2.4.6 Funding

 

1. The council has a range of funding sources for capital and operating expenditure. Rates are the most well-known source, however, rating makes up less than half of the council’s income. Other funding sources include:

   • grants and subsidies, including government subsidies

   • development or financial contributions

   • targeted rates

   • CCO profits and net rental and interest/dividends from investments

   • borrowing (loans and bonds)

   • fees and charges

   • trusts, bequests and other reserve funds

   • surpluses

   • other funding sources

2. The full range of funding sources, and how the council applies these to fund particular council activities, is set out in the council’s revenue and financial policy. 

3. The council is required to make sure that each year operating revenues are set at a level sufficient to meet that year’s projected operating expenses. This is called the “balanced budget” requirement. Each year the council adopts an annual plan setting out the revenues and expenses. There can be circumstances when the council can set revenues at a different level to its expenses, provided that it is still financially prudent to do so.

4. Each year, by 30 June, the council adopts an annual plan setting out the council budget for the next financial year (starting from 1 July), and summarising the expected revenue and expenses. The council then sets any rates for that financial year. The current annual plan is available here.

 

 

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