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2In respect of the financial year 1993-94 and each subsequent financial year, each local authority shall, before such date as may be prescribed in relation to each of those years—
(a)subject to paragraph 3 below, estimate the amount of the expenditure mentioned in paragraph 1 above which they will incur in respect of that year; and
(b)subject to paragraph 4 below, determine what proportion of that expenditure is to be met from each of the sources mentioned in sub-paragraphs (a) to (c) of paragraph 1 above.
3In estimating the expenditure mentioned in paragraph 1 above which they will incur in respect of any financial year a local authority shall take into account—
(a)such additional sum as is in their opinion required—
(i)to cover expenses previously incurred;
(ii)to meet contingencies; and
(iii)to meet any expenses which may fall to be met before the money to be received from the sources mentioned in paragraph 1 above in respect of the next following financial year will become available; and
(b)any means by which any part of that expenditure may otherwise be met or provided for.
4A local authority may apportion their estimated expenditure under paragraph 2 above on whatever basis they consider appropriate, but they shall ensure that the apportionment is not such as to show undue preference to, or discriminate unduly against, any class or classes of person liable to pay—
(a)the direct charges;
(b)the council water charge; or
(c)the non-domestic water rate,
respectively.
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