Auckland City Council
Media release

4 March 2009

Council proposes 10-year budget of affordable progress

Councillors met this week to discuss the city’s budget for the next 10 years.

Councillor Douglas Armstrong, chairperson of the Finance and Strategy Committee, says, “We have put together our draft 10-year plan with a commitment to balancing affordable progress with developing the city.”

“We have defined ‘affordable’ as keeping the average rates increases at levels no higher than council’s rate of inflation. For the year 2009/2010 the average rates increase has been set at two per cent.”

Over the next 10 years, the council is proposing to spend $3.5 billion on capital works. This includes $1.7 billion of maintaining the facilities and services we already provide - for example libraries, swimming pools, community centres, parks, open spaces and sports fields, footpaths and roads - and $1.7 billion on building and acquiring new assets for people who live, work, visit and do business in our city.

In 2009/2010 we will deliver our highest level of investment in capital works to date - $532 million.

Some of the things planned for the next 10 years include the following:

• Libraries across the city will be upgraded and have collections refreshed with an $65.8 million investment.

• Residents and visitors will be able to visit, play in and enjoy over $70 million of upgraded, developed and new parks, playgrounds, including Grey Lynn Park and Great Barrier Island walkways.

• Walking will be safer and easier with over $230 million invested over the next 10 years to maintain the safety and standards of footpaths across Auckland.

• Visitors will be able to see New Zealand land and sea creatures at the new Te Wao Nui precinct at Auckland Zoo.

• People in Auckland will be able to enjoy more of the nation’s biggest art collection and dedicated education, children and family spaces at the Auckland Art Gallery after a restoration and expansion.

• The transport network in the Tamaki area will be improved and help to revitalise the area. This project includes creating a new two lane road to divert traffic away from the Panmure roundabout, providing additional bus lanes, walking and cycling facilities, and developing the land around Panmure railway station.

• An upgrade of beaches across the city will improve their quality and recreational value for residents and visitors.

• Residents and visitors will soon be able to enjoy major public events and everyday activity in a redeveloped Aotea Square.

• Community centres across the city will be tailored to the local community’s needs through a programme of renewals and redevelopments.

• Our work to develop stormwater infrastructure will be continuing. This work, focusing on the three key priorities of water quality, flooding and growth, aims to alleviate flooding and improve the quality of stormwater that drains into the sea.

• Quicker and more efficient bus travel with the Central Connector, a busway between the CBD and Newmarket.

Mr Armstrong said: “It is a priority for this council to do the right things, and to do things right for the communities. We must decide what we spend their valued money on with the same respect as we spend our own. The people of Auckland city gave this council the opportunity to lead the city on the commitment of affordable progress. Our focus is on giving Aucklanders value for money.

“Our target is to hold rates increases at levels no higher than council’s rate of inflation. We have gone even further this year, setting the average rates increase at 2 per cent. This is due to the chief executive not including any additional budget for staff salary increases in the next financial year.”

“We know people are struggling at the moment, and we want to find every possible saving and pass these onto ratepayers.”

“Our draft 10-year plan includes total savings of over $202.3 million in operating costs and efficiencies, starting at $4.6 million per year in 2009/2010 and increasing to $27.9 million by 2018/19.”

The draft 10-year plan also proposes an increase in the Uniform Annual General Charge (UAGC) from $162 to $250. This is a reduction in the earlier proposed change, which was an increase to $350. The refuse collection charge will reduce from $210 to $193.

Mr Armstrong continues, “The UAGC is payable by all properties, regardless of value. This means that every property pays the same. The charge is an initial contribution to fund those services and activities that all ratepayers have access to.”

“It also provides insulation against the effect of revaluation by decreasing the portion of your general rates that is determined by your property value.”

“We have reduced our original increase due to the changing economic conditions. We are looking for ways to soften the impact of any increase in rates on those ratepayers vulnerable to the recession.”

“These are times of uncertainty and difficulty for people across Auckland and New Zealand. There is no time more important to keep the promise of affordable progress and value for money than now.”

The draft plan will adopted by the council on 26 March and then released for a month-long public consultation on 17 April.

Minutes of the meeting and a copy of the draft 10-year plan are available at www.aucklandcity.govt.nz.

ENDS

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