Focus Live: At the beginning of March Auckland Mayor Phil Goff had high hopes for public and private transport needs, unlocking the waterfront, cycleways and Light Rail. Video / NZME
Public rubbish bins taken away, park-and-ride charges and public toilets being closed are likely effects of Covid-19 as the Auckland Council tries to cut its budget after the Covid-19 crisis.
The real life impact of Covid-19 at Auckland Council has been laid bare today with savage cuts to transport, reduced use of libraries and scaling back popular events like Matariki and Movies in Parks.
Mayor Phil Goff said the council has taken a $525 million hit in revenue from the pandemic - the highest faced by any council and the highest in the city's history.
"This is an emergency budget. We cannot respond to this crisis as business as usual. We have to cut our spending and manage our finances responsibly," he said.
Aucklanders face either a 3.5 per cent overall rates increase or a 2.5 per cent overall increase to take account of the hardship facing households and businesses.
Higher waste charges and a reduction in business rates means household rates would rise by about 4.5 per cent and 3.5 per cent under the two options, and business rates by about 2.6 per cent and 1.6 per cent.
Finance committee chairwoman Desley Simpson posted on social media that ratepayers are "going to need more than a Panadol". Another councillor has called the "emergency budget" a "horror show".
The brakes have on new electric buses for Auckland. Photo / File
The big numbers spell out the challenges facing the Super City, but it's the smaller numbers that spell out the everyday changes for Aucklanders.
Consultation on the budget opens today and closes on June 19.
"There are tough decisions ahead of us but by working together we can build a better and stronger Auckland," Goff said.
The Matariki Festival will be scaled back next year. Photo / Herald
He said the 2.5 per cent option would require greater cuts in spending, with $50m less investment in community assets and transport projects to renew and make our roads safer.
This option would mean reduced footpath cleaning, closing some public toilets and removing litter bins, reduced maintenance and cleaning of public spaces at the city centre waterfront, he said.
Goff said a zero rates rise would cut vital council services, slash investment in much-needed new infrastructure, push up debt levels and reduce employment and business activity in Auckland.
The only cycleways to proceed will be those under construction. Photo / File
Simpson said after consultation, the council will have to make the difficult but necessary decisions that will enable Auckland to recover as quickly as possible from the Covid crisis.
Other proposals in the emergency budget include a Covid-19 rates postponement scheme to allow ratepayers who are struggling financially as a result of Covid-19 to defer up to $20,000 of their rates for the 2020-2021 year, and a suspension of the accommodation provider targeted rate to provide relief to the accommodation sector.
Councillor Daniel Newman said: "Our job now is to front the community and explain the hundreds of millions of dollars in proposed cost-cutting, which brings into question whether we can deliver vital projects like stormwater infrastructure and road safety initiatives."
Meanwhile, Watercare today announced a 2.5 per cent increase to water and wastewater charges from July 1 - about an extra $2.25 a month for the average household.
Watercare chief finance officer Marlon Bridge said the increase is aligned to council's minimum proposed rates increase of 2.5 per cent and acknowledges the financial strain of Covid-19 being felt by Aucklanders.
It also allows the council's water company to continue with large, long-term investments, he said.
Transport
Proposed cuts under a 3.5 per cent rates rise
To find savings from a revenue hit of $113m and a reduced capital budget of $200m to $250m, Auckland Transport plans to:
•Reduce public transport services to save $10m •Reduce staff and consultants costs by $20m •Pause or cancel any further red-light cameras in urban areas, rural road upgrades, and improvements to high risk intersections and pedestrian crossings •Defer work on all walking and cycling projects not under construction, including Glen Innes to Tāmaki, Pt Chevalier to Herne Bay and Great North Rd •Stop investment in new electric buses and charging infrastructure •Defer big roading projects such as Lincoln Rd, Lake Rd, Esmonde Rd, Glenvar Rd, East Coast Rd. •Defer road maintenance and road renewals
Additional cuts under a 2.5 per cent rates rise
•Defer work on the Airport to Botany rapid transit project •Remove some public transport fare concessions and hike fares for peak services •Start charging for some park and ride facilities
With revenue taking a $30m hit and capital spending cut in half there will be reductions to service levels and operating hours - think libraries, swimming pools and recreation centres. Cuts include:
•Fewer and smaller events, such as cancelling Ambury Park Farm Day, Sculpture at the Botanic Gardens and scaling back Matariki, Movies in Parks, Music in Parks, Heritage Festival and citizen ceremonies. •Scaled back programmes in community centres, arts facilities and libraries. •Fewer arts, culture and events grants, including reduced Q Theatre grant. Cut public art budget by 70 per cent •Fewer land purchases for new parks and other purposes •Delays in Local Board's number one projects, such as a new park on Ponsonby Rd. •No work on new sports fields, toilets, playgrounds, walkways, pools and community centres and parks •Defer most renewals for buildings, playgrounds and open space •Reduced investment in library collections by one third
Additional cuts under a 2.5 per cent rates rise
•Permanent closure of some community facilities with low use •Reduced renewals of community assets and tracks, toilets and accommodation facilities in regional parks
Central city and town centres
The capital budget has been cut from $250 to $190m. Proposed cuts under either scenario include:
•$20m cut to big events •Suspension of $100,000 heritage grant for one year •Defer $73m of capital investment by Panuku, including water projects and stage 4 of the Ōtāhuhu Town Centre upgrade •Reduce the budget for the America's Cup and other 2021 events by $10m to $49m
Environment
Council expects to lose $50m of revenue from fewer resource and building consent work, and cutting the capital budget from $26m to $14m. Proposed cuts under either scenario include:
•Reducing pest eradication on Waiheke and Kawau islands and reducing kauri dieback research by $1.17m •Reducing the number of animal shelters from three to two, and closing the Waiheke animal shelter
Water - wastewater and stormwater
Watercare expects to lose $50m from Covid-19 and water restrictions due to the drought and $20m from infrastructure growth charges because of less development. Savings include:
•Deferring $162m of capital projects •Most renewal work for stormwater •Deferring the Hurstmere Rd water quality upgrade •Most small drinking water upgrades •Stopping water protection fund grants of $170,000 for rural landowners for one year
•Chief executive Stephen Town is conducting a review of council's operations that will lead to job losses •Voluntary salary reductions for six months for staff earning more than $100,000 is expected to save $3.7m •Mayoral budget savings of $2m •Interest costs due to lower interest rates saving $15m •Deferring property valuations saving $4.5m •Reduced travel, consultants, marketing and HR saving $12m
Additionally if there is a 2.5 per cent rates rise
•Introducing a living wage for contracted cleaners, climate change initiatives and Māori projects, such as developing maraes, would be delayed.
