Nearly 50 per cent of Auckland Council’s savings for this year have been achieved, as it works toward its $66 million savings target.
Auckland Council’s annual savings are an ongoing initiative to ensure cost-effectiveness and value for money across all activities. For 2024/2025, the council has already achieved $31.9 million (48 per cent) of its $66 million goal.
Presented to this week’s Revenue, Expenditure and Value Committee, chair Deputy Mayor Desley Simpson says council savings reduce rates rises, which is why they’re so important.
“These savings are directly used to keep rates and debt down. In total, $66 million saved represents 2.5 per cent of rates rises that have been avoided,” says Cr Simpson. “The savings to date this year are excellent news for our ratepayers and shows the council’s focus on delivering increased efficiency and maximising every ratepayer dollar.
“We want rates to remain affordable, particularly when the cost of living is so high for Aucklanders.”
Savings in the last quarter were achieved across a range of areas, including detailed budget reviews, reductions in staffing, consultancy and general promotional activity.
Auckland Council has exceeded its substantial savings targets over recent years, with many of the initiatives implemented continuing to bring benefits every year.
For 2024/2025, the $66 million savings target builds on top of ongoing savings of $90 million per year which have already been achieved and locked into the council’s budget.
The $337 million of savings achieved over the past three years is forecast to grow to just under half a billion dollars by the end of the 2024/2025 year.
“The results so far speak volumes for how closely the council is monitoring its costs and enhancing its revenue,” says Cr Simpson.
“While we’re off to a promising start this year, continuing to find savings across the business is a challenge. But we continue to focus on delivering value for money, because it’s vital work to keep rates as affordable for Aucklanders as possible.”
For 2025/2026, the council aims to save an additional $19 million per year and in 2026/2027 a further $20 million per year.
For every $25 million of planned savings in the council’s budget, a rates rise of around 1 per cent is avoided.
