Hon Sandra Lee

Minister of Local Government

January 2000

NEW ZEALAND SOCIETY OF LOCAL GOVERNMENT MANAGERS

Website: //www.localgovt.co.nz

PO Box 5538, Lambton Quay, Wellington, Ph 04 494 6251, Fax 04 494 6259

Hon Sandra Lee

Minister of Local Government

Congratulations on your appointment as Minister of Local Government.

Together with my Executive Committee I look forward to working with you as Minister and also with your local government officials in the Department of Internal Affairs.

I am pleased to present this briefing paper profiling the New Zealand Society of Local Government Managers (SOLGM).

It briefly outlines the nature of SOLGM and explains our strategy and action programme for achieving a high quality of local government management through professional development and training of our members.

The paper also touches upon some of the items contained in the Alliance’s and Labour’s policy statements on local government where SOLGM has been involved or has an interest.

I look forward to meeting with you to discuss this briefing paper, to answer any questions you may have and to explore areas where we can beneficially work together to enhance both local government management and the sector generally.

Darryl Griffin
President
20 January 2000

Table of Contents

Introducing SOLGM

SOLGM is an incorporated society established on 1 January 1988. It replaced the former New Zealand Institute of Town Clerks and Municipal Treasurers and the New Zealand Institute of County Clerks.

Membership

SOLGM has approximately 540 members throughout all local authorities in New Zealand, comprising:

• Chief Executives

• Second tier managers reporting to the Chief Executive

• Managers with significant management, policy or strategic development responsibilities

These members span all disciplines required in local government – general management, financial management, strategic management, policy development, economics, engineering, regulatory (resource management, building control, food licensing, etc), community development, recreational and cultural management.

This membership provides SOLGM with an extremely rich resource of professional, technical, and practical experience and knowledge to draw upon in dealing with all local government issues. Ministers, Select Committees, Government Departments and agencies and Local Government New Zealand have drawn upon this resource for policy development and implementation advice.

A Code of Ethics defines the expected integrity and professionalism of members of SOLGM.

Governance

SOLGM is led by an Executive Committee, comprising the President, 2 Vice Presidents, and 6 Executive Members. Members of the current Executive Committee are detailed in Appendix A. For organisational purposes, SOLGM is divided into 6 geographical Branches, which provide a focus for local membership, networking, training sessions, etc.

Vision, Goals, Objectives and Values

SOLGM’s Vision is:

The Goals, Objectives and Values of SOLGM are set out in Appendix B.

International Affiliations

SOLGM has also established international affiliations with the following organisations:

• Society of Local Authority Chief Executives and Senior Managers (SOLACE) – United Kingdom

• Institute of Local Government Management of Southern Africa (ILGMSA)

• Institute of Municipal Management (IMM) – Australia

• International Institute of Municipal Clerks (IIMC) – United States

• International City/County Management Association (ICMA) – United States

  (the current President of this significant organisation is Kinsley Sampson, Chief Executive of New Plymouth District Council – the first President from outside the North American continent)

The affiliations with the above organisations are particularly important in keeping New Zealand local authority managers to the forefront of innovative developments, ideas and trends in local government management in the respective countries. This is achieved through attendance at annual Conferences, manager exchanges, study awards, managerial competitions and access to significant resource libraries.

Likewise, the same avenues have been valuable for overseas local government managers to take advantage of the highly regarded local government reforms in New Zealand. They have demonstrated wide interest in both the governance and management systems of our local authorities.

1999/2000 Annual Plan

SOLGM’s Annual Plan contains several areas of focus which:

1. will increase the professionalism and competencies of Chief Executives and senior managers through SOLGM’s Business School, Centre of Excellence and website - Local Government Online. This will provide them with information and good practice examples to achieve continuous improvement in local government management; and

2. enables better local government management from ’informed comment, advice and advocacy on the development of national policy affecting local government’ (objective 2.1.4). To achieve this SOLGM will tap both the significant managerial expertise and practical/technical experience within local government, and also input that expertise and experience into local government policy initiatives.

Appendix C explains the above areas of focus in more detail.

Local Government Policy Statements

SOLGM has examined both the Labour Party and Alliance Party policy statements on local government.

We consider both policy statements are generally positive towards local government. They look to recognise and respect local government’s important role in community governance and its position in the overall government scene. From a managerial perspective, the policy statements contain elements which will, if implemented, enable local government managers to carry out council decisions more effectively and efficiently.

In particular SOLGM is very supportive of:

1. Forum Between Local and Central Government – The initiative to establish a regular forum between representatives of local and central government to identify policy issues and develop a long-term coherent strategy for local government is very welcomed. As already advised, SOLGM considers that it could make a valuable contribution from a managerial perspective to the forum.

2. Review of the Local Government Act 1974 – SOLGM has long argued that the Act is overprescriptive and imposes barriers to local authorities meeting the continually evolving needs of their communities in the most effective and efficient manner. Therefore, from a managerial perspective, SOLGM supports the introduction of a more "empowering and enabling" statute whether this is through some form of power of competence or other flexible non-prescriptive approach.

3. Review of Rating Powers Act 1988 – SOLGM fully supports the objective to review the Act within 18 months because:

• a review of the funding legislation, which takes into account the structural and evolutionary changes in local government is long overdue

• the Local Government Amendment Act (No 3) 1996 requires consequential examination of the Rating Powers Act to ensure local government has the necessary funding tools

• the Act is prescriptive, over-complex, outdated and due for reform

• a number of policy issues need resolution, e.g. rating of Crown land.

SOLGM together with Local Government New Zealand, has contributed significantly to the Review being undertaken by the Department of Internal Affairs through a Joint Funding Powers Working Party.

SOLGM and Local Government New Zealand’s joint position on the review is set out in Funding for the Future – a New Direction for Local Authority Funding Powers which was presented to your predecessor and the Department on 16 June 1999. We would welcome, together with Local Government New Zealand, the opportunity to provide a separate briefing on this position paper.

SOLGM trusts that the Department can continue to progress this Rating Review to complete the necessary policy decisions which will allow for the enactment of new legislation for the 2001/2002 financial year.

4. Review of the Local Elections and Polls Act 1976 – SOLGM has commenced a review of the principal Act following our work in promoting legislation to allow early processing of votes at the 1998 local authority elections. The previous Internal Affairs and Local Government Select Committee encouraged this work. The aim is for a new Local Authority Electoral Act by March 2001 to operate at that year’s elections. The new Act should have the flexibility to adapt to new electoral systems and technology relating to voting and vote counting.
   
   Following the issue of the discussion paper The Electoral Way Forward and a subsequent forum, Local Government New Zealand and SOLGM are currently developing a sector policy position for stakeholder consultation on the direction and nature of the new Act. We should be able to brief you on this policy position in March 2000 and present you with a draft Bill in June/July.

SOLGM has a managerial interest in other key elements of both Labour’s and the Alliance’s local government policy statements relating to infrastructure (roading, water, etc.); regulatory issues (Resource Management Act); community, social and economic issues and the relationship between local government and Maori. We are generally supportive of the position advanced by Local Government New Zealand in its Briefing Paper in these areas.

Additional Issues

The following three issues are not included in the Labour and Alliance local government policy statements that SOLGM would like to see considered and addressed.

1. Vision and Strategy for Local Government in 2010 Initiative – This is a tri-partite exercise between Local Government New Zealand, the Department of Internal Affairs and SOLGM. Following a substantive consultation phase, a vision and strategy paper has been prepared which will be forwarded to you shortly by the three partners. It promotes the nature and features required of local government in 2010 if it is to meet the needs and challenges of its communities in 2010. It also outlines the key strategic actions necessary to reposition the sector for 2010. In many respects the strategic actions proposed in the Paper are consistent with aspects of the Labour and Alliance local government policy statements.

2. Chief Executive Contracts – We have already advised you of our concern with the recent Crown Law opinion on the reappointment of Chief Executives. The opinion is both at odds with the practice applied over the last ten years in the reappointment of Chief Executives and the sector’s own legal advice. Effectively, the Crown Law opinion states that a council cannot reappoint a Chief Executive after five years employment without advertising, even when the council is completely satisfied with his/her performance.
   While SOLGM’s position on this issue may appear to be in ‘self interest’, the situation actually poses a number of problems for local authorities which were well detailed in Local Government New Zealand’s letter to your predecessor.
   SOLGM has responded to three options proposed by the Department of Internal Affairs to deal with the issue. We have reiterated our position that legislation be promoted to explicitly empower councils to reappoint a Chief Executive after five years service if the council is satisfied with his/her performance.

3. Annual Local Government Law Reform Bill – From a management perspective there are frequent technical adjustments required to local government legislation to enable particular functions, roles and process to be managed effectively and efficiently. However there is often no appropriate legislative vehicle available to enact the necessary adjustments. Accordingly SOLGM suggests that you support the concept of an annual Local Government Law Reform Bill to deal with small issues constantly arising from the large local government statutory canvas.

Summary

In conclusion, SOLGM is a professional organisation with strong international links with overseas compatriot organisations, dedicated to facilitating and encouraging the continuous training, learning and development of its members so as to lead the way in providing high quality local government management. SOLGM has a strategy and action programme through its Business School, Centre of Excellence and Local Government Online Ltd to achieve this.

The substantial knowledge base within SOLGM of professional managers with technical/practical experience covering a wide range of disciplines has enabled it to positively contribute to a variety of local government policy development and implementation initiatives.

SOLGM therefore looks forward to working with you and the Government in its local government initiatives and hopes to continue to be involved in the early formulation of local government policy development and implementation from a managerial perspective where appropriate. This involvement in the past has been advantageous to all parties – Government, local government and citizens – through lessening the risk of impractical policy emerging along with its attendant costs.

SOLGM EXECUTIVE COMMITTEE

The Society and Executive Committee is serviced by an Executive Director, David Smith, Personal Assistant, Lara Hutton, and Seminar Co-ordinator Kerin Moriarty.

Society of Local Government Managers
Local Government Building
114-118 Lambton Quay
PO Box 5538
Wellington
Telephone: 04 494 6251, Facsimile: 04 494 6259
Email: solgm@mtxlink.co.nz, Website: http://www.localgovt.co.nz

Accountants: KPMG

Bankers: Bank of New Zealand

Auditors: Audit New Zealand

Solicitors: Simpson Grierson

Insurers: Civic Assurance Ltd

SOLGM GOALS, OBJECTIVES AND VALUES

The Goals of SOLGM are:

• to improve the quality of service to members

• to provide strong industry leadership

The Objectives of the Society are as follows:

"2.1 To encourage better local government management by:

2.1.1 Providing services to members aimed at furthering their personal development.

2.1.2 Encouraging the exchange of information relating to the principles and practice of good local government management.

2.1.3 Initiating research, publishing and distributing information on local government management.

2.1.4 Providing informed comment, advice and advocacy on the development of national policy affecting local government.

2.2 To protect and promote the general welfare of its members.

2.3 To maintain and improve the standard of professional conduct by its members.

2.4 To strengthen branch activities so that all members may be involved in Society activities."

The Society’s Values are as follows:

• LEADERSHIP

• EFFECTIVE – Actions

• CONSTANT LEARNING

KEY AREAS OF FOCUS IN THE 1999/2000 ANNUAL PLAN

Training Development/Good Practice Development and Promulgation

(a) SOLGM Business School

The School was established in 1997 with objectives to:

• identify and maximise opportunities for local government training and personal development

• promote and develop training programmes for the betterment of local government industry

The School is overseen by a Board of Advisors.

The School’s programme for 1999/2000 is set out in Appendix D.

The Business School is currently preparing a case for the Ministry of Foreign

Affairs and Trade, for funding assistance under the Ministry’s Good Governance Programme for New Zealand local government managers to hold training workshops in South Africa for South African emerging managers. It appears that New Zealand’s local government system and how it operates is a preferable model for training experience for South Africans than the Australian or UK systems.

SOLGM was also approached in August 1999 by the World Bank to arrange secondments for Indonesian Government staff to New Zealand local authorities for a 2 to 3 month learning experience. However, due to the East Timor crisis which arose at that time, SOLGM placed the initiative on hold.

(b) Centre of Excellence

This Centre was also established in 1997 with the purpose:

To promote, foster, and encourage excellence in local government
management. To establish SOLGM as the key driver behind this
quest for excellence.

The Centre is overseen by a Board of Advisors, and co-ordinates under its umbrella, a series of programmes, events, and awards.

The areas of focus by the Centre are:

• establishment of managerial ‘Best Practice’ and the promotion of its adoption within the sector.

• to promote recognition of excellent local government management performance and innovation through awards. An example is the NZ Post Ltd Management Excellence Awards. They cover excellence in: Process Management, Management of People, Technology Advance and Community Relationships.

• to commission research on developing ‘Good Practice’ objectives and templates in the key areas.

• to promote and facilitate international manager exchanges and study awards – primarily with Australia, UK and the USA.

• publication of "LEADERS", a quarterly published magazine focusing on local government managerial issues and developments

• promotion of SOLGM’s Code of Ethics, which governs the professionalism of its members.

• promotion of bi-cultural/EEO issues as ‘good employers’ under the Local Government Act.

(c) Local Government Online

Local Government Online Ltd is a joint venture between SOLGM and the Association of Local Government Information Managers. The company was established in 1997 to develop and operate a local government website to enable access to local government information through the Internet.

A key feature of the website is the Resource Library that is being populated by policy papers on a range of local government topics from various local authorities. This facility enables local authority personnel (and other interested persons) to see what other local authorities are doing and adopt or adapt useful approaches, rather than ‘reinventing the wheel’. The website is developing into an integral tool for promoting ‘Good Practice’ in local government. In particular there has been strong interest in material on the website from overseas, particularly the USA.

A new initiative Local Government Online has recently launched is "Community Online". This initiative is aimed at all Councils having their own website to share information with their communities by April 2000. Currently, some 60 Councils do not have a website.

Industry Leadership

As explained in the briefing paper, SOLGM has within its membership a substantial knowledge resource of professional, practical and technical experience covering a wide array of disciplines. Over the years this resource has been drawn upon by Ministers, Select Committees, governmental agencies and Local Government New Zealand for practical/technical advice in the development and implementation of its policy.

Two recent key examples of this are:

• the discussions between Local Government New Zealand and the Department of Internal Affairs on the workability of the proposed new financial management provisions now in the Local Government Amendment Act (No 3) 1996.

• input into the Internal Affairs and Local Government Committees’ 1999. Inquiry into the Early Processing of Voting Papers at Local Authority Elections.

Current involvement by SOLGM in policy development/implementation activity under its 1999/2000 Annual Plan is briefly listed below. Much of this work is undertaken in partnership with Local Government New Zealand, and some of it has already been discussed earlier in the briefing paper.

1. SOLGM Financial Management Working Party – This group deals with issues or undertakes projects relating to local authority financial legislation and development and accounting standards. Some areas of current activity includes depreciation and concise financial reporting and accounting for property, plant and equipment.

2. Vision and Strategy for Local Government in 2010 Initiative - See briefing paper.

3. Funding Powers Review - See briefing paper.

4. Review of Water – SOLGM is a member of Local Government New Zealand’s Working Party on the Water Review.

5. Local Elections and Polls Act Review - See briefing paper.

6. ACC – SOLGM intends to examine the significant liability placed on the local government sector to fund a "tail" which includes industries that no longer feature as local government functions, e.g. abattoirs.

7. Miscellaneous policy work – SOLGM has been involved in a range of miscellaneous issues – Review of the Building Act Draft Terms of Reference, timing for GST payments on rate revenue, input into the establishment of the Ministerial Review of Rodney District Council, etc. In relation to the latter issue, SOLGM is statutorily recognised in section 692N of the Local Government Act as an organisation that is required to be consulted by the Minister of Local Government where the Minister is considering initiating a review of a local authority.

SOLGM BUSINESS SCHOOL 1999/2000 PROGRAMME

The key areas of focus for the Business School on 1999/2000 are

(a) Seminar Programme – To date six seminars/forums have been held. The balance of the seminar programme is shown in the following table.

Seminar Name	Date
Triennial Review of Basis of Election ‘Good Practice’ Seminar	11 February, Wellington
1999/2000 Annual Planning ‘Lessons and What Did We Do Well’ Seminar	Mid/Late February
Balanced Scorecard Seminar (in association with KPMG)	Early March
General Finance/Asset Management Seminar	16 & 17 March, Convention Centre, Palmerston North
Cross Boundary Service Delivery Arrangements/Initiatives Seminar	Early/Mid April
Communications/Public Relations/Media Dealings Seminar	Mid April
Chief Executive Career Development for 2nd and 3rd Tier Managers Seminar	Late April
Developments in Good Practice Risk Management Seminar	Early May
Developments in Benchmarking by Councils Seminar	Mid/Late May
Application and Benefits of ‘Community Trusts’ in Local Government Seminar	Early June
Chief Executive’s Forum	Late June

(b) Organise the New Zealand Component of the 2000 IMM Management Challenge. This is a management learning contest for local authorities in Australia and New Zealand.

(c) Examine the feasibility of a managerial study tour in conjunction with ICMA’s 2000 Best Practice Symposium.

(d) Subject to Ministry of Foreign Affairs and Trade funding, establish a training relationship with the Institute of Local Government Management in South Africa for emerging local government management.