4.2.2 Governing Body powers and functions

Accountability of the Governing Body 

The mayor and councillors are democratically elected and are accountable to the community throughout their term. Governing Body decisions are open to scrutiny from the media, commentators and the public. The media plays a significant role in shaping public perception of individual and Governing Body performance. 

All decision-making by public institutions is subject to scrutiny by the courts. Council decisions can be challenged through: 

• judicial review in court 
• objections or appeals under specific legislation 
• statutory complaints to the Ombudsman or Auditor-General. 

The Auditor-General also audits council performance and may publish findings. For example, a 2016 report assessed Auckland Council’s complaints process. 

The Minister of Local Government has powers to intervene where significant concerns arise. This could include appointing a: 

• crown review team 
• crown observer 
• crown manager 
• commission to temporarily replace elected members [1]. 

Consultation and engagement

When making decisions, the Governing Body must comply with Part 6 of the Local Government Act 2002. This includes: 

• identifying all reasonably practical options to achieve the decision’s objective 
• assessing the advantages and disadvantages of each option 
• engaging with Māori on significant decisions involving land or a body of water 
• considering views and preferences of affected or interested people. 

Visit Decision-making for more information.

Council plans and budgets 

The Governing Body approves the Auckland Plan and key region-wide plans and strategies that will deliver it. 

 

 

Auckland Plan

• A 30-year spatial plan required by legislation. 
• Sets long-term goals for Auckland’s growth and development. 
• Prepared in partnership with stakeholders such as central government, businesses and communities. 

Visit Auckland Plan for more information. 

Long-term plan (Auckland’s 10-year budget)

• Covers a 10-year period and is reviewed every three years. 
• Includes: 
  • detailed information for the first three years 
  • general information for the remaining years
• Outlines the council’s future focus and community outcomes. 
• Helps communities hold the council to account [2]. 

The latest version is the Long-term Plan 2024-2034 (10-year budget). 

Annual plan

• Sets the council’s budget for the following financial year. 
• Identifies any changes from the long-term plan [3]. 
• Includes: 
  • 21 local board agreements 
  • A summary of the Maunga Authority’s operational plan, which includes its annual budget and work programme. More details on the Maunga Authority can be found in Te Tiriti o Waitangi, co-governance and Auckland Council.

Visit One-year and 10-year budgets to read Auckland Council’s latest annual plan.

Auckland Unitary Plan

• Auckland’s planning rulebook under the Resource Management Act. 
• Replaces 13 previous regional and district plans and the Regional Policy Statement. 
• Sets out: 
  • where and what can be built 
  • objectives, policies and rules for managing natural and physical resources 
  • coverage includes urban, rural and marine environments. 

For more information or to read the plan, visit The Auckland Unitary Plan.

Rates and funding

How the council is funded

The council’s activities are funded through rates, fees, charges, investments and debt. Auckland Council’s revenue and financing policy sets out the full range of funding sources and council activities. The Governing Body is responsible for adopting this policy. 

For more information, visit Revenue and Financing Policy. 

Types of rates

Auckland Council currently uses capital value to determine rates. It may set: 

• capital value-based rates: Based on property value  
• uniform rates: Same across all rateable land  
• differential rates: Varies by land category [4] 
• uniform annual general charge: Fixed amount per rateable unit [5] 
• targeted rates: For services or projects benefiting specific groups [6]. 

Visit Property rates and valuations for more information. 

Setting rates

Rates are set each financial year by Governing Body resolution, based on the long-term plan and funding impact statement [7].  

In urgent, unforeseen circumstances where revenue is urgently needed, rates can be set outside the long-term plan if public notice is given at least 14 days in advance with an explanation [8]. 

Visit Special decisions and hearings for more information.

Making bylaws

The Governing Body can adopt bylaws, which have the effect of regulations.  

The purpose of bylaws is to: 

• protect public from nuisance 
• maintain health and safety 
• minimise offensive behaviour [9] 
• regulate: 
  • waste management 
  • keeping of animals 
  • trading in public places. 

Bylaws can also be used to protect land (like cemeteries, parks, or reserves) from damage or misuse [10]. 

Visit Special decisions and hearings for more information.

Scope of resolutions

The Governing Body may choose to pass resolutions outside its powers or functions that: 

• express support for or opposition to government policies 
• make aspirational statements. 

When it takes a stance on central government policies, the Governing Body is doing so as an advocate or an opponent, not as a decision-maker.  

These do not carry decision-making weight and may lack full staff advice or operational follow-up. 

Relationship with the chief executive

Office of the Auditor-General comments

A healthy and productive relationship between the governance arm of a local authority and its chief executive is an important factor in an authority's effectiveness. This relationship is the vital link between governance and management, and between decision-making by elected representatives and operational activity. Problems in that relationship can have a significant effect at all levels of the organisation. [11] 

Appointing a chief executive

The Governing Body appoints the chief executive – the body’s sole direct employee [12]. Appointment is for up to five years, with a performance review in the final year. 

The minimum legal requirements for employing chief executives are set out in schedule 7 of the Local Government Act 2002 (clauses 33-36). In summary: 

• the council appoints a chief executive for a term of up to five years 
• the council must review the chief executive’s performance and the suitability of their skills for future needs the year before their contract expires. Based on this review, the council may: 
  • reappoint the chief executive for two years without advertising 
  • begin a new recruitment process. 

Appointing a chief executive is an important decision for a council. Under the Local Government Act, the decision must be made by the Governing Body and not delegated. 

Useful guidance: Guide for Local Authorities on Hiring and Managing Relationships with the Chief Executive – Office of the Auditor-General. 

Responsibilities and conduct

Elected members must be good employers and maintain a safe, professional work environment. Discussions about the chief executive’s performance or employment terms should not occur publicly or become political. 

As noted in the Local Government NZ guide: 

“Confidentiality is paramount. It is important to remember in both recruitment and performance management processes that the local authority is dealing with the personal and professional lives of individuals. At times there is a tension between the good employer and confidentiality requirements and the political roles of councillors.” (Clause 6.25)   

For further information on elected member responsibilities, visit Elected members' guide.  

Civil defence and emergency management (CDEM)

Emergency management in Auckland is provided under the framework of the Civil Defence Emergency Management (CDEM) Act 2002, which sets out roles and responsibilities. 

Auckland CDEM Group Committee

Auckland’s CDEM arrangements are overseen by the Auckland CDEM Committee, a statutory committee made up of Governing Body members with governance responsibilities under the CDEM Act. The CDEM Committee is the strategic forum for CDEM policy and planning with the responsibility for establishing the emergency management structure for Tāmaki Makaurau. Auckland CDEM Committee meetings are attended by observers from key CDEM partners and stakeholders. 

Declaring a state of emergency

When an emergency occurs or is imminent, a state of local emergency can be declared under section 68 of the CDEM Act 2002. This declaration gives civil defence authorities access to emergency powers, if required. 

The mayor is authorised to declare a local state of emergency in Auckland. If they are absent, this responsibility can be done by: 

• the deputy mayor 
• the chair of the Auckland CDEM Committee 
• Governing Body members of the Auckland CDEM Committee. 

For more information on the mayor’s role in emergency management, visit The mayor’s role and powers.

Footnotes

[1] Local Government Act 2002, s253 – 258ZA. 

[2] Local Government Act 2002, s93. 

[3] Local Government Act 2002, s95.  

[4] Local Government (Rating) Act 2002, s14. 

[5] Local Government (Rating) Act 2002, s15. 

[6] Local Government (Rating) Act 2002, s16. 

[7] Local Government (Rating) Act 2002, s23 (1 and 2). 

[8] Local Government (Rating) Act 2002, s23 (3). 

[9] Local Government Act 2002, s145 and s147A. 

[10] Local Government Act 2002, s146. 

[11] Most of this section is from http://www.oag.govt.nz/2012/local-govt/part6.htm. 

[12] Most of this section is from http://www.oag.govt.nz/2012/local-govt/part6.htm.