Viewpoint – Big tick for council budget

I’ve ticked off one of the biggest things on my to-do list to fix Auckland: I’ve got agreement from all councillors, bar one, on a Long-term Plan (LTP) for Auckland over the next 10 years.

This LTP has been based on identifying problems and looking at solutions, the biggest of which have been getting our books in order and stopping the overspend, making the most of what we have, and strengthening the physical and financial resilience of Auckland.

And it’s been done a little differently. This LTP was Mayor and Councillor-led, which started with a direction to the council group about what our priorities were. As well as my “central” proposal for consultation, I also included options to do less and charge less or do more and charge more.

We received broad support from the public for the direction of our plan. We’ve listened, and largely done what you asked.

We have made a deal with central government that ensures water rates remain affordable while still delivering the full programme of water infrastructure improvements. We have got on with essential recovery work from last year’s extreme weather events and our flood recovery plan, which is almost complete.

My transport funding boost will include the capped $50 weekly public transport pass for buses, trains, and inner harbour ferries, along with extending Auckland Transport’s (AT) pilot fare-share programme to all businesses with more than five employees. We are funding a further $10 million in additional public transport funding to improve bus services and track maintenance. This proposal still requires AT to find $60 million in savings so it can manage cost pressures. The final proposal passed includes a capital funding increase for AT, up from the $13.4 billion central proposal we consulted on to a $14 billion capital programme. The extra spend will include work to make public transport faster and more reliable. There is also a new one-off capital grant to boost the safety of bus drivers by funding the installation of safety screens.

We will forge ahead with the Auckland Future Fund to improve Auckland’s financial and physical resilience. Capitalised with AIAL shares initially, this fund is expected to provide us with an additional $400 million over the 10 years of the LTP, an annual benefit of $40 million for ratepayers.

My view is that the Future Fund honours the legacy of the councils that retained airport shares by making sure we provide for future generations. It means that legacy continues and can be improved upon. 

We have found enough money to support fairer funding of local boards. Fairer
funding is based on population, deprivation, and land area (80:15:5), as opposed to assets, which disproportionately divvy up money between local boards based on the number and quality of their assets (more assets equals more funding). No local board is getting their funding cut. The focus of the extra funding will be on the value for money that local boards get for their communities when they spend this money.

Average Auckland residential property rates will increase by 6.8 percent in the first year of the LTP – much lower than other major councils and lower than what we consulted on. I will keep on with my mission to keep rates as low as possible while getting on with what is needed.

I thank councillors, local boards, and Houkura for working with me to deliver this plan.