Councils Combine To Share Services
Submissions are being sought for a Proposal to Establish a Council Controlled Organisation (CCO) for the Provision of Local Authority Shared Services.
Seven councils in the Manawatu–Wanganui region are proposing to form a CCO to share services and to reduce costs.
Council Controlled Organisations are one of several business options recognised by local government as a way for local authorities to enhance their services in a cost effective manner.
Local authorities in the region had undertaken a number of joint activities with the purpose of reducing the cost to their communities for some time and similar work was being undertaken in other regions, chief executive Roger Twentyman said.
As well as saving costs the council would also have access to better expertise and look to improve services.
The district has already benefitted from the combined purchase of aerial photography services and a centralised after-hours call centre, Mr Twentyman said.
Other examples could be the tendering of the rating valuations contract, joint purchasing contracts increasing Tararua’s buying power, and reducing duplication between councils in software costs, data collection and web site information.
The proposed CCO would be an umbrella organisation with each local authority having one single share.
Along with Tararua the councils involved are Horizons Regional Council, and the Wanganui, Horowhenua, Manawatu, Rangitikei and Ruapehu District Councils.
The initial annual cost to individual councils ranges from $66,000 to $18,000, with Tararua’s contribution being near the bottom end at $23,000. This is expected to be recovered from savings or through improved services.
Because the proposal is of ‘significance’ the council is putting it to the community as an idea worth pursuing and is seeking input from interested people as part of the annual planning process.
Submissions close on Tuesday, 2 June. Copies of the proposal are available at Council service centres and on the web site – www.tararuadc.govt.nz.