Democracy handle

Ruapehu Bulletin, Volume 12, Issue 539, 7 June 1994, Page 4

Democracy handle

Your issue of 24 May 1994 contained an article entitled "Price of council democracy goes up". Continued on page 2 the chief executive is quoted as having said "the cost of operating the council' s 'Democracy' account(thatpart of the council activity which deals with the functions of council, its committees, subcommittees, community boards, ci vic functions, providing information to the public and consultations with the community) had increased markedly, from $725,000 to $897,000, not because more staff had been employed or extra expenses had been incurred but council was now getting a "better handle" on the actual costs of 'Democracy'. If he has not been misreported could someone please explain how getting a "better handle" on the actual costs of "Democracy" can cost an additional $172,000 when no more staff have been employed or extra expenses incurred. B L Maples Ruapehu District Council CEO Cliff Houston replies: First let me-assure your correspondent that a more detailed explanation was given to the council on the matter of increased costs associated with Council' s democracy account. Of necessity not all of the comments I made in respect of this matter could be reported in the issue of 24 May 1994. The level of increase referred to by your correspondent reflects a change in the way the cost of cor-

porate support and o verhead is identified and charged to each of the ten significant activities or "accounts" which make up the core of the Draft Annual Plan. This change is not due to an increase in the costs of staff employed or extra expenses incurred. It is a change in the proportion of those costs borne by the democracy account for the 1994/95 financial year. There is a decrease in the proportionate share of those costs borne by the other nine significant activities. The change was due to the fact that the council now has "a better handle" as to where those costs lie. A . greater share of those costs are a charge against the democracy account than was the case in the past.