be collected. 

Earlier this week, North Shore City’s strategic management committee chairman Gary Holmes said councillors were committed to the development contributions policy as a fairer way to fund growth-related services and infrastructure across the city.

“When we first introduced the policy, we asked residents, ratepayers and developers what their preferred way of funding growth was and over 90 per cent who had their say chose development contributions,” he says.

Development contributions are charged in North Shore City when people subdivide a property, build a new property, extend an existing non-residential property, change the use of a property, connect to a service such as water or wastewater, or build a small residential unit or granny flat.

The contributions fund reserves, transport, water supply, wastewater collection and treatment, stormwater collection and management, and libraries and leisure centres needed as a result of growth.

“Development contributions are just one of our sources of funding – as well as rates and loans – and if we couldn’t use it we’d still have to find the money,” says Councillor Holmes.

In total over the 10-year period from 2006-16, North Shore City Council will invest more than $1.8b in capital works to ensure the city’s future is managed in a sustainable way to maintain the lifestyle its people want.

Since the development contributions policy was implemented in 2004, more than $40m has been charged and put towards the growth portion of providing new assets worth more than $236m.

For more details on the policy, please visit www.northshorecity.govt.nz

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