Media Release
29 August 2013

Solid year for Auckland Council Group

It has been another solid year for the Auckland Council Group, which reports its financial results to the NZX today. Auckland Council Group comprises of Auckland Council and its council controlled organisations.

The group has reported a $246 million after-tax surplus for the year to 30 June 2013, compared to a budget of $20 million. The surplus includes $385 million of assets transferred from the Crown, offset by net asset devaluations of $230 million.

“Overall it’s been a solid year in terms of project and service delivery for Auckland and operating revenue and expenditure results,” says chief executive Doug McKay.

“We continue to be financially prudent and are making ongoing operational savings and efficiencies to reduce costs for Aucklanders.”

This year, the group achieved its budget that included operational savings of $50 million, taking the cumulative savings to $134 million. Across the 10 years of the Long-term Plan, total savings of $1.7 billion are budgeted. Further savings have been included in the 2013/2014 annual plan.

The group’s net debt of $5.5 billion is less than in the Long-term Plan.

The council’s prudent financial stewardship has been recognised with both Standard and Poor’s and Moody’s reaffirming the group’s AA credit rating.

The group continues to invest strongly in Auckland’s future and to deliver its vision to create the world’s most liveable city.

A $1.3 billion capital programme ensures Auckland Council maintains, improves and adds to the quality of the region’s assets, such as community facilities, sportsfields, roading and stormwater and water infrastructure.

Included in the year’s capital programme were:
• New Wellsford library
• Fort and Lorne streets’ upgrades
• Transformation of Shed 10 into a cruise ship terminal
• Completion of New Lynn’s Merchant Quarter
• Start of the development of the new town centre in Ormiston
• Stormwater projects and renewals
• Continuing works on the Hunua water mains project
• AMETI transport project underway with the new Panmure Bridge now opened
• Installation of artificial sport turfs at Michael’s Avenue Reserve in Ellerslie, Seddon Fields in Westmere, William Green Domain in Howick and Starling Park in Rānui.

Other significant milestones achieved this year include:
• Agreement by the Government to fund part of the City Rail Link
• Launch of the Hobsonville ferry service
• Development of the draft Auckland Unitary Plan, which attracted more than 22,000 pieces of feedback from Aucklanders during the first round of public engagement
• Auckland’s entertainment and conferencing facilities brought more than $100 million of economic activity to the region – a benefit to Auckland business and providing strong employment opportunities for the region
• Further progress on consolidating 158 legacy council bylaws, including the adoption of those for solid waste, food safety, animal management and health and hygiene.

Auckland Council Group’s final annual report will be released at the end of September 2013.

Ends

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