Boards asked to tighten belt

Already cash-strapped local boards were being asked to find further 5% cost savings from their annual funding of $298 million when the 2023/24 Mayoral budget proposal was first put to the Governing Body last week.

Mayor Wayne Brown suggested savings might be found through a combination of reduced spending on Locally Driven Initiatives (LDIs) and asset-based spending, postponed spending on assets, and administrative efficiencies.

At the same time, he said he was committed to increasing local boards’ decision making powers. Ideally, he would like local boards to be given clear budgets for their communities, have the sole power to decide how to spend it and have sole accountability over funds and decisions.

“When the fiscal burden of the next financial year is behind us, I will be recommending that more funding and decisions be controlled by local boards than ever before,” Mayor Brown said.

Brown’s 2023/24 budget proposal is seeking a total rates increase of 4.66%, which would be made up of a general rates rise of 7%, mitigated by reducing the Natural Environment and Water Quality targeted rates by two thirds in the 2023/2024 year.

The proposals are part of Mayor Brown’s response to Auckland Council’s $295 million budget hole. He is seeking savings of $130 million across Council, including Auckland Transport and Eke Panuku. Included in this are operational savings of $60 million that the Mayor says will focus on management and unfunded strategies rather than service cuts, and the proposed sale of Council’s 18% shareholding in Auckland International Airport.

“We want to make systemic changes to ensure there isn’t a rates rise shock in 2024. If tough decisions and trade-offs are not made now, households may still face a hefty rates rise next year,” he said.