5.2.3 Rates and funding
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How the council is funded
The council’s activities are funded through rates, fees, charges, investments and debt. Auckland Council’s financial strategy and the revenue and financing policy set out the full range of funding sources. The governing body is responsible for adopting these policies. For further information on how the council is funded, see Local Government Funding on The Department of Internal Affairs website.
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Types of rates
Auckland Council currently uses capital value to determine rates (see also Rates and Valuations on the Auckland Council website). It may set uniform rates (the same across all rateable land) or differential rates (vary according to the category of the rateable land) [1]. The council may also set a uniform annual general charge (a fixed amount per rateable unit) [2] and targeted rates (charges for particular groups who may benefit from a specific council activity) [3]. -
Setting rates
Rates are set each financial year by resolution at a governing body meeting, in accordance with the long-term plan and funding impact statement. For further information see Section 10.6.1: Decision-making on annual plans, long-term plans and rates [4]. The governing body may also set rates that are not in accordance with the long-term plan and funding impact statement, if revenue is urgently needed for unforeseen circumstances and cannot be met by other means. In such instances, the council needs to notify the public of its intention at least 14 days prior to setting the rate, including an explanation for the urgency [5].