A report written by McKenzie has been posted on social media and verified by RNZ. Photo: Supplied
Wellington City Council's crown observer is surprised the organisation "hasn't totally wilted under the pressure" of long-term plan changes, according to a new report.
In October, former local government minister Simeon Brown decided to appoint a crown observer after the council chose to rewrite its long term plan.
On 13 November, former chief executive of Tasman District Council and Gisborne District Council Lindsay McKenzie started in the role.
A report written by McKenzie has been posted on social media and verified by RNZ.
It said a combination of issues, such as changing the long term plan and the resignation of the council's chief executive Barbara McKerrow, had been "massively disruptive".
"In many respects this was the perfect storm, even more so when the challenges and expectations of Local Water Done Well reforms on Wellington especially, are overlain.
"My initial observation is that it is surprising that the organisation hasn't totally wilted under the pressure.
"It didn't need to be this way."
Photo: 123RF
McKenzie said it would have been possible for the council to sign off on its long term plan, and decide later to sell or keep its 34 percent stake in the airport.
"In that event, there would have been more time for the process, more time to consider debt and balance sheet issues and would have decoupled the LTP amendment decisions from water reform decisions and their respective impacts."
The report said some of the challenges the council faced were similar to many other councils around the country.
These included the economic conditions, significant central government policy shifts, erosion of trust in regulatory institutions and Covid-19 disruptions.
Additional challenges, he observed, included political positioning and ideologies, seismic and climate change-induced risk, proximity to central government, a media spotlight, legacy decisions including relating to financial strategy and being the capital city.
He found there was likely to be a difference between the perceived performance and the underlying performance of the council - but performance was often influenced by perception.
He said the spotlight was on the council's decision-making about water services, and advice from KPMG was set to be released relating to the potential transfer of water assets, how much it will be able to borrow, and infrastructure which could break in a natural disaster which had not been budgeted for.
The report also noted that the chief executive recruitment process was well managed.
Barbara McKerrow will finish in the role in March.
McKenzie said he would provide an update ahead of an interim report to the Local Government Minister (now Simon Watts), both due in late February.
Lindsay McKenzie will be in the observer role till 31 July.
