Hamilton City Council Development Contribution Policy Consultation - - PowerPoint PPT Presentation

Hamilton City Council

Development Contribution Policy Consultation

• Legislative Requirement
• Alignment with the 2018-2028 10-Year Plan
• To reflect the changes in Capital Expenditure

proposed in the 2018-2028 10-Year Plan

• To incorporate other updated inputs to the DC

model

• With direction from elected members

Why is Council reviewing its Development Contributions Policy

• Removal of CBD Remissions
• Removal of existing capped charges
• Recovery of certain capital expenditure outside

the 10-Year Plan

• Introduction of capped non-residential charges
• Charge residential development contributions by

the number of bedrooms

• Removal of HDR/Ancillary charge category
• Indexing of charges

Key Changes to the Policy

6 December Council Meeting Resolutions

• High non-residential charges may supress

development in the areas where they apply

• We are seeking feedback to what extent caps

should be used by council

• Submissions supported with evidence are

appreciated on this topic

Introduction of capped non- residential charges

DC charges should reflect demand Demand is driven by the number of people in a household Which is very closely related to # bedrooms per household

Residential DCs by bedroom

Residential DCs by bedroom

102

1268 1878 2696

500 1000 1500 2000 2500 3000

Bedrooms per dwelling (2008 - present)

Four-plus Bed Three Bed Two Bed One Bed

Indexing

• Adjusts charges in the model for to account purchasing power of money
• ver time (pegged to inflation in the DC Model
• Time value of money – a $100 today is worth more than $100 in 20 years
• Increase designed to keep contribution constant in real terms over time
• To achieve fairness over time, referred to as “intergenerational equity”
• Consistent with LGA “Purpose of DCs”
• Recommended to Council by Property Council NZ expert in 2017

Indexing charges

Indexing charges

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

DC charge ($)

Indexing a DC charge - illustration

Not indexed Indexed

Growth Model

• NIDEA Household projections are used

to approximate residential demand

• Macroeconomic model to approximate

non-residential demand

• Detailed capacity analysis undertaken

to approximate capacity in the city

• Allocates growth spatially using

historical growth trends, infrastructure and planning constraints

DC Funding Model

Main driver of increased charges

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000

2015-25 DC capex 2018-28 DC capex

DC capex $'000

Compare DC capex - existing policy vs draft 2018/19 policy

Transport Wastewater Stormwater Water Reserves

• Calculates a DC charge on a project by project

basis

• Groups together projects by catchment
• Ensures that historical and future cost is

shared amongst all developments that benefit from them

DC Funding Model

Updating inputs

Scenario testing Residential growth projections Historical capex Comml/indrl growth projections Historical DC revenue HIF interest free 10 YP & 30 YR capex Cost allocations DC and Growth Models DC revenue DC charges Historical growth Catchments (GIS) Conversion factors Red = deferred Orange = Being finalised External review Blue = Updated

Future Roadmap

www.hamilton.govt.nz/dcpolicy2018

Questions

Jason Cargo to chair

Hamilton City Council

Development Contribution Policy

Getting ready to make a submission

How to have your say

• Councillors want to hear your views.

By 30 April 2018

• Here are some tips for an effective submission…

Have your say

• Be clear who the submission is from. Does it

represent:

– your individual view, – the view of a wider community group, or – a formal response from an organization?

Who is the submission from?

• Indicate if you support or oppose the

change proposed by Council

• Explain the reasons for your views:
• Why is the change a concern to you
• How will you be impacted?
• If you can, support your reasons with data

and information (noting the source).

What is your position?

• Clearly state what you want to happen:
• Who will be affected by what you want

to happen? (including who pay for will the cost of infrastructure)

• Who wiill benefit from what you want to

happen? (include the wider community impact)

What do you want to happen?

Your elected members read many submissions so to ensure your views get across consider the following:

• Use simple, everyday words.
• Use lists and bullet points.
• If you provide additional information consider:
• The format.
• Clear references to attachments.
• Highlight the main points.

How to make it easy to read?

• If you want to present your key points to Council, you

can do this by ticking the box on the submission form to provide a verbal submission.

• You will have 2 minutes to speak (if an individual) or

6 minutes (if an organisation).

• Elected members may ask you questions.
• Use the time to get across your key points.
• We will contact you with a time slot for the 14, 15 or

16 May 2018.

Making a verbal submission

29 March – 30 April 2018 Formal community consultation

Hamilton.govt.nz/10yearplan

15, 16 (17) May Verbal submissions heard 31 May – 1 June 2018 Council deliberations 28 June 2018 Formal adoption of 10-Year Plan

Next Steps: Consultation and submissions

We want to hear from you… Go to Hamilton.govt.nz/10yearplan to make your submission by 30 April 2018