Revenue and Financing Policy Revenue and Financing Policy 1. The Revenue and Financing Policy provides a summary of Council’s funding • The distribution of benefits between the community as a whole, any policies in respect of both operating expenses and capital expenditures. identifiable part of the community, and individuals; and Council reviews its funding policy at least every three years. The last review was completed prior to the initiation of the 2018-28 Long Term Plan (LTP), and • The period in or over which those benefits are expected to occur; and changes adopted are detailed in paragraph 12. The extent to which the actions or inaction of particular individuals or a • group contribute to the need to undertake the activity; and 2. Sources of funds available to Council are as follows: • The costs and benefits, including consequences, for transparency and General rates. accountability, of funding the activity distinctly from other activities; and • Targeted rates. • The overall impact of any allocation of liability for revenue needs on the • current and future social, economic, environmental, and cultural well- • Lump sum contributions. being of the community. • Fees and charges. 5. Prior to determining the “Residual amount to be funded by General-type Rates”, • Interest and dividends from investments. Council identified all other funding sources appropriate to each activity. These other sources, and the approach taken by Council are listed in the paragraph 9 • Borrowing. table, which highlights the funding sources for every Council activity and any Proceeds from asset sales. sub-activity which may exist. The table shows the rating tools which Council • has determined to be fair and equitable for each activity. • Development contributions. Financial contributions. Fees and Charges • These have been set at a level to recover private benefits where it is practical • Grants and subsidies. and economic to do so, unless there have been determinations arising from Other sources permitted by statute. previous funding reviews to fund all or part of such benefits from rates. • 3. Council’s Revenue and Expenditure Policy deals with the revenue and financing Grants and Subsidies mechanisms at a “Sub-Activity” level. Sub-Activities are a sub-set of “Activities”, These are sought and applied for whenever they are available. which in turn are a sub-set of “Activity Groups” using two examples: General Revenues 1. One of Council’s Activity Groups is “People”. These are allocated to geographic rating areas in proportion to the gross general-type rates and charges. One of People’s Activities is “Community Support”. One of Community Support’s Sub-Activities is “Grants and Donations”. General-Type Targeted Rates and Charges 2. One of Council’s Activity Groups is “Community Facilities”. The proportion of each activity’s costs to be met from general-type targeted rates and charges is detailed in Table 9. The allocations in that table reflect One of Community Facilities’ Activities is “Reserves”. Council’s assessment of the benefits which should be funded by land value rates, and the benefits which should be funded by uniform annual charge. In 4. In determining which funding sources were appropriate, Council gave these instances Council believe separate general targeted rates and charges consideration to the following matters in relation to each activity to be funded: are the most equitable funding mechanism based on the benefits assessed for each targeted geographic area. • The community outcomes to which the activity primarily contributes; 2018-2028 Long Term Plan Page 299