Local Government Act 2002 Amendment Act 2010

1: Title
This Act is the Local Government Act 2002 Amendment Act 2010.
2: Commencement
1: Section 17
2: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Local Government Act 2002 2010-11-27 Local Government Act 2002 Everything except for section 17 2011-07-01 Local Government Act 2002 Section 17 only
1: Amendments to principal Act
4: Interpretation
1: Section 5(1) community outcomes community outcomes .
2: Section 5(1) equity security natural hazard reserve fund .
5: New section 11A inserted
The following section is inserted after section 11
11A: Core services to be considered in performing role
In performing its role, a local authority must have particular regard to the contribution that the following core services make to its communities:
a: network infrastructure:
b: public transport services:
c: solid waste collection and disposal:
d: the avoidance or mitigation of natural hazards:
e: libraries, museums, reserves, recreational facilities, and other community infrastructure.
6: Principles relating to local authorities
Section 14(1)
fa: a local authority should periodically—
i: assess the expected returns to the authority from investing in, or undertaking, a commercial activity; and
ii: satisfy itself that the expected returns are likely to outweigh the risks inherent in the investment or activity; and .
7: Statement of intent for council-controlled organisations
Section 64(1) clause 9 clauses 9 and 10
8: Outline of Part
Section 75(e)
9: Community views in relation to decisions
Section 78(2)
10: Special consultative procedure in relation to long-term council community plan
1: Section 84(4)(b) ; and
2: Section 84(4)(c)
11: Use of special consultative procedure in relation to annual plan
Section 85(2)(a) clause 2(2) clauses 3 to 5
12: Section 88 repealed
Section 88
13: Sections 91 and 92 and heading above section 91 repealed
Sections 91 92
14: Audit of long-term council community plan
1: Section 94(1)(b) ; and
2: Section 94(1)(c)
15: Certain decisions to be taken only if provided for in long-term council community plan
Section 97(1)(c) and (d)
16: Audit of information in annual report and summary
Section 99
1: In addition to the information required by Part 3 of Schedule 10
a: the financial statements referred to in clause 29 of Schedule 10
b: the statement about budgeted and actual capital expenditure referred to in clause 24 of Schedule 10
c: the funding impact statement referred to in clause 30 of Schedule 10
d: the local authority's compliance with the requirements of Schedule 10
17: New section 99A inserted
The following section is inserted after section 99
99A: Pre-election report
1: The chief executive of a local authority must prepare a pre-election report containing the information required by clause 36 of Schedule 10
2: However, the chief executive of a local authority that has an ordinarily resident population of fewer than 20,000 people need not comply with clause 36(1)(a) and (2) of Schedule 10
3: Instead of complying with clause 36(1)(a) and (2) of Schedule 10 clause 37 of Schedule 10
4: The purpose of a pre-election report is to provide information to promote public discussion about the issues facing the local authority.
5: A pre-election report must be completed and published no later than the day that is 2 weeks before the nomination day for a triennial general election of members of a local authority under the Local Electoral Act 2001.
6: A pre-election report must not contain a statement by, or a photograph of, an elected member of the local authority.
18: New section 101A inserted
The following section is inserted after section 101
101A: Financial strategy
1: A local authority must, as part of its long-term plan, prepare and adopt a financial strategy for all of the consecutive financial years covered by the long-term plan.
2: The purpose of the financial strategy is to facilitate—
a: prudent financial management by the local authority by providing a guide for the local authority to consider proposals for funding and expenditure against; and
b: consultation on the local authority's proposals for funding and expenditure by making transparent the overall effects of those proposals on the local authority's services, rates, debt, and investments.
3: The financial strategy adopted under this section must—
a: include a statement of the factors that are expected to have a significant impact on the local authority during the consecutive financial years covered by the strategy, including—
i: the expected changes in population and the use of land in the district or region, and the capital and operating costs of providing for those changes; and
ii: the expected capital expenditure on network infrastructure, flood protection, and flood control works that is required to maintain existing levels of service currently provided by the local authority; and
iii: other significant factors affecting the local authority's ability to maintain existing levels of service and to meet additional demands for services; and
b: include a statement of the local authority's—
i: quantified limits on rates, rate increases, and borrowing; and
ii: assessment of its ability to provide and maintain existing levels of service and to meet additional demands for services within those limits; and
c: specify the local authority's policy on the giving of securities for its borrowing; and
d: specify the local authority's objectives for holding and managing financial investments and equity securities and its quantified targets for returns on those investments and equity securities.
19: New section 102 substituted
Section 102
102: Funding and financial policies
1: A local authority must, in order to provide predictability and certainty about sources and levels of funding, adopt the funding and financial policies listed in subsection (2)
2: The policies are—
a: a revenue and financing policy; and
b: a liability management policy; and
c: an investment policy; and
d: a policy on development contributions or financial contributions; and
e: a policy on the remission and postponement of rates on Māori freehold land.
3: A local authority may adopt either or both of the following policies:
a: a rates remission policy:
b: a rates postponement policy.
4: A local authority—
a: must use the special consultative procedure in adopting a policy under this section:
b: may amend a policy adopted under this section at any time using the special consultative procedure.
5: However, subsection (4)
a: a liability management policy:
b: an investment policy.
20: Revenue and financing policy
1: Section 103(1) section 102(4)(a) section 102(1)
2: Section 103(3) section 102(4)(a) section 102(1)
3: Section 103
4: If a local authority amends its revenue and financing policy under section 93(4), only a significant amendment to the policy is required to be audited in accordance with sections 84(4) and 94(1).
21: Liability management policy
1: Section 104 section 102(4)(b) section 102(1)
2: Section 104(d) ; and
3: Section 104(e) and (f)
22: Investment policy
1: Section 105 section 102(4)(c) section 102(1)
2: Section 105(a)
23: Policy on development contributions or financial contributions
1: Section 106(2) section 102(4)(d) section 102(1)
2: Section 106
6: A policy adopted under section 102(1)
24: Section 107 repealed
Section 107
25: Policy on remission and postponement of rates on Māori freehold land
1: Section 108 section 102(4)(f) section 102(1)
2: Section 108
4A: A policy adopted under section 102(1)
26: Rates remission policy
1: Section 109 section 102(5)(a) section 102(3)(a)
2: Section 109
2A: If a policy is adopted under section 102(3)(a)
a: must be reviewed at least once every 6 years using the special consultative procedure; and
b: may be revoked following the review under paragraph (a)
27: Rates postponement policy
1: Section 110 section 102(5)(b) section 102(3)(b)
2: Section 110
2A: If a policy is adopted under section 102(3)(b)
a: must be reviewed at least once every 6 years using the special consultative procedure; and
b: may be revoked following the review under paragraph (a)
28: Information to be prepared in accordance with generally accepted accounting practice
Section 111
2: Subsection (1) does not apply to the preparation of a funding impact statement.
29: Requirement to assess water and other sanitary services
Section 125(1) in accordance with sections 126 and 127,
30: Sections 126 to 129 repealed
Sections 126 to 129
31: Obligation to maintain water services
Section 130(3)(d)(ii) section 194 section 69S of the Health Act 1956
32: New section 136 substituted
Section 136
136: Contracts relating to provision of water services
1: Despite section 130(2), a local government organisation may enter into contracts for any aspect of the operation of all or part of a water service for a term not longer than 35 years.
2: If a local government organisation enters into a contract under subsection (1)
a: continue to be legally responsible for providing the water services; and
b: retain control over the following matters:
i: the pricing of water services; and
ii: the development of policy related to the delivery of water services.
3: This section does not limit contracts in relation to water services that are entered into solely between local government organisations.
33: Joint local government arrangements and joint arrangements with other entities
1: Section 137(2)
a: a joint arrangement for a term not longer than 35 years (except a concession or other franchise agreement relating to the provision of the water services or any aspect of the water services): .
2: Section 137(3)(b) ; and
3: Section 137(3)(c)
4: Section 137
4: If a local government organisation enters into a joint arrangement under subsection (2)(a), it must—
a: continue to be legally responsible for providing the water services; and
b: retain control over the following matters:
i: the pricing of water services; and
ii: the development of policy related to water services; and
c: after the end of the joint arrangement, retain ownership of all the infrastructure associated with the water service, whether or not the infrastructure was—
i: provided by the local government organisation at the beginning of the joint arrangement; or
ii: developed or purchased during the joint arrangement; and
d: not sell or transfer ownership of any existing infrastructure associated with the water service, unless the local government organisation reasonably believes that the sale is—
i: incidental to the joint arrangement; and
ii: desirable for the success of the joint arrangement.
5: In this section, concession or other franchise agreement
34: Conditions applying to sale or exchange of endowment property
Section 141(1)(b)
35: Local authority may execute works if owner or occupier defaults
1: Section 186(1)(b) territorial local
2: Section 186(5)(b) subsection (1) subsection (2)
36: Obstruction of enforcement officers or agents of local authority
Section 229(a)(iii) of provisions
37: Part heading amended
The heading to Part 11 and other Orders in Council , other Orders in Council, and rules
38: New heading inserted
The following heading is inserted before section 259 Regulations .
39: Regulations
1: Section 259
da: prescribing matters, not inconsistent with generally accepted accounting practice, that must be specified in a financial statement and the manner in which they must be specified:
db: prescribing forms for the funding impact statements to be included in the long-term plan, annual plan, and annual report: .
2: Section 259
2: Regulations made under subsection (1)(db) Schedule 10
40: New sections 259A and 259B inserted
The following sections are inserted after section 259
259A: Levy to fund rules for performance measures
1: Regulations may be made under section 259 providing for the imposition and collection of a levy on local authorities.
2: The purpose of the levy is to recover all or part of the reasonable cost of making rules specifying performance measures.
3: Regulations made for the purpose of this section may—
a: specify the categories of local authorities that are liable to pay the levy:
b: prescribe the amount or method of calculation of the levy:
c: prescribe different amounts or methods of calculation of the levy in relation to different categories of local authority:
d: provide for the manner in which the levy is collected.
4: All levy money collected under this section must be paid into a Crown Bank Account.
5: Any levy—
a: must be reasonable having regard to the expenses incurred or to be incurred by the Secretary in relation to the making of rules under section 261B
b: is payable to the Secretary and recoverable in a court of competent jurisdiction as a debt due to the Secretary.
6: The Minister may recommend the making of regulations that impose a levy only if the Minister has first consulted the New Zealand Local Government Association Incorporated.
259B: Power to refund levy
The Secretary may refund the whole or any part of the levy if the Secretary is satisfied that the amount of levy money collected exceeds the amount necessary to fulfil the purpose of the levy stated in section 259A(2)
41: New heading inserted
The following heading is inserted before section 260 Other Orders in Council .
42: New headings and sections 261A to 261H inserted
The following headings and sections are inserted after section 261 Rules for performance measures
261A: Purpose of rules specifying performance measures
The purpose of rules made under section 261B
261B: Secretary must make rules specifying performance measures
1: The Secretary must, as soon as is reasonably practicable, make rules specifying performance measures in relation to the following groups of activities:
a: water supply:
b: sewerage and the treatment and disposal of sewage:
c: stormwater drainage:
d: flood protection and control works:
e: the provision of roads and footpaths.
2: Before making a rule under subsection (1)
a: consider whether an existing performance measure is suitable for the purpose; and
b: have regard to whether a performance measure—
i: measures the level of service for a major aspect of the group of activities; and
ii: addresses an aspect of the service that is of widespread interest in the communities to which a service in relation to the group of activities is provided; and
iii: contributes to the effective and efficient management of the group of activities.
3: Before making a rule, the Secretary must—
a: consult every local authority; and
b: publish in the Gazette
c: give interested persons a reasonable time, which must be specified in the notice, to make submissions on the proposal; and
d: consult any other persons or groups as the Secretary considers appropriate.
4: The Secretary must—
a: make copies of the rules available for purchase at a reasonable price; and
b: make copies of the rules available free of charge, at all reasonable times, on an Internet site maintained by, or on behalf of, the Secretary; and
c: give notice in the Gazette
i: the rules have been made; and
ii: copies of the rules may be purchased and the place at which they may be purchased; and
iii: the rules are available on an Internet site, free of charge, and state the Internet site address.
5: A rule comes into force 28 days after the date of its notification in the Gazette
261C: Status of rules
A rule made under section 261B Incorporation by reference
261D: Incorporation of documents by reference in rules
1: The following written material may be incorporated by reference in a rule made under section 261B
a: standards, requirements, or recommended practices of international or national organisations:
b: standards, requirements, or recommended practices prescribed in any country or jurisdiction:
c: any other written material that deals with technical matters and that is too large or impractical to include in, or print as part of, the rule.
2: Material may be incorporated by reference in a rule—
a: in whole or in part; and
b: with modifications or additions specified in the rule.
3: Material incorporated by reference in a rule has legal effect as part of the rule.
261E: Proof of material incorporated by reference
1: A copy of material incorporated by reference in a rule, including any amendment to, or replacement of, the material, must be—
a: certified by the Secretary as a correct copy of the material incorporated by reference; and
b: retained by the Secretary.
2: The production in proceedings of a certified copy of the material is, in the absence of evidence to the contrary, sufficient evidence that the material is incorporated by reference in the rule.
261F: Effect of change to, or expiry of, material incorporated by reference
1: This section applies to—
a: an amendment to, or a replacement of, material incorporated by reference in a rule:
b: material incorporated by reference in a rule if the material expires, is revoked, or ceases to have effect.
2: The amendment or replacement has legal effect as part of the rule only if the rule is varied to state that the amendment or replacement has that effect.
3: The material described in subsection (1)(b)
261G: Consultation on proposal to incorporate material by reference
1: Before a rule is made under section 261B
a: must make copies of any material proposed to be incorporated by reference in the rule (or the proposed amendment to, or replacement of, material incorporated by reference in the rule) (the proposed material
b: must make copies of the proposed material available for purchase at a reasonable price; and
c: must make copies of the proposed material available, free of charge, on an Internet site maintained by or on behalf of the Secretary, unless doing so would infringe copyright; and
d: may make copies of the proposed material available in any way that the Secretary considers appropriate in the circumstances; and
e: must give notice in the Gazette
i: that the proposed material is available for inspection during working hours and free of charge, the place at which it can be inspected, and the period during which it can be inspected; and
ii: that copies of the proposed material can be purchased and the place at which they can be purchased; and
iii: if applicable, that the proposed material is available on the Internet free of charge and the Internet site address; and
f: must allow a reasonable opportunity for persons to comment on the proposal to incorporate the proposed material by reference; and
g: must consider any comments made.
2: The reference in subsection (1)
3: A failure to comply with this section does not invalidate a rule that incorporates material by reference.
261H: Access to material incorporated by reference
1: The Secretary—
a: must make the material referred to in subsection (2)
b: must make copies of the incorporated material available for purchase at a reasonable price; and
c: must make copies of the incorporated material available, free of charge, on an Internet site maintained by or on behalf of the Secretary, unless doing so would infringe copyright; and
d: may make copies of the incorporated material available in any other way that the Secretary considers appropriate in the circumstances; and
e: must give notice in the Gazette
i: that the material is incorporated in the rule and the date on which the rule was made; and
ii: that the material is available for inspection during working hours free of charge and the place at which it can be inspected; and
iii: that copies of the material can be purchased and the place at which they can be purchased; and
iv: that the material is available on the Internet and free of charge, and the Internet site address; and
v: if copies of the material are available under paragraph (d)
2: The material referred to in subsection (1)
a: material incorporated by reference in the rule:
b: any amendment to, or replacement of, that material that is incorporated in the rule or the material referred to in paragraph (a)
c: if the material referred to in paragraph (a)
3: A failure to comply with this section does not invalidate a rule that incorporates material by reference.
43: Section 279 repealed
Section 279
44: Sections 281 and 282 repealed
Sections 281 282
45: Section 288 repealed
Section 288
46: Schedule 7 amended
Clause 39(1) out of the general revenues of the district
47: New clause 10 added in Schedule 8
Schedule 8
10: Additional content of statements of intent
1: This clause applies to a council-controlled organisation that provides services in relation to the following groups of activities:
a: water supply:
b: sewerage and the treatment and disposal of sewage:
c: stormwater drainage:
d: flood protection and control works:
e: the provision of roads and footpaths.
2: The council-controlled organisation's statement of intent must, in relation to each group of activities described in subclause (1) clause 4(a) and (c) of Schedule 10
a: the reference to a long-term plan were a reference to the statement of intent; and
b: the reference to a local authority were a reference to a council-controlled organisation.
48: New Schedule 10 substituted
Schedule 10 Schedule 1
2: Consequential amendments and transitional provisions
49: Other amendments to principal Act
The principal Act is amended in the manner set out in Schedule 2
50: Consequential amendments to other enactments
The enactments listed in Schedule 3 2010-11-27 Hawke's Bay Endowment Land Empowering Act 2002 Land Transport Management Act 2003 Local Government Act 2002 Amendment Act 2006 Local Government (Auckland Council) Act 2009 Local Government (Auckland Transitional Provisions) Act 2010 Local Government (Rating) Act 2002 Public Transport Management Act 2008 Canterbury Earthquake (Local Government Act 2002) Order 2010 Transitional provisions
51: Transitional provision for long-term plan beginning on 1 July 2009
1: This section applies to a long-term plan beginning on 1 July 2009 and still in force at the commencement of this section.
2: The amendments made by this Act to Schedule 10 subsection (1) Act
3: Until a local authority has adopted a financial strategy under section 101A section 18
52: Transitional provision for annual plans
1: This section applies to an annual plan that relates to the period—
a: 1 July 2010 to 30 June 2011; or
b: 1 July 2011 to 30 June 2012.
2: The amendments made by this Act to section 85(2)(a) Schedule 10 subsection (1) Act
53: Transitional provision for audit of information in annual report and summary
1: This section applies to an annual report that relates to the period—
a: 1 July 2009 to 30 June 2010; or
b: 1 July 2010 to 30 June 2011; or
c: 1 July 2011 to 30 June 2012.
2: The amendments made by this Act to Schedule 10 subsection (1)
3: The amendments made by this Act to section 99 subsection (1)
54: Transitional provision for pre-election report
1: Despite section 99A section 17 clause 36(1)(a)(i) and (iii) of Schedule 10
a: the funding impact statement referred to in clause 30 of Schedule 10
b: a summary of cash flows based on the financial statements referred to in clause 29 of Schedule 10
2: The summary of cash flows must disclose income from rates and payments for property, plant, equipment, and intangible assets separately.
55: Transitional provision for identification and reporting of community outcomes
A local authority is not required to comply with, or complete the compliance with, an obligation under section 91 92 section 13
56: Transitional provision for review of certain funding and financial policies
1: This section applies to a review of the following policies:
a: a local authority's policy on the remission and postponement of rates on Māori freehold land under section 108(4A) section 25
b: a local authority's rates remission policy under section 109(2A) section 26
c: a local authority's rates postponement policy under section 110(2A) section 27
2: A policy specified in subsection (1)