Council policy overhaul will cost $0.58 million

Ruapehu Bulletin, Volume 14, Issue 660, 29 October 1996, Page 2

Council policy overhaul will cost $0.58 million

An overhaul of how the Ruapehu District Council operates — from the way it gathers rates to the way it makes decisions on spending — will cost $0.58 million. The council has no say as to whether it will undertake the review, as it is a requirement of the Local Government Amendment Act (No 3) 1996. As well as being a

compulsory review, central government has laid down that the process must be completed and policies in place by July 1998. "The requirements of the LGAA represent significant changes not only to the way in which the Council plans and finances its activities, but also the way it manages its debts and investments," states council chief executive officer Cliff Houston

in a report to the council. "Those changes open the way for increased legal challenge to Council decisions. It is anticipated that any such challenge will be based on the critical analysis of the process used to reach the outcome under challenge. Therefore, process is an important part of developing the outcomes." He outlined the process to councillors at their meet-

ing on Friday. Under the LGAA the council must prepare: along term financial strategy; a funding policy; a borrowing management policy; and an investment policy. The act aims to promote "prudent, effective, and efficient financial management by local authorities": • By specifying principles of financial management to be observed in local authority decisions; • By providing a structured framework for local authority decision-making on financial management; • By providing an effective and appropriate avenue for public participation in local authority financial policies and funding decisions; • By clarifying the appropriate exercise of local authority autonomy in financial policy and funding decisions; and by requiring local authorities to explain their selection of funding mechanisms. Mr Houston explained

that if the policies are not developed, the council would leave itself open to litigation on financial decisions, down to how and why rates were levied on an individual property. To ensure the policies were sound, public consultation throughout was vital, he said. This would be by way of 'focus groups' of around 10, including people nominated by the community. He said public meetings had proved ineffective in the past and would only be used if essential. Public questionnaires would also form part of the consultaion process.