This memorandum is not part of the determination, but is intended to indicate its general effect.
The current local government structure for Auckland came into existence on 1 November 2010 and provided a new approach to the representation of Aucklanders that is unlike local government structures anywhere else in New Zealand. Accountability under the new structure anticipated negotiation and agreement between the newly elected parties on the manner of future representation. However, those standing for election required some certainty on the remuneration they could expect to receive if elected.
Accordingly, in June 2010, the Remuneration Authority (the Authority) issued an initial determination for the mayor, councillors, and local board members, including board chairpersons. In that determination, the Authority indicated that after the election in October 2010 there would be engagement with the incoming elected representatives on the allocation of some additional funds to recognise the structural framework put in place by the Auckland Council and its local boards after that election.
This was undertaken and an amending determination was issued, backdated to 1 November 2010, which reflected the Authority’s views on the feedback received (see the Local Government Elected Members (2010/11) (Auckland Council and Local Boards) Determination 2010, which includes the amendments made by the Local Government Elected Members (2010/11) (Auckland Council and Local Boards) Determination 2010 Amendment Determination 2011).
In the June 2010 determination, the Authority indicated it would make a modest adjustment to remuneration from 1 July 2011, and would undertake a full review of the workload and accountabilities of Auckland local body members towards the end of 2011, with the aim of confirming or amending the remuneration model based on the practice that was emerging in the new council.
The determination that covered the period 1 July 2011 to 30 June 2012 increased the annual remuneration and establishment allowance available to members by 2%, and the mayoral remuneration by 1.5%. This mirrored the base movement applied to local government in the rest of the country.
When the Authority began the process of establishing a permanent remuneration framework in late 2011, it became clear that accountabilities, processes, and workload issues had still not been finalised. The Authority is continuing to work on these issues and is committed to developing a remuneration model to provide certainty to those considering putting themselves forward for election in 2013.
However, to maintain an equitable treatment with the remaining local authorities nationally, the Authority has, in this determination, applied a 1.5% increase to mayoral and councillor remuneration, and has increased local board remuneration to reflect population changes since 2010 and a 1.5% increase. All remuneration is rounded to the nearest $100. The Authority has also made modest adjustments to the mileage and travel entitlements to better reflect council and local board travel commitments.
This determination is deemed to have come into force on 1 July 2012 and expires on the close of 30 June 2013. The determination is backdated to 1 July 2012 because certain details could not be finalised in time for the determination to be issued prior to that date.