Auckland Council's $700k chief commits to cost-cutting

Monday, 2 July 2018

Auckland Council chief executive Stephen Town says he wants to improve confidence in the council.

Auckland Council's chief executive plans to cut annual core costs by $23 million as he heads into his last years in the job.

Stephen Town outlined next year's saving target, days after his re-appointment through to the end of 2020.

In an interview with Stuff, Town said the cuts would be supplemented by savings from a wide-ranging efficiency drive.

That could deliver more than $100 million over a number of years, he said, from better co-ordination between the council and its agencies in how they buy goods and services.

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Town is the council's second chief executive since it was created in 2010.

The inaugural CEO, private sector import Doug McKay, served three years in the post, with his initial 18-month term extended at council request.

Town's five years ends in December, and will be followed by two more - the most allowed in local government without the job being re-advertised.

He picked up a 1.16 per cent pay rise in the lengthy re-appointment process, taking his wage to $698,000.

Town said the $23 million in cuts would be found during the next year.

'We've given people savings targets, and said your budget is 'X',' he said.

'You're not allowed to erode services, you've just got to find a way to do it better.'

Town said while core costs could be cut, the council's overall bills would rise, as new targeted rates and funding for transport, the environment and water quality, triggered an upsurge in projects.

Less visible goals include getting the council's agencies to work better together.

'Doing your own thing then remembering part way through you probably should have teamed up with one or more of your partners,' he said.

The council was also talking to the government on new ways to fund major infrastructure, such as the $1.2b stormwater pipeline across the city called the Central Interceptor.

'It could be delivered by an entity other than the council or (its company) Watercare Services,' said Town.

'If we could get that debt off our balance sheet we could free up $900m to $1b for investment elsewhere.'

Town said the council was into its third year of a programme to improve its trust culture.

'We absolutely want to build the trust and confidence among Aucklanders, that we've got a plan and we know what to do and how to do it,' he said.

An annual survey of Aucklanders had found improvement in people's satisfaction with services, but it was still well short of the 50 per cent target.

Twenty per cent of people said they were satisfied with the council's performance, and trusted the council to make the right decision.

The chief executive has faced veiled criticism from Mayor Phil Goff - the pair exchanging letters in public nine months ago over the mayor's concern about salaries in the council's upper levels.

'I think he's quietly pleased with progress,' said Town with regard to savings and efficiency.

Town's job as the head of a staff of 7,220 is the biggest in local government. The search for his successor begins in mid-2020.