Auckland Council Analysis

Overview

On 1 November 2010, the previous eight councils in Auckland amalgamated to form Auckland Council - the local government territorial authority for the Auckland region and New Zealand's largest local authority. Auckland is New Zealand's leading and fastest growing region, with around a third of New Zealand's population and generating more than a third of the nation's GDP.

Auckland Council is established under the Local Government (Auckland Council) Act 2009 and is also subject to the Local Government Act 1974 and the Local Government Act 2002, which apply to all New Zealand local authorities.

Auckland Council is responsible for a wide range of activities, including regulatory functions such as the issuing of permits and consents for building activity within the Auckland region, and the enforcement of legislation governing parking, licensing and the environment. It provides (directly or through council-controlled organisations) infrastructure such as transport, city streets, and essential public services such as water supply, sewerage, refuse collections and street lighting. The Council also operates community libraries and arts centres and provides and maintains parks and reserves and sports fields.

You can find out more about how Auckland Council works here.

http://www.aucklandcouncil.govt.nz/EN/AboutCouncil/HowCouncilWorks/auckland_council_explained/Pages/Home.aspx

Performance

The following information was extracted from Auckland Council's Half year results, released 27 February 2025

Auckland Council Group’s interim results to 31 December 2024 show a positive operating result, with the group investing to strengthen the physical resilience of Auckland and manage growth, while meeting its financial targets.

During the six-month reporting period, the group invested a total of $1.9 billion in assets and infrastructure, $474 million higher than the prior period. Most of the investment was in roading and transport assets ($727 million), as well as water supply and wastewater assets ($479 million).

During the six-month reporting period, there is an increase in vested assets revenue from the Crown mainly due to revocation of a section of the old State Highway 1 between Puhoi and Warkworth from NZTA of $230 million. Other than that, sources of revenue are consistent with prior periods.

Net operating cash inflows decreased by $117 million. This is mainly because the cash paid for Risk Category 3 properties that is in excess of the property’s value to the council, is included as a loss in operating cash flows. The number and value of settlements are higher compared to the prior period.

The council’s remaining shares in Auckland International Airport Limited (AIAL) were transferred to Auckland Future Fund (AFF) in December 2024 and sold for $1.32 billion. AFF will use the sale proceeds to diversify the council’s major financial investments across different sectors and geographic regions, with expected stronger annual returns to council to help fund services and infrastructure. The number of shares sold was higher than those sold in the prior period (163 million compared to 103 million in the prior period) which contributed to the reduction of cash outflow from investing activities by $398 million when compared to the prior period. Due to funding requirements in early 2025, debt was raised towards the end of the six month period increasing financing cash inflows by $423 million more than the prior period. In the prior period, the proceeds from the sale of AIAL shares were used to repay some of the council’s borrowings and this reduced cash inflows from financing activities.