Auckland Council exceeded its $90 million saving target for the year but large chunks were linked to Covid-19.
Council has achieved $90.7 million dollars in savings for the 2021/2022 financial year putting them .8 percent ahead of target.
$2.3 million were saved from Covid related project delays while $5.8 million were a result of labour market constraints.
Financial and business performance general manager Nicola Mills presented to the June 16, Value for Money committee and said council had achieved savings in both big and small ways.
“We have spent less than we planned. Council will have less debt and save some interest costs going forward,” Mills said.
Mills said rising interest rates would put pressure on councils interest costs.
Mayor Phil Goff said this years savings followed more than a decade of focus on savings and efficiency by Auckland Council.
“Since its formation in 2010, Auckland Council has accomplished cumulative operating savings of $2.4 billion. Without the achievement of these savings, rates would be 14 per cent higher,” Goff said.
Desley Simpson said councils amalgamation had been a huge financial success.
“Some say the super city does not save money but it does. We have shown it does,” Simpson said.
The financial report said future savings may be more difficult as a result of inflationary pressures and operating costs.