If you are a territorial authority that has given a water organisation the power to charge for water services, then a certain rule does not apply to you. This rule is found in section 21 of the Local Government (Rating) Act 2002. This means you do not have to follow the limit on revenue from rates for a certain period of time. You do not have to follow this rule until the end of the fifth financial year after the transfer takes effect. This gives you time to adjust to the new arrangement with the water organisation.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1446489.
Section 21 of the Local Government (Rating) Act 2002 does not apply to a territorial authority that has transferred the power to charge for providing water services to a water organisation.
Subsection (1) applies until the end of the fifth financial year after the financial year in which the transfer takes effect.
