Auckland Council budget: Cuts to jobs, transport, climate action and events

Friday, 29 May 2020

Participants in a rally and march down Auckland's Queen St call for action on climate change. (Video published May 2019)

Auckland Council proposes major cuts across the board including to climate change action, scaling back services, jobs, and access to some facilities in the face of a $525 million budget hit due to Covid-19.

Few areas of the council operations are spared with proposed cuts to some public transport services, the electrification of the bus fleet, and community spending as the council faces going into deficit for the first time in its 10-year history.

In a second three-week round of public consultation on the hastily re-shaped budget, the council said cuts would be deeper if Aucklanders opted for the lower-than-planned option of a 2.5 per cent rate rise.

The council said operating costs would have to be cut by a further $54 million under a 3.5 per cent rates rise or by $75 million under the lower 2.5 per cent option.

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Auckland Mayor Phil Goff says the cuts were not easy to make.

'Both packages will result in noticeable changes to what we are providing to the community and to the level of staff we employ,' it said in the public consultation document just released.

Other moves to keep the books as close to balanced as possible, include the sale of $200 million of unspecified assets, likely to be non-strategic or surplus property.

The council said it was juggling the need to cut spending, with unexpected costs it will face.

'A current example is the drought situation, for which Watercare may need to soon invest $50 million to $180 million in critical water supply infrastructure,' it said.

The new Inner Link electric bus en route on Grafton Bridge, Auckland.

Transport-related revenue is expected to be down by $113 million, and part of the gap could be closed by a 4 per cent public transport fare rise in February, one of the biggest-ever by Auckland Transport.

There will be $37 million transport operating budget cut across staffing, contractors, and cuts to the frequency and level of some services.

Unusually, an often-suggested move, charging for some park and ride car parks, would occur only if a lower, 2.5 per cent rate rise was implemented.

Transport spending being cut or put back includes road safety improvements, red-light camera roll-outs at intersections, and all cycling and walking projects not yet in construction.

The already-criticised slow roll out of electric buses will be further delayed, with only three to be added on the Puhinui-Airport route this year.

A post Covid-19 construction slowdown is expected to show up as a 25 per cent - 35 per cent reduction in the number of building and resource consents, resulting in a $50 million drop in revenue.

Cuts in staff numbers and costs, and internal efficiencies in the Environmental Services, Waste Services and Regulatory Services departments is expected to save $3.43 million.

Staff cuts and other savings in the Parks and Community area is due to save $6.49 million.

A light show on the Auckland Harbour Bridgetold the story of Te Kawerau a Maki for Matariki, or Māori New Year.

Mayor Phil Goff said none of the proposed budget cuts were easy to make.

'There was nothing in the budget before Covid-19 that was frivolous or superfluous, so everything that has been cut was important,' he told Stuff.

The development agency Panuku would have to cut its running costs by $3 million, and slowing down city centre and local centre developments would save $2.4 million.

Big cuts include deferring $162 million of capital works in the water and wastewater area.

Most upgrades and replacements of community buildings and playgrounds is frozen, and under a 2.5 per cent rate rise scenario, some lesser-used facilities would close permanently.

There will be fewer and smaller council-backed events such as Matariki, Waitangi Ki Manukau, Movies in Parks, Music in Parks, and the Heritage Festival.

Goff held out hope that some funding may flow from the Government's various Covid-19 responses, such as helping to fund 'shovel ready' projects, but that was still unknown.

'I can't say that anything we are having to defer for a year, is something we did not need,' he said.

Despite the cuts, the council was still proposing capital expenditure of $2.3 billion, while lower than the previously planned $2.7b, it was far higher than the five-year average of $1.6b.

Aucklanders have until Friday June 19 to have their say on the reduced council budget.