Source: Auckland Council
Auckland Council has recorded $43.2 million in savings so far this year – two-thirds of the annual savings target of $66 million.
The council’s savings initiative is part of an ongoing programme to ensure ratepayers get value for money and cost-effectiveness across the organisation, through clear targets set in the Long-term Plan.
Council savings is supported by Value for Money reviews and a new Better Value Projects initiative which will ensure investments in projects are good value for money.
Through the mayoral proposal for the Annual Plan 2025/2026, Mayor Wayne Brown sought further measures on how council procures and effectively spends ratepayer money on projects.
The new Better Value Projects programme was presented at this week’s Revenue, Expenditure and Value Committee.
“This is very positive progress. We have a responsibility to ensure ratepayers’ money is used efficiently – we need to spend council money like it is our own,” says Mayor Brown.
“I’ve always been clear that we need to stop wasting money. That’s why as a council we need to follow basic rules like setting a maximum price and having a clear definition of the problem you’re trying to solve, before spending ratepayer money.
“We need to consistently deliver every project for Aucklanders effectively and affordably. I’m pleased to see this piece of work coming to life – as a result, Aucklanders can be more assured that council projects are ensuring best value for money.”
Better Value Projects identifies 10 areas that will make the biggest difference to improving value ratepayers receive from the council procuring and delivering capital projects, as well as some operational programmes.
This includes increased use of standard designs; setting maximum prices; added rigour to scoping and design work; additional problem definition and value assessments; and careful selection of providers, across location and performance measures.
Over $150 million savings this year
Revenue, Expenditure and Value Committee chair Deputy Mayor Desley Simpson says in addition to Better Value Projects, the council has made great progress on savings, with $43.2 million already achieved.
The $66 million savings target this financial year builds on ongoing savings of $90 million per year, totalling over $150 million savings this year.
“We are looking at every opportunity to ensure cost-efficiency, and it’s paying off. This work directly rewards our ratepayers, helping rates to remain affordable and ensuring every dollar goes as far as it can,” says Cr Simpson.
“Achieving 65 per cent of our 2024/2025 savings target so far is a positive sign that we’re striving hard to deliver on our commitments. Alongside savings, we’re continuing additional programmes to deliver value for money to ratepayers.”
All savings are directly used to keep rates and debt down. For every $25 million of planned savings in the council’s budget, rates rise of around 1 per cent is avoided.
Value for Money reviews
The Revenue, Value and Expenditure Committee is also overseeing the council’s ongoing programme of Value for Money reviews.
The reviews approved by the committee this week mean 10 Value for Money reviews will have been undertaken this council term, and in total 20 reviews since the start of the programme in 2017.
Under Section 17a of the Local Government Act, the council’s Value for Money team works across the council group to consider current services and recommend new ways to deliver, while optimising council’s investment in assets, achieving greater integration and cost-effectiveness.
“Continuing to build our savings and value for money work, alongside new options through Better Value Projects, is one way the council demonstrates its efficiency and its focus on delivering value for ratepayers,” says Cr Simpson.
