Financial contributions
Section 108 of the Resource Management Act (RMA) and the Auckland City
District Plan allows Auckland City Council to collect financial
contributions to avoid, remedy or mitigate the adverse effects of a development.
Both the RMA and the district plan authorise the council to impose a condition
requiring a financial contribution on any resource consent.
While the growth of the city is mostly supported by rates and development
contributions, the council also collects a range of financial
contributions from developers. The financial contribution can be taken in
the form of money to contribute towards the cost of upgrading
infrastructure or acquiring land, or as land, or a combination of both. The form
of payment is at the discretion of council.
The RMA requires that Auckland City Council spends funds collected in the form of
financial contributions only on the purposes for which they were collected. This
expenditure must also be accounted for in accordance with the requirements of
the Local Government Act.
Types of financial contributions
The district plan provides for several types of financial contribution. Each
type is mutually exclusive, meaning that a development may be levied more than
one type of financial contribution. Financial contributions may be charged on
both residential and non-residential developments. The various types of
contributions include ones for:
- Public space (including open space and access to open space)
- Amenity (including landscaping, signage and pedestrian amenity)
- Infrastructure (roading and drainage)
- Environmental or heritage
- Transport and parking
Refer to the relevant section of the district plan (according to the property
location) for details on how financial contributions are calculated and applied:
Some consents will also be subject to
development contributions or to a requirement
that certain works be carried out around the development.
Find out how to pay financial
contributions.
Updated June 2010
