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Local Government (Rating) Act 2002

Lump sum contributions

117B: Local authority may fund capital project by lump sum contributions

You could also call this:

"Councils can fund big projects using one-off payments from ratepayers."

Illustration for Local Government (Rating) Act 2002

A local authority can fund a big project by getting lump sum contributions from its ratepayers. This can be for the whole project or just part of it. The local authority must have a plan for funding the project, which starts at the beginning of a financial year and includes certain matters required under section 117E(1).

The funding plan must be part of the local authority's annual plan or long-term plan. When making a funding plan, the local authority must consider the financial interests of all ratepayers equally, whether they choose to make a lump sum contribution or not.

The local authority's decision to fund a project this way is also subject to section 117C.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133131.

Topics:
Government and voting > Local councilsHousing and property > Land use
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117A: Interpretation, or

"What special words mean in this part of the law"

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117C: Requirement to pay lump sum contribution must not be imposed on ratepayers, or

"Councils can't force you to pay a lump sum for big projects unless you agree to it."

Part 4ALump sum contributions

117BLocal authority may fund capital project by lump sum contributions

  1. A local authority may fund, or partially fund, a capital project by lump sum contributions from its ratepayers.

  2. Subsection (1) applies if, and only if, the local authority has adopted a capital project funding plan for the capital project.

  3. A funding plan must—

  4. commence at the start of a financial year; and
    1. contain the matters required under section 117E(1); and
      1. be adopted as part of the local authority’s—
        1. annual plan; or
          1. long-term plan (or as an amendment to its long-term plan).

          2. In developing a funding plan, a local authority must give equal weight to the financial interests of those ratepayers who may elect to make a lump sum contribution and those who may decide not to do so.

          3. This section is subject to section 117C.

          Notes
          • Section 117B: inserted, on , by section 10 of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
          • Section 117B(3)(c)(ii): amended, on , by section 50 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).