Council wages: How they stack up

More than 70 staff at Tauranga City Council earn over $100,000 a year, but Mayor Stuart Crosby insists council salaries reflect market rates and there is no frivolous spending.

Tauranga City Council's 2015 Annual Plan shows 73 staff are on more than $100,000 a year, with chief executive Garry Poole earning $347,156 – an increase of $3812 from 2014.


Mayor Stuart Crosby says council wages reflect market rates. Photo: File.

While many will view this amount as high, his earnings pale in comparison to those of Port of Tauranga chief executive Mark Cairns, who earned a reported $1,464,000 in 2014.

Stuart saw his salary increase from $143,803 in 2014 to $144,188 for the year ending June 30, 2015. While Tauranga councillors don't crack the three figure mark, they are doing well compared with other councillors in the region. Elected members received between $70,858 and $75,917.

The Mayor says councillors did not have a say in how much they earned and council staffs' remuneration was based on market rates.

'My remuneration is set by the Remuneration Authority,” explains Stuart. 'They have a formula to decide that and it's generally on population base now.

'The councillors also have a basic salary now that is set by the Remuneration Authority and there is a small ability to top that up for extra work load. Our council only uses that for Deputy Mayor and chairs of committees.”

Stuart says the council doesn't have a high proportion of staff compared to other councils.

'We have about 540, plus those in our CCOs, that's not out of kilter with Hamilton, Palmerston North, New Plymouth, even Rotorua. Although Rotorua is slightly smaller, it's always hard when comparing apples with apples.

'We are fortunate. I believe we attract quality staff because Tauranga is an attractive place to work. But in saying that, many of them will drop in their salaries to come here – especially if they are from Auckland, Wellington, Christchurch or other major cities.”

Tauranga's economy was one of the fastest-growing in the country and Stuart says it was important to attract the right people here and in council to maintain that growth. This meant paying market rates.

However, Stuart says the council didn't do it frivolously when hiring staff.

'Their salary and wages are generally driven by the market conditions. If you are an engineer in our business it's very much pegged with being an engineer in the private sector, as an example.

'So there is not actually a lot of discrepancy between the private sector now and the public sector.”

Stuart says he believed Gary's salary was a fair reflection of the hard work he was doing for the city.

'We see pay bands both for the private sector and the public sector for our chief executive. His salary is actually determined and made public and that filters all the way down to our staff and the various skill sets that they have.

'We do go for quality and we do have quality staff in our organisation. That's critical because our key driver, very much like Hamilton, is around growth and so [council staff] are very busy managing our $3.5 billion worth of assets. That does require expertise and ability.”

Stuart says the council had hard working, dedicated staff and they worked hard to earn their salary.

'They are no different than people who work outside in the private sector. I go into the council at the weekends and late at night and early in the morning and the lights are on. All staff do incredible hours at different times of the year because they're passionate about their job.”

The Weekend Sun looked at other councils for comparisons and found Tauranga City Council were on a par with other councils.

At Rotorua Lakes Council, chief executive Geoff William's salary is $295,402, Mayor Steve Chadwick is paid $120,350, while her councillors' base salary is $39,400.

An additional amount up to $59,000 may be paid to those councillors with additional responsibilities such as Deputy Mayor or chair of a committee.

The Bay of Plenty Regional Council chairman Doug Leeder's salary is $125,480, while deputy chair Jane Nees earned $72,000. The Regional Council's councillors' base salary is $52,000 for the year ending June 30, 2014.

In the Waikato, Hamilton City Council's chief executive Richard Briggs earned $228,462, while the Mayor was paid $146,756 and their councillors earned between $86,000 and $69,000.

The Remuneration Authority calculate how much the nation's local body elected representatives are paid.

The authority sets base salaries for the mayor, councillors and community board members, leaving councillors to decide salaries for other positions such as deputy mayor, committee chairpersons and deputy chairpersons.

As the salaries are set by the independent remuneration authority, councillors are not able to decline the increase.

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31 comments

To Many To Much

Posted on 02-10-2015 13:31 | By Merlin

While I understand that salaries are set by an Independent authority 70 on over $100,000 is to many on to much in my view.Rates may be less.I would like to know what this transpires into an average over the 540 staff.


Besides....

Posted on 02-10-2015 15:27 | By Jimmy Ehu

all the other rhetoric from Mr Crosby, the statement comparing himself to Mark Cairns, is surely wishful thinking, for a start the P.O.T is profitable!!!!, the rest of the information is yawn, heard it all before.


Fair

Posted on 02-10-2015 15:45 | By expatAucklander

For an educated professional $100k is nothing. Both my wife and I have masters degrees and each earn that (outside council), even though we took a drop moving out of Auckland. The people kicking up a fuss about this obviously have no clue what private wages are like for those who have put the effort in.


@expatAucklander....

Posted on 02-10-2015 16:24 | By sambo's back

it is not the amount earned, but more what we are getting for it, I would pay more for the correct people to provide a reasonable infrastructure and a decent fiscal management style, not one that provides only bigger "troughs" to cram more snouts into, otherwise sell the city to the P.O.T and let Mark Cairns run the place.


expatAucklander

Posted on 02-10-2015 16:57 | By nerak

Totally aware of the reality of wages in the private sector, for those who have put the EFFORT in. They do real work, don't grab photo ops, or grapple with even simple questions/issues/math.


Hopefully

Posted on 02-10-2015 18:05 | By How about this view!

Those that are all too quick to blame all of the cities woes on the Councillors, will now give some thought to the seat-warmers that more often than not TELL the "talking head" Councillors and Mayor what to say. Many, Many of the issues that stir up the vitriolic rants from some of the commenters here, can be sheeted back to these highly paid seat-warmers.


Only half the story.

Posted on 02-10-2015 20:20 | By Murray.Guy

Fred, only incomes of the elected members are set by the independent remuneration authority. Tauranga City Council Elected Members take advice on and set the salary of the CEO of the City Council. The CEO is responsible for staffing levels, terms and conditions on which they are employed. TCC have long refused to include staffing numbers and costs associated with CCOs so we have nothing on which to make valid comparisons. Ratepayers are liable for all CCO staff (Art Gallery, Aquatics, TECT Arena etc). How Sunlive can conclude we are comparable to others confuses me. Where Tauranga City Council was hugely out of kilter with other local authorities, was in the area of manager/supervisor employee ratio , being 1-4 a few years back. The national average is one manager per 10 employees. This over monitored environment is intimidating and limiting to employees, very expensive for ratepayers.


Do the sums

Posted on 03-10-2015 08:20 | By The author of this comment has been removed.

70 staff on $100,000 is 7 million dollars. A rates bill of $1500.00 per annum means over 4,500 households are supporting these 70 'hard working' folks. That's before a street is cleaned, a park mowed or pipe repaired. Just who are these people, and what do they actually achieve? Time for a sort-out (Oh we had that, but more people were employed!).


@EXPATJAFFA

Posted on 03-10-2015 10:32 | By monty1212

Nice of to tell everyone about you and your wife's super plus education and how much you earn. I suspect that you may well command those sort of salaries and that you have had to take a drop to move to the Bay. Perhaps you may deserve that sort of salary but I doubt that many of the 70 council employees also have masters degrees!


Money for Nothing

Posted on 03-10-2015 10:58 | By Mackka

With that number of staff and the huge salaries of over $100,000pa being paid to 73 of them one has to wonder why, with such 'quality' staff, consultants are continually being hired! And then what about the council's so called "contractors" ??


Makka

Posted on 03-10-2015 19:16 | By Plonker

Yeah, and the chicks for free. Putting that into the real deal language, paid heaps and nothing to do all day.


PoT CEO

Posted on 03-10-2015 19:18 | By Plonker

have no idea how possibly Mayor Crosby came up with the comparison of the Ports CEO salary compared to the TCC CEO. They are just so unrelated to be a complete farce to even dream that there is some link somehow.


Murray.Guy

Posted on 04-10-2015 00:41 | By Plonker

Well done Murray for saying that lot, that is the truth of it, it means that TCC staff costs are around 40% higher than they should be and the numbers are at least 50% to high. These minor adjustments would see rates reduce by some 25% overnight. hat also would bring them into line with the NZ LG averages. Tauranga is miles from normal as far as staff, wages and numbers go.


Murray.Guy

Posted on 04-10-2015 00:41 | By Plonker

Well done Murray for saying that lot, that is the truth of it, it means that TCC staff costs are around 40% higher than they should be and the numbers are at least 50% to high. These minor adjustments would see rates reduce by some 25% overnight. that also would bring them into line with the NZ LG averages. Tauranga is miles from normal as far as staff, wages and numbers go.


Murray Guy

Posted on 04-10-2015 08:22 | By Taurangaboy

I agree with you Murray, too many 'mangers' not enough workers. Am I wrong in thinking the CEO has total control of what happens and Councilors are just there as window dressing?


Ignore the TCC Basil Brush lookalike and focus on the facts.

Posted on 04-10-2015 11:46 | By ROCCO

The 70 staffers at $100k each is not the problem but we have nearly 600 of these turkeys on the pay list costing us around $40 million+ p.a.which equates to an average wage of $70000 each.Should have 350 which would cost us $25million an annual saving of $15million! How does that rock your socks voters.


Basil Brush

Posted on 04-10-2015 22:59 | By Plonker

With way to much "Brush" is right. The numbers you have a wrong, way to low, the real deal is that and lets agree that there are 600 in the CBD, 300 odd in Bay Venues, 270 in City Care and say another 100 floating around the place in like the Art Gallery, Tourism BOP and Smart(NOT) Growth and more. The $40m salary figure you have is only for the lot in the CBD, not the rest, so on the averages you could add at least another $30m for all the rest. But then it gets a lot worse, this does not include all the consultants and other contracted in officials, the cost/head for them is even worse. I would say that more could be delivered from an efficient setup of 300 total, that would cost $25m not $70m+ odd. That would be a HUGE saving for ratepayers.


Hourly rate

Posted on 05-10-2015 08:10 | By Kenworthlogger

Can the Remuneration authority please look at my hourly rate. Id like them to set mine please as they seem overly generous.


$1500 per annum?

Posted on 05-10-2015 22:16 | By wisewhiteguy

Where is this? in te puke the rates have blasted past $3000 and we still get nothing. the only time you see any work get done is when the rates are due, the rest of the year the town is a complete mess!Having said that the council building looks quite flash.. in fact the town drunks love it.


Kenworthlogger

Posted on 06-10-2015 11:32 | By Plonker

That would mean sharing, cant see that happening.


Basza

Posted on 06-10-2015 17:43 | By Plonker

the Brush is in with the Muppets now? maybe they are not such a Muppet lot as they on average seem to be paying themselves about twice the rest of the community, how can that be?


SAD

Posted on 13-10-2015 22:42 | By Capt_Kaveman

While council contractors are on less than $17/hr or $42k /yr


Capt_Kaveman

Posted on 14-10-2015 10:35 | By Plonker

Yes, someone is creaming it and some out of ratepayers pockets.


Capt_Kaveman #2

Posted on 15-10-2015 09:59 | By Plonker

Don't get me started on the Consultants, the staff rates are bad enough.


Avr

Posted on 15-10-2015 12:52 | By Anton

If Stuert compare his wages with Port of Tauranga,then he also have a look how they are doing ,not till over their ears into debt.


Avr

Posted on 15-10-2015 17:06 | By Anton

A house in Auckland in Westharbour from 1 min pays $1100,- less rates then I do in Katikati. Where is my money going?


@ Anton

Posted on 18-10-2015 14:13 | By Plonker

The only explanation is borrowed, debt, interest, over staffed and over paid means need more rates to pay all that. End result no one sees any meaningful benefit to the wider public who loose in two ways: higher rates and no visible/meaningful reason for it all.


I just have to ask

Posted on 19-10-2015 16:52 | By s83cruiser

if any of these $100k salary packages are paid to any of the staff in the Environmental department. They, as I understand it are the ones responsible for processing plans for building consents. The law of the land tells us, and them, that they must process plans within 20 working days....Not so in the Republic of Tauranga.. The TCC building consents department takes on average 60 working days to process plans and why is that you may ask... because they please themselves as to how long it will take and they damn well can because there is no one that their tardy processing times can be reported to...Sack the lot of them I say and put the plans consenting process out to tender. Some of the sacked processors can go work for the private company doing the work and see how long they last in the REAL world.


I always find it amusing

Posted on 20-10-2015 07:03 | By Watchdog

how people on the minimum wage have to wait 12 months for a 50 cents an hour increase. Min wage is $14.75 per week. Such a putdown when everything is increasing at a much faster rate - houses, rent, and oh yes, rates and insurance. My wife has a PhD but chooses to work in a significantly lower-paid position because she cares about people, their education and their well-being. As a retiree I can now work with the local Hospice, or help people with Budgetting. How many Councillors would want to do that, I wonder. The dedicated people who work helping people off the streets need our admiration. In some ways it is choices the people have made but others I work with say the costs of living just got too much so they sleep under a tree or hedge somewhere. Saves rent each week.


@ s83cruiser, Watchdog

Posted on 20-10-2015 10:30 | By Plonker

All about right, in fact on the consents subject the salary should reduce as a percentage of how late it is, after 20 days. That would sort them out for sure. Yes, and rates are the highest increase in the CPI, not good really. @Watchdog - No rent and no rates either. No worries about power bills although I presume a bit nippy some nights, a small price to pay.


Talk themselves up....

Posted on 29-10-2015 12:40 | By jed

The people we are talking about are simple administrators. They are hardly the visionaries that their salaries suggeset.


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