SPECIAL REPORT: By Kim Meredith, Local Democracy Reporter

As I sat in Auckland Council’s extraordinary meeting deciding on its proposed annual budget, I was reminded of the time my late father came through the door looking bereft, having just been laid off, clutching his last pay cheque.

My parents quickly switched from English to Sāmoan, but I knew what they were talking about. How were they going to make ends meet?

It was the same air in the council’s Auckland Town Hall chambers.

With the number of television cameras lined up, you could have easily mistaken the event for a film premiere.

Maungakiekie-Tāmaki Councillor Josephine Bartley said it was a first, having the media in such strong force for the council’s controversial proposed annual budget.

Yet the anticipated fireworks turned into a mostly civil affair, with the only pointed comment coming from Mayor Wayne Brown, reprimanding members of the public for occasionally breaking into applause, “there will be no more of that”.

Mayor Brown said from the outset it could take several meetings to work through the budget, before allocating councillors five minutes to speak about their views — the first public signal that he was prepared to move from his fixed position and negotiate.

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Auckland councillors crossed swords, singling out one another and raising impassioned concerns on debt borrowing, rates and selling council’s shares in Auckland Airport before deciding on their annual budget.

Elected members ended yesterday’s meeting undecided but council reconvened this morning to hash out amendments to Mayor Wayne Brown’s budget proposal, before finally voting to approve it.

The governing body of the city with the Pacific’s largest Polynesian population spent the majority of the day going back and forth on many of the points previously raised at the initial meeting yesterday.

The morning finished with council voting to reject the first tabled amendment, going back to square one.

Councillor Chris Darby said if the discussion was like “eating rats”, then council had rat flesh in its teeth.

It was a tense atmosphere in the council chamber, with much back and forth and very little compromise from councillors.

As the meeting dragged on, two members of the public gallery began to speak up, urging councillors to think of the impact the budget would have on the community.

They yelled at council to listen to them, and to spend time in their communities to see the impacts of their budget first hand.

The mayor adjourned the meeting briefly and ordered the two women be removed from the council chamber.

The meeting came to a head, as the council voted to pass the mayor’s proposal, which meant selling about 7 percent of the council’s 18.09 percent shareholding

It also means an average residential rates increase of 7.7 percent.

During the meeting, Christine Fletcher said the discussions held around the budget would serve as good lessons for the governing body.

“There are some magnificent opportunities for all of us to provide leadership,” she said.

As the vote was cast, another member of the public called out, “shame on all of you”.

This article is republished under a community partnership agreement with RNZ.

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Auckland Council ended its meeting yesterday without a decision on the annual budget.

The long-debated budget will attempt to close a $325 million deficit, exacerbated by a further $40 million in storm-related costs.

Councillors arrived in good cheer, cracking jokes about the lengthy session ahead of them, which included a debate over the council’s sale of its 18 percent stake in Auckland International Airport Ltd.

The mayor said the meeting would take as long as it needed to.

“This is a difficult process. It may take more time than expected, that’s fine,” Mayor Wayne Brown said. “We may have to come back next week, we’re not rushing this process.”

Three councillors declared a stake in the airport ahead of the meeting.

Airport shares declared
Just a few hours before, Albany Ward councillor Wayne Walker admitted to owning $3 million in shares through a trust. His neighbour at the table, Maurice Williamson, poked fun at Walker on his way into the chamber.

Chris Darby and Julie Fairey also declared airport shares in the days leading up to the meeting, prompting questions of whether they could vote on the sale.

All three said they had received advice from the auditor-general.

“In their view, my situation does not represent a conflict of interest,” Fairey said.

“Their advice was that I do not have a financial interest in the share sale,” Darby said.

“Same advice, and so I can participate in today’s decisions,” Walker said.

Backdown from the mayor
The mayor’s original budget proposal called for a full sale of the council’s 18 percent share in Auckland Airport. But during the meeting, he compromised.

Just three councillors — Andy Baker, Maurice Williamson and Desley Simpson — unambiguously declared their support for a full sale.

After hearing the positions of his fellow councillors, Brown offered a partial sale of 8 percent, meaning the council would hold onto a 10 percent stake.

“I’m now proposing that we sell 8.09 percent of our 18.09 percent shareholding,” Brown said as councillors returned from their lunch breaks.

“This means that we have to find another $32 million in operating savings or rates to balance the budget. I’m proposing we fill this gap with a general rates increase of 7.7 percent.”

The issue of selling the shares was contentious, leaving councillors divided. Manukau Ward’s Lotu Fuli opposed the sale, declaring the shares had value.

“This is a high-performing asset, it is an asset that we ought to keep,” she said. “And yes, we should consider our underperforming assets, but that’s a discussion to have at the long-term plan.”

Council would regret sale
Fuli said the council would regret letting go of the shares.

“Let’s not be rash, let’s not sell off these shares, $2.3 billion worth of shares, in order to plug a $325 million hole,” she said. “Let’s not make the mistake that past councils have made.”

Waitematā and Gulf Ward councillor Mike Lee agreed the shares had value.

“This is a real asset, folks,” he said. “This is an earning asset, just like the Ports of Auckland. Not only does it earn us money, but it earns us capital gains on our balance sheet. Any decent accountant will tell you that.”

North Shore Councillor Richard Hills said the months of debate around the budget had soured its culture.

“This has been the hardest six months of my career, it hasn’t been nice,” he said.

“It hasn’t just been about things you’ve said, mayor, there’s been a lot of other discussions around this table that I’ve been appalled at around staff, each other. It isn’t a nice place at the moment and I think the city knows that.”

He said the council needed to be careful about repeating the same mistakes next year.

“I want to work with the majority here, because we will break our staff and our city if we make them do this again next year,” he said. “I think we need to be really clear about that — we’ll do that again if we don’t make a hard decision today.”

Few in support
Albany Ward councillor Wayne Walker said the council needed to adjust its spending habits if it wanted to fix the issue.

“We’re not addressing the underlying financial issues, and that is that we are spending beyond our means. We’ve been doing it for successive years, and that has to stop,” he said.

“Fortunately, we have a mayor that’s committed to turning that around.”

He said there was time enough to make large decisions like selling the shares.

“We have a very, very good situation to go forward and not have to make decisions immediately in this long term plan that may be counter-productive.”

Some councillors, like Maurice Williamson, strongly favoured a full sale. He said the assets were not making enough money.

“I’m very much in favour of selling any asset that’s costing us more to keep than it’s returning to us. There’s a good old Tremeloes song, ‘Even The Bad Times Are Good’ — well, even the good times are bad.”

Williamson warned other councillors against accepting more debt.

“There’s so much more coming down the pipe at us,” he said. “The CRL, god knows what’s coming, I’ve been told the final figure is going to be $7.25 [billion], we’re going to have to borrow debt to fund that, and that debt ratio is already near the ceiling.

“So please, please look at trying to bring that back down.”

Auckland Mayor’s revised proposals:

• Mayor Wayne Brown is now pushing for the sale of 8 percent of the council’s shareholding in Auckland Airport, instead of the full 18 percent of shares
• Brown has also proposed $4 million of reductions to local board funding, and $5 million of unallocated to chief executive, Jim Stabback
• An average general rates increase of 11 percent has been proposed, with adjustments that will result in an overall rates increase of 7.7 percent for average households
• Plans to establish a political working group on the council’s investments has been set out, which aims to oversee assets like the remaining council shares in Auckland airport, and make recommendations to the governing body on long-term investment in other funds

Even Brown’s deputy, Desley Simpson, cautioned members. She said the final form of the budget needed to be balanced.

“We’ve talked this through so much, and it’s going to be a hard task to balance a budget that is fair for Aucklanders and meets the needs and desires of all those around the table.”

Brown’s new proposal included the establishment of a working group to oversee council investments, as well as a $4 million reduction to local board funding.

Questions about the updated proposal brought the meeting to a close at 5pm, with no time left to debate or cast votes.

Mayor Brown said the council would reconvene at 10am today.

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Three people are dead and at least one person is missing following the flooding overnight in Auckland, New Zealand’s largest city.

About 1000 people were still stranded today after Auckland Airport was closed last night because of flooding of the arrival and departure foyers. Flights were cancelled for the morning but domestic flights resumed in the afternoon.

Police responded to a call after a man was found dead in a flooded culvert in Wairau Valley, about 7.30pm last night.

The spokesperson said police were called to a flooded carpark on Link Drive, also in Wairau Valley, after a report of another man found dead about 12.30am on Saturday.

Inquiries into the circumstances of both deaths were ongoing, police said.

Police are also investigating reports of a man having been swept away by floodwaters in Onewhero shortly after 10pm on Friday.

A search and rescue team will deploy today to search for the missing man.

Landslide brings down house
Emergency services also responded to a landslide that brought down a house on Shore Road, Remuera about half past seven. One person remains unaccounted for and the property will be assessed this morning.

Police continue to urge people to stay home and not drive unless absolutely necessary today.

Police said they were continuing to respond to a high number of calls after the severe weather.

Auckland mayor Wayne Brown said staff would today be assessing what damage had occurred and what steps needed to be taken next.

He declared a state of emergency last night that will remain in force for seven days.

Unprecedented flooding
Prime Minister Chris Hipkins said the flooding in Auckland was an unprecedented event.

Hipkins said more should been known in a few hours about how bad the damage was after a day of torrential flooding.

He was with a team at the Beehive bunker overnight, talking to the teams coordinating the response in Auckland.

Hipkins said it was difficult to get information about what is going on but up to 1000 people were still stranded at Auckland airport, and right across the region there were many people just simply stuck somewhere where they would not normally be early on a Saturday morning — including in their car, or at a business.

MetService said the airport had smashed its all-time record for rainfall in a single 24-hour period — recording 249mm yesterday, beating the previous record set nearly four decades in 1985 — 161.8mm.

This article is republished under a community partnership agreement with RNZ.

Record breaking rain in Auckland. Although the heavy band of rain has moved off to the east there is still a change of showers so the total for rainfall could climb even higher. The impacts of the last 24 hours will be felt by many in Auckland for a long time. Take care out there pic.twitter.com/kiIm6Tsrro

— MetService (@MetService) January 27, 2023

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