[ad_1]
Auckland Council staff have been to told to stop spending on a wide range of activities including some projects already underway, the use of consultants, travel and entertainment.
A leaked email obtained by Stuff shows the latest steps in council’s attempt to wrestle a forecasted $295 million deficit in its next budget, which starts in July.
The email was written by the chief financial officer Peter Gudsell.
Council has verified its authenticity and been asked for comment by Stuff.
READ MORE:
* Austerity bites at the Town Hall: What to eat when the council cuts your lunch
* Auckland Council’s books improve but storm clouds remain
* Auckland Council weeks away from estimating cost of storm and Cyclone Gabrielle
Gudsell said on top of that $295m, council was still working out the financial impact of the Auckland Anniversary floods, as well as Cyclone Gabrielle, but action was needed now.
“We must reduce our spending so that the council has extra financial buffer to cover some of the impact,” Gudsell’s email said.
The list of no-go areas includes any new operational or capital spending not locked in with contracts, and to pause work which has started, if possible.
Spending on “professional services” and using money unspent in existing budgets is also not allowed.
Most training, other than basic training to jobs, along with travel, catering and entertainment is off, and, a review will be carried out of the number of staff with council expense cards.
The list of spending which won’t be touched is short.
It covers contractual commitments, health and safety, and anything required by legislation.
Eva Mueller/Supplied
Clean ups and restoration in areas such as Muriwai will hit the council budget.
Ironically, spending which must continue includes anything which advances the “substantial savings programme” looking to cut $130million of running costs as part of the proposed 2024 Budget.
The email fleshes out messages given as part of preparing the budget, which is now out for public consultation until the end of March.
Councillors in a split vote had previously directed the organisation to consider stopping or limiting “discretionary spending”.
An early unexpected consequence for some, was finding out there would be no lunch provided at the Planning, Environment and Parks committee, after its chairman Richard Hills deemed it “discretionary”.
The level of restraint on spending is unprecedented, as the council faces the consequences of high global inflation and rising interest rates.
The budget as proposed by mayor Wayne Brown includes the full or partial sale of the council’s $1.9b stake in Auckland International Airport and $20m cuts to a wide range of community spending.
Big funding cuts would change the shape of the council’s economic and culture agency Tātaki Auckland Unlimited, which could lose $44m, all but ending economic development and major event work.
The budget will be finalised in June.
[ad_2]