Council budget hole grows

Auckland: The Auckland Council is now forecasting a $1 billion hole in its finances by 2024 from the impact of Covid19.

The council produced an emergency budget in July to cope with a

$450 million deficit this financial year, but work by finance officers forecast this could grow by $540 million over the next three years.

Auckland Mayor Phil Goff said about 60% of the council’s income came from sources other than rates, such as concerts and visitor attractions, operations at Ports of Auckland and dividends from Auckland Airport shares.

He said these income sources had taken a big hit, and on the assumption borders could be closed for another two years, the latest council forecast showed a $260 million hit in 2021, $170 million in 2022 and $110 million in 2023. — The New Zealand Herald