Local Government Act 2002

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Subpart 3Financial management

100 Balanced budget requirement
  • (1) A local authority must ensure that each year's projected operating revenues are set at a level sufficient to meet that year's projected operating expenses.

    (2) Despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so, having regard to—

    • (a) the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the long-term council community plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

    • (b) the projected revenue available to fund the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

    • (c) the equitable allocation of responsibility for funding the provision and maintenance of assets and facilities throughout their useful life; and

    • (d) the funding and financial policies adopted under section 102.