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Local Government Act 2002

Governance and management of local authorities and community boards - Local boards - Local boards funding policy

48M: Local boards funding policy

You could also call this:

“Rules for deciding how much money local boards get”

A unitary authority must create a local boards funding policy as part of its long-term plan. This policy helps make sure local boards know how much money they will get.

The policy needs to explain how the authority will decide the total amount of money for all local activities in the district. It also needs to show how this money will be split between different local boards. The policy must include a way to divide up money for administrative support to local boards.

The policy should mention any other money that might be available for local boards to use for local activities. It should explain how local boards can get this money.

When deciding how to share out the money, the authority needs to be fair. They should think about things like:

  • How much each area needs local government services
  • How much it costs to provide services in each area
  • How much money each area brings in through rates and other income
  • Any other important factors that affect what services are needed in different areas

When sharing out money for administrative support, the authority should consider:

  • How many elected members are on each local board
  • How big each local board area is
  • Any other things that affect how much it costs to run the local board
  • How much money the local board is getting for local activities

If the authority makes big changes to this policy, these changes need to be checked by an auditor.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6236197.

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“Rules for deciding who makes decisions in a local area”

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“Plans made by local boards to show what the community wants for the next three years”

Part 4 Governance and management of local authorities and community boards
Local boards: Local boards funding policy

48MLocal boards funding policy

  1. To provide for predictability and certainty about levels of funding for local boards, a unitary authority must adopt a local boards funding policy as part of its long-term plan.

  2. The local boards funding policy must set—

  3. the basis on which the total funds to be allocated to meet the cost of all local activities within the district is to be determined; and
    1. the formula by which the total funds allocated by the unitary authority for meeting the cost of funding local activities are to be allocated to each local board; and
      1. the formula by which the total funds allocated by the unitary authority for meeting the cost of funding the administrative support to local boards are to be allocated to each local board.

        1. The local boards funding policy must also identify any funding (except funding dedicated to particular purposes) that may be available to local boards for local activities and the criteria or process by which it may be allocated to them.

        2. The formula referred to in subsection (2)(b) must allocate funds to each local board in a way that provides an equitable capacity for the local board to enhance the well-being of the communities in its local board area, having regard to the following factors:

        3. the level of dependence on local government services and facilities in each local board area and in other parts of the district (as informed by information available to the unitary authority by reasonable means, and relating to the socio-economic, population, age profile, and other demographic characteristics of each local board area and other part of the district); and
          1. the costs of achieving and maintaining the identified levels of service provision for local activities in each local board area; and
            1. the rates revenue and any other revenue derived from each local board area in relation to local activities; and
              1. any other factor identified by the unitary authority as significantly affecting the nature and level of services needed in any local board area or any other part of the district (for example, the geographic isolation of a particular local board area or part of the district).

                1. The formula referred to in subsection (2)(c) must allocate funds to each local board in a way that provides equitable resources and support to that local board, having regard to the following factors:

                2. the number of elected members on the local board; and
                  1. the size of the local board area; and
                    1. any other factor identified by the unitary authority as significantly affecting the operational costs of the local board; and
                      1. the funding amount allocated to the local board under subsection (4).

                        1. If the unitary authority amends its local boards funding 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.

                        Notes
                        • Section 48M: inserted, on , by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).