Auckland Council Funding Shortfall $180M Higher than Excepted
November 7, 2022
Auckland Council has updated the NZX after confirming it is looking at a growing budget hole of $270 million for the next financial year.
In an update ahead of the council’s full Governing Body meeting this Thursday, the council said the funding gap was estimated to be $180m higher than the anticipated shortfall of $90m.
It noted “an incoming council would have a range of options and budget levers available to mitigate this”.
“Inflation and interest rates have risen higher and more rapidly than economic forecasts had projected at the time the last budget was prepared,” the update said.
It said as of late October, the total ongoing operating budget pressures for the upcoming financial year are estimated to be around $270m and this operating gap needs to be addressed “in a sustainable way that also supports the council’s long-term financial position”.