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Review of changes to council development contributions policies in four high-growth areas

Insight Economics Review of changes to council development contributions policies cover v2
Author

Insight Economics Review

Date published

6 August 2019

This report was prepared to assist the Productivity Commission with its inquiry into local government funding and finance. This report reviews changes to the development contributions (DC) policies of four high-growth councils following the Local Government Act amendments in 2014. The areas studied are Auckland, Hamilton, Queenstown, and Tauranga.

This report also briefly analyses how the DC revenues of these four areas tracked over time, particularly in relation to total operating incomes and key measures of growth, such as population changes and building consents. Finally, this report contrasts and compares DCs with infrastructure growth charges (IGCs), which are levied in Auckland by Watercare in lieu of DCs for water and wastewater.


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