The contributions policy was put in place between 2004 and 2009 to cover the costs of developments on capital works otherwise funded by rates, such as wastewater and water supplies.
They were calculated based on where growth had occurred or was expected to occur and were set at the total cost of the effects of that growth for the Vincent, Cromwell and Maniototo wards and at 50% for the Roxburgh ward.
The Roxburgh Community Board opted to set the rate at 50% in the hope it would stimulate development in the ward.
Last week, Maniototo Community Board members said the contributions were hampering growth. There had been no development in the past three years from which contributions had been received anyway, so asked if it could reduce the rate to attract development.
Central Otago District Council infrastructure services manager Murray Washington said the figures were calculated on expected development in the Maniototo and any reduction in the contributions would be reflected in revenue and need to be compensated for by rates.
The Cromwell Community Board recently opted to keep proposed development contributions in that ward at 100% of the cost.
"It effectively puts a tax on developers and inhibits development in the region but if we don't, then ratepayers will need to pay [for it]," board chairman Neil Gillespie said.
Vincent Community Board members considered the economic climate was difficult for developers and reduced the Alexandra and Omakau water and wastewater contributions to 75% of the cost, while leaving the Clyde contributions at 100%.
Mr Washington said the change would not have an immediate impact on ratepayers but at some point the council would need to recover the money and so "over the length of a 10-year period, it will have an effect".
The council recently set the rate for business roading contributions at 60%. Residential roading contributions will remain at 100%.
The new contribution rates will be tabled at a council meeting this week and will then be included in the council's draft 2012-22 long-term plan which will go out for public consultation this month.
The contribution rate is set for three years. The boards have the opportunity to review the contributions every year.
