Have a say on tough budget choices

Public feedback on Auckland Council’s proposed Annual Budget 2023/2024 runs from midday February 28 to 11pm on March 28.

The budget aims to address an estimated $295 million shortfall while prioritising services Aucklanders need and value.

Auckland Council chief executive Jim Stabback says there are some tough choices ahead and it is important the council hears from Aucklanders on the proposals that have been put forward.

‘‘Auckland Council is facing some significant financial challenges in the next financial year and we need to balance our budget.

‘‘The forecast $295 million shortfall is in part due to an expansion in the range of services and assets provided by council over successive decades. This has required more money to invest in, maintain and operate those assets and services. The situation has been worsened by the rapid jump in interest rates and inflation over the past year.

‘‘The recent severe weather events that have hit our region makes dealing with the financial situation an even more significant challenge.’’

Auckland Council group chief financial officer Peter Gudsell says that to respond effectively to the challenges ahead, the budget outlines immediate actions to cut spending, while also looking at changes to become a simplified and service-oriented organisation.

‘‘We have some tough choices ahead and I encourage all Aucklanders to ensure their priorities are heard and reflected in our annual budget.’’

Options to close the shortfall include:

■ Reducing operating costs by another $125 million across council and Council Controlled Organisations

■ A rates increase for the average value residential property of about 4.66% or $154 a year ($3 a week)

■ Selling Auckland Airport shares to reduce debt

■ Borrowing up to $75 million to allow for any future financial uncertainty (current policy allows borrowing up to $140 million).

Gudsell says the budget allows for everyday services, $2.8 billion in capital investment for transport, parks, community facilities, city centre and local development, urban regeneration, cultural development and environmental management.

If public feedback opposed the proposed budget, or the council’s financial challenge worsens, it would need to fund the shortfall another way, likely by:

■ Increasing rates by up to 13.5%, $336 annually for the average value residential property ($6.50 per week).

■ Increasing debt within the limits of borrowing policy.

‘‘It’s important that the budget choices we make are credible, sustainable and avoid unreasonable shocks for Aucklanders both now and in the future,’’ Gudsell says.

This article was commissioned in response to a commercial partnership. We have produced it independently, to the same standards applied to the rest of our journalism.