(1) A local government
is not to incur expenditure from its municipal fund for an additional purpose
except where the expenditure —
(a) is
incurred in a financial year before the adoption of the annual budget by the
local government; or
(b) is
authorised in advance by resolution*; or
(c) is
authorised in advance by the mayor or president in an emergency.
* Absolute majority required.
(1a) In subsection (1)
—
additional purpose means a purpose for which no
expenditure estimate is included in the local government’s annual
budget.
(2) Where expenditure
has been incurred by a local government —
(a)
pursuant to subsection (1)(a), it is to be included in the annual budget for
that financial year; and
(b)
pursuant to subsection (1)(c), it is to be reported to the next ordinary
meeting of the council.
[Section 6.8 amended: No. 1 of 1998 s. 19.]