Head of Advocacy Katherine Wilson introduces Property Council’s wins amid reviewing council Long Term Plan decisions against our recommendations.
Auckland Council Long Term Plan 2024-2034 Decisions
Property Council recommendation
Auckland Council Decision
Outcome
Adopt the ‘Central Proposal’ with the exception of considering further investment in public transport.
Adopted the ‘Central Proposal.’
Win.
Invest more into transport.
A $70m increase in operating funding for Auckland Transport.
A $600m increase in public transport.
Win.
Keep or pause the long term differential strategy and reassess in later years.
Discontinue the long term differential strategy.
Loss (or partial win when considering the differential is not increased).
Do not increase the differential on targeted rates.
Hold the business differential at the current level of 31% each year, and update the Revenue and Finance Strategy to reflect this.
Win (or partial win when considering that LTDS is removed).
Explore alternative funding and financing options for water infrastructure.
Anticipate legislative change for balance sheet separation for Watercare by 1 July 2025 which will enable Watercare to maintain its capital programme while keeping its price increases at 7.2% for the next three years.
Set water quality stormwater targeted rates.
Partial win (noting that a business differential of 31% applies for the targeted rates).
Allocate appropriate funding to improve resourcing and processes within the consenting team, in order to meet expected increases in consenting volumes.
N/A
Not applicable in LTP.
Hamilton City Council Long Term Plan 2024-2034 and Development Contributions Policy Decisions
Property Council recommendation (LTP)
Hamilton City Council Decision
Outcome
Supported Hamilton Central Business Association’s initial request to expand the Business Improvement District.
Do not expand the Business Improvement District as Hamilton Central Business Association opted not to continue with a Poll to extend the boundary during this time.
N/A – motion was pulled by Business Improvement District.
Retail the existing two hours of free parking in the central city. (Hamilton City Council proposed removal entirely).
Ended the two-hour free trail from 31 July 2024. However, introduced a one-hour free parking from 1 August 2024.
Win.
Property Council recommendation (DCs)
Hamilton City Council Decision
Outcome
Pause the Development Contributions Policy and review Hamilton City Council’s Schedule of Assets with the private sector.
No decision to revise.
Partial loss as will phase in over a three year period (as per below).
Phase in any changes to development contributions over a three-year period.
Phase all development contribution charges over three years.
Partial win.
Concern about costs in Peacocke.
Cap the increase in all Peacocke residential charges at 50% of the difference between the current 2023/24 charges and the base 2024/25 charges.
Win.
Concern about costs in Rotokauri.
Cap Residential Rotokauri Stage 1 at same rate as the Peacocke Stage 2 (Mangakotukutuku) charge at 50% of the difference between the current 2023/24 charges and the base 2024/25 charges.
Win.
Adopts a 50 percent remission for all eligible developments in the central city (until 30 June 2027).
Extend the central city remission for a further three years to 30 June 2027 but increase the remission percentage from 33% to 50%.
Win.
Extends the 100 percent central city remission for all eligible developments of six or more stories (until 30 June 2027).
N/A
Loss.
Specifies the trigger for development contribution payments, rather than leave it to Council discretion on when to levy.
Amend section 11 “Stages at which development contributions may be required” such that development contributions will be required upon the first available milestone, which is typically the granting of a resource consent, except for:
- subdivisions in excess of 500 lots, or non-residential developments in excess gross floor area of 20,000m2 , in which case the milestone will be the grant of building consent; and
- the granting of a land use resource consent where a building consent will be lodged in the future, in which case the milestone will be the grant of building consent
Win.
Retain non-residential capped charges.
Amend the non-residential charge caps criteria to lower the cap levels by $10,000, to $40,000 for commercial development and $50,000 for retail development (excl. GST), per 100m2 of gross floor area.
Win.
Adopt a standardised stormwater charge of one Household Unit Equivalent.
Amend the calculation basis for residential stormwater development contribution charges for one-bedroom dwellings to be 0.5 Household Unit Equivalents (HUEs), with all other dwellings sizes remaining at 1 HUE per dwelling.
Win.
Tauranga City Council Long Term Plan 2024-2034 Decision
Property Council recommendation
Tauranga City Council Decision
Outcome
Does not introduce a separate industrial property rating category, instead retaining the status quo (Option 2).
Introduced a rating differential of 2.6. Note: Council’s split of rating is 20% industrial, 15% commercial and 65% residential.
Loss.
Commence a staged reduction of the business differential until either removed or reduced to an equitable level over the next three long-term plans (nine years) and replace it with alternative funding mechanisms that are fairer and more equitable.
No recommendation was sought.
Loss.
Adopts their preferred community stadium, ‘Option 1: Staged implementation’.
Adopted a staged implementation.
Win.
Adopts ‘Option 2: No targeted rate and continue with the assumption that Te Tumu will be developed and that costs will be recovered through development contributions (status quo) and explores the future implementation of a localised targeted rate or IFF levy, to supplement development contributions.
Established three new targeted rates titled Urban Growth Targeted Rate. The rates are split as follows:
- A Citywide charge across ratepayers within TCC that are not in the Full Benefit area or Wider Benefit area; and
- A charge across all ratepayers within the Wider Benefit area equal to double the Citywide charge; and
- A charge across all ratepayers in the Full Benefit area equal to tripe the Citywide charge.
Loss.
Enact development contribution incentives for the city centre and closely align with the framework that has been implemented in Hamilton CBD.
Maintained the status quo.
Loss.
Adopt ‘Option 1 Investigate ‘SmartTrip’ through a business case investigation’ and engages with the property sector to ensure effective implementation plans.
Not to proceed with a full business case for road pricing at this stage.
Loss.
Wellington City Council Long Term Plan 2024-2034 Decision
Property Council recommendation
Wellington City Council Decision
Outcome
Reduce the business differential from 3.7:1 to 3.2:1 and commence a staged reduction of the business differential until either removed or reduced to an equitable level over the next three annual plans (nine years) and replaced with alternative funding mechanisms that are fairer and more equitable.
Kept business differential at 3.7.
Loss.
Investigate city and regional deals as an alternative source of funding.
We understand this is occurring behind-the-scenes outside of the Long Term Plan process.
Win.
Reject the introduction of a vacant site differential.
Introduced a vacant site differential at 5.0.
Loss.
Wait until the new central library has opened before closing Arapaki Service Centre and Temporary Library.
Closing the Service Centre and temporary library 18 months earlier than planned.
Loss.
Introduce a remission of general rates for owners of earthquake-prone buildings that undertake strengthening work.
Provide the sector with more detail regarding the eligibility criteria for the proposed remission of general rates for earthquake-prone buildings.
Introduced a remission, conditions and criteria.
Win.
Christchurch City Council Long Term Plan 2024-2034 Decision
Property Council recommendation
Christchurch City Council Decision
Outcome
Expressed concern regarding the rates increase for businesses.
An average business rates increase of 10.90%, which equates to an extra $1,775 a year, or $34.14 a week. This is lower than the 14.2% increase proposed in the Draft LTP.
Win.
Commissions an independent report to analyse the rating differential and its economic impact.
N/A
Loss.
Discontinue the vacant site differential and not extend this to the commercially zoned areas of New Brighton, Sydenham and Commercial Banks in Linwood Village.
Adopted.
Loss.
Outline information relating to the impacts of the vacant site differential since its implementation.
N/A
Loss.
Create a Climate Resilience Fund.
Councillors agreed to establish a Climate Resilience Fund to manage future changes to Council assets.
Win.
Accelerate adaption planning by bringing forward an additional $1.8 million annually to 2024/2025.
This has been brought forward.
Win.
Author | Katherine Wilson
As Property Council’s Head of Advocacy, Katherine is tasked with leading our advocacy campaigns at both a regional and national level.
Level-headed and engaging, Katherine has both a law degree from Otago University and an arts degree (majoring in politics) from Auckland University. With solid experience as a policy analyst and advisor in Wellington and Auckland, she has extensive networks and solid analytical skills.
Katherine is hugely dedicated, highly intelligent and committed to ensuring the voice of our members is heard at all levels of governance. She’s also relentlessly positive and enjoys a good chat.
