TCC has started work on the 2025/26 Development Contributions Policy
Citywide DC's, which are assessed at the time building consent is lodged, are likely to increase from 1 July 2025.
We will be in a position to indicate the potential increase late in 2024 and to undertake public consultation early next year.
Key changes proposed for 2025/26
New catchments in the western corridor
TCC is looking to create new local DC catchments to fund infrastructure for residential development at Tauriko West and Ohauiti and industrial development in stage 4 of the Tauriko Business Estate.
Start collecting for new waters assets
Some waters assets are reaching capacity and so will not support new growth in the future. We intend to stop collecting DCs towards these assets and start collecting for new water supply and wastewater assets. These new assets are generally more expensive than the ones we will stop collecting for, which results in an increase in fees.
Updates to reflect changes in TCC's plans
TCC staff have started work on TCC's next planning cycle. This is likely to involve changes to cost estimates and timing of delivery in certain assets. It is too early at this stage to understand the scale of impact on DCs but we expect to know more towards the end of this year.
Development contributions play a large part in paying for the growth of our city by helping to fund the infrastructure required in new urban growth areas and across the existing parts of the city.
Development contributions are fees payable to council when you develop. For example, a development contribution may be payable if you:
- subdivide a property
- build, alter or expand a residential or non-residential building
- change the use of an existing building
- relocate a building to a new site
- connect to council’s water and/or wastewater networks.
Tauranga City Council charges two types of development contributions (DCs): local DCs and citywide DCs. Most developments will pay both fees, but they will often be charged at different stages of the development.
Local Development Contributions fund the infrastructure that services the area/catchment in which the development is taking place. For example, the smaller water pipes in your local suburb or the local neighbourhood playgrounds. As a result, the fees vary depending on the location of the development.
Local DCs are higher in the newer growth areas as much more infrastructure needs to be built before development can happen. This fee is usually payable on a resource consent for subdivision or land use – but may also be charged on a building consent and service connection if it has not been charged prior.
Citywide development contributions pay for the large infrastructure networks that service the entire city, like wastewater treatment plants and large trunk mains.
Citywide fees vary depending on the type of development but not with the location. The fee is usually payable on building consents or service connections – but may also be charged on a resource consent for land use.