Local Government Accountants Association of Queensland
Long Term Council Community Planning in New Zealand Bob Parker Mayor Christchurch City
Outline • New Zealand • Christchurch City • Local Government in New Zealand • Issues Facing Local Government • Our Long Term Council Community Plan (LTCCP) • Initiatives in our city
Quotes about New Zealand • “Altogether too many sheep” – George Bernard Shaw when asked of his impression of NZ during a visit in 1934 • “New Zealand was colonised initially by those Australians who had the initiative to escape” former Prime Minister Robert Muldoon • When asked his opinion of New Zealand: “I find it hard to say because when I was there it seemed to be shut.” Sir Clement Freud 1978
Some New Zealand Firsts • First democracy to give women the vote • Sir Edmund Hillary was the first person to climb Mt Everest • Ernest Rutherford was the first person to split the atom • Richard Pearse took the world’s first flight – two years before the Wright Brothers • Invented Bungee jumping • More golf courses in NZ per capita than any other country • World’s best rugby league team and women’s shot putter • And we have the All Blacks
Christchurch •
Population 368,900
•
Second largest city in New Zealand
•
Population growing by 1.5% per annum
•
City was designed on an Anglican (Church of England) settlement. Four ships arrived from England in 1850
•
First European settlers arrived in the early 1840s
Christchurch City Council • Staff
2,500
• Budget
$561 million (million)
• Income
-
Rates
- Fees, rents and charges
256 112
- Dividends & Interest
64
- Government subsidies
14
- Reserves
45
- Development contributions
19
- Asset Sales
4
- Loan raising
47
• Elected members - Mayor and 13 councillors, plus 7 community boards consisting of five elected members and two councillors.
New Zealand Governance - 122 Member Proportional Representative Government - One House - No State Government
Central Local Regional
Unitary
Territorial City
District
Central Government responsibilities • • • • • • • • • •
Taxes Police Fire Health Education Electricity generation Welfare benefits Rail Major roads (state highways) Courts/prisons
Local Government in New Zealand • Sector underwent major reform in 1989 • Before 1989 there were 830 statutory local authorities • For example the area today covered by the Christchurch City Council is the result of the amalgamation of six previous Councils • Now there are 85 Local Authorities,12 Regional Councils, 69 Territorial Authorities and 4 Unitary Councils
Issues facing Local Government • Consultation / community engagement requirement • Skills shortages, particularly for engineers and planners • Calls to restrict the powers of Local Government • Central government devolving extra responsibilities without funding (i.e. micro-chipping dogs, building consent process) • Three-year election cycle
Regional Councils • Regional Councils are responsible for environmental planning and protection of natural and physical resources • Their main functions are: • river and catchment management • regional land transport planning • air quality • pest (animal and plant) management
Territorial Authorities • City and District Councils focus on: • providing local services • land use planning • they provide: – infrastructure: roading, water, wastewater and stormwater – recreational and community facilities, events – resource management related to land use – health and safety: building control, emergency management and environmental health
Positives about our system • Obligation to plan on ten year horizon • 10 year Long Term Council Community Plans (LTCCPs), refreshed every three years – full community consultation • These must set out for each service: - the Levels of Service to be provided to the community - the capital projects required for their delivery - the asset renewal programmes required for delivery - the financial costs involved
Positives about our system • Superior to traditional annual budget approach • High level of transparency • High level of elected member involvement (a year of workshops) • Better focus on defining levels of service • Use of benchmarks • All capital projects prioritised together, not in silos
Positives about our system • Internal services (HR, IT) now included in process • Independent audit (Office of the Auditor General) • Puts focus on implementation and performance • Results reported to community in Annual Report
Negatives about our system • Not everyone likes transparency • Some councils have received adverse Auditor-General opinions on their plans • More work and cost than annual budget approach, but… • What’s the price of not knowing: • long term challenges • upcoming financial and asset ‘spikes’ • what the priorities really are?
2009 -19 LTCCP • Keeping average rate increase to below 4% for next 10 years – extra $1.40 a week for average homeowner ($383,000 house)
• Council proposing to spend $2.46 billion on a range of projects over the next 10 years – infrastructure renewal and new projects
2009-19 LTCCP • Plan proposes shift in financial management – borrowing for capital projects and also some community grants • Better intergenerational equity • Cost of debt servicing less than 8% total rates income • Credit rating: remains Standard & Poors AA+
Interesting projects underway • Central city revitalisation • Waste minimisation – new three bin kerbside collection system (landfill, recycling, compost) starting this month • Central city Transport Exchange • New Civic building finished 2010 and Tri-Gen system • AMI Stadium redevelopment
