Auckland Council is facing a daunting financial challenge as it seeks to overcome a projected budget shortfall of $295 million for the 2023/2024 financial year.

The shortfall is due in part to the expanding range of services and assets provided by the council over the years, which have required increased investments in maintenance and operation.

The situation has been further aggravated by the sudden rise in interest rates and inflation in the past year.

The devastating impact of the storm and cyclone events that battered Tāmaki Makaurau from January 27 has compounded the financial difficulties facing the council.

In response, the council has put forward a proposed budget package that includes a range of measures designed to address the shortfall.

These measures include reducing operating costs by $125 million, selling the council's shareholding in Auckland International Airport, and borrowing no more than $75 million in additional debt to prepare for future financial uncertainties.

The proposed rates package would see a total increase of around 4.66 percent or $154 per year for the average value residential property.

Despite the challenges, the council maintains that the proposed budget will still allow for crucial everyday services to be provided to Aucklanders, with $2.8 billion earmarked for capital investment in transport assets, parks, community facilities, and environmental management.

However, some asset-renewal spending may need to be brought forward due to storm damage.

In addition, the council is proposing to spend around $20 million annually to mitigate the impact of future storms, which would require an additional one percent increase in rates for 2023/2024.

The council believes its proposed mix of options will help to balance the budget and set the organization on the path to becoming a simple, efficient, and service-based organization.

If the proposed budget package is not supported, or if the financial challenge worsens, the council will be forced to consider more limited alternatives, including increasing general rates by up to 13.5 percent or increasing debt within the limits of the council's prudential borrowing policy.

The council is urging Aucklanders to provide feedback on the proposed budget, emphasizing the tough choices ahead.

Ways to have your say

To have your say on these issues or anything in the budget that is important to you, you can:

• visit akhaveyoursay.nz/budget

• phone 09 301 0101 or

• visit your service centre or library.

Feedback must be received by Tuesday 28 March. Final decisions will be made in June 2023 and the final budget will be available on aucklandcouncil.govt.nz