Auckland Council has approved its Long-term Plan 2024-2034 and residents will see their rates rising for several years into the future as a result.
The plan includes prioritised investment in transport and water, fairer funding for communities, and an Auckland Future Fund.
The 10-year budget includes rates increases of 6.8 per cent for 2024-25, 5.8 per cent in 2025-26 and 7.9 per cent in 2026-27.
The central proposal for public consultation originally proposed increases of 7.5 per cent, 3.5 per cent and 8 per cent respectively.
Council chief executive Phil Wilson says the plan balances the need for investment to cope with growth and continue to protect the environment, build resilience and sustain valued services.
He says at the same time it shows restraint, recognising cost-of-living concerns, and puts pressure on the organisation to continue pursuing cost savings and improvements.
“This Long-term Plan is about Auckland and Aucklanders, and priority areas where we can provide the greatest benefit to our communities.
“We know transport and water, in particular, were areas people wanted us to do more.
“The council has responded to that through this budget.
“The plan also takes a fresh approach to tackle our financial challenges with more rigour and greater accountability than ever before.
“The organisation is behind this and ready to deliver on it for Auckland.”
Proposals for targeted rates have been confirmed as part of the plan including reinstating the Natural Environment and Water Quality Targeted Rates.
The plan also provides local boards with new funding aimed at addressing past inequities.
The role of local boards in reflecting local community needs will be supported by the decision.
The Long-term Plan, including the approved budget, will be formally adopted by the council’s governing body on June 27, in time for the new financial year on July 1.
Auckland Transport (AT) will receive $70 million more operating funding from the council in the new financial year, primarily to support public transport services including to maintain bus services and for rail track maintenance.
This is $10m more than the consultation’s central proposal.
A $50 weekly public transport cap for bus, train and inner-harbour ferries is also included.
A $14 billion capital budget for AT will help fix roads and enable reliable, easier to use public transport and four level crossing removals in Takanini.
This is an additional $600m more than the consultation’s central proposal.
Through the Government’s water reform programme, the financial independence of council-controlled organisation Watercare will enable inter-generational investment in water infrastructure, and delivery of sustainable and affordable water services to Auckland.
Water investment also includes strengthening Auckland’s resilience to flooding with the new Making Space for Water Programme of more than $700m.
The plan allows for further investment in delivering vibrant city centres, with new areas for urban regeneration and infrastructure to support housing and growth.
It supports the natural environment through community involvement in environmental programmes.
The plan reduces rates funding for investment in economic and cultural development from 2025-26.
The council will work with the Government on new funding tools for visitor attraction and economic development to build the future economy Auckland needs to support its growth.
Auckland’s parks and community services are also strengthened, where alongside supporting open spaces, parks, sports, recreation and other community facilities, the council will work to deliver services in the way Aucklanders want.
That includes supporting local boards to evolve the way they provide services.
The fairer funding approach will more quickly address funding imbalances between 21 local boards that have been in place since Auckland Council’s inception, without the need to reallocate funding between boards.
The new approach provides an additional $84m of additional operating funding and $56m of additional capital funding over the next three years.
The Auckland Future Fund will support the council’s financial and physical resilience.
Diversifying council’s major investments across different sectors and different geographic areas will better protect the value of intergenerational assets, so they can continue to benefit future generations.
It also provides additional funding for council services of around $40m per year from 2025-26.
The plan will enable a transfer of all the council’s remaining shares in Auckland International Airport Ltd into the fund, and enable a fund manager to decide to sell any or all shares.
The plan also includes additional savings across the council group including $27.8m in year one and rising to $67m in year three.
