Mercury Bay Development Contributions

The inclusion of reclamation work at Dundas St as part of the Mercury Bay Destination Boat Ramp Project in our Long Term Plan (LTP) means we're changing our Development Contributions levy, which will directly affect the Mercury Bay catchment.

 "The changes that we're looking at in Development Contributions levy will only affect anyone doing residential development in the Mercury Bay," says Council's Chief Financial Officer Steve Baker.

During the 2015-25 Long Term Plan consultation hearings it was decided that the Dundas Street Reclamation Project, which will provide approximately 120 trailer-boat parks and facilities, would be reprioritised back into the 10-year infrastructure program.

The Dundas St Project is growth related  Initial planning work on the Dundas St Reclamation Project has been scheduled to start in Y9 (2023-2024)  of the LTP.

 Meanwhile existing boat ramps around the Mercury Bay area are adequate to service the existing population while Kuaotunu, Matarangi, Purangi Road and Robinson Road boat ramps are being upgraded to cater for existing users.


How the Dundas St Reclamation Project will affect Reserve and Development Contributions for Mercury Bay.

In our draft 2015-25 (LTP) the policy in relation to Reserve Contributions was changed, moving away from a levy-based calculation methodology (based on the value of a property), to an equal contribution toward planned expenditure.  

This gives developers a high level of certainty as to what their contribution liability will be, on application for consent and also aligned Reserve Contributions with the remaining Development Contributions, giving greater certainty as to what the contribution was being levied for.

Following this change in policy, our draft Development Contributions Policy was published for public consultation as part of the LTP. In this we proposed no reserves would be shown in the Development Contributions schedule of assets to be funded over the next 10 years, meaning that  Development Reserve Contribution was proposed to be $0 per unit of demand.

During submissions to the LTP Hearings, submitters raised concerns that the development and constructions works on the proposed Dundas Street Reclamation Project and associated Mercury Bay Destination Boat Ramp development wouldn't start within the next 10 years as the existing boat ramps are likely to reach full capacity before the end of the 2025, due to anticipated growth in this area.

So through the LTP deliberations, it was proposed bringing the Destination Boat Ramp Project forward in the infrastructure programme, which was approved by Council in June 2015.


Next steps.

 Currently, we're proposing that this project is funded by Community Area Reserve Contributions in the Mercury Bay catchment.

Due to the cost of the project and the lateness that it was introduced to the LTP, we now need your feedback on the three options being proposed:

OPTION ONE - Fund the project through Community Area Reserve Contributions in the Mercury Bay Catchment.

Advantages       

  • Ensures that the project is funded by those that derive the most benefit from it.
  • Is limited to a particular catchment to ensure only those who are geographically likely to use the facilities will be levied for them

Disadvantages  

  • Increases the total development contribution levy in the Mercury  Bay catchment which may be seen as a deterrent to developers.             .

OPTION TWO - Fund the project through loans and thereby depreciation and interest paid by the Mercury Bay ratepayer.

Advantages       

  • None identified                .                              

Disadvantages  

  • There is no real benefit to the existing ratepayer in developing the new boat ramp as existing facilities have not reached full capacity.
  • Those that obtain most benefit from the ramp may not be those that pay for its creation.

OPTION 3 -  Fund the project through lump sum contributions.      

Advantages       

  • Funds are collected quickly without ongoing administration costs
  • Depending on timing, may enable some growth related recovery due to new residents being caught up in contribution.

Disadvantages  

  •  There is no real benefit to the existing ratepayer in developing the new boat ramp as existing facilities have not reached full capacity.
  • Does not recognise the fact that the key driver for the project is increased development in the area.
  • hose that obtain most benefit from the ramp may not be those that pay for its creation.           


Practical impact of increase of development contributions levy

There are two Schedules of development Contributions payable showing the Development Contributions as it currently stands with the second showing the impact of the increase in the Development Reserve Contribution for year 1 of the LTP.

You can find these to download on the right-hand side of this page.

Should you require additional years, please contact the writer and these will be made available to you.


Your Feedback

If you are able to provide your feedback to us in writing no later than 5pm Friday the 17th July 2015. Submissions can be e-mailed to Steve.Baker@tcdc.govt.nz  or posted to The Chief Financial Officer, C\- Thames-Coromandel District Council, Private Bag, Thames 3540