Funding local government

Local authorities raise most of the funds they need from their communities. The sources include rates on property, returns from investments, and money raised from fees and charges for the services provided. Councils can also raise funds for major projects by borrowing. How much funding is raised from the various income streams is agreed to and included in the council’s long-term plan or annual plan. Central government also provides some funding or subsidies towards activities. This is most commonly given to help councils provide for roading and public transport services.