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President's Report President’s Report 2002/2003 NEW ZEALAND SOCIETY OF LOCAL GOVERNMENT MANAGERS 8th Floor, Local Government Building, 114-118 Lambton Quay, PO Box 5538, Wellington Ph 04 494 6251, Fax 04 494 6259, Email [email protected] Website www.solgm.org.nz Principal Sponsors PRESIDENT’S REPORT INTRODUCTION When I present this report at the AGM on 8 September, I will have been President for just over two months. Accordingly, I must acknowledge and thank my predecessor, Warwick Bennett, for his excellent leadership and contribution as President during 2002/2003. I also need to thank the members of the former Executive Committee for their positive contribution to SOLGM’s governance during the past year: • Tony Marryatt (Vice President) • Praful Rambhai (Northern Branch) • David Kelly (Midlands Branch) • Phillippa Wilson (Central Branch) • Wes ten Hove (Wellington Branch) • Bob Dickinson (Top of the South Branch) • Athol Stephens (45 South Branch) I also welcome and look forward to working with the newcomers to the Executive Committee: • Ross McLeod (Northern Branch) • Toby Hall (Central Branch) • Malcolm Thomas (Wellington Branch) Relationship with Local Government New Zealand I want to particularly compliment my predecessor, Warwick Bennett, for his work during his Presidency, to not only consolidate, but strengthen considerably the working relationship that SOLGM has with Local Government New Zealand. During 2002/2003 the two organisations worked cooperatively on a number of issues. The Local Government KnowHow venture with Local Government New Zealand, the Department of Internal Affairs, and SOLGM, was perhaps the prime example of our collaborative work. This was a project which delivered considerable benefits to the sector in providing guidance on a wide range of topics relating to the implementation of the new Local Government Act 2002, and its companion Act, the Local Government (Rating) Act 2002. Through the Local Government KnowHow programme, SOLGM met the following KRA in the Annual Plan: KRA 1: To successfully partner with Local Government New Zealand and the Department of Internal Affairs in undertaking the Legislative Implementation Programme. There are also a number of other important areas where we worked, or are still working together. Some examples are: • the Local Government Building Act Project team, convened by Local Government New Zealand, • the Strategic Plan for e-Local Government, convened by Local Government New Zealand, and involving SOLGM, ALGIM and Local Government Online, • the Dog Control Project team, chaired by Local Government New Zealand, • SOLGM’s Financial Management and Electoral Working Parties, upon which Local Government New Zealand is represented. Other areas of joint cooperation with Local Government New Zealand include the Local Government Sector Training Needs Analysis Project, convened by LGITO, and the STV Steering Committee, and the Dog Control Working Party both convened by DIA. Much of SOLGM’s work in the areas mentioned above, relate to our industry leadership work where we advocate and input into policy and legislative development and implementation issues affecting local government. Later in this report, the key outcomes of this work programme are covered, under the heading “Working Parties and Advocacy”. However, members will see, from the draft 2003/2004 Budget and Annual Plan, that SOLGM will undertake an industry good work programme, costing $73,750. This represents a very small increase in the cost over last year’s programme. I have advised Basil Morrison, President of Local Government New Zealand, of our work programme and I am very pleased Memorandum of to advise members of his positive support of it. Understanding soon to be signed between Given the collaborative and cooperative working Local Government New relationship with Local Government New Zealand, it Zealand and SOLGM appeared logical that some formal recognition of this relationship be developed. At a meeting between the two Presidential teams last April, Warwick Bennett proposed the development of a Memorandum of Understanding between the two organisations. A draft Memorandum was prepared and has been considered by both the SOLGM Executive Committee, and the National Council of Local Government New Zealand, and agreed to. I am hopeful that the President of Local Government New Zealand, and I will be able to sign the Memorandum of Understanding at our Annual Conference. The Memorandum will underpin the collaboration, cooperation, and partnerships between SOLGM and Local Government New Zealand into the future. I am looking forward to entering into this Memorandum of Understanding, it will be the culmination of considerable relationship building work by both Darryl Griffin and Warwick Bennett during their Presidencies over the last four years. Professional Quality Leadership 3 SOLGM’s Strategic Direction In last year’s Annual Report, my predecessor outlined in-depth, the development of the Strategic Direction SOLGM had been following from 1997. He also advised of the success SOLGM was having in advancing that Strategic Direction, and that there was general agreement by the Executive Committee that it remained a relevant direction for SOLGM to focus on during the next two to three years. Following examination of our continued progress against this Strategic Direction, in March this year, the Executive Committee considered it unnecessary to hold its annual strategy review day. Nonetheless, at its meetings of 21 March and 23 May, the Executive did discuss in-depth SOLGM’s role and functions. These discussions are reflected in the significant resolution, agreed at our 21 March meeting, setting out SOLGM’s position on a range of activities and roles. Aspects of this resolution form the foundation of the proposed Memorandum of Understanding between SOLGM and Local Government New Zealand and also the Key Result Areas in the Annual Plan and Budget for 2003/2004. SOLGM PERFORMANCE AGAINST 2002/2003 ANNUAL PLAN Financial For the past three years, we have continued to set a Key Success Area for SOLGM regarding our financial surety. The measure is outlined below: Key Success Area: To further develop a sound financial foundation for SOLGM through the establishment of a $150,000 Business Fluctuations Reserve by June 2004. As the attached Audited Financial Statements show, SOLGM’s overall financial position has continued to improve with 2002/2003 being the third successive year a surplus has being returned. The surplus for the financial year was $76,574. Progress against the $150,000 Business Fluctuations Reserve at the end of the financial year is $126,227, being an increase of $22,968 during the year. The following chart shows this growth. Professional Quality Leadership 4 Business Fluctutions Reserve Growth SOLGM’s financial basis further 150,000 126,227 strengthened 103,259 100,000 $ 51,726 50,000 0 2000/2001 2001/2002 2002/2003 Once again, a major contributor to SOLGM’s improving financial position was the financial performance of the SOLGM Opus Business School, which is covered later in this report. Also of significance, was the first year’s operation of SOLGM’s ‘Family of Sponsors’. The $164,000 received from this ‘Family’ enabled SOLGM to provide a wider range of services to members and also greatly relieved the Northern Branch Conference Organising Committee from the onerous task of raising significant sponsorship for our 2002 Annual Conference. The following pie chart also demonstrates the growing diversification of SOLGM’s revenue sources. SOLGM Revenue Sources Business School 1% Family of Sponsors 2% 1% Subscriptions 3% 1% Industry Good Contributions 6% Trading 8% Conference Branches 14% 64% Awards Interest (Please note: revenue sources are listed in order, highest to lowest) Professional Quality Leadership 5 Centre of Excellence In 2002/2003, the main challenge for the Centre of Excellence Advisory Board was the following KRA: KRA 2: To identify and promote examples of local government good practice management and to develop and contribute to the promotion of good practice guidelines and codes. In pursuing this KRA, the Centre of Excellence undertook a range of activities. To assist us in this, SOLGM employed Don Day who has significant experience in senior local government management. Don has considerably increased our capability and capacity to develop tools and guidelines on managerial good practice. He has also contributed to the good practice work of both the Financial Management Working Party and the SOLGM Electoral Working Party. The main areas of focus for the Centre of Excellence were as follows: (a) Manager Exchanges Exchanges for 2003 were awarded as follows: • Civic Assurance, United States Exchange – Michael Ross, Chief Executive, Southland District Council, to exchange with David Osberg, City Administrator, City of Hastings, Minnesota • Jardine Lloyd Thompson, United Kingdom Exchange – Peter Guerin, Chief Executive, Rotorua District Council, to exchange with William Saunders, Chief Executive, East Staffordshire Borough Council • Jardine Lloyd Thompson Australian (Federal) Exchange – Malcolm Thomas, Manager, Community Services, Kapiti Coast District Council, to exchange with Brendan Dowd, Director Technical Services, Darwin City Council • Jardine Lloyd Thompson New South Wales Exchange – Paul Lambert, City Promotion Manager, Upper Hutt City Council, to exchange with Jennifer Harvey, Property and Conveying Officer, Baulkham Hills Shire Council • Jardine Lloyd Thompson Australian Queensland Exchange – John
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