sec.160Preparation and content of budget

sec.160 Preparation and content of budget

The budget for each financial year must— be prepared on an accrual basis; and include statements of the following for the financial year for which it is prepared and the next 2 financial years— financial position; cash flow; income and expenditure; changes in equity. The budget must also include— a long-term financial forecast; and a revenue statement; and a revenue policy. The statement of income and expenditure must state each of the following— rates and utility charges excluding discounts and rebates; contributions from developers; fees and charges; interest; grants and subsidies; depreciation; finance costs; net result; the estimated costs of— the council’s significant business activities carried on using a full cost pricing basis; and the activities of the council’s commercial business units; and the council’s significant business activities. Subject to subsection (5) , the budget must include a measure of financial sustainability for— the financial year for which the budget is being prepared; and the 9 financial years following the financial year for which the budget is being prepared. See section 307 in relation to the budget for the 2023–2024 financial year. A measure of financial sustainability applies to the council for a financial year to the extent the financial management (sustainability) guideline states the measure applies to the council for the financial year. The measures of financial sustainability are the following measures described in the financial management (sustainability) guideline— council controlled revenue ratio; population growth ratio; operating surplus ratio; operating cash ratio; unrestricted cash expense cover ratio; asset sustainability ratio; asset consumption ratio; asset renewal funding ratio; leverage ratio. The budget must include the total value of the change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the budget for the previous financial year. For calculating the rates and utility charges levied for a financial year, any discounts and rebates must be excluded. The budget must be consistent with the following documents of the council— its corporate plan; its annual operational plan. s 160 amd 2013 SL No. 148 s 3 ; 2020 SL No. 244 s 11 ; 2023 SL No. 56 s 4 (sec.160-ssec.1) The budget for each financial year must— be prepared on an accrual basis; and include statements of the following for the financial year for which it is prepared and the next 2 financial years— financial position; cash flow; income and expenditure; changes in equity. (sec.160-ssec.2) The budget must also include— a long-term financial forecast; and a revenue statement; and a revenue policy. (sec.160-ssec.3) The statement of income and expenditure must state each of the following— rates and utility charges excluding discounts and rebates; contributions from developers; fees and charges; interest; grants and subsidies; depreciation; finance costs; net result; the estimated costs of— the council’s significant business activities carried on using a full cost pricing basis; and the activities of the council’s commercial business units; and the council’s significant business activities. (sec.160-ssec.4) Subject to subsection (5) , the budget must include a measure of financial sustainability for— the financial year for which the budget is being prepared; and the 9 financial years following the financial year for which the budget is being prepared. See section 307 in relation to the budget for the 2023–2024 financial year. (sec.160-ssec.5) A measure of financial sustainability applies to the council for a financial year to the extent the financial management (sustainability) guideline states the measure applies to the council for the financial year. (sec.160-ssec.6) The measures of financial sustainability are the following measures described in the financial management (sustainability) guideline— council controlled revenue ratio; population growth ratio; operating surplus ratio; operating cash ratio; unrestricted cash expense cover ratio; asset sustainability ratio; asset consumption ratio; asset renewal funding ratio; leverage ratio. (sec.160-ssec.7) The budget must include the total value of the change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the budget for the previous financial year. (sec.160-ssec.8) For calculating the rates and utility charges levied for a financial year, any discounts and rebates must be excluded. (sec.160-ssec.9) The budget must be consistent with the following documents of the council— its corporate plan; its annual operational plan.