Performance on track with Emergency Budget

First quarterly report shows progress being made

Publish Date : 30 Oct 2020

Auckland Council has made a $75 million saving up to 30 September 2020, 65 per cent of the 30 June 20221 target of $120 million.

Mayor Phil Goff said that good progress has been made to meet the council’s savings target, made necessary due to the huge impact of COVID-19.

“The $450 million revenue loss the council is facing due to COVID-19 will be the most severe, but closed borders and a global recession mean we will continue to suffer losses, in particular, over the next two years.

“That will require the council to continue to heavily constrain its spending and become a leaner and more agile organisation, doing more with less. We will however continue to strive to maintain all of our essential services to Aucklanders, and to continue to invest at high levels in improving the city’s infrastructure,” Mayor Goff said.

Savings in August include:

  • $2.50 million reduction in organisational strategy operating expenditure budget
  • $2.52 million of ACC savings based on review of forecast costs vs budget
  • $1.45 million savings from management of staff to reduce overtime; and use of temporary staff and contingent workers across all services by reducing facilities opening hours or adjusting staffing levels when facilities are not busy
  • $0.75 million from reducing higher duties and secondment allowances through strict application of guidelines
  • $0.38 million of direct facility costs savings by reducing opening hours, based on utilisation information and with local board consultation
  • $0.34 million saved from reviewing front of house services by driving uptake of online and telephone services to maintain service levels
  • $0.31 million savings from organisational design changes
  • $0.18 million from gyms moving to an in-house developed fitness programme
  • $0.10 million from reduction in spend on dedicated couriers and stationery
  • $0.06 million operating cost savings from additional 20 vehicles sold (total vehicles sold = 55).

At 30 September, total full-time-equivalent staff numbers were 6,341.  A reduction of 129 since 30 June 2020.

The savings results were presented as part of the council’s first quarter financial report for 2020/2021 which shows year to date, group performance (council and Council controlled Organisations) was on track.

Finance and Performance Chair, Councillor Desley Simpson said:

“COVID-19 hasn’t gone away. We are still living in a very uncertain world hence our strong commitment to closely monitor our progress, against our Emergency Budget targets, on a monthly basis. These results are encouraging but also reassuring as they demonstrate we were able to absorb the impact of Auckland’s August lockdown.  As we move through the year we will continue to observe and mitigate further COVID-19 uncertainty and deliver for Auckland.

Q1 Results Info

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A copy of the full Finance and Performance report can be found here.

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