Auckland Council has exceeded its annual operating savings target, with $60.2 million saved in the 2023/24 financial year.
This surpasses its annual $50 million savings target and contributes to $332 million in savings over the last three years.
Presented at yesterday’s Revenue, Expenditure and Value Committee, chair Maurice Williamson said it is pleasing to see such strong results that show council is on track.
“The savings targets are an ongoing initiative to look closely at the business and where added cost efficiencies can be delivered. This year, we’ve overshot the target and gathered an additional $10.2 million in savings, demonstrating discipline through a line-by-line approach to our spending,” said Cr Williamson.
“This is a good result for our ratepayers – in particular because the savings are not reinvested, but that $332 million is directly used to keep rates and debt lower than they otherwise would be.
“This is a fantastic result and I’m convinced we can deliver even more savings, as they continue to be a focus.”
This year’s savings were delivered through a wide range of initiatives across the council.
These include a focus on reducing the corporate property footprint, minor changes to services, centralising and reducing council support functions (such as software purchasing), maintenance optimisation and integrating service centres into libraries.
There has also been an increased focus to identify opportunities to increase non-rates revenue (user charges), in order to better recover the costs of those services.
The $10.2 million in additional savings above the target means lower net debt for the end of the council’s financial year (30 June 2024) and a favourable starting position for the new financial year (2024/2025).
Mayor Wayne Brown said the savings achieved are the result of a sustained effort to ensure efficiencies are being achieved on behalf of Aucklanders.
“We must make savings and cut costs for Aucklanders. This is more evidence the ship is turning. I'm pleased particular attention is being given to value for money and careful investment across council business,” said Mayor Brown.
“These savings results bode well for the Long-term Plan 2024-2034, which includes an additional savings target of $28 million this year, rising to $67 million for 2026/27. This is over and above the existing $50 million annual savings targets.”
Auckland Council chief executive Phil Wilson said it is pleasing to see such strong results.
“These savings are the result of a lot of hard work and consciously building a culture of efficiency in the organisation – something our refreshed leadership team is very focused on,” said Mr Wilson.
“It’s important council respects every dollar contributed by our community and uses it to greatest effect – ultimately that is how we create value for money, and build trust and confidence with ratepayers.”
The savings results will be formally reported as part of this year’s annual results, released as part of the Annual Report in late September.
