22 August 2017
Media: Rotorua Daily Post
Topic: NZ Taxpayer's Union Report
Inquiry
Questions:
1. Is it pleasing to see our rates sit among the average compared with the rest of the country and provincial NZ?
2. Why is the borrowing amount per ratepayer so high?
3. Why do we have on average more council staff paid more than $100,000 a year than other councils? (Do we have extra talented staff that we need to retain..?)
4. Does Geoff Williams think his salary is fair? (I'll check our files but isn't it a lot less than the previous ceo's?)
5. Does Steve Chadwick think her salary is fair (how many hours a week does she work? Does she ever get weekends etc?)
6. Are the councillor salaries fair given their workloads?
It would also be good to explain how the council salaries are set by an independent board (but I can do that if you like).
The reporter also requested comment from both Mayor Chadwick and Geoff Williams.
Response
From CE Geoff Williams:
The Taxpayers Union report is very misleading and based on some dubious assumptions.
For example, they have calculated personnel (staff) costs per ratepayer by dividing the total cost of that (as per the 2016 Annual Report) by the number of urban residential ratepayers, so just one group of ratepayers rather than all ratepayers (residential, commercial, rural). There are approximately 25,000 ratepayers (and approximately 29,600 rateable properties) in total in the Rotorua district.
We also believe our council has been placed in a grouping of 27 provincial councils with populations over 20,000 so we are being compared to mostly smaller councils, not just like-sized councils.
In terms of debt, we agree it is higher than we would ideally like it to be. However, the debt we have today is largely inherited and driven by a doubling of debt between about 2007 and 2013.
In terms of staff salaries, the restructure of 2014 saw a reduction of positions, including managers, across the organisation. That required an overall lift in capability and skills to be recruited into the organisation and that comes at a higher price.
My role as chief executive is both demanding and challenging but despite this, I do see that I'm well recompensed for the work I undertake.
From Mayor Steve Chadwick:
The Remuneration Authority sets the salaries of mayors and elected members and takes various factors into account in determining what it considers to be fair.
Being mayor is a busy job and Rotorua being a tourism destination adds another load. It's not an easy job but you keep the big picture in mind and for us that's the 2030 vision and goals. Being mayor is a seven-days-a-week job and there are often early starts, with meetings, engagements and official duties throughout the day and into the evenings, as well as during weekends.
INFORMATION:
The Remuneration Authority determines the salaries of mayors and elected members, taking various criteria into consideration including comparable positions.
The CE's remuneration is approved by the full Council on the recommendation of a sub-committee and that recommendation is based on a performance review, plus an independent review by a consultant, who takes external benchmarking and job size into account.
Mr Williams' salary is approved by the full council on the recommendation of a CE performance sub-committee. The committee's recommendation to the full council is based on a performance review and on an independent review by a consultant who takes into consideration external benchmarking and job size.
Former CE Peter Guerin's package, at the time he left, totalled $332,358.
When he took up his role at the council on 1 July 2013 Mr Williams received a salary of $294,270 (no car or superannuation). He turned down an increase in 2014 and an increase to $315,275 in 2015 (for 2015/16) was ratified unanimously by the full council, on recommendation of the sub-committee.
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Media: Rotorua Daily Post
Topic: Kuirau Park construction
Inquiry
Rotorua Daily Post queried what construction was happening in Kuirau Park including cost of the project and completion date. The reporter provided a photograph of work underway.
Response
Rotorua Daily Post was referred to two earlier stories regarding the refresh of the footpools in Kuirau Park.
Read Rotorua Lakes Council story here
Read Rotorua Daily Post story here
You'll see from these stories that the structure in the foreground of your pic is the footpools. The tower' will house the pump and temperature control mechanisms for the foot pools.
There are about two months' worth of work left on the project but completion date is obviously weather-dependent.
Further info provided:
Upgrading of footpools in the park is part of wider ongoing development of the park. The footpools project now underway was initially planned for completion before last summer but the site needed more geotechnical assessment than anticipated and by the time that was done and they were ready to progress, work was underway on the other footpools. Rather than having both out for the summer they delayed the upgrade of this one until now.
