Consultation outcome

Background

Hamilton Kirikiriroa is one of New Zealand’s fastest growing cities, and as growth continues it places increasing pressure on natural resources, particularly the health of the Waikato River. Financial contributions (FCs) are a one-off charge on new residential development, enabled through the District Plan, and are designed to offset the environmental impacts of growth. Unlike development contributions, which fund infrastructure such as roads and parks, FCs specifically support initiatives that protect and restore the river and its catchment. A Financial Contributions Policy is required before Council can collect these charges and helps give effect to obligations under Te Ture Whaimana o Te Awa o Waikato. The proposed policy would apply to most residential development, with charges scaled based on dwelling size using a projected unit of demand method. Funds collected would support projects such as riparian planting, wetland restoration, erosion control, cultural site protection, and improving public access and education, helping ensure the river’s health as the city grows.

What we heard from the community

We received 26 responses during our public consultation on the draft Financial Contributions Policy. Twelve respondents agreed the draft Policy clearly explains how financial contribution provisions will be applied, while 11 respondents disagreed. The draft Policy uses the number of bedrooms as an indicator to determine the size of a house for setting financial contribution charges. Sixteen respondents agreed the Policy’s definition of a bedroom was appropriate for this purpose, and seven disagreed.

Read our insights on your feedback within the Agenda report, pages 51-69.

We asked

Hamilton Kirikiriroa is one of New Zealand’s fastest growing cities. As our city expands, growth can put pressure on the natural resources we all rely on - including the health of the Waikato River.

Our Financial Contributions Policy would help fund projects to protect and restore the Waikato River as Hamilton grows. We want your feedback.

What are financial contributions?

Financial contributions are a one-off charge on new development enabled through Hamilton’s Operative District Plan. They are used to offset environmental effects of growth, mainly by supporting work that protects and improves the health of the Waikato River. They are different and distinct from development contributions, which fund growth-related infrastructure like roads, pipes and parks.

Financial contributions were enabled in Hamilton’s District Plan in December 2024. However, a Financial Contributions Policy is required before Council can collect them. The policy helps Hamilton give effect to our obligations under Te Ture Whaimana o Te Awa o Waikato, the Vision and Strategy for the Waikato River.

The policy would apply to most residential development in Hamilton. The financial contributions charge uses a "Projected Unit of Demand" (PUD) method that scales with the number of bedrooms.

Indicative base charge (exclusive of GST and annual inflation adjustments): $994.40 per PUD.

Dwelling type PUD factor Example charge (excl. GST)
One bedroom or studio unit 0.33 $328.15
Two bedrooms 0.66 $656.30
Three bedrooms or more, or new vacant lot 1.00 $994.40

Funding would go towards projects that improve the river and its catchment. Examples include riparian planting, wetland restoration, erosion control, weed and pest management, better public access to the river and tributaries, cultural site protection, and education about the river. Council will only allocate funds to projects once financial contributions are collected. Based on forecast development activity, the policy could collect around $850,000 to $1.1 million each year.