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Local Government Act 2002

Planning, decision-making, and accountability - Financial management

103: Revenue and financing policy

You could also call this:

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

When your local council makes a policy about money, they need to explain how they will pay for things. This policy must say how they will pay for everyday expenses and big projects.

The council can use different ways to get money. These include:

  • General rates, which can be based on property values and may be different for different types of properties
  • Targeted rates for specific things
  • One-time payments from people
  • Fees and charges for services
  • Money earned from investments
  • Borrowing money
  • Selling things the council owns
  • Contributions from new developments
  • Contributions under the Resource Management Act 1991
  • Grants and help from other places
  • Any other way they can think of

The council needs to show that they have thought carefully about these different ways of getting money, as required by section 101(3).

If the council changes this policy, they only need to have the big changes checked by an outside expert. This checking is done as described in sections 93D(4) and 94.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172360.

Topics:
Government and voting > Local councils
Money and consumer rights > Taxes
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102: Funding and financial policies, or

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

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104: Liability management policy, or

“A plan for how your local council borrows and manages money”

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

103Revenue and financing policy

  1. A policy adopted under section 102(1) must state—

  2. the local authority's policies in respect of the funding of operating expenses from the sources listed in subsection (2); and
    1. the local authority's policies in respect of the funding of capital expenditure from the sources listed in subsection (2).

      1. The sources referred to in subsection (1) are as follows:

      2. general rates, including—
        1. choice of valuation system; and
          1. differential rating; and
            1. uniform annual general charges:
            2. targeted rates:
              1. lump sum contributions:
                1. fees and charges:
                  1. interest and dividends from investments:
                    1. borrowing:
                      1. proceeds from asset sales:
                        1. development contributions:
                          1. financial contributions under the Resource Management Act 1991:
                            1. grants and subsidies:
                                1. any other source.

                                  1. A policy adopted under section 102(1) must also show how the local authority has, in relation to the sources of funding identified in the policy, complied with section 101(3).

                                  2. If a local authority amends its revenue and financing policy under section 93(4), only a significant amendment to the policy is required to be audited in accordance with sections 93D(4) and 94.

                                  Compare
                                  Notes
                                  • Section 103(1): amended, on , by section 20(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                  • Section 103(2)(ba): inserted, on , by section 15(4) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).
                                  • Section 103(2)(h): replaced, 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 103(2)(ia): repealed, on , by section 10 of the Land Transport Management (Repeal of Regional Fuel Tax) Amendment Act 2024 (2024 No 9).
                                  • Section 103(3): amended, on , by section 20(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                  • Section 103(4): added, on , by section 20(3) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                  • Section 103(4): amended, on , by section 75 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).