Maintaining financial resilience in an uncertain climate (HTML version)

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Annual Budget 2022/2023

The uncertainty created by COVID-19 and unfavourable shifts in major economic influences will be with us for some time. The ongoing impacts are hard to predict, but Auckland Council's annual budget needs to maintain financial flexibility, while taking steps to speed up our response to the climate emergency.

There are plenty of clouds on our horizon:

  • Climate change.
  • Ongoing effects of the pandemic.
  • Rising cost pressures.
  • Growing demand for our services.
  • Government policy changes.

The key objectives of this budget are to achieve:

  • faster action on climate change
  • flexible response to the immediate budget pressures
  • efficient waste minimisation.

Our options to respond are limited. We must remain prudent and ensure we maintain long-term financial sustainability. We must also deliver the services and facilities our diverse communities expect of us.

Our Proposed Response

Key issue 1: Climate

To address the climate emergency we propose spending $1.045 billion over the next 10 years on a series of targeted actions to reduce emissions and support adaptation. This includes:

  • improving transport choice for over one million Aucklanders who will be living within 500 metres of new or improved bus services
  • decarbonising ferry services
  • providing infrastructure to support walking and cycling
  • increasing tree canopy cover in communities that need it most.

To help pay for this we propose introducing a Climate Action Targeted Rate of $57 a year (or $1.10 a week) for the median value residential property, rising in line with projected increases in average general rates each year.

Key issue 2: Budget pressures

We propose using a range of levers to address the operating shortfall of $85 million for 2022/2023 and ongoing budget pressures. This includes:

  • using government Three Waters Reform support funding
  • delaying some capital spending
  • implementing cost reductions in the form of efficiency savings and low priority service reductions. We have proposed some criteria to use when considering where any such service reductions could be made
  • keeping rates at the previously agreed increase of 3.5 per cent for 2022/2023
  • considering the sale or long-term lease of additional non-strategic assets as required
  • using debt where prudent.

There is still a risk the operating budget deficit could widen more quickly. If this happens we would look to pull on the above levers more strongly.

Key issue 3: Waste service standardisation

To help efficiently minimise waste we propose to standardise waste services and charges across Auckland.

We propose moving to a region-wide rates-funded refuse collection service with a choice of three bin sizes. This is instead of the current policy of a move to a region-wide Pay As You Throw (PAYT) system (e.g. tags and bags).

Standardised services and charges across the region mean everyone pays the same no matter where you live, which is more equitable. The proposed rates-based service is also more economical than PAYT. Most importantly, the plan more effectively reduces waste which will help us reach our climate-action goals.

We are also proposing to:

  • standardise which properties can opt-out of waste management services and charges across Auckland
  • extend the targeted rate to fund food scraps collection as this service is rolled out across the region in 2023.

Other matters of feedback

Other proposals for feedback include:

  • Better meeting the needs of our diverse and changing communities by increasing local board decision-making over local community services
  • An updated operating plan for the Tūpuna Maunga o Tāmaki Makaurau Authority. This is the statutory authority responsible for co-governing the Tūpuna Maunga (ancestral mountains). It is comprised of equal representatives from Ngā Mana Whenua o Tāmaki Makaurau and Auckland Council, together with Crown (non-voting) representation.

Some other changes are proposed that may change the rates paid by individual properties, including rating of Whenua Māori.

Ways to have your say

To have your say on these issues or anything in the budget that is important to you, you can:

  • visit akhaveyoursay.nz/budget
  • phone 093010101 or
  • visit your service centre or library.

Final decisions will be made in June 2022 and the final budget will be available on aucklandcouncil.govt.nz

End of maintaining financial resilience in an uncertain climate.

Auckland Council

This format is produced under Section 69 of the NZ Copyright (Marrakesh Treaty Implementation) Amendment Act 2019. It is for your own personal use and cannot be shared with anyone else. The author and publisher reserve the right to take legal action if the Act is breached. No unauthorised copying is permitted.

Produced 2022 by Accessible Formats Service, Blind Low Vision NZ, Auckland.

Annual Budget 2022/2023

The uncertainty created by COVID-19 and unfavourable shifts in major economic influences will be with us for some time. The ongoing impacts are hard to predict, but Auckland Council's annual budget needs to maintain financial flexibility, while taking steps to speed up our response to the climate emergency.

There are plenty of clouds on our horizon:

  • Climate change.
  • Ongoing effects of the pandemic.
  • Rising cost pressures.
  • Growing demand for our services.
  • Government policy changes.

The key objectives of this budget are to achieve:

  • faster action on climate change
  • flexible response to the immediate budget pressures
  • efficient waste minimisation.

Our options to respond are limited. We must remain prudent and ensure we maintain long-term financial sustainability. We must also deliver the services and facilities our diverse communities expect of us.

Our Proposed Response

Key issue 1: Climate

To address the climate emergency we propose spending $1.045 billion over the next 10 years on a series of targeted actions to reduce emissions and support adaptation. This includes:

  • improving transport choice for over one million Aucklanders who will be living within 500 metres of new or improved bus services
  • decarbonising ferry services
  • providing infrastructure to support walking and cycling
  • increasing tree canopy cover in communities that need it most.

To help pay for this we propose introducing a Climate Action Targeted Rate of $57 a year (or $1.10 a week) for the median value residential property, rising in line with projected increases in average general rates each year.

Key issue 2: Budget pressures

We propose using a range of levers to address the operating shortfall of $85 million for 2022/2023 and ongoing budget pressures. This includes:

  • using government Three Waters Reform support funding
  • delaying some capital spending
  • implementing cost reductions in the form of efficiency savings and low priority service reductions. We have proposed some criteria to use when considering where any such service reductions could be made
  • keeping rates at the previously agreed increase of 3.5 per cent for 2022/2023
  • considering the sale or long-term lease of additional non-strategic assets as required
  • using debt where prudent.

There is still a risk the operating budget deficit could widen more quickly. If this happens we would look to pull on the above levers more strongly.

Key issue 3: Waste service standardisation

To help efficiently minimise waste we propose to standardise waste services and charges across Auckland.

We propose moving to a region-wide rates-funded refuse collection service with a choice of three bin sizes. This is instead of the current policy of a move to a region-wide Pay As You Throw (PAYT) system (e.g. tags and bags).

Standardised services and charges across the region mean everyone pays the same no matter where you live, which is more equitable. The proposed rates-based service is also more economical than PAYT. Most importantly, the plan more effectively reduces waste which will help us reach our climate-action goals.

We are also proposing to:

  • standardise which properties can opt-out of waste management services and charges across Auckland
  • extend the targeted rate to fund food scraps collection as this service is rolled out across the region in 2023.

Other matters of feedback

Other proposals for feedback include:

  • Better meeting the needs of our diverse and changing communities by increasing local board decision-making over local community services
  • An updated operating plan for the Tūpuna Maunga o Tāmaki Makaurau Authority. This is the statutory authority responsible for co-governing the Tūpuna Maunga (ancestral mountains). It is comprised of equal representatives from Ngā Mana Whenua o Tāmaki Makaurau and Auckland Council, together with Crown (non-voting) representation.

Some other changes are proposed that may change the rates paid by individual properties, including rating of Whenua Māori.

Ways to have your say

To have your say on these issues or anything in the budget that is important to you, you can:

  • visit akhaveyoursay.nz/budget
  • phone 093010101 or
  • visit your service centre or library.

Final decisions will be made in June 2022 and the final budget will be available on aucklandcouncil.govt.nz

End of maintaining financial resilience in an uncertain climate.

Auckland Council

This format is produced under Section 69 of the NZ Copyright (Marrakesh Treaty Implementation) Amendment Act 2019. It is for your own personal use and cannot be shared with anyone else. The author and publisher reserve the right to take legal action if the Act is breached. No unauthorised copying is permitted.

Produced 2022 by Accessible Formats Service, Blind Low Vision NZ, Auckland.

Page last updated: 16 Mar 2022, 01:21 PM