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Resolution
That Council:
1. Adopts the Elected Members Allowances and Expenses Policy following,
and submits this policy to the Remuneration Authority for their approval.
Barker/Graham
CARRIED
Elected Members’ Expenses and
Allowances Policy
Staff Responsible - Group Manager Corporate Services
Commencement Date: 9 October 2016
Rationale: Council’s policy and rules for
expenses (including reimbursement allowances) for the electoral tenure
commencing 9 October 2016.
1.
Authentication of
Expense Reimbursement and Allowances
The principles
and processes under which Hawke's Bay Regional Council ensures that expense
reimbursements and allowances are payable are as follows.
1.1. Principles
1.1.1. Are in line with Council policies.
1.1.2. Have a justified business purpose.
1.1.3. Are payable under clear rules communicated to all
claimants.
1.1.4. Are approved by a person able to exercise
independent judgement.
1.1.5. Are adequately documented.
1.1.6. Are reasonable and conservative in line with public
sector norms.
1.1.7. Are, in respect of allowances, a reasonable
approximation of expenses incurred on behalf of the local authority by the
elected member.
1.1.8. 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.
1.2. Processes
1.2.1. Councillors are issued with an explanatory
memorandum explaining their entitlements and how they should claim them.
1.2.2. 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.
1.2.3. 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.
2.
Vehicle Provided
2.1. Where the Chairman decides to take up the
entitlement to a Council vehicle then the terms and conditions for the supply
of a vehicle will be determined by the Chief Executive Officer in line with
policies set out by the Remuneration Authority.
3.
Vehicle Mileage
Allowance
3.1. A vehicle mileage allowance is payable to
an elected member for travel by that member each day, but only if:
3.1.1. The member is not otherwise provided with a vehicle
by the Council; and
3.1.2. The travel is:
·
In a private vehicle; and
·
On Council business; and
·
By the most direct route that is
reasonable in the circumstances, and
3.1.3. The distance travelled by the member to the Council
Head Office on the day exceeds the threshold distance (all other approved
travel by elected members has no threshold adjustment).
3.2. The maximum vehicle mileage allowance payable in any
one twelve month period is the rate per kilometre as set out in the current
Remuneration Authority determination:
3.2.1. $0.74 per kilometre for the first 5,000 kilometres.
3.2.2. $0.37 per kilometre for any distance over 5,000
kilometres.
3.3. Restrictions on mileage claims for travel
to and from the Council Head Office – NB: the threshold distance means
the shorter of the following distances:
3.3.1. The distance equivalent to a round trip
between the member’s residence and the Council Head Office by the most
direct route that is reasonable in the circumstances; and
3.3.2. 30 kilometres, if the distance equivalent
to a round trip between the member’s residence and the Council Head
Office is
greater than 30 kilometres by the most direct route that is reasonable in the
circumstances.
3.4. ''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”.
4.
Travel Time Allowance
4.1. Council may pay a Councillor a travel time allowance
if the office of the Councillor cannot be properly regarded as a full-time
position.
4.2. An allowance may be paid to a Councillor under sub
clause (4.1) for each day within the period of this determination that:
4.2.1. The Councillor is travelling on Council business and
by the quickest form of transport reasonable in the circumstances; and
4.2.2. The travel time of the Councillor exceeds one hour.
4.3. The allowance is payable, in relation to each day
for which the Councillor qualifies under sub clause (4.2):
4.3.1. At no more than $37.50 per hour; but
4.3.2. Only in respect of the travel for that day that
exceeds 1 hour.
4.4. In this clause, on the Council’s business
includes:
4.4.1. Travel between a Councillor’s residence and
the Council Head Office.
5.
Travel and
Accommodation - (Mileage
Claims – refer Section 3)
5.1.
Taxis and Other
Transport
5.1.1.
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.
5.2. Carparks
5.2.1. 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.
5.3. Use of Rental Cars
5.3.1. 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.
5.4. Air Travel – Domestic
5.4.1. All domestic travel is to be approved in
advance by the Chairman or Chief Executive and booked through Council
Corporate Services.
5.5. Air Travel – International
5.5.1. All international travel is to be
approved in advance by the Chairman or Chief Executive and booked through
Council Corporate Services.
5.5.2. Council will meet the cost only of
economy class airfares unless specifically approved otherwise by the Chairman
or Chief Executive.
5.5.3. Stopovers for long distance flights will
be at the discretion of the Chairman or Chief Executive, and where approved,
will be paid or reimbursed.
5.6. Airline Clubs/Airpoints/Airdollars
5.6.1. 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.
5.7. Accommodation Costs While Away at Conferences, Seminars, etc
5.7.1. 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.
5.8. Meals and Sustenance, Incidental Expenses
5.8.1. 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.
5.9. Private Accommodation Paid for by Local Authority
5.9.1. An allowance of $50 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.
6.
Entertainment and
Hospitality
6.1. 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.
7.
Equipment and
Technology Provided to Elected Members
7.1. The following allowances are paid to elected members
to assist with the costs of equipment and technology provided by the elected
member. Where Council requires members to use the following equipment the
allowances below will be paid:
|
Item
|
Annual
Allowance
|
|
Use
of personal computer
|
$150
|
|
Use
of an electronic tablet
|
$150
|
|
Use
of a printer (with or without scanner)
|
$40
|
|
Use
of a mobile phone
|
$60
|
|
Use
of an internet connection
|
$250
|
|
Council
related toll and mobile phone charges
|
$400
|
|
TOTAL
|
$1,050
|
7.2. Elected Members will be limited to a total payment
in any one financial year of $1,050.
7.3. If elected members choose not to use their own
equipment then Council may provide the equipment and technology
required. All equipment provided by the Council will be subject to
approval by the Chairman. This equipment continues to be the property
of the Council. The communications allowances which refer to the
equipment provided will not be paid.
8.
Professional
Development, Clubs and Associations
8.1. Council pays for the cost of professional
development courses, seminars, etc approved by Council or the Chairman,
within a specified annual budget.
8.2. 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.
9.
Other Expense
Reimbursements and Allowances
9.1. The following are reimbursed or provided to elected
members:
9.1.1.
Clothing
·
Elected members will be supplied
with a rain jacket bearing the Council's logo.
9.1.2.
Stationery
·
Stationery and printer
cartridges are available on request for use on Council business.
9.1.3.
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.
9.1.4.
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, a mobile phone with associated costs and a
networked computer. Full secretarial assistance is also provided.
10.
Taxation of
Allowances
10.1. Withholding tax will be deducted from all allowances (as distinct
from reimbursements of actual business expenses).
11.
Signature
11.1. I seek approval from the Remuneration
Authority, in relation to the electoral tenure commencing 8 October 2016, 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
29 June 2016.
11.2.
The approved document
and any attachments will be available for public inspection in accordance
with the Remuneration Authority's determination.
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