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Final report - Local government funding and financing

The Government sought to understand the factors driving local authorities’ costs, now and into the foreseeable future. It also wanted to know whether current funding and financing arrangements are efficient, sustainable and affordable. If they weren’t, what new arrangements would better achieve these ends?  

Local government matters a great deal to communities and the wellbeing of New Zealanders. The funding and financing framework for local government must therefore incentivise good performance and enable local authorities to deliver quality services in line with the preferences and aspirations of their local communities.  

This report sets out the Commission’s assessment of the cost pressures faced by local authorities. It presents recommendations for changes to the current funding and financing arrangements, where these are insufficient to meet key pressures. It also recommends several improvements to the way councils manage cost pressures, make decisions, and deliver and fund their services. 


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