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Local Government Act 2002

Planning, decision-making, and accountability - Financial management

102: Funding and financial policies

You could also call this:

“Rules for planning how local areas collect and spend money”

When you’re in charge of a local area, you need to make sure everyone knows how money will be collected and spent. To do this, you must create and approve several important money-related plans. These plans help people understand where the money comes from and how it will be used.

You must have plans for how you’ll get money and spend it, how you’ll handle any money you owe, how you’ll invest money, how you’ll collect money for new building projects, and how you’ll deal with taxes on Māori land. If you’re in charge of a larger area with smaller local boards, you also need a plan for how those boards will get their money.

You can also choose to have plans about giving people breaks on their taxes or letting them pay taxes later if they need to.

When you make these plans, you need to think about what’s best for Māori land, as mentioned in the Preamble to Te Ture Whenua Maori Act 1993.

Before you approve these plans or make any changes to them, you need to ask people what they think. You do this by following the rules in section 82. However, you don’t need to ask people about the plans for handling money you owe or investing money.

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 It might be out of date or be missing some parts.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=DLM172359.

Topics:
Government and voting > Local councils
Money and consumer rights > Taxes
Māori affairs > Māori land
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“A plan for taking care of important town services for a long time”

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103: Revenue and financing policy, or

“How your local council plans to get and spend money”

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

102Funding and financial policies

  1. A local authority must, in order to provide predictability and certainty about sources and levels of funding, adopt the funding and financial policies listed in subsection (2).

  2. The policies are—

  3. a revenue and financing policy; and
    1. a liability management policy; and
      1. an investment policy; and
        1. a policy on development contributions or financial contributions; and
          1. a policy on the remission and postponement of rates on Māori freehold land; and
            1. in the case of a unitary authority for a district that includes 1 or more local board areas, a local boards funding policy.

              1. A local authority may adopt either or both of the following policies:

              2. a rates remission policy:
                1. a rates postponement policy.

                  1. The following policies must also support the principles set out in the Preamble to Te Ture Whenua Maori Act 1993:

                  2. the revenue and financing policy, the policy on development contributions or financial contributions, and the policy on the remission and postponement of rates on Māori freehold land adopted under subsection (1):
                    1. any rates remission policy or rates postponement policy adopted under subsection (3).

                      1. A local authority—

                      2. must consult on a draft policy in a manner that gives effect to the requirements of section 82 before adopting a policy under this section:
                        1. may amend a policy adopted under this section at any time after consulting on the proposed amendments in a manner that gives effect to the requirements of section 82.

                          1. However, subsection (4) does not apply to—

                          2. a liability management policy:
                            1. an investment policy.

                              Notes
                              • Section 102: substituted, on , by section 19 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                              • Section 102(2)(d): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
                              • Section 102(2)(e): amended, on , by section 37(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                              • Section 102(2)(f): inserted, on , by section 37(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                              • Section 102(3A): inserted, on , by section 77 of the Local Government (Rating of Whenua Māori) Amendment Act 2021 (2021 No 12).
                              • Section 102(3A)(a): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
                              • Section 102(4): replaced, on , by section 37(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).