Auckland Council’s Revenue, Expenditure and Value Committee has hit its savings target for the year. The committee received an update from council staff in its 22 August meeting that it has successfully achieved its $5 million savings target for the 2023/2024 financial year.
The $5 million formed part of the savings identified in the Annual Budget 2023/2024 and was achieved from a review of revenue, capital, and operating budgets.
Councillor Maurice Williamson, Chair of the Revenue, Expenditure and Value Committee noted the achievement while acknowledging that this is the beginning of a substantial work programme designed to deliver value for money to Aucklanders.
“The achievement of the $5 million operating budget savings means the committee has met the target that it was allocated to help reduce the overall $325 million operating budget gap,” says Cr Williamson.
“However, given the one-off nature of the savings items outlined in this report and the ongoing need to respond to significant financial challenges, the work doesn’t end here. This is just the beginning – we will continue to work with council staff to investigate further savings opportunities for the next financial year and beyond.”
How was this target reached?
Staff have been undertaking line-by-line reviews, mainly focussing on expenditure trends highlighted by the chair of the committee, as well as areas identified by questions from elected members about specific budget lines.
Through line-by-line reviews, interest cost savings and insurance premiums, council staff were able to work with the committee to achieve this target.
|
Description |
Amount |
|
Line-by-line reviews |
$1.4 million |
|
Interest cost saving |
$2.4 million |
|
Insurance premiums |
$1.2 million |
|
Total |
$5 million |
About the committee
Originally named the Expenditure Control and Procurement Committee, the committee was established to work with the council to make financial savings.
This included overseeing proactive identification of money saving opportunities and considering the cost effectiveness of the governance, funding and delivery across Auckland Council and its Council-controlled organisations (CCOs).
This committee has now been superseded by the Revenue, Expenditure and Value (REV) Committee. The REV Committee will continue to work with the council on cost effectiveness and financial savings and has an expanded scope which will be reflected in a revised forward work programme.
