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Creating NEXT GENERATION Councils
David Hammond: COUNCIL CHANGE SPECIALIST Contact:
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‘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
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Creating NEXT GENERATION Councils
1. Unlock the potential of communities
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Unlocking the potential of communities
Naku te rourou nau te rourou ka ora ai te iwi
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Unlocking the potential of communities
Naku te rourou nau te rourou ka ora ai te iwi Unlocking the potential of communities
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Creating NEXT GENERATION Councils
2. Governance Adaptation
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(for)
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Governance Adaptation
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Governance Adaptation
Gap of Public Trust Eddie the Eagle (Uncontrolled Fall): Council’s efforts are sincere but ineffective JOURNEY OF TRUST JOURNEY OF DISTRUST Staged Evolution: at a pace that matches both organisation and citizens
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Governance Adaptation
Forced Intervention Coromandel Case Study 2012 2010 John Walker, CEO Richmond Valley Council: “When survival is at stake, change may have to be radical.” (MAV Conference 2015) Governance Adaptation
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Governance Adaptation
NEW GOVERNING BODY Community Boards taken up into the Governing Body with ‘equal’ power but different roles Community Board Council Parks Libraries Facilities Pools Local E.D. Toilets Cemet. I-Sites Water, sewerage, stormwater Transport Refuse services District economic devt Regulation Civil Defence All other services with: Budgets and new staff Levels of service Strategy, policy and asset management Service delivery choices Governance Adaptation
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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)
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Creating NEXT GENERATION Councils
3. Cost efficient and rate-minimal
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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
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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 The people are not the problem; they are the solution
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(Projected Rate Lines) Actual Rates (Property Taxes)
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)
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(Projected Debt Lines)
DEBT Results Intervention Post: (Projected Debt Lines) Pre Actual Debt
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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 $43M 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
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Where did the savings go?
A new and lower operational level of costs was set for the council Some cost savings put toward economic development projects Crippling costs of funding three new sewerage plants entirely by the council were offset
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Naku te rourou nau te rourou ka ora ai te iwi
Creating NEXT GENERATION Councils Naku te rourou nau te rourou ka ora ai te iwi
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Thank you. David Hammond Council Change Specialist +64 27 444 6368 www
Thank you! David Hammond Council Change Specialist 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."
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