Revenue and Financing Policy
The Local Government Act 2002 (“LGA2002”) requires Council to adopt a Revenue and Financing Policy (S102)
that must:
- state Council’s policies in respect of funding both operating expenses and capital expenditure from the sources available to it (S103(1)); and
- how that Council has determined its overall funding needs by identifying the most appropriate source(s) of funds to be used for each activity (S101(3)).
In accordance with the Local Government Act 2002 S101(3) Council considers the following when determining which funding source is appropriate for each activity (see Appendix 1):
- The community outcomes to which the activity primarily contributes; and
- The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; and
- The period in or over which those benefits are expected to occur; and
- The extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and
- The costs and benefits, including consequences for transparency.
Council has also considered the principles set out in the preamble to Te Ture Whenua Māori Act 1993 in the
development and review of this policy. These principles include recognition that land is tuku iho of special
significance to Māori people, the promotion of the retention of Māori land, protection of wahi tapu and
facilitating the use and development of the land for the benefit of the owners. Council achieves this
primarily through its Rates Remission for Māori Freehold Land Policy, Rates Postponement Policy and Rates
Remission Policy.
Council also consider 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. This includes
consideration of matters such as affordability and predictability of rates.
These considerations will sometimes have conflicting outcomes. When Council applies these principles to
identify the appropriate funding for its activities it considers the overall impact on the Community.
