Local Government Act 2002

Sections 102 and 106 of the Local Government Act 2002 (LGA2002) require local authorities to adopt funding and financial policies in their long-term community council plan (LTCCP), including those for taking development contributions or financial contributions.

Sections 198-206 of the LGA2002 outline the process for taking development contributions and how they should be set out in policy in the LTCCP.

Section 199(1)(a) recognises reserves as one of three areas where development contributions can be taken. The use of development contributions for reserve purposes is outlined under s204 and s205 of LGA2002, including the ability to purchase land or an interest in land, or the use of payment to be used to purchase land or an interest in land.

See the Conditions of a resource consent note for further details on how financial contributions work under the RMA. The differences between financial contributions under the RMA and development contributions under the LGA2002 are outlined in the Relationship between the Local Government Act and the RMA, and in the research report Review of financial contributions and Development contributions.

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