Lotto draw announced for Cyclone Gabrielle relief, Gisborne lashed by heavy rain forcing more evacuations and Rishi Sunak signs post-Brexit deal with Northern Ireland in the latest New Zealand Herald headlines. Video / NZ Herald
Aucklanders today get to have a say on Mayor Wayne Brown’s first budget containing hard choices to plug a $295 million shortfall.
Councillors have approved the draft budget for public consultation, which includes a proposal to sell the council shares in Auckland Airport currently valued at $2.2 billion to reduce debt and interest repayments and reducing running costs by $125m across the council and council-controlled organisations(CCOs).
Among the most contentious proposals are plans to reduce regional, community and social services by $20m and regional contestable grants by $3m in the areas of arts, culture and events.
It is proposed to cut funding for things like Music in Parks, CultureFest and Botanic Garden events, $2m to Citizens Advice Bureau offices in Auckland, and stop funding for homelessness initiatives.
Tataki Auckland Unlimited, the CCO that oversees major events, cultural activities and economic development also loses $44m of funding leaving it with no ratepayer money for major events after 2024 and very little for economic development.
The January 27 floods and Cyclone Gabrielle have caused financial implications but it has not been possible to fully work out the detailed costs, which officers are saying could be substantial over time.
Flooding after the January 27 rainfall and Cyclone Gabrielle has financial implications for Auckland Council. Photo / Dean Purcell
In the meantime, there is a proposal to increase spending by $20m on a “storm respond fund”, which would increase rates by a further 1 per cent.
This is on top of the proposed general rate rise of 7 per cent, which with rating changes equates to a 4.6 per cent rate rise for households.
Under the proposed budget, the average household rates bill will increase by $154 to $3460, or $66.50 a week.
Brown says in a foreword to the consultation material that after inheriting a $295m budget hole “there is a high chance this hole could get worse in light of recent events”.
He is proposing a mix of levers to produce a balanced budget, including cutting unnecessary and inefficient spending, demanding better performance from council organisations, reducing debt servicing costs by selling the airport shares, increasing rates and potentially borrowing up to $75m.
“We have worked hard to resist the temptation of adding excess rates cost to your household at a time when you are already under severe cost-of-living strain, interest rates pressures and for a large number of Aucklanders, financial impacts from of devastating floods,” Brown said.
Auckland Mayor Wayne Brown. Photo / Dean Purcell.
The consultation process starts amid a grim warning from Westpac economists that many Auckland mortgage holders will be paying $900 per fortnight more than they were at the lower rates.
An overview headed “Weathering the Storm” released by the bank today found large increases in interest rates will take a big hit on many households disposable incomes.
In the budget, the 21 Local Boards are being asked to cut their operational budgets by $16m, or 5 per cent. The cuts range from $347,00 for the Great Barrier Local Board to $1.23m for Māngere-Ōtāhuhu.
Each Local Board will make decisions on how the savings are achieved, but this could result in reduced opening hours at libraries, community centres, art facilities and swimming pools.
There could be reduced hours at swimming pools, such as Pt Erin Pools in Herne Bay. Photo / Jason Oxenham
There are also plans to raise fees for community facilities. For example, the cost of hiring Westwave small basketball court doubles from $28.80 to $60, Howick Badminton court hire rises from $10.30 to $20, and hiring half the Albany Stadium leisure pool more than doubles from $40.40 to $100.
As part of a $21m cost-cutting exercise for Auckland Transport, the budget proposes a freeze on 138 bus trips per week, reflecting 588 fewer bus trips following a review last year due to driver shortages and up to 450 more bus trips when Northwest Busway improvements start in November this year.
Ferry services will remain the same and train services will be impacted by KiwiRail’s staged track closures with alternative transport options.
The public consultation runs until March 28 after which councillors will consider the feedback and make final decisions. The budget comes into effect on July 1. The consultation information can be found at akhaveyoursay.nz/budget.
