Council's IT investment on track, within budget

Publish Date : 03 Mar 2016

Auckland Council recently published an update on its investment in IT over the past five years.

Group Chief Financial Officer Sue Tindal says that, despite media reports of a 'blowout', the council’s IT spending has been anticipated and is within approved budgets.

"Bringing together IT systems from the previous eight councils has been a complex and challenging task, that required significant financial investment.

"We’ve created the foundation for a transformation of services, which will lead to better online services and smarter more efficient ways of working.

"We’re very mindful of delivering ratepayer value for money, that’s why savings are a key focus. Repairs and maintenance are down from $3.9 million in 2012 to $270,000 so far this year. Our spend on external contractors has decreased from $10 million in 2012 to $1 million in 2014.

"On top of these, re-negotiations with our software providers will deliver significant annual savings going forward. NewCore is forecast to deliver an additional $10 million per annum reduction in cost.

Key facts on Auckland Council’s IT budget

  • Of the $902m spent, some $330m is capital expenditure and within the governing body-approved 2012 LTP budget of $500m.
  • After depreciation is excluded, operating costs have been $80-$90 million per year, which covers the day-to-day running of information systems.
  • Between 2012 and 2014, staff costs fell from $38m to $30m (We brought in more staff last year to focus on NewCore, which explains $39m for that year). More efficiencies are to come.
  • Newcore - which will create a coherent, single system – is on track and on budget with $103m expenditure to 31 January 2016.

Examples of what Aucklanders will see in the near future

  • Being able to lodge and track consent applications from start to finish
  • Easy access to property files
  • One location to book community facilities across the region, being able to pay for council services and licenses online.
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