(1)Every local authority shall, in respect of the financial year beginning with 16th May 1975 and of each subsequent financial year, determine before such date as may be prescribed a rate to be known—
(a)in the case of a regional council, as the regional rate;
(b)in the case of an islands council, as the general rate; and
(c)in the case of a district council, as the district rate;
and each such rate shall be levied in respect of that financial year in accordance with the following provisions of this Part of this Act.
(2)It shall be the duty of every local authority to determine such regional, general or district rate, as the case may be, as will provide sufficient moneys to meet such part of the total estimated expenses to be incurred by the authority during the financial year in respect of which the rate is to be levied (after taking account of any balance or estimated balance at the end of the financial year immediately preceding that year) as falls to be met out of moneys raised by rates, together with such additional amount as is, in the opinion of the authority, required—
(a)to cover expenses previously incurred,
(b)to meet contingencies,
(c)to meet any expenses which may fall to be met before the moneys to be received in respect of the regional, general or district rate, as the case may be, for the financial year next following the first-mentioned year will become available.