2017 Ratepayers' Report - local government league tables published

22 AUGUST 2017
FOR IMMEDIATE RELEASE

The New Zealand Taxpayers' Union, in partnership with the Auckland Ratepayers’ Alliance, have published the 2017 Ratepayers' Report, online interactive league tables. The tool, at www.ratepayersreport.nz, allows ratepayers to see how their local council performs on metrics including average rates, staff numbers, liabilities per resident, and even CEO salary.

"Using this tool, New Zealanders can easily compare their local council's performance and financial position against similar councils," says Jordan Williams, Executive Director of the Taxpayers' Union. "Every dollar spent by a Council was earned by a hard working ratepayer. This tool allows ratepayers to see how that money is being spent."

"For most of New Zealand's territorial authorities, debts continue to increase, even on a per person basis,” says Mr Williams. “This is a worrying trend we highlighted back in 2014 when we last published the league tables."

Jo Holmes, spokesperson for the Auckland Ratepayers' Alliance says, "This data shows why Auckland ratepayers, in particular, have cause for real concern. Council debt is now $22,189 per ratepayer, more than three times the national average of $6,989. Even with low interest rates, $839 of everyone’s rates is now required just to service the Council’s borrowing."

Ratepayers’ Report also reveals that Auckland Council has the second highest ratio of staff per residential ratepayer – one staff member for every 69 residential properties.

“This strongly suggests that Auckland Council is overstaffed,” says Ms Holmes. “Whilst a high staff to ratepayer ratio can offer more face-to-face interaction, it requires significantly more funding. In comparison, Marlborough District Council employs a one to 97 staff to ratepayer ratio – representing a $200 difference in staff costs per residential ratepayer compared to Auckland.”

“Not only does Auckland Council have a lot of staff, it also pays them generously. Nearly fifteen percent are paid more than $100,000 per year compared to only nine percent in the general workforce.”

"Ratepayers' Report is available online and free of charge so all ratepayers can judge for themselves the performance of their local town hall."

Ratepayers' Report facilitates straightforward comparison of average residential rates using a formula first used by Napier City Council which allows for an 'apples to apples' comparison of average residential rates and charges. Only one Council, Kaipara District Council, was unable (or unwilling) to provide the Taxpayers' Union with the necessary information.

Data for the report was compiled by the Taxpayers' Union, and was supplied to all councils for them to review prior to publication.

The previous Ratepayers’ Report was published in 2014. All territorial authorities (excluding Chatham Islands Council) are included.

Ratepayers’ Report is free and available to the public at www.ratepayersreport.nz

Note: All references to rates in the above comments, refer to residential rates.

Notable findings:

• Auckland Council is New Zealand’s second most indebted local authority, with liabilities per residential ratepayer of $22,189. More than three times the national average, only Waitomo District Council has more debt per residential ratepayer ($24,600).

• Auckland Council has the second highest ratio of staff to ratepayers of New Zealand’s unitary authorities, with one member of staff for every 69 ratepayers.

• Auckland Council pays 15% of its staff a salary of over $100,000 per year. Of all of New Zealand’s city councils, metropolitan councils, and unitary authorities, only Palmerston North pays proportionally more of its staff a salary of over $100,000 (18%).

• The highest average residential rates in New Zealand are in Western Bay of Plenty ($3,234 per year).

• The lowest average residential rates in New Zealand is the Mackenzie District ($1,637 per year).

Q & A

What is Ratepayers’ Report?

Ratepayers’ Report is interactive local government league tables covering financial position, performance, and governance information for all of New Zealand’s territorial authorities (excluding the Chatham Islands).

What is the purpose of Ratepayers’ Report?

Ratepayers' Report provides accountability and transparency to New Zealand ratepayers by allowing anyone to compare their local territorial authority with others around the country.

Where was the data sourced?

The New Zealand Taxpayers' Union working with its sister group, the Auckland Ratepayers’ Alliance, compiled the data in Ratepayers' Report after reviewing each council's annual report for the year ending June 30, 2016.

Other figures represent the most up to date figures available and were mostly obtained under the Local Government Official Information and Meetings Act.

The data has been sent to each individual authority for their review and error checking prior to public launch.

Population data is from Statistics New Zealand.

Where did the group finance figures come from?

They are taken from each Council's annual report. They include council figures, plus any subsidiary council controlled organisations.

Which councils are assessed in Ratepayers' Report?

Of New Zealand's 67 territorial authorities, 66 are examined in Ratepayers' Report. That includes all city, district, and unitary councils, with the exclusion of Chatham Islands Territory Council (due to concerns surrounding that Council's workload pressure and unique position). In future iterations of Ratepayers' Report, we plan to incorporate regional councils into the analysis.

Is this the first Ratepayers' Report?

No. Ratepayers' Report was first published in 2014 jointly by the Taxpayers' Union and Fairfax Media.

How are the councils (territorial authorities) grouped?

• Unitary authorities – the 5 territorial authorities which also carry out the functions of a regional authority are grouped.

• Metropolitan – the 5 large councils with a population of over 120,000.

• City – 6 smaller metropolitan councils with populations between 40,000 and 120,000.

• Provincial – the largest group, 27 non-metropolitan councils with a population over 20,000.

• Rural – 23 councils with populations less than 20,000.

How was the average residential rate calculated?

Calculating an 'apples to apples' figure for residential rates is difficult because councils use various mixes of rates, levies, and user charges. Our approach is based on work by Napier City Council to find an average residential rate. The methodology councils were asked to use to calculate the figures disclosed in Ratepayers' Report is available here, www.taxpayers.org.nz/rp_methodology.

While we think this approach is useful and fair, the average residential rates figure should be a guide only. It does not, for example, factor in councils' reliance on commercial rates. It also puts unitary authorities at a disadvantage. Unitary authorities (Auckland Council, Nelson City Council, Gisborne, Tasman, and Marlborough District Councils, and the Chatham Islands Council) perform the functions of a regional council and therefore can be expected to have higher rates than other territorial authorities.

Were councils consulted in the process?

Yes. Every council was sent a draft version of their respective page to review.

ENDS

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