Cycle projects squeezed
Cuts to walking, cycling and community projects, along with higher rates are flagged by Auckland Council in coming years as its Covid-19 financial picture worsens.
Delays and cuts to $250 million of capital spending over three years, starting from mid-2023 may be needed, and ways need to be found to plug a gap of up to $150m a year in operating costs.
The council said the projected fiscal hit over coming years had doubled in the past few months, due to rising material and borrowing costs, higher inflation and ongoing revenue weakness.
This year’s proposed budget has been saved by a one-off payment of $127m from the Government as part of the Three Waters reform, but the outlook facing the council to be elected in October is tough.
In the firing line from mid2023 are $101m of Auckland Transport projects, including a 15% cut in cycling investment, a 30% cut in improvements favouring alternatives to driving, and up to 30% in ‘‘smaller programmes’’.
Delaying the recently announced start of commissioning zero-emission ferries for commuter runs is also on the list of potential impacts.
A $140m delay in council investment would hit the Avondale Community Centre project, Ponsonby Park, the Orewa Seawall and the Flat Bush multi-use centre.
Operational savings of an extra $30m from mid-2023 are less specific, but include reducing maintenance and servicing of parks, sports fields, and council facilities.
Eke Panuku’s programme of suburban centre regeneration could also be hit.
Councillors this month will sign off the last budget proposed by retiring mayor Phil Goff, which already includes a higherthan-previously -forecast average residential rates rise of around 6%, including about 1% win a new Climate Action Targeted Rate (CATR).
A media release from Goff which accompanied the final version of the proposed budget, focused mostly on CATR proceeding unchanged following public consultation.
CATR will raise $574m over a decade for additional public transport, cycling, walking and tree-planting programmes, boosted in part by matching funding from the government.
Goff, in a foreword to the proposed 2022-23 annual budget, addressed the fact that he will not be around as mayor, when the more difficult 2023-24 budget has to be set.
‘‘This proposal does not pretend to exercise a right that I do not have to prescribe to the incoming mayor and council what they should do in budget years from 2023/2024,’’ Goff said.
However, the shape of the difficult 2023 budget is traditionally set by the mayor in December, meaning council staff need to have the basics ready for whoever is elected mayor in October.
While 2022 was originally expected to be a one-off deviation from a decade of annual 3.5% average rate rises, council forecasts in the budget look at the value of continuing rises at up to 5% a year.