The head of the New Plymouth District Council, Gareth Green, shared the savings from a year-long staff restructuring. Initially, the council aimed to save $20 million each year, but now they expect to save $10 million.
Since the restructuring began, they have reduced staff positions from 750 to 677, cutting $7 million from the budget. A total of 209 permanent positions were removed, leading to 66 job losses and severance costs of about $1.89 million over two years.
Green stated there are more cost savings coming as they focus on improving operations, including reducing licensing and contractor expenses. He noted these savings helped lower the average rates increase from over 17% to 11.5%.
The goal of this review is to provide better services for residents and ensure the council has the right resources and skills. Green feels the organization is now better equipped to achieve its goals.
When he announced the restructure, he pointed out that the number of staff had grown a lot in the last two years. Initially, he hoped for $20 million in savings, but this was later adjusted to $10 million.
The council’s Long-term Plan includes a commitment to save $100 million over ten years. Green praised the staff for their professionalism during this challenging time for them and their families. The executive leadership team changed significantly, with only Jacqueline Baker staying on in a new role as general manager of corporate innovation.
