Appendix C: Glossary of Local Government Terms

Annual plan

An annual plan must be prepared by a council annually, and it must be adopted before the commencement of the year in which it operates. It contains the budgets on which rates are decided for each financial year. The purpose of the annual plan is set out in the Local Government Act 2002, section 95(5). [See also long-term council community plan (LTCCP).]

Annual report

An annual report must be prepared annually for each financial year. The purpose of the annual report is to compare activities performed with those intended in the annual plan. The annual report is described in the Local Government Act 2002, section 98.

Annual value

The annual value is one basis on which local authorities can set rates. It is a measure of what a property would fetch if rented on the open market.

At large election

An election where voting is conducted across an entire region, city, or district, without division into wards.

Auckland Regional Transport Authority

(ARTA) ARTA was established under the Local Government (Auckland) Amendment Act 2004. It is responsible for transport activities across the region, including

• planning, purchasing and improving bus, train and ferry services
• providing public transport information
• planning and funding school bus services
• working with councils on local roading projects.

Borough

An administrative division of a city/region. Boroughs were abolished in 1989 when local government was restructured. There have been some calls for a restoration of borough councils, for instance in Devonport.

Brownfield

A previously developed area, mainly for industrial purposes, which is now ready for redevelopment.

Call for Submissions

A booklet published by the Royal Commission on Auckland Governance calling for public submissions (March 2008; ISBN 978-0-473-13307-8).

Capital value

This is defined by the Rating Valuations Act 1998 as, “subject to sections 20 and 21, the sum that the owner’s estate or interest in the land, if unencumbered by any mortgage or other charge, might be expected to realise at the time of valuation if offered for sale on such reasonable terms and conditions as a bona fide seller might be expected to require”. Capital value does not include chattels, stock, plant, or machinery that may normally be included in the sales of properties.

Central government

Central government is the national government of New Zealand. It includes elected members of Parliament, the sitting government, parliamentary support agencies, and the public service.

Chief executive (of a council)

Every local authority is required to have a chief executive, who is responsible for the day to day running of the local authority. The chief executive implements council decisions, advises councillors, and is responsible for effective management and the employment of staff. (Refer LGA 2002, section 42.)

Committee (of a council)

A council may appoint a committee to work in a certain area of responsibility where the local authority operates. A committee is a working group that usually has fewer members than the full council, but it may include co-opted (unelected) members, and may be chaired by someone other than the mayor. (Refer LGA 2002, Schedule 7, clauses 26, 30, 31, 32.)

Community (of interest)

A network of people and organisations linked together by common factors. This might be a network of people linked together geographically (i.e. in one place) or linked by a common interest or identity. Community board

Community boards are established under the Local Government Act 2002 in order that a community with a distinct character, needs, and aspirations is recognised by the local council and provided with the opportunity for a voice in local council decision making. The Act specifies the role of the community boards, which includes

• representing, and acting as an advocate for, the interests of its community
• considering and reporting on all matters referred to it by the territorial authority, or any matter of interest or concern to the community board. (Refer LGA 2002, sections 49–53.)

Community outcome

Councils must identify their community outcomes that are priorities for the intermediate and long-term future. Community outcomes are reconsidered every six years, and the council must monitor progress towards achieving the outcomes and report every three years. (Refer LGA 2002, sections 91, 92.)

Council organisation (CO)

Any organisation in which one or more local authorities owns or controls any portion of the voting rights, or has the right to appoint one or more of the directors or trustees. (Refer LGA 2002, section 6.)

Council-controlled organisation (CCO)

Any organisation in which one or more local authorities owns or controls 50% or more of the voting rights or has the right to appoint 50% or more of the directors, trustees etc. (Refer LGA 2002, section 6.)

Council-controlled trading organisation

Council-controlled trading organisations are council-controlled organisations that operate a trading undertaking for the purpose of making a profit. (Refer LGA 2002, section 6.)

District plan

A land use plan made by every territorial authority under the Resource Management Act 1991. It usually specifies zones and controls on land use and subdivisions within each zone. (Refer Resource Management Act 1991, sections 72, 73, 75.)

First past the post (FPP)

A voting system, used by most local authorities, where the candidates with the most votes win. Under FPP the voter places a tick next to the names of the candidates they wish to vote for. The voter can vote for as many candidates as there are positions available to be filled. (See also STV below.)

Governance

Governance, as distinct from government, connotes joint action between a council and elements of the community it serves. It has been defined by the United Nations as “the process of decision-making and the process by which decisions are implemented (or not implemented)”. Academic writers define it as “government plus the looser processes of influencing and negotiating with a range of public and private sector agencies to achieve desired outcomes”. Another defines governance as “… the joint work of government and civil society. It cannot be done by government alone; all governance is in some sense co-governance.” (See discussion in the Introduction to this report.)

Governance principles

Governance principles that apply to all local authorities are stated in the LGA 2002, section 39. Local authorities must (among other things) ensure that governance structures are effective, open, and transparent; ensure that regulatory processes are separated from other processes; and be a good employer. (Compare principles relating to local authorities, below.)

Governing body

The governing body of a local authority comprises the councillors and mayor, or councillors and chairperson in the case of a regional council. The governing body is responsible and democratically accountable for the decision making of the local authority. (Refer LGA 2002, section 41.)

Greenfield

A piece of usually rural or semi-rural undeveloped land, often considered as a site for expanding urban development.

Gross domestic product (GDP)

Gross domestic product represents the country’s income earned from production in New Zealand. It includes income from production carried out by New Zealanders and by foreign firms operating within New Zealand.

Hauraki Gulf islands

In this report, the Hauraki Gulf islands include Great Barrier Island (Aotea), Little Barrier Island (Hauturu), McCallum’s Island, Motuihe Island, Motukorea Island, Motutapu Island, Pakatoa Island, Pollen Island, Ponui Island, Rangitoto Island, Rakino Island, and Waiheke Island.

Joint committee

Councils may form a joint committee to work together on certain issues.

Land value

This is defined by section 2 of the Rating Valuations Act 1998. In summary land value is the amount that might be realised if the estate were offered for sale by a bone fide seller and no improvements had been made on the land.

LGA 2002

The Local Government Act 2002.

Local authority

A local authority means a regional council or territorial authority. (Refer LGA 2002, section 5.)

Local Council

A local council is a new kind of local agency, proposed in the report of the Royal Commission on Auckland Governance.

Local government

Local government refers to the government structures overseeing a particular locality, region, city, or district, such as a regional council, city or district council, or a community board.

Local Government Commission

An agency appointed by central government, to consider and report on local government matters and review the operation of the Local Government Act and Local Electoral Act. The Local Government Commission has decision-making power over changes to council boundaries and amalgamations of councils.

Long-term council community plan (LTCCP)

Each local authority is required to publish an LTCCP every three years (LGA 2002, section 93(6)), to

(a) describe the activities of the local authority; and

(b) describe the community outcomes of the local authority’s district or region; and

(c) provide integrated decision-making and co-ordination of the resources of the local authority; and

(d) provide a long-term focus for the decisions and activities of the local authority; and

(e) provide a basis for accountability of the local authority to the community; and

(f) provide an opportunity for participation by the public in decision-making processes on activities to be undertaken by the local authority.

Operating expenditure

Operating expenditure is that which pays for day-to-day operations and services. Operating expenditure also includes depreciation (that is, the wearing out, consumption, or loss of value of an asset).

Place-shaping

The creative use of powers and influence to promote the general well-being of a community and its citizens. (See Chapter 16 of the report.)

Principles relating to local authorities

Local authorities are required to act in accordance with various principles, including to

• conduct business in an open, transparent, and democratically accountable manner, and give effect to its desired outcomes in an efficient and effective manner
• make itself aware of, and have regard to, the views of all its communities
• in decision making, take account of the diversity of the community, the interest of current and future communities, and likely impacts on the four well-beings
• provide opportunities for Māori to contribute to decision-making processes
• cooperate with other local authorities
• conduct commercial transactions with sound business practice.

(Refer LGA 2002, section 14.) Compare governance principles, above.

Purpose of local government

This is defined in the Local Government Act (section 10) as being

(a) to enable democratic decision-making and action by, and on behalf of, communities; and

(b) to promote the social, economic, environmental, and cultural well-being of communities, in the present and in the future.

Rates

A land tax based on property values, which provides the major revenue source for many local authorities in New Zealand. (Local Government (Rating) Act 2002.)

Regional council

A regional council is one type of local authority, which operates within a defined region. The Auckland Regional Council (ARC) summarises its functions as: managing the region’s air and water quality, its growth and development, regional parks, public transport, the coastal and marine environment, and natural and cultural heritage sites. (See www.arc.govt.nz/council/, accessed March 2009.)

Regional land transport programme (RLTP)

The three-yearly land transport infrastructure and services proposal for funding from the National Land Transport Fund prepared by regional transport committees. The Auckland Regional Land Transport Programme is prepared by ARTA.

Regional land transport strategy (RLTS)

Under the Land Transport Management Amendment Act 2008, every regional transport committee on behalf of the regional council must prepare, and consult on, a regional land transport strategy to provide guidance on the land transport outcomes sought by the region. The RLTS must be produced every six years and cover a period of 30 years, and it must contribute to the vision set out in the strategy.

Regional policy statement (RPS)

The RPS is a policy document made by a regional council under the Resource Management Act 1991, for the management of natural and physical resources of the region. District plans must give effect to the RPS.

Regional transport committee

Every regional council or unitary authority must establish a transport committee for its region and appoint a range of representatives (including those from the regional council, territorial authorities, the New Zealand Transport Agency, one representing each of the five transport objectives and one from a cultural perspective). The main functions of the regional transport committee are to prepare a regional land transport strategy and a regional land transport programme.

Significant decisions

A decision that has a high degree of importance in terms of the four aspects of well-being, the people who are likely to be particularly affected by or interested in the decision, or the capacity of the local authority to perform its role and the financial and other costs of doing so. Local authorities must adopt a policy on significance. (Refer LGA 2002, sections 71, 90, 97.)

Single transferable voting (STV)

A voting system, used by some local authorities in New Zealand, under which the winning candidates are selected on the basis of voters’ preferences. Under STV voters rank candidates in their order of preference using numbers. A voter would write “1” next to the name of their favourite candidate, “2” next to their second favourite candidate and so on. Voters may give preferences to as few or many candidates as they wish. (Local Electoral Act 2001.)

Standing committee

A standing committee is a permanent committee of a council.

Strategic asset

An asset or group of assets that the local authority needs to retain to maintain its capacity to promote any outcome it considers important to the current or future well-being of the community.

State highway

A State highway is a road owned and operated by the Crown, through the New Zealand Transport Agency. State highways are mostly major through routes that link major centres in New Zealand. (State highways are distinct from council roads, variously described as local, collector, and arterial roads.)

Territorial authority (TA)

A type of local authority, called either city or district councils. Territorial authorities’ usual responsibilities include the provision of local infrastructure, including water, sewerage, storm water, roads, civil defence and emergency management, building control, public health inspections and other environmental health matters, controlling the effects of land use (including hazardous substances, natural hazards, and indigenous biodiversity), animal control, noise, and the effects of activities on the surface of lakes and rivers. (See longer list of activities in Chapter 3.) Territorial authorities in Auckland region comprise the Rodney, Papakura, and Franklin District Councils, and North Shore, Waitakere, Auckland, and Manukau City Councils.

Three waters

The three waters refers to wastewater (including sewage), stormwater, and drinking or potable water. The supply and drainage pipes, and treatment/sanitisation for the three waters are commonly regarded as infrastructural responsibilities of councils.

Unitary authority

A unitary authority is a territorial authority that has the responsibilities, duties and powers of a regional council conferred on it by law. (Refer LGA 2002, section 5.)

Volumetric water charging

A system of charging based on the volume of water used.

Ward

An electoral division of a city or district, used to elect one or more city or district councillor.

Well-being

One of the purposes of local government is to promote the social, economic, environmental, and cultural well-being of communities in the present and the future. (LGA 2002, section 10.)

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