Local Government Minister Simon Watts said councils needed to show they were spending ratepayers' money wisely. Photo: RNZ / Angus Dreaver
The government has published new performance metrics revealing how much councils are spending as it continues to ramp up the pressure on local bodies.
But Local Government New Zealand (LGNZ) says the information only tells part of the story and should also include what councils are delivering for the money spent.
The first set of "council profiles" draw on data to gauge financial performance.
In a statement, Local Government Minister Simon Watts said the cost of living was the biggest worry for households and councils needed to show they were spending ratepayers' money wisely.
"Ratepayers place immense trust in their local councils who make key decisions on local infrastructure, fiscal management, and how their community operates on a day-to-day basis on their behalf." he said.
The figures show information on council demographics like population and land area, rates revenue, council debt, staffing numbers, how much councils spend and what they spend it on.
Watts said people were getting fed up with rate rises and it was important they saw how their council was performing.
"That's why the government is putting clear facts and figures directly into the hands of ratepayers. When ratepayers know more about how their council is performing and where their money is going, they can engage more effectively and ask the tough questions.
"For instance, communities can now compare how much their council spends on core essentials like infrastructure and see whether their rates are going up more than average." he said.
Council are grouped together with similar councils and then benchmarked on their performace.
"Releasing these performance metrics aligns with our commitment to lifting the performance of local government. It is an opportunity for councils that are focused on their core functions to highlight their efficiency and value to their communities." Watts said.
The government was "actively exploring" a rates capping system, he said. "Given the current pressures on households, the degree of rates increases is a massive worry."
While the first release information covers financial performance, subsequent releases will cover metrics like asset management, service delivery, and governance
In a statement, LGNZ Vice President Campbell Barry said the metrics were a good starting point for councils to engage with their communities, which always supported transparency and benchmarking.
"The profiles detail council expenditure, but they don't show what the community gets for this investment or whether that investment has been supported by the community," he said.
"At the moment, the metrics only provide part of the story. For example, is that council investing in key infrastructure to support future growth or make up for past underinvestment, has it been exposed to particular cost pressures or weather events, or is it at a particular point in an investment cycle?"
Barry said local context was important.
"We encourage people to also look at councils' pre-election reports - which provide a snapshot of council performance and value as well as unique challenges and opportunities - alongside the profiles, to get a fuller picture." he said.
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