Note: the following explanatory memorandum should be read in conjunction with the explanatory memorandum(s) appended to:
This memorandum is not part of the determination, but is intended to indicate its general effect.
This determination, which is deemed to have come into force on 1 July 2011 and expires on the close of 30 June 2012, covers those local authorities not included in the Local Government Elected Members (2011/12) (Certain Local Authorities) Determination 2011 issued in July 2011.
The determination has been developed by 3 distinct processes. The Remuneration Authority (the Authority) separately fixes the remuneration of mayors of territorial authorities and chairpersons of regional councils, the pool of funds allocated to each regional and territorial authority, and the maximum allowances payable in respect of certain activities undertaken by members.
Mayoral and chairperson remuneration was established using the approach developed in 2010 after an independent job evaluation exercise. Weights of Population, Expenses, and Assets were established, which were used to derive points for each local authority. These weights are those that give a good representation of the relative size of sample mayoral and chairperson positions as determined by the job sizing. The weights were Population 50%, Expenses 45%, and Assets 5%. Those weights were then used to develop remuneration levels that reflected the Authority’s pay line for the 2010 year. As the Authority’s 2011 pay line will not be available until later in the year, the remuneration levels were then increased by 1.5% to reflect general wage growth and adverse economic conditions. For unitary authorities, a 12.5% loading was also applied. Finally, the mayoral and chairperson remuneration was set to the same as last year's for those cases where this year’s calculation gave a lower remuneration than last year.
The balance of the pool for council and community board remuneration was then established by applying a 2% increase to the amount established using the pool system that has been in place since 2003. The differential between adjustments for mayors and chairpersons and the pool reflected the nil general movement applied to the pool in 2010, as set against the mayors’ and chairpersons' movement that flowed from the Authority’s pay line. Councils were then invited to recommend the distribution of the pool among elected members.
Allowances have been adjusted by increasing the maximum mileage rate payable from $0.70 to $0.74 to compensate for increases in petrol costs that have occurred recently.
The determination also includes the full-year allowance payable to members who utilise their home communications systems for council business of $750, this allowance having previously been set for an 8-month period at $500.
Finally, the determination provides an increase to the maximum hourly rates payable to members sitting on resource consent hearings. These rates were last reviewed in 2006, and the Authority has increased the maximum hourly rate to $100 for those chairing a hearing and $80 for those sitting on a hearing.
Note: The preceding explanatory memorandum should be read in conjunction with the explanatory memorandum(s) appended to the: