286Authorities may require contributions from councils and other Authorities

286 Authorities may require contributions from councils and other Authorities (1) An Authority (the ***first Authority***) that is responsible for a water management scheme or that has a waterway management district may, subject to section 285, by notice in writing require— (a) any council whose municipal district is wholly or partly within— (i) an area covered by that water management scheme; or (ii) that waterway management district; or (b) any Authority whose district is wholly or partly within— (i) an area covered by that water management scheme; or (ii) that waterway management district— to contribute to the revenue of the first Authority. (2) The contribution payable by a council or an Authority is, subject to subsection (3), calculated as follows— ![]() where— C is the amount of the contribution; X is the value of all rateable land under section 154 of the **Local Government Act 1989** that is common to— (a) the municipal district and the area covered by the scheme or waterway management district; or (b) the district and the area covered by the scheme; or (c) the two districts— as appropriate; Y is the total value of all rateable land under section 154 of the **Local Government Act 1989** that is within— (a) the area covered by the scheme; or (b) the waterway management district of the first Authority; Z is the estimated revenue of the first Authority for that year in relation to that area or district. (3) The contribution payable by a council or an Authority must not be more than 2% of X. (4) A council or an Authority that receives a notice under subsection (1)— (a) may rate the properties that are common to both districts or the district and the area, or set a tariff for them (as the case requires); and (b) must pay to the first Authority the contribution required, less a charge of not more than 5% for collecting the money. (5) The first Authority may charge the council or Authority interest (at the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**) if the contribution is not paid by the date specified in the notice to be the due date. (6) The provisions of the **Local Government Act 1989** about rates apply to a rate made under subsection (4)(a), and the council is authorised to make the payment required under subsection (4)(b). (7) A council may prepare a separate budget to allow for contributions under this section. (8) In this section, ***water management scheme*** means a scheme approved under section 216.