Govt ‘double-counted' council spending figure
The Waitaki District Council has largely welcomed a new government ranking system for council performance, but points out some "double counting" in the newly-released key metrics.
"Key metrics published today show how much councils are spending and what they are spending it on, which has a direct impact on your rates," Local Government Minister Simon Watts said.
"Some ratepayers are getting more and more fed up with rising rates hitting pockets harder than ever. This isn't fair during a cost-of-living crisis where many Kiwis are doing it tough. It is important that ratepayers can see how their council is performing and what it is delivering for their community.
"That's why the government is putting clear facts and figures directly into the hands of ratepayers. When ratepayers know more about how their council is performing and where their money is going, they can engage more effectively and ask the tough questions."
The government measurements rank Waitaki around the median score, when compared with similar smaller, rural councils on most metrics.
However, WDC's annual operating expenditure of $84.78m is $30.25m more than the group median. It also employs more people, 207 fulltime equivalents (FTEs), compared with the median of 87. Personnel costs are also $10.63m higher than the median.
WDC's forecast total capital expenditure for 2025 to 2027, $147.78m, is double that of the median.
However, WDC chief executive Alex Parmley said that figure is wrong.
"In 2025, council deferred around $20million of budgeted work to the following year. That has been double-counted by the government. Our budgeted capital expenditure over the period is around $128m
"Waitaki District Council is currently undertaking three separate once-in-a-generation infrastructure projects. The Network Waitaki Events Centre, the Kakanui Bridge replacement and the Forrester Gallery extension.
"These projects are all funded externally by the community, the NZTA and the Ministry of Culture and Heritage, with the council's funding a minority of each.
"We are also undertaking vital infrastructure upgrades for our waters network, as well as maintaining our roads, parks, reserves and property as a responsible council.
"While figures are pegged to the median, Waitaki District has almost double the median population and double the land area of councils it is classed as similar to.
"This has an impact on the requirement for capital investment, even without the major infrastructure projects at the Forrester Gallery, in Kakanui and at Centennial Park, Oamaru."
Regarding personnel, Mr Parmley said a rationalisation of council teams and services, such as moving its service desk to the public library, has led to an 8.9% reduction in FTE staff, the largest drop in more than 20 years.
"Our new approach is helping us to improve customer service access and levels whilst using resources more efficiently."
Visit https://www.dia.govt.nz/local-government-performance-metrics to view the performance tables on the DIA website.
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