Further consideration for schools
Further consideration for schools
June 20, 2007
North Shore City Council will consider the issue of charging schools for development contributions as part of a review of its overall policy.
Through legislation, the Ministry of Education made state schools - those it owns and operates – exempt from development contributions, but not state-integrated and private schools.
But North Shore City’s strategic management committee chairman, Gary Holmes, says state school assessments will continue to be sent to the ministry.
“The purpose of the development contributions policy is a fairer way to fund growth so that those who create the need for additional services – which includes all schools - pay for it rather than ratepayers,” says Councillor Holmes.
In March the High Court found that the council had made certain errors of law in its policy. The decision did not invalidate the policy, or prevent the council from requiring development contributions, but a review is under way.
At a meeting of North Shore City’s strategic management committee yesterday it was decided that part of this review would include the issue of development contributions from schools.
“We will also have to give careful consideration to the financial implications on ratepayers and the rest of the development community if schools were to be exempt,” says Councillor Holmes.
The committee also decided to put Carmel College’s development contributions payment on hold until the outcome of the review.
“I can understand why Carmel College is questioning a $90,000 development contributions bill that state schools don’t have to pay, but it is an inequity that only the ministry can address,” he says.
“We will also make a formal submission to Local Government New Zealand and the Rating Act inquiry about development contributions for educational institutions.”
People will have the chance to have their say on any proposed amendments next year, once the development contributions policy has been reviewed.
Development contributions are commonly assessed in North Shore City when people subdivide a property, build a new house, 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 growth-related infrastructure such as reserves, transport, water supply, wastewater (including the treatment plant), stormwater, and libraries and leisure centres needed as a result of growth.
“Before we introduced the development contributions policy in 2004 we asked residents, ratepayers and developers what their preferred way of funding growth. More than 90 per cent who had their say chose development contributions,” says Councillor Holmes.
In total over the 10-year period from 2006 to 2016, 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.
ENDS