Message from the mayor
This annual plan sticks to what we agreed through our Long-term Plan 2024-2034. We said we would fix Auckland by being disciplined with money, finishing what we started and getting better value from every dollar. That approach is working, so we are staying the course.
For 2026/2027, the council will invest $3.9 billion in the infrastructure Auckland needs and spend around $5.3 billion on the services people rely on. To fund this, we will keep debt at prudent levels and deliver a $106 million savings target.
The average residential rates increase is 7.9 per cent, driven by the cost of opening and operating the City Rail Link (CRL). It’s a big bill, but once CRL is running it will help transform how we move around the city and support economic growth. This benefits the whole public transport network not just in the city centre.
This rates increase was signalled in our long-term plan, and I would like to explain the drivers behind it.
The annual operating cost for CRL is projected to be $235 million (Auckland Transport operating cost for services and stations $26 million, interest $167 million and depreciation funding $42 million). This is the same amount as is delivered by the 7.9 per cent rates increase. This means the savings I am driving throughout the council, along with growth in our rating base, are offsetting underlying cost pressures from inflation and growth in services.
No one likes cost increases - they are hard on our community. My expectation is that we do everything to keep working to bring our costs down to avoid further burden on ratepayers, while providing appropriate and accessible support for those experiencing financial hardship.
This budget is about continuing to do things better, faster and cheaper to minimise the impact on ratepayers. We are lifting performance across the council and I’m doing my best to stop the dumb stuff that wastes time and money.
The Better Value Projects programme and the ten spending rules are now standard practice, and we are seeing the benefits. My expectation is simple:
- deliver smarter services
- maintain what we have
- get more from every asset.
Under the leadership of my Deputy Mayor, we have a Value for Money Committee that is setting ambitious savings targets so we can achieve lower rates increases in future years.
A major focus for the coming year is transport reform. After years of frustration, we are finally taking back control of transport in Auckland.
The government’s reform legislation is moving, and we need to be ready. Auckland Transport will become a public transport service provider only, with the rest brought into the council so decisions are simpler, faster, making us more accountable.
Transport planning must sit alongside land-use planning, and delivery must be practical, cost-effective and focused on the whole network, not silos. We need to eliminate doing things that have annoyed Aucklanders for too long.
We are also progressing the next phase of council-controlled organisation (CCO) reform, including a more commercial approach to urban regeneration, better property management, and stronger economic development.
Auckland’s city centre is critical to our region’s success, contributing a significant share of our gross domestic product (GDP). We will continue working with government to improve safety, activate public spaces, and support a busier, more productive centre including more simple, effective ideas like Browny’s Pool.
Most importantly, this plan reflects our agreement with Aucklanders. It maintains financial discipline, keeps investment flowing into essential services, and prepares us for the decisions ahead in next year’s long-term plan. This is about building a better region and finishing the job we started.
I look forward to hearing your views as we check in on Auckland’s priorities for the next term.
Wayne Brown
Mayor of Auckland
