Download PPT 1.8MB - Kauriglen Lodge Puhoi

Local Government Finance Forum
LGfin’05
November 16th 2005
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
© Larry Mitchell 2005
Agenda
• ‘Financial’ involvement in the LTCCP?
(a poll)
• Research paper … data requirements
• A little bit of history
• A case study for setting financial targets
• A case study for monitoring outcomes
• Future developments.
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
2
Women are from Venus …but are
the LTCCP planners ‘of this world’?
• The Community Plan
conference - are we on the
same planet? Have we left
the planners a vacuum?
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
3
Financial involvement in the
LTCCP (a poll)
• Are Accountants really involved? Are they
interested or have they been outflanked?
• Evidence from Council’s surveyed …
less than 1 in 5 (20%) have the Finance
second tier ‘Director’ leading the LTCCP
team
• The place of the LTFS its prime purpose(s)
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
4
It all comes down to the $$$’s
‘We hope to achieve improvements to all
well-being outcomes’
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
5
What is the purpose?
• All of this (LTCCP) effort must (one hopes)
be both pre-meditated and done for a
reason …economic gains firstly
• A research paper - Some 'first principles'
relating to the nature, extent and quality of
the Long-Term Council Community Plan,
(ltccp) data … a forerunner to an Audit
Guideline?
www.kauriglen.co.nz/larry/marketing/LTCCPdataFirstPrinciples.doc
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
6
What is the purpose?
• OAG’s LTCCP audit a ‘self assessment
and compliance approach’ which is not
very helpful for achieving ‘results’ …
• So what do Councils really want? … and
• Who is to lead?
• Are we going to get social engineering or
economic rewards?
• How will we know?
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
7
What is the purpose?
• The 80:20 rule, Council’s level of
discretionary expenditures
• Socio economic goals yes …but social
engineering? … I think not.
• The pivotal role of the AMP’s and the LTFS
as the basic framework for the LTCCP
• If we want improvements over all QBL
outcomes
• It all gets back to the $$$’s in the end …
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
8
Research paper LTCCP data
requirements
• LTCCP data requirements …why these
need to be specified and are important
• High expectations but nominal and
sensible ones based on acquiring ‘data fit
for the LTCCP purpose’
• An audit compliance ‘tick’ objective … or
‘meaningful and useful’ information serving
Council and Community decision making?
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
9
The DIA do it … three cheers!
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
10
A little bit of history
• Missing in action … the OAG, LGNZ and
others?
• DIA… excellent information …as far as it
goes.
• StatsNZ help the DIA but …
• LTCCP needs not addressed by DIA and
• No comparative sense …done deliberately
• No sense of goal setting
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
11
A little bit of history
• Other agencies …disappointing?
• The OAG have not delivered
• Other agencies have cooperated well but
LGNZ and SOLGM have not assisted the
sector in ‘performance’ and data terms
• Regional Council groupings have shared
outcomes and some shared data
• The 80:20 rule applies to social indices
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
12
Why Comparative analysis?
• The benchmarking alternative does not work
• There is no better available option than
some form of comparative analysis
• Targets and Outcomes cannot be set in a
vacuum
• There is a need to ‘locate’ every Council’s
present and planned positions using past
results, desired results and achieved results
whilst employing appropriate target setting,
monitoring and reporting tools
• Examples …
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
13
Two case studies… for setting
financial and economic targets
• Data Mining and
• Monitoring Outcomes
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
14
First case study… Data Mining data
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
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First case study… Data Mining report
Council Current Significant Activity Expenditures
Roading
Exp
Council Name
Cohort
Water
Exp
Wastewater
Exp
Pop
Per
Capita
$000
$
Per
Capita
$000
$
Parks &
Reserves
Exp
Per
Capita
$000
$
Per
Capita
$000
$
3 Year % change per
Total
Total
Average capita over
Council
Per
Per
last three
Expenditure Capita
Capita
years
$000
$
$
New Plymouth
City
69,200
15,931
230
5,495
79
7,269
105
13,762
199
83,113
1,201
997
17.0%
Hastings
Prov
71,100
21,525
303 11,113
156
0
0
4,829
68
63,358
891
867
2.7%
Masterton
Prov
23,300
7,119
306
2,577
111
1,813
78
2,254
97
20,802
893
780
12.6%
Palmerston North
City
78,100
13,154
168
5,668
73
3,587
46
4,975
64
71,745
919
849
7.5%
Rotorua
City
67,800
11,760
173
4,419
65
7,536
111
6,894
102
68,928
1,017
952
6.4%
Timaru
Prov
43,100
9,507
221
3,856
89
2,000
46
2,380
55
50,127
1,163
1,097
5.7%
Wanganui
Prov
43,600
15,000
344
2,786
64
1,024
23
2,908
67
34,324
787
670
14.9%
Whangarei
City
72,200
20,633
286 10,624
147
5,825
81
6,064
84
67,027
928
864
6.9%
14,329
14,077
5,039
254
258
65
98
84
36
3,632
2,794
2,909
61
62
39
5,508
4,902
3,746
92
76
46
57,428
65,193
20,883
975
923
143
885
866
132
9.2%
7.2%
5.0%
AVERAGE
MEDIAN
STD DEVIATION
5,817
4,957
3,312
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
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Second case study… monitoring outcomes
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
17
Second case study… monitoring outcomes
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
18
Second case study… monitoring outcomes
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
19
Second case study… monitoring outcomes
the ‘Outcomes-Results’
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
20
Future developments
• Put yourself in the 2009 position or later
• Ask the ‘thermos flask’ question… How will we
know? … results
• The actual results at an Outcomes level of
Outcomes that directly affect Economic Well Being
(including Financial Outcomes and Ability to Pay)
including …
– Why did this we get these results?
– What were the influences over these results?
– Were the results satisfactory or not?
– Comparative assessments
– Where do responsibilities lie for the results?
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
21
Where to now?
• If you are on road without a map you are
either lost, anywhere, nowhere and all of
the above
• Consider the need for targeting,
monitoring, measurement and reporting
tools
• Consider the need for appropriate
measurement tools.
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
22
A roadmap … or the bush
• ‘If the Outcomes planned and hoped for do
not eventuate (or are exceeded)…
• Was this because the target needs
adjusting or not? … comparisons at work
• What were the major influences that
produced this result? …and were these …
• Due to a worse (or better) performance of
NZ Inc or of our District …which one? and
by how much?
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
23
A roadmap … or the bush …
an example
Our local District economy as measured in
terms of local Incomes, the local Economy
and its Wealth base has grown by say 10%
over the three years to 2009 whilst NZ Inc
and other similar Councils have grown by
only say 6% … what has this been due to?,
was it a result that we can take (some)
credit for?, and to what degree do we now
modify our 2009-2019 LTCCP Outcomes?
Go figure.
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
24
And now for ….
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
25
PO Box, Puhoi, Auckland, NZ
Ph: 09 422 0598
Fax: 09 422 0700
Mobile: 027 479 2328
All phones: 0800 784 648
Email: [email protected]
Website: www.kauriglen.co.nz/larry
Larry Mitchell is a Finance & Policy Analyst working with Local Government.
His products include ‘Base Stats with Trendz’ reports, which now include
‘Outcomes-Results’ and ‘Data Mining’ benchmarks.
Larry. N. Mitchell
Finance & Policy Analyst (Local Government)
26