Queenstown Lakes council’s Mike Theelen gets big pay jump as rates soar

Queenstown Lakes council’s Mike Theelen gets big pay jump as rates soar

Stacy Squires/Stuff

Queenstown Lakes District Council chief executive Mike Theelen has had an 8% pay increase to $415,000.

Queenstown Lakes District Council boss Mike Theelen salary will jump to $415,000, a decision made shortly after councillors decided to impose one of the highest rates increase in New Zealand.

The council signed off on the average 14.5% rates increase about an hour before considering Theelen’s pay package during a public-excluded section of its monthly meeting last week.

The 8% increase for Theelen followed a performance review that noted his “strong leadership through a time of great uncertainty for local government,” mayor Glyn Lewers said in a statement on Tuesday.

Fernhill and Sunshine Bay Community Association chairperson Simone Bray said it was inappropriate timing for such a large pay rise.

Average Queenstown homes have had a 14.5% rates increase.

Debbie Jamieson/Stuff

Average Queenstown homes have had a 14.5% rates increase.

“So many people are doing it hard and then someone who’s already earning an extraordinary amount of money gets another pay rise.

“Once you get over a certain amount, how do you justify more, especially from rate payers.”

Rates bills had arrived in the mail on Tuesday, and she was shocked to open hers.

There were other important needs in the community.

The association had been asking for a public toilet for use of people on nearby walking and mountain biking tracks, she said.

“There is human excrement in the forest and no public toilet. They say it’s on their list, but there’s no money.”

Mountain biking tracks at Fernhill attract thousands of users but the council can not afford to put in a public toilet.

Dasha Kuprienko/ Stuff

Mountain biking tracks at Fernhill attract thousands of users but the council can not afford to put in a public toilet.

A Queenstown property with an average value of about $1.5 million faced a rates increase of 14% to $5242.

The increase was slightly higher in Wānaka and much higher in Kingston, where it was almost 20%.

It is understood that the council decision to grant Theelen’s pay rise was not unanimous, but individual councillors were prevented from speaking publicly about the process as it was an employment issue.

Lewers said Theelen’s pay increase came at a time of unprecedented changes in local government, including water and resource management reforms.

“Council is also facing an extremely challenging environment with increasing costs, insurances and borrowing rates, whilst trying to balance the effect of rates on the local community during a cost of living crisis.”

A leaky homes claim at the Oak Shores apartment blocks is thought to have cost the Queenstown Lakes District Council about $163 million.

Debbie Jamieson/Stuff

A leaky homes claim at the Oak Shores apartment blocks is thought to have cost the Queenstown Lakes District Council about $163 million.

The council was also struggling with several leaky homes claims, including one that cost about $163 million.

“In the context of these challenges, and many more, Mike continues to demonstrate genuine care for the team he has built at [the council],” Lewers said

“During this first year of my term as mayor I have thoroughly enjoyed and valued working alongside Mike. He is a true asset to this council and the district.”

Theelen joined the council as chief executive in February 2016 and was reappointed for a further five years in November 2020 (effective from February 2021).

The total $415,321.09 salary for the 2023-24 year represented an 8% baseline increase and included an employer Kiwisaver contribution of 3%.

It was in alignment with current market data for 2023, the council press release said.