Councillors revolt over $60m draft budget gap

Auckland Mayor Len Brown. Photo / Greg Bowker

Super City reporter Auckland Council is faced with its first budget headache, with Mayor Len Brown failing to identify $60 million needed in savings to hold rates increases to 4.9 per cent.

Mr Brown is facing a revolt by eight of the 20 councillors over his approach to the budget and a warning from officers that service levels may have to be cut.

The proposed 4.9 per cent increase in a tough economic climate is a stretch of Mr Brown's election promise to keep rates low and near the rate of inflation. Extra costs, such as a Maori Statutory Board funding blowout, put further pressure on that target.

During a lengthy and heated debate on the draft budget, an exasperated Mr Brown yesterday accused council rebels of being true to the Auckland disease of falling apart.

"I'm asking for your support around the table. Councillor [Cameron] Brewer mentions it's a struggle. Life is full of struggles and I know all about that," said Mr Brown.

Mr Brown won backing for his planned draft budget by 12 votes to 8, but not before facing criticism for not aiming at a 3.9 per cent rise and not spelling out where $60 million of savings would come from when the draft budget goes out for public consultation in two weeks. Mr Brown emphasised the draft budget was a starting point and more work would be done over the next three or four months to find savings. Cutting $60 million from the budget could cut or wipe out a number of initiatives - free swimming pools in Manukau cost $6.76 million, new library books cost $12 million and $54 million is spent on museum grants.

Councillor Cathy Casey has suggested cancelling the relocation of Monte Cecilia school to save up to $30 million and stopping work on an Auckland City Council history book at a saving of $75,000.

Finance general manager Andrew McKenzie said combining the budgets of the previous eight councils and extra costs produced a rates increase of 8.9 per cent.

It would take savings of $60 million to peg this back to 4.9 per cent through cuts in operating costs and deferring some capital works.

Officers, however, warned the council that service levels may have to be cut to meet unidentified savings - something councillors are keen to avoid.

Franklin councillor Des Morrison said there were huge risks meeting the savings target, saying if the council was not careful the rates increase would be closer to 8.9 per cent.

Orakei councillor Cameron Brewer said: "It is dishonest to put out a document and somewhere ... are $60 million of savings but we don't know where ... the process stinks."

Finance committee chairwoman Penny Webster accused some councillors of being "way off beam" with the process, saying councillors had had the opportunity to review capital projects line-by-line.

Papakura councillor Calum Penrose said Local Government Minister Rodney Hide had promised savings to Auckland from the Super City reforms, "but I would like to know where those savings are?"

BROWN BUDGET

$60m of savings to be found to keep rates rise at 4.9 per cent this year.

Some projects in the gun?

$30m to move Monte Cecilia school.
$54m of museum grants a year.
$6.7m on free pools in Manukau.
$12m on new library books a year.