Latest news with #WaterDoneWell
NZ Herald
22-05-2025
- Business
- NZ Herald
Staffing costs at Hawke's Bay councils - are they reasonable?
While Hastings District Council has fewer permanent staff, it spent $241m on people costs in 2024, the most of all Hawke's Bay councils. That figure includes not just staff salaries, but contractor and consultant bills. Napier City Council spent $97m. In Central Hawke's Bay, spending on staff wages and consultants was just under $8.5m. No cost for contractors was provided. In Wairoa, the cost of wages was just over $7m. No details for contractors or consultants were provided. At Hawke's Bay Regional Council, people costs were just over $42m. No information was given for contractors. The average salary of a Hastings District Council worker in 2024 was $82,864 and in Napier it was $92,829. The cost of staffing at Hawke's Bay councils has been in the spotlight for years. During a push for amalgamation it was noted by supporters of a singular council for the region that rivarly between neighbouring territorial authorities could drive up the cost of recruiting and retaining council staff. Savings on people costs are also part of the reason Hawke's Bay councils have opted for a region-wide Local Water Done Well model as their preferred option in ongoing consultation with the public. Chief executive and principal economist at Infometrics and one of New Zealand's leading economic commentators Brad Olsen said it was hard to contextualise what was a reasonable price for ratepayers to pay for staffing. Olsen said there was a tendency to 'vilify' contractor and consultant spending. 'But I don't think that's always warranted and is often a fairly surface-level concern. 'I don't think people with concerns about contractor and consultant spending really want this to be cut to zero if it meant no roading or water infrastructure investment. 'There's a clear and ongoing focus from councils to focus on delivering value for money, but costs for delivering council services continue to rise too, often above the rate of headline household inflation. Advertise with NZME. 'Although headline consumer prices have increased 23% since the end of 2019, Infometrics analysis of Stats NZ capital cost data shows that the cost of delivering transport infrastructure has increased by an average of 25% over the same period, and delivering water infrastructure has seen a 32% cost increase.' Olsen said contractors did what couldn't be done in-house and plenty of that would have been required post-Cyclone in Hawke's Bay. 'The scale of work can differ considerably between councils, and makes comparing spending levels challenging. 'For context, Hastings District Council's Annual Report 2023/24 shows $169m in capital funding, while Napier had $35m, with the difference in spending size driven by the size and scale of the infrastructure task and area covered by territorial authorities,' Olsen said. Hastings Hastings Council, as of June 2024, employed 517 permanent and fixed-term fulltime and part-time staff (headcount) with a fulltime equivalent of 478 on an average salary of $82,864. It paid $241m for the 23/24 financial year ($141.8m capital expenditure/$100m operational) to contractors and consultants including those involved in capital projects (things like road and bridge builds, demolition, three waters pipe facilities and networks) plus operational, a broad range from security services to key asset maintenance services, to expert and legal advice. Advertisement Advertise with NZME. A spokesperson for the council said almost $46m of the operational spend was directly attributable to Cyclone Gabrielle, as was $56.3m of the capital spending. The council is not planning any large-scale restructuring of its organisation in 2025. CEO Nigel Bickle's remuneration for the year ending June 2024 was $435,880. The council says in October 2024 it agreed to a pay increase for Bickle from July 1, 2024, but he declined it. All mayors' salaries are set by the Remuneration Authority. Hastings Mayor Sandra Hazlehurst was paid $166,910 for 2024/25. This expires on June 30, 2025, when the authority will replace it with another determination. The most recent mayoral pay increase was July 1, 2024, (when it was increased to the current amount). Before that, there had not been an increase since 2022. Napier Napier City Council employed 785 people with an average wage for fulltime staff as of February 28, 2025, of $92,829 including some who work 42.5 hours per week. ($43.46 per hour). In 2024 it paid $24,449,562 (including GST) to 448 different suppliers for consultancy and contractor services. The council says it relies on a diverse range of external contractors and consultants to support the delivery of essential services and infrastructure to the community. 'It includes critical areas such as roading, water services, and waste management, as well as specialist expertise for projects where it is more cost-effective or practical to engage external providers rather than maintaining in-house resources year-round. Advertise with NZME. 'This approach ensures we can respond flexibly to project demands, access specialist skills when required, and maintain value for money for our ratepayers. The spending reflects the scale and complexity of the services we deliver, as well as our commitment to ensuring high-quality outcomes for the community. 'We monitor and manage contractor arrangements to ensure they deliver strong value and contribute effectively to our service delivery goals.' The council supported regular (formal) working-from-home arrangements. When working from home on a regular basis, it is generally expected a maximum of two days per week (60% working in the office and 40% working from home) will be agreed on. Its chief executive Louise Miller, who was employed on March 13, 2023, was paid $384,000 for 23/24. Mayor Kirsten Wise was paid $160,000 for the same period. Central Hawke's Bay Central Hawke's Bay District Council, as of June 30, 2024, employed 92.5 fulltime staff at an average wage of $84,288. Seven were externally funded and there were 10 vacancies. For the calendar year 2024 it paid eight consultants a total of $640,000 including GST. A council spokesperson said they were doing the work like ordinary staff, and CHBDC paid them directly. 'We also have contractors employed, but these fall under contracts and we don't have direct oversight of the number and how much they are paid. This includes the mahi to look after our water services, plants and reserves and roads.' Chief executive Doug Tate's salary was $257,852 at June 30, 2024. Mayor Alex Walker's salary is $119,272. Wairoa Wairoa District Council employs 89 staff, with an average wage of $82,340. It said it would only provide information around its costs for consultants and contractors if required to under the Local Government Official Information Act. 'Given the amount of resource required to process it, we have decided to charge for making the requested information available'. The first hour was free, but then the charge to collate the information would cost $38 for every half hour of work, estimated at four hours. Local Democracy Reporting declined the offer. Mayor Craig Little was paid $116,979 for 23/24 and for 2024/25 $121,307. The CEO's salary for 2024 was $215,000. Former CEO Kitea Tipuna resigned in April. Malcolm Alexander is now the interim chief executive. Regional At Hawke's Bay Regional Council, there are 311.6 full fulltime staff (as of June 30, 2024) with an average pay of $96,776.34 - this includes the executive leadership team's salaries. In 23/24 HBRC spent $12,220,706.45 on consultants. This excludes professional (legal/audit etc.) fees and contractors and is only for external consultants. No information was given for contractors. Chief executive Dr Nic Peet's current salary package is $356,536. Chair Hinewai Ormsby's salary package for 23/24 is $148,043.
Otago Daily Times
13-05-2025
- Politics
- Otago Daily Times
‘Reflection' of cost tensions
Bryan Cadogan. PHOTO: ODT FILES. Low resident satisfaction in a recent council survey is a reflection of escalating cost tensions, the Clutha district's mayor says. The Clutha District Council released its annual resident survey this week, which it has been running since 2013. Last year, satisfaction in the council plummeted and, despite a slight increase in the headline figure for overall council performance in the latest survey, Clutha Mayor Bryan Cadogan said work remained to be done. "This will be the last time I'm in the mayoral hot seat to receive the survey results. It's a very trying time currently with the vice that Three Waters has us in, and these results are a clear reflection of that," he said. He said he and councillors were "as frustrated" as all ratepayers by rapidly escalating rates. Some Clutha ratepayers are facing 25%-plus rises this year. "It's a ridiculous situation all councils have been put in [by central government]. But we have to address the issues in front of us, and we continue to look for solutions and savings every day, by going through everything with a fine-tooth comb." Satisfaction in decision-making, planning and leadership of elected members was up from 47% to 53%, and overall satisfaction in the council also up, from 55% to 60%. In contrast to the dissatisfaction with elected members, council staff received a glowing report. Satisfaction with delivery of "quality of life" services uniformly topped 90%. Among the highest performers were libraries (97%); Balclutha Pool (95%); community centres and halls (95%); and parks and reserves (94%). Mr Cadogan said residents had an opportunity to contribute to the future of water decision-making at present. Local Water Done Well submissions are open until June 6. • Local Water Done Well consultation meetings take place next week at Milton Coronation Hall on Monday; TPŌMA Balclutha on Tuesday; and West Otago Community Centre, Tapanui on Wednesday (all 6.30pm).
NZ Herald
30-04-2025
- Business
- NZ Herald
Control rates rises, Local Government Minister Simon Watts tells councils
The economy was facing a tough time as ratepayers, households, and communities tightened their belts. 'That's what local government should do.' The Government had recognised feedback from ratepayers and taxpayers about the degree of increases in rates, he said. 'These concerns that we have heard [are] in regards to council expenditure being on items and activities that aren't seen as the basics or core activities. 'The Government is currently investigating the rates cap and model, which will, in effect, cap the degree of increases in rates. 'We're working through the detail at the moment, and we're working together with local government officials in order to design what that model will look like, I think, for councils such as Tauranga City Council.' Mayor Mahé Drysdale said in an email that Tauranga City Council elected members understood the community's concern about proposed rate rises. 'We are working hard to find savings which would reduce the average increase for 2025 and 2026 to 10% or lower,' he said. Commercial and industrial rates increases would be higher than those for residential properties as there was an element of catch-up involved, Drysdale said. 'That has been addressed over the past two years, but we acknowledge this comes at a bad time for businesses that are struggling in the current economic environment.' Rates had yet to be finalised, but once they were struck, the council rates team did have some ways to assist ratepayers, he said. 'We would encourage businesses and individuals to contact them directly to discuss the available options.' Watts was in Tauranga to meet with the Tauranga City Council, Western Bay of Plenty District Council and the infrastructure forum, a group of key regional stakeholders. Watts said the Government saw the potential in this region and wanted to work with local councils to unlock it. Advertisement Advertise with NZME. Watts met Drysdale to discuss what the Government expected local councils to deliver. 'Ensuring local councils were delivering the basics well and not spending money on nice-to-haves,' he said. Watts said ratepayers would judge that and assess how to deliver to their needs. A cap on rates wouldn't constrain the ability of councils to execute the delivery of core activities they need to undertake, Watts said. It would not constrain the ability of the council to derive economic growth, he said. 'Quite the opposite.' Advertise with NZME. Watts said central government could establish guardrails and regulations that would enable good local decisions to be made. 'It's not where we want to be participating, but there are things that we can do to enable and help that through more funding and financing tools.' Local Water Done Well reforms were well under way, and Watts expected to see councils make decisions about their plans and actions in the coming months. 'I've been impressed so far with the degree of work under way here at a local level to make that a reality,' Watts said. He said the rates cap would support and enable more economic growth and productivity within our cities and regions, which was essential for the broader economy. 'In the finalised details around the rates capping model, we'll share more information.' Bay of Plenty MP Tom Rutherford said the council didn't have a revenue problem ... 'It has a spending problem.' 'It's important that Government ministers understand the growth and economic opportunities we've got here locally.' Drysdale said that, like all councils, Tauranga faced significant increases in insurance, electricity, and construction costs, which had to be be passed on. The Tauranga City Council found $29m in savings since being elected last year, Drysdale said, and would continue to look for further savings. He did not support the rates capping proposal but favoured standardised benchmarking across councils to help ratepayers compare performance and value for money. 'Once we've considered all submissions to the draft Annual Plan 2025 and 2026 and the final rates have been struck, ratepayers will be able to see what this means for their properties.' The council wanted to work with the Government on potential ways to ease the rating burden on communities, while maintaining the ability to deliver needed infrastructure, Drysdale said. 'Rate capping won't deliver the growth in our region that the Government wants, and that it directly benefits from through an increased tax take.'
