101Financial management

1. A local authority must manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.

2. A local authority must make adequate and effective provision in its long-term plan and in its annual plan (where applicable) to meet the expenditure needs of the local authority identified in that long-term plan and annual plan.

3. The funding needs of the local authority must be met from those sources that the local authority determines to be appropriate, following consideration of,—

4. in relation to each activity to be funded,—
   1. the community outcomes to which the activity primarily contributes; and
   2. the distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; and
   3. the period in or over which those benefits are expected to occur; and
   4. the extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and
   5. the costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities; and
5. the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental, and cultural well-being of the community.

Compare

• 1974 No 66 s 122C(1)(a)–(c), (f)

Notes

• Section 101(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
• Section 101(3)(b): replaced, on 14 May 2019, by section 8 of the Local Government (Community Well-being) Amendment Act 2019 (2019 No 17).