Auckland Councillors have voted to adopt an amended budget, agreeing to a partial sale of Auckland Airport shares and reaching a compromise on cuts to services, debt, and rates.
The council will sell around 7 percent of the council’s 18.09 percent shareholding in the airport.
Auckland Mayor Wayne Brown said the amended plan “is the best, most prudent, balanced budget” for Auckland’s residents.
“This budget represents a large reduction in the Council’s debt, protects core services and keeps rate under control. It is the start of the work to fix the Council’s budget and secure our financial sustainability.”
Mayor Brown said the budget was the “most challenging and contentious” one the super city’s council has seen in its history, following 29 workshops and over 90 hours of formal discussion.
“Most importantly, it deals with our most pressing issue – that we are spending more money than we are bringing in.”
- Average residential rates rise of 7.7 percent
- Partial sale of shares in Auckland International Airport (AIA) to pay down around $865 million of debt, with a net funding benefit of $115 million over the next eight years
- $83 million of operating spending reductions
- $105 million of debt
- $10 million improvement in Ports of Auckland’s net operating performance and dividend projections.
More to come.