3.2.11 Remuneration

1. All elected members are expected to invest time in their governance and constituency roles in serving the Auckland public and are paid for their
2. Salaries are set by the Remuneration Authority [1]. This independent body determines remuneration, allowances and expenses payable to:
   • the mayor and the minimum allowable remuneration for members of the Governing Body
   • chairs and members of local boards [2].
3. As a result of a comprehensive review in 2018, a governance remuneration pool was established to reflect the size of the total governance roles of councils rather than the number of councillors. The pool is the total amount that must be paid in remuneration to councillors. The pool does not include remuneration for the mayor and local board members.
4. Auckland Council is required to make recommendations to the Remuneration Authority on how the governance remuneration pool should be allocated between the councillors. The recommendations must include a rate for base councillor remuneration and rates for positions of additional responsibility that the governing body wishes to recognise.
5. The Remuneration Authority considers the mayor, other Governing Body members and local board chairs to be full-time. All other local board members are part-time. The Remuneration Authority determination and elected members’ remuneration for the current year can be viewed on Auckland Council’s website.
6. In making its determination, the Remuneration Authority needs to consider a number of factors [3]. These are:

   • fair relativity with comparable positions

   • the need to be fair to the individuals whose pay is being set and to ratepayers

   • the requirements of the job

   • the need to recruit and retain competent individuals

   • any prevailing adverse economic conditions (which may lead the authority to set remuneration at a rate at a rate lower than might have been the case)

   • the requirement to minimise the potential for types of remuneration to distort behaviour [4].

7. For further information on the Remuneration Authority’s local government process, see Remuneration Setting for Local Authorities on the Remuneration Authority’s website.
8. Remuneration is set annually and includes:

• • salaries (of differing roles)

  • vehicle mileage allowance when travelling on council business

  • travel time allowance for journeys over one hour duration

  • communications allowance (when using their own equipment)

  • childcare allowance

In the years between the assessments of the ‘governance pool’, all local government elected member remuneration will be changed on an annual basis using the same public sector equivalent formula that the Remuneration Authority uses for parliamentary remuneration.

i. The Remuneration Authority also requires Auckland Council to develop and adopt an expense and allowance policy for elected members. This needs to set out policies and procedures around issues such as:

• • principles and scope

  • allowances and benefits

  • travel rules and processes

  • land and sea transport

  • air travel

  • accommodation

  • travel expenses

  • professional development programmes and conferences

  • catering, hospitality and entertainment

  • approval processes

  • breach of expense and reimbursement rules.

j. Under current legislation, elected members are treated as self-employed and are subject to withholding tax, responsible for paying their own ACC levies and do not receive council contributions to Kiwisaver or superannuation schemes.

 

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