As of 30 June 2024, a small army of 1,665 full-time employees were labouring away across HB’s five councils on behalf of our region’s ratepayers.
Collectively, they are paid $176.8 million, making the average salary $106,186.
And combining both operating and capital expenses for the current financial year (FY2024/25), they are charged with spending slightly over $1.22 billion on your behalf.
| 2024/25 | NCC | HDC | HBRC | CHBDC | WDC | TOTAL |
| Employees | 669 | 470 | 349 | 102 | 75 | 1665 |
| Personnel | $60.6m | $52.9m | $43.9m | $11.9m | $7.5m | $176.8m |
| Operating cost* | $200.6m | $266.0m | $92.5m | $80.9m | $46.0m | $685.9m |
| Capital cost | $87.3m | $284.6m | $81.4m | $30.0m | $51.7m | $535.0m |
| Staff per $1m spend | 2.3 | 0.9 | 2.0 | 0.9 | 0.8 | 1.4 |
| Staff cost/total cost | 21% | 10% | 25% | 11% | 16% | 14% |
*Includes Personnel
Good value for money?
As a measure of ‘staff efficiency’, we calculated how many staff it took to spend $1 million at each council. As you can see in the chart above, our two tiny councils, CHB and Wairoa, plus HDC are the most efficient. Or as they probably see it, the most overworked. By this measure, these three councils are roughly twice as efficient as HBRC and almost three times more efficient than NCC. So, what is their ‘secret sauce’ for productivity?
NCC with 669 FTE’s as of June 2024 is by far the most staff-intensive council, with both the most people and the most people required to spend $1 million. NCC does have the lowest average salary, at $90,582.
Without question, recovery from Cyclone Gabrielle is amplifying all costs above ‘normal’. That said, Napier would have incurred less recovery expense than any of the other councils. It must be asked … what do those 669 people do?
NCC Chief Executive Louise Miller explains:
“Napier City Council has a number of facilities and services that other councils in Hawke’s Bay don’t have or have contracted out. Staff who work in these are part of our overall staffing numbers. This includes two pool complexes and two libraries, mini golf, National Aquarium, Kennedy Park holiday park, two museums, two theatres, a conference and event centre, McLean Park and Bay Skate. All our gardeners, cleaners and infrastructure maintenance teams are also included as part of our staff rather than being contractors. Of our 669 full time equivalent roles, over 400 of them work in these spaces.”
HBRC spends the greatest percent of its budget on staff and also pays the highest, with an average salary of $125,788, perhaps a function of more technical skills required.
All of the councils would be quick to point out that cyclone recovery projects have significantly amplified the workload across existing staff.
HBRC staff numbers grew by 127%, over 200 new personnel from 2015 to 2024. Why? What extra is the ratepayer receiving for this more than doubled staff numbers in a ten year period?
Would be interesting to know if the other councils had the same sort of increase in this period?
Time all of these councils had a full audit of what each staff member does and whether necessary. Also if councils contract work out as per Louise’s comment what are the costs for that?
An excellent article Tom – If we didn’t have so many Council employees who could swing any vote, it would be worthwhile to seriously consider ‘amalgamation’ to make substantial savings from sharing expertise and not needing to duplicate vast assets. Instead of applying a ‘levy’ to take care of ‘one off’ Cyclone Gabrielle costs – we now have ‘eye watering’ rate increases that will become a new base for HB Councils annual expenditure that will justify more staff and ‘nice to have’ assets. Should we appreciate how our Councils have made ‘food and wine’ a minor item on household budgets?
The salary of one of those people would fix the leaking pipes at Frimley Baths. Duh !
There is a glaring omission by [virtually all] local Councils, when they present their glossy arguments regarding planned work and the impact on rates. It’s an elephant in the room that Councillors seem unable to see. The omission, and it is evident in all cases, is that the Councils present NO analysis of their own operations. Are they economical and efficient? Are they overloaded with bureaucracy and red tape? Do they make timely decisions? Is the governance really effective? What about staffing levels?
In brief, the issue is that the local authorities are NOT commercial businesses even though they might like to think they are. They do not have to solicit for customers or compete for marketshare. They do not have to price their services competitively. They do not have to pursue revenue actively. They rarely have to justify the level of their investment in local projects or to demonstrate that the project is value for money and is executed efficiently. Councils create, and “consult” on their future plans. But they can extract revenue for these projects, on DEMAND, from their “customers”. The customers have no choice other than to pay what is demanded. The customers cannot go elsewhere or refuse to “buy” the service offered.