So what do you do when you’re told you have to cut some of your $826 million budget for capital projects and that in choosing what to cut it can’t apply to public transport projects?
Well it seems if you’re Auckland Transport you start by cutting PT and active mode projects.
Back in May when the council was discussing their budget for this year it was decided that Auckland Transport should reduce capital expenditure spend. At the time Chris Darby managed to get this amendment passed saying that the cuts won’t impact on PT.
MOVED by Cr C Darby, seconded by Cr PA Hulse:
Cr Darby moved by way of amendment, seconded Cr Hulse.
That the Budget Committee:
i) agree that the $5.1 million transport opex increase is dedicated to public transport and the $50 million reduction in transport capex will not be applied to public transport.
But it seems the $50 million isn’t enough if the council wants to keep to Len Brown’s goal of having rate rises next year average 2.5%.
- On 26 March, staff provided the results of financial modelling in response to the mayoral direction for the LTP 2015-2025. One conclusion from this analysis was that it is not possible to reduce the average rates increase for 2015/2016 down to 2.5 per cent solely by reducing or deferring capex in that particular year.
- The lagged impact of changes in the capital programme on operating budgets means that reducing or deferring capex in 2014/2015 will have a greater impact on rates for 2015/2016. The Budget Committee therefore agreed on 8 May 2014 to request the Chief Executive undertake an immediate review of 2014/2015 capex programme with a target of reducing or deferring $300 million of capex.
The cuts mean Auckland Transport has to find $100 million (which goes up to $150 million once NZTA subsidies are included). They don’t say all the items they’ll cut but the ones named are all PT projects.
The targeted reduction can be achieved via the reduction of budget across all transport activities. Projects such as Parnell Station, the Pukekohe Station upgrade and bus and transit lane improvements may have to be deferred to the LTP period. The Auckland Transport Board will consider the current capital programme to confirm which projects may be stopped, reduced or deferred to the LTP in order to minimise negative impacts on Auckland Plan outcomes. An updated 2014/2015 capital programme will be provided to the CCO Governance and Monitoring Committee in November.
It seems the only projects specifically named as being deferred are those that PT projects which goes against what the council asked for in the first place. Further projects like bus and transit lane improvements are often some of the cheapest and highest benefit projects. An example of this is the recent extension of the Fanshawe St bus lanes resulted in lots of full buses being sped up in the evening for what I understand was a fairly minor cost. In saying that I can live with the Silverdale Park and Ride (which is having issues of it’s own to sort out first) and can also live with Parnell to a degree.
Here’s the total list of capital projects in the current annual plan.
It seems to me there are a lot of other projects on the list that should be being cut before $2.5 million bus lane improvements, for example Lincoln Rd or Penlink.
For their part the council passed a (much weaker) resolution saying that AT should take into account the councils priorities around PT and active mode outcomes however based on past performance I wouldn’t hold up hope of AT actually listening to that.