Councils were also facing the challenges of climate change, the pandemic, workforce pressures, rising costs and long-standing issues such as a lack of diversity among elected members and low voter turnout.
More than 600 of the sector's leaders and representatives at the four-day Palmerston North conference were to hear from the Prime Minister, the Local Government Minister, the Opposition and officials about policy areas that impact councils and local communities.
Crosby said he had been concerned about the pace and sheer number of reforms, as well as the transitions, but after 36 years in local-body politics he understood that overcoming these challenges would require modern leadership.
"So many of the things we used to do, the way we used to make decisions, the things we used to invest in and how we engaged just would not work in today's world.
"It's not about power and control anymore. To make things happen, we partner with – or should – with mana whenua, community, central government, businesses and the many other stakeholders every day. It's all about partnership.
"We cannot serve our communities and do our jobs justice if we don't partner with mana whenua."
Partnership would only work when councils were operating with genuine understanding of what sits behind it, rather than because it was a requirement.
"Modern leadership involves sharing information, creating a higher level of trust, and promoting a sense of inclusion and belonging in the decision processes.
"Good governance is intrinsically linked to communities that are happier, more involved and make a stronger contribution to society as a whole."
But he said a massive turnover in elected members at October's local body election could result in a significant loss of knowledge and experience.
"It not only risks the momentum we've built, but also the gains we have made in recent years to slowly increase diversity.
"We gold-carders are also part of the diversity, have lived a life and still have a lot to contribute to local government."
He challenged elected members to collectively lift their game as a sector.
"Show communities that as elected members, we will plan ahead and deliver with them, not to them. We will let the community use their legitimacy and voice and strategic direction for their community. We will be responsive, effective and held accountable.
"Those, in my view, are markers of good governance in local government."
LGNZ's annual conference ends today.
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air