Day to day services
Operating costs cover provision of day to day services such as:
- waste collection
- mowing parks
- maintaining roads, footpaths, water and stormwater pipes
- environmental protection
- running our libraries, swimming pools and other community facilities.
They also include interest and depreciation which are driven by our capital programme.
Increases in our operating costs
In this 10-year budget, operating costs will move from $4 billion in 2018/19 to $5.6 billion in 2027/28.
These costs are funded from a variety of sources including general rates, targeted rates (for specific projects and programmes), user charges and government subsidies.
General rate increases
General rate increases have been set at 2.5 per cent per year for the first two years of the 10-year budget. The rate increases for the remaining years are 3.5 per cent per year.
New targeted rates have been introduced to fund the accelerated water quality programme and the additional investment in protecting our environment.
The regional fuel tax is a new funding source and is specifically dedicated to new transport projects and is matched by a lift in funding from the New Zealand Transport Agency (represented by government subsidies in the chart).
Maximising the value of our services
To manage the pressure on our costs we focus on delivering our services in the most efficient manner, to ensure we get the best value from every dollar we collect.
Ongoing efficiency initiatives include:
- improved business processes
- better use of technology
- better procurement and tendering processes.
- controlling the growth in our core operating expenditure.
Disestablishment of Auckland Council Investments Ltd.
Additionally, in this 10-year budget we have decided to disestablish a CCO, Auckland Council Investments Ltd. We will absorb their functions into the council to make a saving of approximately $800,000 per year.
We also continue to review our non-strategic assets with a view to releasing funding for re-investment through sale of those assets.
Our total budget and activities
The following chart sets out the total budget for the next 10 years by each of our key activity areas and also show how each area is funded.