29 May 2020

Covid-19: Auckland City services to be cut after revenue drop

5:03 pm on 29 May 2020

Deep cuts to Auckland City services are on the way, because of the huge financial hit of the Covid-19 crisis.

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Photo: 123rf

The council is receiving about $500 million less in revenue.

There is less money coming in from the council's venues and facilities, less from public transport and parking, and smaller dividends from its shareholdings.

Whatever happens, it says, it will have to cut spending, defer projects, reduce staff and cut pay.

Mayor Phil Goff said the options are there for ratepayers.

"They will notice them in the sense that if you've got to find half a billion dollars in lost income, then that means that you're looking at reduced staffing and reduced ability to provide the services.

"You're looking at reduced ability to do some of the renewal work that you'd normally do on the road, it's slowing down the process of implementing some of the safety changes in infrastructure that we wanted to do on the road."

The council has come up with options in an emergency budget - and it is asking ratepayers for feedback.

The two rate options are either a previously agreed rise of 3.5 percent, or a lower one of 2.5 but with more cutbacks in areas such as public transport fare concessions.

Feedback is being sought over the next three weeks, and a final decision will be made in July.

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