Creating NEXT GENERATION Councils David Hammond COUNCIL CHANGE

Creating NEXT GENERATION Councils David Hammond: COUNCIL CHANGE SPECIALIST Contact: +64 27 444 6368

‘Next Generation’ Council? Governance models adapted to the people Mixed outsourced services Cost efficient and rate-minimal Unlock the potential of communities Networked not silo-ed Customer and business focussed Professional internal systems Staff and management in partnership

Creating NEXT GENERATION Councils 1. Unlock the potential of communities

Unlocking the potential of communities Naku te rourou nau te rourou ka ora ai te iwi

Naku te rourou nau te rourou ka ora ai te iwi Unlocking the potential of communities

Creating NEXT GENERATION Councils 2. Governance Adaptation

(for)

Governance Adaptation

Governance Adaptation ST Eddie the Eagle (Uncontrolled Fall): Council’s efforts are sincere but ineffective Gap of Public Trust JOU RN EY OF DIS TRU T S RU T F O U O J Y E N R Staged Evolution: at a pace that matches both organisation and citizens

Coromandel Case Study Forced Intervention John Walker, CEO Richmond Valley Council: “When survival is at stake, change may have to be radical. ” (MAV Conference 2015) to be radical. ” Governance Adaptation 2010 2012

NEW GOVERNING BODY Council Community Boards taken up into the Governing Body with ‘equal’ power but different roles Water, sewerage, stormwater Transport Refuse services District economic devt Regulation Civil Defence Community Board All other services with: Budgets and new staff Levels of service Strategy, policy and asset management Service delivery choices Governance Adaptation Parks Libraries Facilities Pools Local E. D. Toilets Cemet. I-Sites

Governance Adaptation. Did we get it right? Public Satisfaction (2016) in: Council decision-making improved 15% and is now 10% higher than the national average Council decisions themselves increased by 20% Rates spend improved 17% (up to 83%) Confidence in their council increased by 18% Parks increased to 96% (under the Boards) Libraries increased to 99% (under the Boards) “ … very pleasing and show improvements for a significant majority of the topics targeted in the survey … (TCDC Report. April 2016)

Creating NEXT GENERATION Councils 3. Cost efficient and rate-minimal

Cost efficient and Rate-minimal. Methods used Imposed stretching rate limits voluntarily Service Delivery Review Line by line review of operational budgeting Council priorities shortened Business cases for capital and anchor projects Alternative revenue sought to offset rates Community project fundraising now required Staff and overhead review

Cost efficient and Rate-minimal. Service Delivery Review Local (Devolved to community): 14 services Regional (11 -Council) Shared Services: Insurance, Roading technical alliance, Valuation services, GIS, Bylaws Retained by council: District Economic Development, Planning, Governance, Support, Finance Outsourced commercially: Water, Sewerage, Stormwater, Transportation Multi (3 -Council) Shared Services: Solid Waste, Civil Defence (plus a Cycleway project) Brought back in-house: Regulation services Council Controlled Organisation: Tourism

RATES Results 2016 Survey: Public satisfaction in the rates spend improved 17% (up to 83%) Intervention Post (Projected Rate Lines) Pre Actual Rates (Property Taxes)

DEBT Results Intervention Post: (Projected Debt Lines) Pre Actual Debt

Cost efficient and Rates-minimal. Did we get it right? Council reduced rates in two successive years (-6%) Commercial and rural rates won’t return back up to higher 2010 levels for over 15 years After restructuring council had the lowest operating cost per property of any local authority in the region $43 M was removed from ten-year capital budgets without degrading assets or reducing levels of service I saved council 160 years of my salary in the first year Staff engagement post-restructure rose to higher levels than before restructure Community and council disciplines over approving capital and setting priorities vastly improved

Where did the savings go? 1. A new and lower operational level of costs was set for the council 2. Some cost savings put toward economic development projects 3. Crippling costs of funding three new sewerage plants entirely by the council were offset

Creating NEXT GENERATION Councils Naku te rourou nau te rourou ka ora ai te iwi

Thank you! David Hammond Council Change Specialist +64 27 444 6368 www. hammondrobertson. co. nz Mayor Glenn Leach says: "We have nothing but appreciation and respect for David's input on the Coromandel. We inherited a Council that had lost touch with its community and was crippled under high rates and debt. With David’s passion for Community Empowerment we have turned this around and what's been achieved is huge. "