Auckland Council says the Covid-19 pandemic will likely cost it more than $900 million but that it won’t be hiking up rates to cover the cost.
The figure includes lost revenue from public transport fares and from its shareholding in Auckland Airport, which amounts to around $60 million a year.
“Non-rates revenue makes up over 60% of council’s income and, ironically, that has been hardest hit by the pandemic,” says Auckland Mayor, Phil Goff.
“We are aware that the public—like council itself—also faces the burden of higher costs from inflation and rising interest rates. We are therefore not prepared to address the problem by simply pushing up general rates this year beyond the 3.5% foreshadowed in our consultation document and long-term plan.”
Instead, the council will reduce spending on non-priority services and pushing back some capital projects, as well as drawing on the Government’s "Better Off" funding package.
"The bottom line for council is that we need to manage our finances prudently and sustainably and we will do so," says Goff.
He says this includes fully funding the depreciation of the council’s assets to ensure they are properly managed in future, while also taking into consideration the challenges of climate change.
SHARE ME