Local Government (Rating) Act 2002

Amendments, savings, repeals of other enactments, and transitional provisions

Schedule 3A: Lump sum contributions

You could also call this:

"Payments for big local projects, like how much you might need to pay upfront"

Illustration for Local Government (Rating) Act 2002

When a local authority wants to fund a big project, it needs to make a plan. This plan is called a capital project funding plan. You need to know what the project is, when it will start, and how much it will cost. The plan must also say how the project will be paid for, including how much will come from lump sum contributions, targeted rates, and other sources.

The plan must include details about the targeted rates, such as which properties will have to pay them, how much they will have to pay, and for how long. It must also explain how lump sum contributions will be calculated and when they need to be paid. If you make a lump sum contribution, you need to know what will happen if the project costs more or less than expected. The local authority must be satisfied that it has enough money to proceed with the project before it starts.

If you are invited to make a lump sum contribution, you will be told what the project is, how much you need to pay, and when you need to pay it. You will also be told what will happen if you do not make the payment on time. The invitation must include all the important details, such as what targeted rates you would have to pay if you do not make a lump sum contribution, and what will happen if you sell your property or it is subdivided. You can find more information about this in sections ss 117E(1) and 117G(2) of the Local Government (Rating) Act 2002.

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This page was last updated on 10 September 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133541.

Topics:

Government and voting > Local councilsHousing and property > Land use

Schedule 3: Factors that may be used in calculating liability for targeted rates, or

"What affects how much you pay in targeted rates"

Schedule 4: Amendments to Rating Valuations Act 1998, or

"Changes to the Rating Valuations Act 1998: what's new and what's updated"

3ALump sum contributions Empowered by ss 117E(1), 117G(2)

Part 1Matters to be included in capital project funding plan

A capital project funding plan must—

specify the capital project; and

state its proposed start date; and

state—

its total estimated cost; and
the estimated amount to be funded by—
1. lump sum contributions:
2. targeted rates (including targeted rates in relation to any loan or loans if the funding for the project will be or will include a loan or loans):
3. other revenue of the local authority (if any); and

if 1 or more targeted rates are to be set to fund the project, state—

the categories of rating unit to be liable for each rate; and
the estimated total number of rating units liable for each rate; and
how the liability for each targeted rate is to be calculated; and
the circumstances (if any) under which the categories of rating unit to be liable for each rate will change; and
the circumstances (if any) under which the calculation of each targeted rate will change; and

state—

how lump sum contributions will be calculated; and
the proposed timetable for inviting the contributions (including the proposed latest date by which an eligible ratepayer may elect to make a contribution); and
the proposed due date or dates for the contribution payments; and
the targeted rate or targeted rates that a rating unit would be liable for, the estimated amount of those rates, and the estimated number of years for which those rates would be required, if a lump sum contribution was not made in respect of the unit; and
the targeted rate or targeted rates that a rating unit would be liable for even if a lump sum contribution was made in respect of the unit; and

include any matters that the local authority must be satisfied of before it will proceed with either the project or the invitation of lump sum contributions (including any minimum level of contributions required) from its eligible ratepayers; and

state—

the estimated date—
1. of the completion of the project:
2. on which the total costs of the project will be known; and
whether at the date on which the total costs of the project will be known, the lump sum contributions made to the project will be recalculated; and
if so,—
1. what factors would cause a recalculation (for example, a change in the estimated cost of the project or the number of rating units funding the project); and
2. how the recalculation would be made; and
3. how any refunds or further contributions (as the case may be) would be dealt with; and

state the proposed date that the funding plan will expire (which must not be a date that is earlier than the date on which the total costs of the project have been paid).

Part 2Matters to be included in invitation to make lump sum contribution

An invitation must—

specify the capital project that the lump sum contribution will fund or partially fund; and

specify the targeted rate or targeted rates that the rating unit would be liable for, the estimated amount of those rates, and the estimated number of years for which those rates would be required, if a lump sum contribution was not made in respect of the unit; and

state the targeted rate or targeted rates that the rating unit would be liable for even if a lump sum contribution was made in respect of the rating unit; and

state the estimated total amount of the lump sum contribution to be paid and how it will be calculated; and

state whether the local authority will be recalculating the lump sum contribution once the total costs of the project are known and, if so,—

what factors would cause a recalculation (for example, a change in the estimated cost of the project or the number of rating units funding the project); and
how the recalculation would be made; and
how any refunds or further contributions (as the case may be) would be dealt with; and

summarise the consequences for the ratepayer in relation to making a lump sum contribution—

if the rating unit is subdivided:
if the rating unit is sold or the ratepayer otherwise is no longer the ratepayer in respect of the rating unit:
if the number of rating units contributing to the cost of the capital project changed:
if the calculation of any targeted rate applying to the rating unit changed:
if the cost of the capital project changed; and

state the date for payment of a lump sum contribution or, if the payment is to be by instalments, the dates for payment; and

state the consequences for the ratepayer of any late payment of a lump sum contribution; and

state how and the final date by which the ratepayer must elect to make a lump sum contribution; and

specify any other terms applying to the making of a lump sum contribution by the ratepayer.