Brace for cuts – Sayers

North Rodney should brace itself for bad news as a result of Auckland Council’s increasing post-Covid funding shortfall.

That was the message from Rodney Councillor Greg Sayers to the monthly Local Board meeting on May 20, just before Council revealed its estimated revenue losses for next year would be $550 million, in addition to the $250 million estimate for this financial year.

Cr Sayers said major projects will be deferred or shelved, and facilities and services cut as Council tried to recoup its losses.

“Hard choices are going to have to be made in the coming weeks. There are services that will be lost, and projects that won’t proceed,” he said.

“Major projects in our area like the Matakana link road, Hill St and local facilities, like opening hours at libraries, are all very much up in the air.”

Cr Sayers said exactly what projects in Rodney would be deferred, or what services would be cut, would not be known until after the public consultation process on the Emergency Budget had been adopted and any rates increase decided in late July.

Some 60 per cent of Council revenue comes from sources such as concerts and visitor attractions, pools and leisure centres, port operations, Auckland Airport share dividends, parking, development contributions and public transport, all of which have dried up as a result of Covid-19.

Mayor Phil Goff said rates revenue could also drop next year due to a proposal to allow ratepayers who could prove financial hardship due to Covid-19 to defer their rates payments.

“The reality is, we have less money coming in, so we have less money that we can spend on the city and less money to deliver the essential services that Aucklanders rely on,” he said. “All of this adds up to a huge challenge for Auckland. We’re looking at every way possible to save money and reduce expenditure.”