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Auckland Council has met its full year’s savings target – securing its $66 million savings goal three months ahead of schedule.
The council’s ongoing focus on value for money and cost-effectiveness is part of a savings programme to help reduce the burden on general ratepayers, with savings targets set in the Long-term Plan 2024-2034.
Presented at May’s Revenue, Expenditure and Value Committee, the $66.6 million in savings to date this financial year exceeds the council’s $66 million total annual goal.
These savings build on ongoing savings of $90 million per year previously achieved. Combined, this means $156.6 million of savings achieved for the current financial year.
“Cost reductions are the reason for Auckland’s low rate rises compared to other councils,” says Mayor Wayne Brown. “Under my direction, council staff have worked hard to find savings across the group, as I promised Aucklanders.
“I am happy with this result, but the pressure needs to be kept up. My new rules for capital spending would have saved a lot more had they been enacted sooner.”
Revenue, Expenditure and Value Committee chair Deputy Mayor Desley Simpson reiterated that the savings are directly used to keep rates rises down.
“It’s important to show Aucklanders that we are committed to find savings, before we come to the ratepayer to deliver on what we need,” says Cr Simpson.
“Over the past three years we have achieved $403 million in cumulative savings – exceeding the total $374 million target. Without these savings, rates for 2024/2025 could have been around 6 per cent higher.
“Having the latest $66 million locked in as savings has enabled the council to keep rates at a 5.8 per cent increase, despite continued record levels of investment and ongoing cost pressures on our operations.”
Auckland Council chief executive Phil Wilson echoed the positive impact these savings have in delivering further value for ratepayers.
“We are focused on delivering value for money across the business and embedding that philosophy into every project and team,” says Phil.
“Achieving the full savings results early shows how much we’re actively challenging ourselves and doing things differently. This will ensure our limited resources go further and we can ultimately deliver more and better for Auckland.”
The $66.6 million savings comes from a further $23.4 million in savings achieved during quarter three (January-March 2025) on top of $43.2 million earlier in the year.
Recent savings were achieved in a range of areas, including efficiencies in outsourced waste collection costs, reduced professional services, and careful management of staff and other costs.
Of the $66.6 million of savings achieved to date this financial year, $34.8 million have been achieved on an ongoing basis, with a long-term recurring impact. All savings are directly used to keep rates and debt down.
The council continues to manage spend and ensure value for every dollar, improve non-rates revenue and continued savings for 2024/2025.
In addition to work on achieving savings targets, the council is also progressing the new Better Value Projects initiative and Value for Money reviews to help deliver good value for ratepayer money.