Recording another $9 million of savings in October 2020, Auckland Council is now over 72 per cent of the way in delivering its Emergency Budget target of $120 million.
Finance and Performance Chair Councillor Desley Simpson says “We have made the commitment to deliver a leaner more efficient council as part of our Emergency Budget. $87 million is the highest ever savings Auckland Council has achieved in any given year since amalgamation and there is still more to come.”
Mayor Phil Goff said that despite the ongoing pressures of COVID-19, good progress was still being made.
“Our revenue sources have all taken a big hit with both the lockdowns and border closures and the longer these things continue, the deeper and lengthier the impact will be.
“Like many Auckland businesses we are having to make substantial changes to the way we operate but we need to continue to find further savings across the organisation in order to protect the delivery of our essential services,” Phil Goff says.
The October savings results, part of the monthly Emergency Budget update, have been presented to councillors and will be discussed by the Finance and Performance committee on Thursday 19 November.
The committee will also hear that the asset recycling and property rationalisation programme has realised $33.4 million against a target of $244 million by 30 June 2021.
Finance and Performance Chair, Councillor Desley Simpson continues: “Money freed up by selling surplus assets will be reinvested into new assets that have a higher priority for our growing council.”
Notable savings for October include:
$1.86 million reduction in operating expenditure budget due to underspend in the first quarter
$5 million of additional interest cost savings in FY21
$1 million saved from Regulatory Services training budget with lower forecast spend required based on FTE projections
$0.86 million savings from disruption to inorganic collection services due to COVID-19 lockdowns
$0.50 million savings from restructure in Community Facilities (vacant roles not replaced)
$0.04 million operating cost savings from additional 9 vehicles sold (total vehicles sold = 64 with total operating cost savings in FY21 of $0.24 million).