Earlier this week, Auckland Council signed off its 10-Year Budget (2021-2031), our Recovery Budget. The plan consists of a record $31.8 billion investment to assist economic recovery, deliver increased renewals for our ageing infrastructure, fast-track improvements to water quality, alongside a reduction in non-essential spending. It has one of the highest levels of investment back into our ward of any Long-Term Plan in the history of Auckland Council.
How is it funded? First, this budget builds on our record $120 million in savings and efficiencies from the Emergency Budget, locking in $90 million of savings for every year of the ten-year budget. It’s a target we need to meet, and it is achievable. Second, we will temporarily increase our borrowing, having discussed this with our rating agencies. They have indicated that in this Covid-impacted environment, they are comfortable with our budget as outlined. Our average general rates increase of 5% then 3.5% for the remaining years gives us a $900 million investment opportunity in the first three years of the budget, to deliver more, faster.
Feedback on the draft budget from the Ōrākei Ward showed more support for than against. Both local boards (Ōrākei Local Board and Waitematā Local Board) supported the budget (in fact, 20 of the 21 local boards were in support) and based on that feedback, so did I.
So, what’s confirmed in the plan for the Ōrākei Ward area over the next 3 years?
Parks
Colin Maiden Park will receive nearly $3 million to upgrade sports fields, add lighting, paths, and other amenities to improve its use. Secure funding will also support the development of a third sports field and lighting at Shore Road East Reserve. Thomas Bloodworth Reserve will also receive funding for an upgrade.
Transport
The north-south links to the Glen Innes to Tamaki Drive Shared Path (which I have advocated for since 2013) are finally funded. This will improve road safety and reduce congestion by providing off-road access to schools and commuters and connect multiple communities across the Pourewa Valley. This has been in the Ōrākei Local Board’s top three most advocated for projects for every ten-year plan since Auckland Council began. Great to finally have it funded.
The seaward-side footpath on Tamaki Drive, alongside the new separated cycleway on the causeway, will also be funded, allowing this project to be fully realized. Don’t ask why it wasn’t part of the road raising/separated cycleway project in the first place!
Often the most wanted transport improvements are smaller things like new bus shelters, safety improvements around pedestrian crossings or footpath improvements. The Ōrākei Local Board will receive just under $3 million over the next three years to deliver these small but often requested transport improvements. The Waitemata Local Board will also receive just under $3 million.
Environment and Climate
Funding from the Natural Environment Targeted Rate will go towards restoring and enhancing the natural environment of the Pourewa Valley, including St Johns Bush, Kepa Bush, Selwyn Bush and Tahapa Reserve. A dedicated staff member will oversee the delivery of the Pourewa Integrated Plan, which will see some wonderful environmental outcomes for the valley. The Natural Environment Targeted rate will also ensure continued delivery of Kauri dieback mitigation measures in our area, including at Dingle Dell in St Heliers.
Tamaki Drive will receive funding for climate mitigation work, which will include the implementation of temporary flood barriers along the sea wall, as well as installation of the non-return valves on existing stormwater outlets.
The reserves alongside Portland Road will also receive funding for work to restore and enhance their wetlands this year, finishing with the road raising component – both reducing the impacts of flooding.
Community
The Meadowbank Community Centre will receive funding to deliver a major rebuild. Again, this has been on the ‘most wanted’ list for over 9 years but now the Ōrākei Local Board will make it happen.
Regional grants have been reinstated and are now available to support the incredible work done by the various groups dedicated to positive community outcomes. A key example of region wide grants for our area includes the funding of our Eastern Bays Songbird project, which has significantly reduced pests in the Eastern Bays and tangibly brought back more birdlife to our area.
As a result of more grant funding, Ōrākei Local Board grants will also be available for community groups to deliver further local investment where needed.
Water
Responding to health warning signs all around Hobson Bay, the increase in the Water Quality Targeted Rate (WQTR) will enable significant investment six years earlier than planned into the Eastern Beaches from Parnell to Glendowie (in the first instance focused on Hobson Bay), Newmarket and the Tamaki Estuary. This project is called the Eastern Isthmus Programme and had a strong level of local support in ward feedback.
As Watercare deliver new wastewater infrastructure projects such as the Newmarket Gully Tunnel, we will optimise that investment by undertaking stormwater upgrades and stormwater separation. In fact, the one off 5% rates rise (dropping down to 3.5% for the remaining years) also delivers 50% of below the ground infrastructure renewals for us in central Auckland.
We have a long way to go in terms of improving the quality of our water, but the level of investment provided through the WQTR is a big step in the right direction and one I have particularly championed for this budget. Overall, this rate will enable an additional $255.9 million of investment.
Regional funding will also deliver renewed sluice gates at our much-loved Ōrākei Basin. This will result in improved water quality through better flushing of the basin.
Whilst we shouldn’t always compare, it’s worth noting that other councils around New Zealand such as Tauranga, Wellington and Dunedin have decided on a much higher general rates rises than Auckland, as they too tackle the issue of replacing ageing infrastructure and planning for future growth. It is also worth noting that while our rates income has increased, the percentage of revenue we get from rates has decreased to 37% in year one. We are doing more ourselves and relying less on ratepayers to fund all we do.
So, is it perfect? No, nothing is. We don’t know what the future will hold but in my personal opinion, backed by our treasury and finance team and the Office of the Auditor-General, this budget is fiscally prudent enough to ensure that if we stay safe in our Covid-impacted world, we can recover well. If we don’t, we can weather that storm too.
Happy to discuss any aspects of the budget with you if required.