Financial benchmarks for local government

  • Chris Tremain
Local Government

Local Government Minister Chris Tremain says new financial prudence regulations announced today will tighten financial reporting, lift transparency and encourage excellence in local government. 

“The regulations will provide a standardised way of financial reporting which will encourage council efficiency and improve accountability to ratepayers. We need to learn from issues that have had an impact on ratepayers and residents in Kaipara,” says Mr Tremain. 

“From next year councils will have to report against a set of benchmarks around three key elements of financial prudence – affordability, sustainability and predictability.

“Affordability will be measured through rates and debt information, sustainability through a balanced budget, expenditure on essential services, and debt servicing and predictability through cash flow from operations and debt control information.

“Performance results will be collated in a way that recognises each individual local authority’s situation.  I want to see councils measured and benchmarked against each other to help lift performance and focus on excellence.

“The regulations are part of the Better Local Government reform programme and are part of the commitment to delivering better services within tight financial restraints. I am proposing the new benchmarks will be used by local authorities in their annual reports 2013/14 which are due to be published by 31 October 2014.”

For more information go to :

http://www.dia.govt.nz/Better-Local-Government#implementing2

http://www.dia.govt.nz/diawebsite.nsf/Files/Local-Government-Financial-Prudence-Regulations-Cabinet-paper/$file/Local-Government-Financial-Prudence-Regulations-Cabinet-paper.pdf