Council’s policy and rules for expenses (including reimbursement allowances) for elected members 1 July 2007 to 30 June 2008 was adopted on 24 April 2007.
Hawke's Bay Regional Council has resolved to adopt the following policy as provided to the Remuneration Authority.
On this page
Hawke's Bay Regional Council
Contact person for enquiries: Paul Drury, Group Manager Corporate Services
Email: pdrury@hbrc.govt.nz Telephone: 06 835 9205
Rules and procedures relating to the expenses and allowances payable to elected members are recorded in the following document:
HBRC Policy Handbook, Section 1.4 Councillors, Last Updated 26 April 2007
The principles and processes under which Hawke's Bay Regional Council ensures that expense reimbursements and allowances are payable are as follows.
Principles
- Are in line with Council policies
- Have a justified business purpose
- Are payable under clear rules communicated to all claimants
- Have senior management oversight
- Are approved by a person able to exercise independent judgement
- Are adequately documented
- Are reasonable and conservative in line with public sector norms
- Are, in respect of allowances, a reasonable approximation of expenses incurred on behalf of the local authority by the elected member
- Support administrative efficiency by the payment, where possible, of standard allowances based on fair and reasonable value of costs incurred, rather than requiring elected members to continue to make numerous claims.
Processes
- Councillors are issued with an explanatory memorandum explaining their entitlements and how they should claim them.
- Councillors are required to make expenditure claims for all allowances, other than agreed regular payments, which are approved by the Chief Executive prior to payment.
- All reimbursement costs will be based on actual and reasonable expenditure with claims to be supported by appropriate invoices to substantiate the claim and will be approved as part of the Council’s normal creditor payment process.
A vehicle is not provided to the Chairman or elected members.
- An allowance of 70 cents per kilometre is paid in accordance with the remuneration authority guidelines.
- Restrictions on mileage claims:
(a) Claims will be paid only for use of a vehicle on Council business.
(b) ''Council business'' is defined as ''official Council business whereby elected members are invited or required to attend both informal or formal meetings or events related to Council. These do not include meetings with constituents, or the elected member's own initiatives to familiarise or better inform themselves in any way with Council business, or where a Council function is primarily entertainment”.
(Mileage Claims – refer Section 5)
Taxis and other transport
Elected members will be reimbursed for the actual and reasonable cost of any expenditure on taxis and other transport incurred where such expenditure is considered reasonable and necessary for the attendance at conferences, seminars and business related meetings attended at the request of Council, or approved by the Chairman.
Carparks
Individual carparks are allocated to each elected member for use on Council and Committee meeting days only. In addition, the Chairman has a permanent car park and one other car park is permanently available for any other elected member to attend Council business at the Council offices.
Use of rental cars
Elected members will be reimbursed for the actual and reasonable cost of any expenditure on rental cars where this is considered necessary to attend conferences, courses and business meetings attended at the request of Council, or approved by the Chairman. If rental cars are used they are to be cheaper than mileage allowance or air fare.
Air Travel – Domestic
All domestic travel is to be approved in advance by the Chairman or Chief Executive and booked through Council Corporate Services.
Air Travel – International
All international travel is to be approved in advance by the Chairman or Chief Executive and booked through Council Corporate Services.
Council will meet the cost only of economy class airfares unless specifically approved otherwise by the Chairman or Chief Executive.
Stopovers for long distance flights will be at the discretion of the Chairman or Chief Executive, and where approved, will be paid or reimbursed.
Airline Clubs / Airpoints / Airdollars
The Chairman is provided with a Koru Club membership on the basis of frequency of air travel.
Airpoints or airdollars earned on travel, accommodation etc., paid for by the Council are available for the private use of members.
Accommodation costs while away at conferences, seminars, etc
Elected members will be reimbursed for the actual and reasonable cost of any expenditure incurred where this expenditure is incurred for attendance at the request of Council or approved by the Chairman or Chief Executive. Travel is to be approved in advance and all bookings are to be made through Council Corporate Services.This provision also applies to Councillors who normally live at a distance from Napier who stay overnight prior to or between Council or committee meetings.
Meals and sustenance, incidental expenses
The reasonable cost of meals and sustenance will be paid or reimbursed where such expenditure is incurred for attendance at conferences, courses and business meetings attended at the request of Council, or approved by the Chairman or Chief Executive. A light lunch is generally provided to Councillors on Council and Committee meeting days.
Private accommodation paid for by local authority
An allowance of $35 per night can be claimed by elected members where they decide to stay privately when attending a conference, course or business meeting where their attendance is at the request of the Council or approved by the Chairman or Chief Executive. Reasonable additional costs associated with staying privately can be claimed only if the prior approval of the Chairman or Chief Executive has been received.
There are no hospitality or entertainment allowances paid to elected members. Where entertainment or hospitality is required at the request of the Council, or on the approval of the Chairman or Chief Executive, reimbursement can be claimed of an actual and reasonable basis.
Equipment and technology provided to elected members
The following allowances are paid to elected members to assist with the costs of equipment and technology provided by the elected member.
Computers
Subject to the conditions below, elected members may be paid an allowance of $65.55 per month to assist them to provide a personal computer that is available for use for Council business, including email and printing costs.
The allowance is based on the following formula:
Allowance = ($2,200/36/2) + $20 + $15 = $65.55
$2,200 is taken as the cost of a personal computer with Microsoft Word and anti-virus protection together with a printer. This figure is divided by 36 (the number of months in a triennium and also the expected life of a personal computer) and then by 2, taking Council use as half of the use of the computer.
$20 is half the monthly cost of a basic Internet connection. The cost of a printer cartridge set is $80 for usage six months at $15 per month.
Printer paper will be supplied on request from the Council for use on council business.
Conditions
1. The computer allowance is subject to the elected member providing, and using regularly for Council business, a home computer connected to the Internet and loaded with a current version of Microsoft Word and anti-virus software that is kept up-to-date.
2. The internet connection shall be such that when in use the normal telephone of the elected member continues to operate.
Telephone Rental
Except as set out below, elected members may be paid an allowance of $21.50 per month, being half the standard cost of a residential phone connection. If the installation of a second telephone line is necessary for Council business, the Council will pay the costs of installing (subject to network availability) the second line and the elected members will be entitled to an allowance of $35 per month to cover the monthly rental cost. The decision about whether a second line is necessary will be made by the Chairman of the Council in consultation with the Chief Executive. Elected members who have a second line installed will not be entitled to the allowance of $21.50 per month. The cost of toll calls that are made to conduct the business of the Council will be reimbursed.
Mobile phones
All elected members who can be contacted on a mobile telephone are entitled to an allowance of $20 per month. This allowance is based on half the cost of the monthly rental plus a contribution towards the cost of calls relating to Council business. It is assumed that a key benefit of a mobile phone is for incoming calls where the cost is met by the caller, and that elected members will make most outgoing calls from land lines. All elected members will provide their own phone at their expense.
Answer Phones, Fax, Filing Cabinets
On request, elected members will be supplied with an answer-phone, facsimile (where a claim is not being made by an elected member for computer-related equipment) and filing cabinet for the period of office. The Council will also supply a reasonable amount of necessary consumables.
Where a faxability line is required, then the cost of this will be paid by the Council. (The cost at the present time is in the order of $3 per month.)
The equipment remains the property of the Council and must be returned when the elected member leaves office. New equipment will only be supplied where existing surplus equipment is not available.
Council pays for the cost of professional development courses, seminars, etc approved by Council or the Chairman, within a specified annual budget.
No expenses or allowances in respect of subscriptions to Clubs or associations are paid other than professional bodies specific to their role with Council e.g. RMLA for Hearings Committee Members.
The following are reimbursed or provided to elected members:
Clothing
Elected members will be supplied with a rain jacket bearing the Council's logo.
Stationery
Stationery is available on request for use on Council business.
Elected Members' Office
Elected members are entitled to use the Councillors' Office, located next to the Council Chamber on the ground floor of the Regional Council building. The office is equipped with desks, phone and a computer.
Typing facilities
Typing facilities are available to Councillors for use on Council business only.
Chairman’s Office
The Chairman is provided with an office at the Council’s offices in Napier. This office includes a direct dial telephone extension and networked computer. Limited secretarial assistance is also provided.
Withholding tax will be deducted from all allowances (as distinct from reimbursements of actual business expenses).
I seek approval from the Remuneration Authority, in relation to the period 1 July 2007 to 30 June 2008, of the expense reimbursement rules and payments of allowances applicable to elected members as set out in this document which was adopted by Council on 26 April 2007.
The approved document and any attachments will be available for public inspection in accordance with the Remuneration Authority's determination.
M J ADYE
Acting Chief Executive
26/4/07