Mayor Bryan Cadogan on Friday said a process involving all councillors and overseen by a recruitment company had resulted in Mr Hill’s successful re-application for the $282,250 role.
"You recruit the CE [chief executive], then every year set key performance indicators and salary," Mr Cadogan said.
Every council went through the "pretty rigid format".
"Steve brings a great deal of knowledge and experience and we are looking forward to continue to work together to deliver the key projects that make our district thrive."
Mr Hill has never been an elected councillor nor private sector professional, having worked in public service most of his life.
"My career history seems to be 15 years in the navy, where I was a supply and secretariat officer, 15 years at Western Bay of Plenty District Council beginning as a regulatory manager, then I came to Clutha and the end of this appointment will be 15 years at [the Clutha District Council]," Mr Hill said.
"The CE implements what the elected members decide.
"They [elected members] set the big picture — my job is to provide supporting information for their decisions and accumulate the resources to develop the strategy."
Mr Hill said while this would be his last term with the Clutha District Council, he expected it to be the most critical.
"You’ll see in the upcoming long-term plan, we’re facing the biggest challenges the district’s ever seen in terms of sustainability.
"When I first came here, economists were talking how unsustainable smaller towns were and we didn’t agree ... now we get to this problem where the cost of infrastructure for the number or people is really putting the pain on."
He said "sustainability" in these terms meant cost and affordability.
"We had a plan in place and we were going to be able to manage and Three Waters was going to be part of that solution.
"Now, large rates rises required for councils going it alone will show that unsustainability.
"My next five years will be how we’re to deal with it, how to work with the government," he said.
"I want to find the solutions because the last thing I want walking away is to see us back where we were in 2014 with everybody leaving after all the work we’ve done to grow our communities.
"It’s absolutely my fulltime job, career and profession.
"I’ll be 67 [years old] and it is stressful with a lot of responsibility and accountability ...
"You’ve got to put all your energy into an organisation as big and complex as this.
"But I said to the council in my own [employment] interviews, I’m not looking to slow down.
"I want to complete a number of things and leave it in the best shape it can be.
"When I drive or walk down the main streets and see new buildings going up, facilities being used, sports and other activities going on, the new vibrancy and diversity of the people coming here and the communities growing — that’s what’s really exciting about public service."
Mr Cadogan said Mr Hill excelled in the council, ensuring "clear delineation between governance and operations".
"He and I can have some robust discussions ... we’ve had some challenging issues and not seen eye to eye but we blow the dust off and we’re back to square one.
"There’s a job to be done."