Local Government Act 2002

Planning, decision-making, and accountability - Financial management

100: Balanced budget requirement

You could also call this:

“Make sure you have enough money coming in to cover what you plan to spend”

You need to make sure that the money you plan to get each year is enough to cover all the things you plan to spend money on that year. This is called having a balanced budget.

Sometimes, you might decide it’s okay to not have a balanced budget. You can do this if you think it’s a smart money decision. When you make this decision, you need to think about a few things:

  1. How much it will cost to do all the things you promised to do in your long-term plan, including taking care of your stuff so it lasts a long time.

  2. How much money you think you’ll have to pay for taking care of your stuff.

  3. Making sure everyone pays their fair share for the things you own and use.

  4. The rules you made about money in section 102.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172357.

Topics:
Government and voting > Local councils
Money and consumer rights > Taxes

Previous

99A: Pre-election report, or

“A report explaining important local council issues before an election”


Next

101: Financial management, or

“Rules for councils on how to handle money wisely for the community's benefit”

Part 6 Planning, decision-making, and accountability
Financial management

100Balanced budget requirement

  1. A local authority must ensure that each year's projected operating revenues are set at a level sufficient to meet that year's projected operating expenses.

  2. Despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so, having regard to—

  3. the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the long-term plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and
    1. the projected revenue available to fund the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and
      1. the equitable allocation of responsibility for funding the provision and maintenance of assets and facilities throughout their useful life; and
        1. the funding and financial policies adopted under section 102.
          Notes
          • Section 100(2)(a): amended, on , by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).