A council must have 2 separate funds:• a consolidated fund• a trust fund.
(1) All money and property received by a council must be held in the council’s consolidated fund unless it is required to be held in the council’s trust fund.(2) Money and property held in the council’s consolidated fund may be applied towards any purpose allowed by this or any other Act.(3) However:(a) money that has been received as a result of the levying of a special rate or charge may not be used otherwise than for the purpose for which the rate or charge was levied, and(b) money that is subject to the provisions of this or any other Act (being provisions that state that the money may be used only for a specific purpose) may be used only for that purpose, and(c) money that has been received from the Government or from a public authority by way of a specific purpose advance or grant may not, except with the consent of the Government or public authority, be used otherwise than for that specific purpose.(d) (Repealed)(4) Pending its expenditure for the purpose for which it is held, money of the kind referred to in subsection (3) (a), (b) or (c) may not be held otherwise than in an account with a bank, building society or credit union or in an investment in which such money is, by or under this or any other Act, authorised to be invested.(5) Despite subsections (3) and (4), a council may:(a) deduct, from the money required by subsection (3) to be used only for the specific purpose of water supply or sewerage services, an amount in the nature of a return on capital invested payment (dividend), and(b) apply that amount towards any purpose allowed for the expenditure of money by councils by this Act or any other Act.(6) The Minister for Energy and Utilities, with the concurrence of the Minister administering this Act:(a) is to cause guidelines to be prepared and published in the Gazette relating to the management of the provision of water supply and sewerage services by councils, and(b) may, if of the opinion that a council has not substantially complied with the guidelines, direct the council to comply with any particular aspect of the guidelines before making any further deduction under subsection (5).(7) Before making a deduction under subsection (5), a council must:(a) comply with the guidelines published under subsection (6) and any direction given under that subsection, and(b) indicate in an open meeting of the council that the guidelines and any such direction have been complied with in relation to the making of the deduction.(8) Subsections (5)–(7) extend to a council that is a water supply authority within the meaning of the Water Management Act 2000.
410 Alternative use of money raised by special rates or charges
(1) This section applies to money that has been received by a council as a result of the levying of a special rate or a charge.(2) If the special rate or charge has been discontinued and the purpose for which the money was received has been achieved, or is no longer required to be achieved, any remaining money may be used by the council for any other purpose if, and only if:(a) a proposal to that effect has been included in a draft operational plan for the current year or for a previous year, and(b) public notice of the fact that the proposal was included in the operational plan adopted by the council for that year has been published in a newspaper.(3) Money that is not yet required for the purpose for which it was received may be lent (by way of internal loan) for use by the council for any other purpose if, and only if, its use for that other purpose is approved by the Minister.(4) In granting such an approval, the Minister must impose conditions as to the time within which the internal loan must be repaid and as to any additional amount, in the nature of interest, that is to be paid in connection with that loan.
(1) All money and property received by a council in trust must be held in the council’s trust fund.(2) Money or property held in the council’s trust fund must be applied for the purposes, or in accordance with the trusts, relating to it.