Salaries on rise but under budget

Salaries and staff numbers have increased at the New Plymouth District Council, according to the latest draft annual report.

NPDC spent $38.4 million on salaries, wages and related entitlements over the 12 months, up from $37.02m in the 2017-18 financial year, according to its draft report for the 2018-19 year.

A further $1m was spent on defined contribution plan (retirement saving scheme) employer contributions.

The mayor and councillors’ salaries added up to $804,040.

Almost $1.6m went to the seven-member senior leadership team. The chief executive’s salary rose from $339,036 (plus $3733 in benefits) to $354,671, although part of the 2017-18 remuneration included payment to the acting chief executive before Craig Stevenson started his role on November 1, 2017.

Overall, 40 new staff members were added, bringing the total headcount to 681.

Thirty-nine staffers earned between $100,000 and $119,000, which was up from 29 last year.

A further 15 people were in the $80,000 to $99,999 salary bracket.

Overall, 63 of the 403 full-time employees, or 15.3 per cent, earned six-figure salaries.

In 2017, Stats NZ reported that New Zealanders were earning an average of $50,000 a year in salary or wage income.

Stevenson said in an emailed statement that the district council’s total personnel costs for the year were $3m under budget.

‘‘All pay increases were in line with existing budgets and NPDC’s remuneration policy. There are an additional 20 FTE [full-time-equivalent] positions to deliver our capital works programme and the balance is made up of part-time/casual workers.’’

District councillors said there was a place for six-figure salaries. ‘‘If you’ve got good people you can do things far more efficiently,’’ councillor Roy Weaver said.

It was inevitable that highly skilled staff would reach that level of pay, councillor Richard Handley said, and they had confidence in the chief executive.

However, councillors did watch the numbers carefully and would challenge the council’s chief executive when they felt it was warranted, he said.

Councillor Alan Melody said that while he had not fully read the report, he felt generally that if the salaries lined up with other councils he was satisfied.

The NPDC also returned a deficit of $3.2m compared with a budgeted surplus of $8.4m.

Stevenson said it was an accounting deficit and the council also had a $1.6m rates surplus.

The primary reasons for the deficit were the $5.4m write-off of Central Landfill costs after construction was stopped, and a $5.6m release of a long-held reserve to kick-start the Waitara Lands Act, with funds going to the Waitara River catchment fund, the Waitara Perpetual Community Fund and the hapu¯ land fund.

Operating expenses were also up $16.6m, mostly for the same reasons.

External borrowing and debt have also gone up. ‘‘We use borrowing to fund our capital works programme which is in line with what was publicly consulted on during our 10-Year Plan public conversation,’’ Stevenson said.

The report also detailed funding impact statements on services provided by the council, including the Govett-Brewster Art Gallery/Len Lye Centre, parks and open spaces, and wastewater.

Overall, the report showed the NPDC was in a very sound financial position, Stevenson said. ‘‘Residents can have confidence in NPDC’s financial performance which has a firm and ongoing focus on fiscal prudence.’’

The draft report for the 2018-19 financial year was noted by Wednesday’s meeting of NPDC’s audit and risk committee and will go on to an extraordinary full council meeting.