106Policy on development contributions or financial contributions

1. In this section, financial contributions has the meaning given to it by section 108(9) of the Resource Management Act 1991.

2. A policy adopted under section 102(1) must, in relation to the purposes for which development contributions or financial contributions may be required,—

3. summarise and explain the total cost of capital expenditure identified in the long-term plan, or identified under clause 1(2) of Schedule 13 that the local authority expects to incur to meet the increased demand for community facilities resulting from growth; and
4. state the proportion of that total cost of capital expenditure that will be funded by—
   1. development contributions:
   2. financial contributions:
   3. other sources of funding; and
5. explain, in terms of the matters required to be considered under section 101(3), why the local authority has determined to use these funding sources to meet the expected total cost of capital expenditure referred to in paragraph (a); and
6. identify separately each activity or group of activities for which a development contribution or a financial contribution will be required and, in relation to each activity or group of activities, specify the total amount of funding to be sought by development contributions or financial contributions; and
7. if development contributions will be required, comply with the requirements set out in sections 201 to 202A; and
8. if financial contributions will be required, summarise the provisions that relate to financial contributions in the district plan or regional plan prepared under the Resource Management Act 1991.

9. This section does not prevent a local authority from calculating development contributions over the capacity life of assets or groups of assets for which development contributions are required, so long as—

10. the assets that have a capacity life extending beyond the period covered by the territorial authority’s long-term plan are identified in the development contributions policy; and
11. development contributions per unit of demand do not exceed the maximum amount allowed by section 203.

12. Subject to subsection (2C), a development contribution provided for in a development contributions policy may be increased under the authority of this subsection without consultation, formality, or a review of the development contributions policy.

13. A development contribution may be increased under subsection (2B) only if—

14. the increase does not exceed the result of multiplying together—
    1. the rate of increase (if any), in the PPI since the development contribution was last set or increased; and
    2. the proportion of the total costs of capital expenditure to which the development contribution will be applied that does not relate to interest and other financing costs; and
15. before any increase takes effect, the territorial authority makes publicly available information setting out—
    1. the amount of the newly adjusted development contribution; and
    2. how the increase complies with the requirements of paragraph (a).

16. If development contributions are required, the local authority must keep available for public inspection the full methodology that demonstrates how the calculations for those contributions were made.

17. If financial contributions are required, the local authority must keep available for public inspection the provisions of the district plan or regional plan prepared under the Resource Management Act 1991 that relate to financial contributions.

18. The places within its district or region at which the local authority must keep the information specified in subsections (3) and (4) available for public inspection are—

19. the principal public office of the local authority; and
20. such other places within its district or region as the local authority considers necessary in order to provide members of the public with reasonable access to the methodology, provisions, or plan.

21. A policy adopted under section 102(1) must be reviewed at least once every 3 years using a consultation process that gives effect to the requirements of section 82.

22. A territorial authority may extend its policy adopted under section 102(1) to a water organisation under section 128 of the Local Government (Water Services) Act 2025.

23. In this section,—

    capital expenditure includes any funding provided by a responsible levy authority to contribute to the construction costs of eligible infrastructure that has been, or is intended to be, transferred to the authority under section 90 of the Infrastructure Funding and Financing Act 2020

    PPI means the Producers Price Index Outputs for Construction provided by Statistics New Zealand or, if that index ceases to be published, any measure certified by the Government Statistician as being equivalent to that index.