Understanding Council Spending: Impact on Rates & Communities | Local Government Minister Simon Watts

Key metrics published today show how much councils are spending and what they are spending it on, which has a direct impact on your rates, Local Government Minister Simon Watts says.

We know it is really tough out there and the cost of living is the biggest worry for households. Councils need to show they are wisely spending ratepayers’ hard-earned money.

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.

Some ratepayers are getting more and more fed up with rising rates hitting pockets harder than ever. This isn’t fair during a cost-of-living crisis where many Kiwis are doing it tough. It is important that ratepayers can see how their council is performing and what it is delivering for their community.

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.

We have been clear that we want to see councils get back to basics, focusing on delivering essential services and infrastructure, improving local decision-making, and supporting their communities through the cost of living – not adding to it.

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.

The Government is also actively exploring a rates capping system.

Given the current pressures on households, the degree of rates increases is a massive worry. We’re actively exploring a rates capping system to ensure councils are spending ratepayers’ money responsibly, Mr Watts says.

The metrics include information on council demographics, rates revenue, debt, staffing and expenditure, with benchmarking based on groupings of similar councils.

As an annual publication, the information will be developed over time to paint a fuller picture of council performance across New Zealand.

This year’s council profiles and group comparison tables are available on https://www.dia.govt.nz/local-government-performance-metrics.