1. Creating NEXT GENERATION Councils
David Hammond: COUNCIL CHANGE SPECIALIST
Contact:

2. ‘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

3. Creating NEXT GENERATION Councils
1. Unlock the potential of communities

4. Unlocking the potential of communities
Naku te rourou 
nau te rourou  ka ora ai te iwi

5. Unlocking the potential of communities
Naku te rourou 
nau te rourou 
ka ora ai te iwi
Unlocking the potential of communities

6. Creating NEXT GENERATION Councils
2. Governance Adaptation

8. (for)

10. Governance Adaptation

11. 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

12. 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

13. 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

14. 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)

15. Creating NEXT GENERATION Councils
3. Cost efficient and rate-minimal

16. 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

17. 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

18. (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)

19. (Projected Debt Lines)
DEBT Results
Intervention
Post:
(Projected Debt Lines)
Pre
Actual Debt

20. 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

21. 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

22. 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

23. 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."