My Account
Auckland Council’s Governing Body held an Extraordinary Meeting last week to discuss the current financial projections of the council group as part of its Annual Budget process.
Its operating budget is facing a gap of around $270 million – $180m more than previously projected – which Council Group chief financial officer Peter Gudsell says is because rising inflation and interest rates are making costs rise faster than revenue.
The report presented at the Council’s November 10 meeting says that Council has the financial flexibility to respond to the budget situation, but tough choices and trade-offs will need to be made given the scale of the challenge.
In a press release, Gudsell says these options include prudent use of debt, higher general rates increases, asset ownership options, capital expenditure changes, increasing non-rates revenue, working with central government on ways to approach funding and financing, and reductions to operational expenditure which could affect council services.
Different options will have different consequences, and some will provide more sustainable and enduring benefits in future years than others, Gudsell says.
Mayor Wayne Brown issued a press release on November 7 saying that the additional $270 million will be found “through a combination of head office savings, operational efficiencies, scrutiny of the expenditure and commercial performance of CCOs and the port, and limited rates rises.”
Following the November 10 meeting, the Governing Body will hold a workshop to discuss the issues further. Local boards and council-controlled organisations (CCOs) will also provide input.
On December 15, the Governing Body will meet to decide which options to take forward to public consultation early next year.
Final budget decisions will be made after that consultation and prior to adoption of the final Annual Budget by June 30, 2023.
The full report presented to the Governing Body is on the Extraordinary Meeting agenda at https://infocouncil.aucklandcouncil.govt.nz/
