This memorandum is not part of the determination, but is intended to indicate its general effect.
A provision in the Local Government Act 2002 gives the Remuneration Authority (the Authority) responsibility for setting the remuneration of elected local government representatives.
The legislation requires the Authority to have regard to the need to—
minimise the potential for types of remuneration to distort the behaviour of the elected member:
achieve and maintain fair relativity with levels of remuneration received elsewhere:
be fair both to the elected members and ratepayers:
attract and retain competent persons.
In order to meet its statutory obligations, and in particular to achieve transparency, fairness, and consistency between members, the Authority established appropriate models to assist in determining the cost of governance and representation for each local and regional authority. The models utilised adopted 4 criteria that are transparent and readily verifiable from published data, namely—
The application of these models results in an indicative pool of money notionally attributable to each local and regional authority. These indicative pools are used by the Authority to assist in ultimately determining the remuneration for each elected member.
This determination uses indicative pool totals derived from audited annual accounts for the year ended 30 June 2006 and population figures as at the same date.
Local and regional authority members carry out their responsibilities on a diverse basis. In order to assist the Authority to recognise that diversity, councils and members are given the opportunity of proposing to the Authority remuneration levels appropriate for the responsibilities of each position within the council and its community boards. The Authority then determines the remuneration for each member after considering the council recommendations, any dissenting views, or other factors.
The Authority also determines allowances and expenses. The rules governing these are determined by the Authority and must be available for public scrutiny at each council.
This determination covers the period between 1 July 2007 and the date of declaration of the local body elections to be held in October 2007.
The Authority will issue an interim determination to cover the period immediately after the declaration of results until such time as the incoming councils have been able to consider and make recommendations on the distribution of the indicative pool for the balance of the 2007/08 financial year.