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Wallacetown
Community Board
21 July 2016
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Elected
Members' Expense Reimbursements and Allowances
Record No: R/16/7/10239
Author: Sheree
Marrah, Finance Manager
Approved by: Anne
Robson, Chief Financial Officer
☐
Decision ☐ Recommendation ☒ Information
Purpose
1 The
purpose of this report is to inform Community Boards and Community Development
Area Subcommittees of the recent changes to Council’s Elected
Members’ Remuneration and Reimbursements Policy and the associated impact
on them. The revised policy amendments were adopted by Council on 8 June
2016 and are effective from 1 July 2016.
Executive Summary
2 The Remuneration Authority (RA) sets the framework for the
remuneration and reimbursement of local government elected members, namely the
Mayor, Councillors and Community Board members. Council recently
reviewed its Elected Members’ Remuneration and Reimbursements Policy as a
result of some minor changes required by the RA to mileage
and travel time allowances.
3 In
undertaking the review, Council staff recommended a number of additional
amendments to the policy to allow reimbursement of expenses and the payment of
allowances to Community Board members and Council Subcommittee members.
4 The
revised policy includes the provision of mileage and travel time allowances as
well as expenditure reimbursements for Community Board and Subcommittee
members, in line with Councillors.
Background
5 The RA sets the framework for the remuneration and
reimbursement of local government elected members, namely the Mayor,
Councillors and Community Board members. The RA sets the maximum
level of expenses and allowances available to elected members.
Council’s policy is required to be in alignment with the maximum levels
set by the RA.
6 The
previous Council policy mistakenly excluded Community Board members from
receiving allowances. As Council had no other formal policy on
reimbursement and allowances for Council Subcommittee members, it was
recommended that Subcommittees also be included in this policy.
7 The
specific provisions relevant to Community Boards and Council Subcommittees
incorporated into the revised policy are as follows:
· Mileage allowance,
can be claimed in line with Councillors, where travel exceeds 30 kilometres
within a day. The mileage allowance will be paid to
elected members at a rate of 74 cents per kilometre
(consistent with the IRD rates) for the first 5,000 kilometres. The rate
for travel in excess of 5,000 kilometres will remain at 37 cents per
kilometre. The 30 kilometre round trip threshold (ie, 15 kilometres each
way) applies to visits to Council offices (or other regular meeting venues
deemed to be a Council office for the purpose of this policy). For other
Council requested travel by elected members, no threshold will apply.
· Travel time allowance, can be claimed in line with Councillors, at a rate of $37.50
per hour, where travel time exceeds 1 hour within a
day.
· The
policy states that where Community Board or Subcommittee meetings are held at a
regular venue other than a Council office, this location will be deemed to be a
Council office for the purposes of mileage and
travel time allowances.
· Reimbursement for costs can be claimed for courses, seminars and training
associated with the role of an elected member. Associated travel and
accommodation costs may also be reimbursed if in accordance with the policy.
· Community Board and Council Subcommittee members will not
be eligible to claim the communication allowance stated in the policy.
8 In
order to claim an allowance a claim form will need to be completed by the
elected member (see sample claim forms attached). For reimbursements a
claim form will need to be completed and supporting invoices/receipts
attached. Completed forms will be submitted to the relevant Committee
Advisor to arrange for approval and payment.
Funding
9 Although
the revised change in mileage and travel time allowances for Community Board
and Council Subcommittee members has not specifically been budgeted for in
2016/2017, it is anticipated that this will not be a significant cost to the
communities as the majority of elected members live within 15 kilometres of
their nearest Council office and travel less than one hour to attend meetings.
10 Payment
of allowances and reimbursements will be funded from local operating budgets of
the relevant Community Board or sub-committee.
Policy
11 A
copy of the revised policy, effective from 1 July 2016, is included as
attachment A to this report.
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Recommendation
That the Wallacetown
Community Board:
a) Receives
the report titled “Elected Members' Expense Reimbursements and
Allowances” dated 4 July 2016.
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Attachments
a FINAL
Elected Members' Remuneration and Reimbursements Policy (effective 1 July 2016)
View
b Elected
Member Allowance Claim Form View
c Elected
Member Expense Reimbursement Claim Form View
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Wallacetown
Community Board
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21 July 2016
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POLICY: ELECTED
MEMBERS’ REMUNERATION AND REIMBURSEMENTS POLICY
GROUP RESPONSIBLE: Financial
Services
DATE APPROVED: 25/6/08,
26/5/10, 26/1/11, 6/4/11, 29/6/11, 9/10/13, 16/4/14, 8/6/16
EFFECTIVE DATE: 1
July 2016
FILE NO: 10/4/3/1,
18/1/6/4, 240/10/7/8, 240/10/1/5, 240/10/1/6
140/20/1/4,
240/10/7/8, R/16/5/7922
POLICY DETAIL:
1.0 SCOPE
1.1 This
policy provides the framework for:
(a) Remuneration
of the Mayor and Councillors;
(b) Expenditure reimbursement and allowances for the Mayor
and Councillors;
(c) The
salary of Community Board members; and
(d) Expenditure
reimbursement and mileage and travel time allowances for Community Board
members;
(e) Expenditure
reimbursement and mileage and travel time allowances for the elected members of
Council subcommittees.
2.0 BACKGROUND
2.1 Remuneration
for the Mayor, Councillors and Community Board members, and also the rules
relating to allowances and expenses are determined by the Remuneration
Authority and reviewed on an annual basis. Southland District Council
is required to respond to the authority regarding remuneration and its policy
for allowances and expenses.
2.2 The
attached schedule (Appendix A) outlines the dollar amounts which will be
paid. This schedule may be updated from time to time to reflect the most
recent determination and advice of the Remuneration Authority including
inflation adjustments.
2.3 The
Elected Members’ Remuneration and Reimbursements Policy is intended to
reflect the relevant period’s Local Government Elected Members
Determination.
If inconsistencies arise between this policy and the determination in regards
to remuneration and allowance rates, Council will make payments to elected
members in accordance with the relevant Local Government Elected Members’
Determination.
3.0 DEFINITIONS
Actual means as evidenced
by the original receipt attached to the claim form.
Council shall mean the 13
elected members that form the governing body (Council) of the Southland
District Council.
Chair shall mean the
individual appointed the role of chairperson by formal resolution in the case
of Council committees or elected to this role in the case of
community boards.
Chief
Executive shall mean the Chief Executive of Southland District Council.
Community Board Member shall
mean any elected member of the eight community boards throughout the Southland
District. These are: Edendale-Wyndham, Otautau,
Riverton/Aparima, Stewart Island/Rakiura, Te Anau, Tuatapere, Wallacetown
and Winton.
Subcommittee Member shall
mean any elected member of a Council appointed subcommittee, including but not
limited to the 9 Community Development Area (CDA) subcommittees throughout the
Southland District. The CDAs are: Athol, Balfour, Browns, Centre
Bush/Limehills, Colac Bay, Dipton, Garston, Gorge Road, Lumsden, Manapouri,
Mossburn, Nightcaps, Ohai, Orepuki, Riversdale, Thornbury, Tokanui, Waikaia,
Woodlands.
Council Business includes
formal Council and community board meetings, committee meetings, workshops,
seminars, statutory hearings, training courses, site visits and where required
or invited by Council, meetings with staff, meetings with community groups or
meetings with members of the public. It does not include events where the
primary focus is on social activity.
Councillor shall mean any
of the 12 elected members of Council, including the Deputy Mayor, but excluding
the Mayor.
Council office shall mean
any of the seven Council offices throughout the Southland District. These
are: Invercargill, Wyndham, Riverton, Stewart Island, Te Anau, Otautau and
Winton. Where Community Board or subcommittee meetings are held at a
regular venue other than a Council office, this location will be deemed to be a
Council office for the purposes of this policy.
Elected member shall mean
any of the Councillors, Community Board members, Community Development Area
subcommittee members or other Council appointed subcommittee members.
Expenses means
actual and reasonable expenses including but not limited to; accommodation,
rental car, air travel, taxis, meals and refreshments, entertainment
(hospitality), parking, sundry vehicle costs, alternative travel options and
other such costs directly related to the business of Southland District
Council.
Mayor shall
mean the Mayor of Southland District Council.
Reasonable means that it
is within the amount specified by this policy or as deemed reasonable by the
Mayor and/or Chief Executive.
Remuneration Authority is
an independent body established by the Remuneration Authority Act 1977, with
responsibilities under the Local Government Act 2002 to determine remuneration
and expense/allowance rules for local authority members.
Southland
District Council means the organisation established to administer Council
affairs, conduct operations and bring effect to Council policy and strategies.
Travel includes
journeys made by air and sea, travel by taxi and travel by hire vehicle or
private vehicle.
Travel
arrangements include accommodation, travel and seminar registration.
4.0 REMUNERATION
4.1 Mayor
and Councillors
4.1.1 The Mayor shall receive the full salary allowable by
the determination of the Remuneration Authority, outlined in Appendix A.
4.1.2 In addition to the base
salary, Councillors can receive extra remuneration for:
(a) Positions
of additional responsibility (including Deputy Mayor and Chair of various
committees) and/or
(b) Taking on significantly
extra duties during the District Plan process.
Additional
remuneration will be made at the rates outlined below, which have been approved
by the Remuneration Authority.
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Role
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Additional amount
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Deputy Mayor
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+ 40% of a base councillor
salary
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Policy Review Committee chair
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+ 20% of a base councillor
salary
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Venture Southland director
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+ 15% of a base councillor
salary
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Activities Performance Audit
Committee chair
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+ 25% of a base councillor
salary
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4.1.3
In addition, 50% of a base councillor salary will be retained for
allocation to members of the Resource Management Committee for District Plan
review. This will be payable to all members of the Resource Management
Committee at the rate of $100 per day for District Plan review meetings.
4.2 Community
Board Members
4.2.1 Remuneration
for Community Board members and chairs will be made at the full allowable rate
determined by the Remuneration Authority, outlined in Appendix A.
4.3 Subcommittee
Members
4.3.1 No
remuneration is payable to those appointed to subcommittees of Council.
5.0 EXPENDITURE
REIMBURSEMENTS
5.1 Elected
members will perform their roles in a manner that is most cost-effective for
households and businesses. Costs for expenses must have a justifiable
business purpose, be moderate and conservative having regard to the
circumstances, and be appropriate in all respects.
5.2 Where
possible, reimbursements will be based on actual incurred costs. Where an
allowance is made, this will be based on a fair and reasonable estimate
consistent with the guidelines of the Remuneration Authority.
5.3 If
applicable, where reimbursements are claimed it must be specified whether
amounts are GST exclusive or GST inclusive.
5.4 All
actual reimbursements will be submitted on the appropriate form and supported
by relevant invoices and/or documentation.
5.5 Expense
claims will be approved as follows
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Claim by the:
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Approved by
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Mayor
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The Chair of the Activities Performance Audit Committee
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Deputy Mayor
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The Mayor
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Councillors
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The Mayor or Deputy Mayor
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5.6 Expense
claims for Community Board and Subcommittee members will be approved by the
Mayor, Deputy Mayor or Chair of the Activities Performance Audit Committee.
5.7 No
costs will be reimbursed where they are chargeable to others, including private
companies.
5.8 Expenses for
electioneering will not be reimbursed.
6.0 MILEAGE
ALLOWANCE
6.1 The
Mayor will be provided with a vehicle that will also be available for his/her
private use. A deduction will be made from his/her salary as determined
by the Remuneration Authority. The Mayor will not be able to claim for
vehicle mileage.
6.2 A
mileage claim can be made where an elected member has been required or invited
by Council to a meeting on Council business and is travelling in his/her own
vehicle and is taking the most direct route reasonable in the
circumstances.
6.3 Where
possible every effort should be made to share transport and reduce costs.
6.4 Mileage
claims are based on travel from the elected member’s normal residence to
the meeting place.
6.5 In
accordance with the Remuneration Authority’s determination mileage
allowance will be paid as follows:
(a) For
travel to any Council office, mileage allowance will be paid for kilometres
travelled beyond 15 km each way (ie, a 30 km round trip). This distance
is calculated from the elected member’s place of residence to the Council
office.
(b) For
all other Council related travel, mileage allowance will be paid for the total
kilometres travelled from the elected member’s place of residence.
6.6 For
travel to any Council office where distance does not exceed 15 km each way (ie,
a 30 km round trip), no mileage allowance will be paid.
6.7 The
mileage rate will be paid at the full rate determined by the Remuneration
Authority, outlined in Appendix A.
7.0 TRAVEL TIME ALLOWANCE
7.1 Travel
time will be paid to all elected members at the full allowable rate in
accordance with the conditions outlined in the determination of the
Remuneration Authority, outlined in Appendix A.
7.2 In
accordance with the Remuneration Authority’s determination this allowance
will only be paid where travel time exceeds 1 hour within a day.
7.3 In
accordance with the Remuneration Authority’s determination, payment of
travel time allowance will not be paid for positions which are considered to be
full time. Therefore, travel time allowance will not be paid to the
Mayor.
8.0 COMMUNICATIONS ALLOWANCE
8.1 An
allowance will be paid to Councillors where they supply their own hardware for
use in Council business. No allowance is payable in respect of items provided
by Southland District Council.
8.2 The
allowance for communications and technology will be paid at the full allowable
rate determined by the Remuneration Authority, outlined in Appendix A.
The Mayor shall be provided with a mobile phone, laptop or tablet and
accessories, and a broadband connection in lieu of the allowance.
8.3 No
communications allowance is payable to Community Board members and members of
Council subcommittees.
9.0 CONFERENCES, SEMINARS AND TRAINING
9.1 Conferences,
courses, seminars or training events must contribute to the elected
members’ ability to carry out council business.
9.2 All
elected members are entitled to payment of actual and reasonable registration,
travel, accommodation, meal and related incidental expenses (including travel
insurance) incurred in attendance at conferences, courses, seminars or training
events, held both within New Zealand and overseas, subject to:
(a) Related
expenditure being accommodated within existing budgets, and
(b) The
appropriate approvals as outlined in this policy.
9.3 In
respect of the Mayor, prior approval of the Deputy Mayor or Chair of Activities
Performance Audit Committee is required for travel within New Zealand for
Council business; attendance at conferences, courses, training events, seminars
or other purposes associated with the position of Mayor.
9.4 In
respect of Councillors; attendance at these events when held in New Zealand
must be approved by the Mayor and either the Deputy Mayor or Chair of
Activities Performance Audit Committee.
9.5 In
respect of Community Board and Community Development Area Subcommittee members;
attendance at these events when held in New Zealand, prior approval must be
obtained from the Mayor, Deputy Mayor or Chair of Activities Performance Audit
Committee.
9.6 Attendance
at conferences, courses, seminars or training events held overseas must be
approved by the Council.
10.0 TRAVEL AND ACCOMMODATION
10.1 Where
possible all travel arrangements will be made through the Executive Assistant
to the Mayor.
10.2 Where
possible costs will be charged to Council; otherwise all fair and reasonable
costs will be reimbursed.
10.3 Travel
will be arranged in a manner that represents public value in consideration of
location, timing and cost. As appropriate, Council may choose to arrange
air travel, travel by hire vehicle, travel by sea, travel by taxi or travel by
bus.
10.4 Taxi
chits issued for travel to approved meetings or conferences will be used only
for business purposes of Council. Where a taxi chit has been obtained for
purposes other than travel to approved meetings and conferences, any claim must
be accompanied by appropriate documentation and reasons for the claim.
10.5 Unless
otherwise approved, all international air travel will be economy class.
Stopovers during international air travel will be approved on a case-by-case
basis.
10.6 Frequent
flyer points earned by elected members on Council business may be used for
private travel.
10.7 Due
to the significant amount of air travel undertaken by the Mayor, Council will
pay for membership of an Airline Club (such as the Koru Club).
10.8 Private
accommodation may be used on occasions where it is considered appropriate and
is approved by the Mayor, Deputy Mayor or Chair of Activities Performance Audit
Committee. If private accommodation is used, reimbursement will be fair
and reasonable and will not exceed the cost of obtaining accommodation or meals
from another source such as a motel or hotel.
10.9 Where
Council approves the attendance of the spouse/partner of the Mayor or any
Councillor at conferences or meetings, fair and reasonable actual costs will be
reimbursed.
APPENDIX A
SCHEDULE OF
REMUNERATION AND REIMBURSEMENT AMOUNTS
Remuneration of the Mayor and Councillors
Mayor $104,301[1]
Deputy Mayor $36,019
Policy Review Committee Chair $30,874
Venture Southland Director $29,587
Activities Performance Audit Committee Chair $32,160
Councillor $25,728
Available to Resource Management Committee during the
District Plan, 50% of a Councillor salary, paid $100 per day.
Expenditure Reimbursement for the Mayor and Councillors
Mileage Rate (first 5,000 km per annum) 0.74
per km
Mileage Rate (above 5,000 km per annum) 0.37
per km
Personal Computer $150
per annum
Electronic Tablet $150
per annum
Printer $40
per annum
Telephone $60
per annum
Internet Connection (maximum) $250
per annum
Telephone/Mobile Phone Calls (maximum) $400
per annum
Salary of Community Boards
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Chairperson
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Member
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Edendale/Wyndham Community Board
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$4,510
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$2,255
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Otautau Community Board
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$7,175
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$3,588
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Riverton/Aparima Community Board
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$6,355
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$3,178
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Stewart Island/Rakiura Community Board
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$2,665
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$1,333
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Te Anau Community Board
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$10,250
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$5,125
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Tuatapere Community Board
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$4,305
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$2,153
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Wallacetown Community Board
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$2,665
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$1,333
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Winton Community Board
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$8,815
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$4,408
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Travel time allowance is paid at a rate of $37.50 per hour for travel
that exceeds one hour per day. Travel time is payable to elected members
who are not considered to be full time and is only payable for travel relating
to Southland District Council business. Travel time allowance is payable
in respect of the quickest form of transport reasonable in the circumstances.
