Revenue, Expenditure and Value Committee

20 May 2025

Auckland Council savings progress for the quarter ended 31 March 2025

File No.: CP2025/07885

Te take mō te pūrongo

Purpose of the report

1. The purpose of this report is to provide an update on Auckland Council’s progress towards achieving the savings targets for the 2024/2025 financial year. It aims to outline the strategies, initiatives, and actions taken to meet these targets, while also assessing any associated financial risks and their mitigation.

Whakarāpopototanga matua

Executive summary

2. The Long-term Plan (LTP) 2024-2034 includes a combined enduring savings target of $66 million for Auckland Council in the 2024/2025 financial year. This is in addition to the ongoing $90 million annual savings target established in the previous long-term plan, which has already been achieved on an enduring basis.

3. As of 31 March 2025, Auckland Council has reached $66.6 million total savings for the 2024/2025 financial year, fully achieving its operating savings target of $66 million. A further $23.4 million savings was achieved in the third quarter from ongoing efforts to carefully manage spend to ensure value for money, including implementation of cost reduction and non-rates revenue improvement initiatives.

4. Cost savings were achieved in a range of areas, including efficiencies in national policy statement activities, outsourced waste collection costs, reactive repairs and maintenance, reductions in professional services and careful management of staff and other costs.

5. Improvements to non-rates revenue continue to provide a greater contribution to overhead costs, reducing the burden on general ratepayers. Increased revenue was achieved across regulatory activities, user pays waste services, licensing and compliance and higher Land Information Memorandums (LIMs) and property files volumes.

6. While the 2025/2026 savings target has been achieved, $20 million of the third quarter savings were one-off with $3.4 million enduring year on year.

7. Work is ongoing to deliver and strengthen a pipeline of further savings including implementation of enduring cost efficiency initiatives, improving revenue, ongoing careful spend management, and potential reduction in regional services subject to decision making. This is to ensure ongoing financial sustainability in future years of the Long-Term Plan where savings targets continue to grow and compound over time.

8. Group Shared Services (GSS) is also progressing well despite some delays due to workload across entities, with two business cases now approved. Quarterly progress reports are shared with the Revenue, Expenditure and Value Committee.

9. In addition to providing regular updates to this committee, progress against the savings target is also reported quarterly to the Governing Body as part of quarterly performance reporting and monitored monthly by the Executive Leadership Team for progress, risks and opportunities.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpkoa / note that Auckland Council has successfully achieved the $66.6 million savings target for the 2024/2025 financial year, with $23.4 million realised during the third quarter.

Horopaki

Context

10. Through both the annual and long-term planning processes, Auckland Council has set various operating savings targets over time:

· The $90 million annual savings target, established in the Long-term Plan 2021–2031 (the Recovery Budget), has been fully achieved on a sustained basis.

· An additional $33 million per year for Auckland Council and $5 million per year for the Revenue, Expenditure and Value Committee were set in the Annual Plan 2023/2024.

· The Long-term Plan 2024–2034 includes a further $28 million savings target, bringing the total savings target for the 2024/2025 financial year to $66 million.

11. The 2024-2034 Long-Term Plan continues to require significant financial discipline regarding Auckland Council’s operating costs. This includes setting prudent baseline funding measures and introducing further initiatives to enhance efficiency and deliver value for money. The decision-making framework outlined in the plan specifies both the initiatives to be implemented and the target savings amounts that the Chief Executive is tasked with achieving.

12. It is important to note that "operating savings" encompasses both cost reductions and revenue increases, essentially any initiative that improves the net operating result.

Tātaritanga me ngā tohutohu

Analysis and advice

13. In the third quarter ended 31 March 2025, Auckland Council achieved a further $23.4 million savings through the initiatives outlined below.

$17 million from non-rates revenue improvements

· $6.0 million increased revenue from building consenting related activities.

· $4.0 million from higher Pay As You Throw (PAYT) bin tag sales.

· $3.0 million enduring savings in licensing and compliance activities, including dog registrations and environmental licensing.

· $1.0 million from higher user pays refuse transfer station revenue.

· $1.4 million increased LIMs and Property File fees & charges ($0.4 million enduring).

· $0.9 million improvement in resource consents revenue while controlling costs by improving utilisation and reducing late completion discounts.

· $0.7 million increased revenue from higher private plan change and notice of requirement volumes.

$6.4 million in operational cost savings

· $1.5 million National Policy Statement – Urban Development efficiencies through a change in approach enabled by proposed legislative changes.

· $1.0 million lower spend on reactive maintenance costs relating to the stormwater network.

· $1.0 million lower inorganic collection costs from reduced volumes.

· $2.9 million reduction in professional services, marketing and other costs.

· $1.3 million staff-related savings largely due to unfilled vacancies.

14. Building consents and inspections revenue continue to exceed plan due to increased demand from legislative changes and complex developments, such as multi-unit and multi-storey developments. Implementation of process improvements over time such as better reporting, improved billing accuracy, and better monitoring of performance to improve productivity has helped management of the increased volume while controlling costs.

15. Waste solutions revenue grew through increased PAYT bin tag usage, driven by a shift to targeted-rate funding in the Waitakere, North Shore and Papakura areas which has reduced competition in residential domestic services which for the most part will stop, giving council greater control in achieving its waste minimisation goals.

16. Animal management generated additional revenue from an uplift in dog registrations, penalties and fines following a focus on unpaid dog registrations to improve overall compliance. This was supported by targeted enforcement campaigns. The infringement campaign has been effective in prompting compliance while also helping to make sure the council has the most up to date information for the dog and dog owner.

17. Increased Refuse Transfer Station revenue came from higher than anticipated volumes. The anticipated impact from new third-party competition in the nearby area was lower than anticipated, due to strong management and resourceful ways to maintain and increase gate fee revenue. While the number of visits is slightly lower compared to the same time last year, increased gate fees and docket values (fees on material type by weight) has resulted in higher revenue despite flat volumes.

18. Proposed legislative changes resulting in PC78 hearings panel delays meant the need to engage specialists to support expert conferencing and evidence has not been required. The natural hazards plan changes are now not progressing to notification in April 2025 but will instead be progressed for inclusion within the ‘bespoke approach’ or replacement plan change for PC78. This slower trajectory has enabled a more efficient joined up process.

19. Repairs and maintenance costs have been managed below budget, particularly stormwater network reactive maintenance due to relatively calm weather in the first 9 months of the financial year and the unusually low volume of Request for Services (RFS) during the dry summer. Increased reactive maintenance activity over the autumn and winter period has been planned for, and delivery of planned proactive maintenance remains on track.

20. Contracted inorganic collection costs have been managed below budget, with current participation rates of 21 percent being slightly lower than the anticipated participation rate of 22 percent to 23 percent. To mitigate and reduce illegal dumping, council continues to focus on enhancing participation in this service and anticipates an increase in service uptake.

2024/2025 target achieved, enduring savings remain a key focus

21. While council has fully achieved its 2024/2025 savings target, $34.8 million of the $66.6 million savings achieved were one-off in nature and savings of an equivalent value will need to be found again in future years.

22. One-off savings and cost reductions from careful cost management and quarterly reviews of spend against budget are currently mitigating delays in achieving permanent savings across a range of identified savings initiatives.

23. The focus remains on implementing enduring savings initiatives to ensure ongoing financial sustainability in future years of the LTP where savings targets continue to grow and compound over time.

24. As outlined in the February 2025 update, the Pools and Leisure department is focused on achieving a $1.0 million savings target for 2024/2025, increasing to $3.0 million year on year from 2025/2026.

25. Contracts with outsourced providers were finalised during the third quarter and took effect on 1 April 2025 across the twenty outsourced sites. A more detailed update will be provided at the June 2025 Revenue, Expenditure and Value Committee meeting. This will include a breakdown of savings and benefits expected to be achieved this financial year, and the forward work programme for the 2025/2026 financial year.

26. Group Shared Services is progressing well, with two business cases approved and three more on track for completion by 1 July 2025. Despite some delays due to workload across entities, benefits are already being delivered, including $30 million in economic value from GIS upgrades and $150,000 in cost avoidance from data analysis. A separate quarterly update report to the Revenue, Expenditure and Value committee has been provided.

27. A one-page summary of the Auckland Council savings programme as at 31 March 2025 is included as Attachment A to this report.

Tauākī whakaaweawe āhuarangi

Climate impact statement

28. The spend reductions achieved did not relate to projects or activities with a focus on achieving improved climate impact outcomes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

29. The savings targets for 2024/2025 partly apply to council-controlled organisations. Some savings initiatives are to be achieved for the group, for example, corporate property rationalisation, strategy and planning simplification, and group shared services.

30. New tools and process improvements successfully implemented in Auckland Council may also be shared with the council-controlled organisations for greater efficiencies and other benefits.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

31. The LTP noted that savings contributions are expected to come from implementing more cost-effective service delivery models for the provision of regionally networked local services such as pools and leisure, and property management across the council group, with potential impact to local board budgets.

32. With the introduction of fairer funding for local boards from 1 July 2025, further work is underway to determine how these arrangements will align and operate going forward.

Tauākī whakaaweawe Māori

Māori impact statement

33. This report does not seek any decision. The savings initiatives and targets were set as part of the annual budget process which was subject to consultation and considered impacts on Māori for the purposes of that decision. In terms of the savings achieved in the third quarter, we have not noted any that have any particular impact on Māori.

34. The Māori outcomes budget is ring-fenced for delivery of Kia Ora Tāmaki Makaurau and was not subject to cost reductions.

Ngā ritenga ā-pūtea

Financial implications

35. There are financial implications if the savings targets are not met for 2024/2025, however these risks have been effectively mitigated with the savings target now having been fully achieved this year. Had the savings not been achieved, this would have resulted in higher debt levels and interest costs and would have flow on effects through to future financial years.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. The principal risks to achievement of future savings and cost reduction targets stem from inflationary pressures on staff and other contracted operational expenses which may reduce potential savings; as well as the rate at which process and efficiency improvements are executed to actualise anticipated benefits.

37. Changes to the Local Board Funding Policy, which is aimed at enhancing decision-making autonomy and ensuring a more equitable allocation of resources, may complicate the achievement of future savings associated with locally funded services.

Ngā koringa ā-muri

Next steps

38. The next update will be provided upon the finalisation of Auckland Council’s quarter four results for the 2024/2025 financial year.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Auckland Council savings programme as at 31 March 2025

Ngā kaihaina

Signatories

Authors

Emma Munro - Principal Advisor

Authorisers

Brian Chan - General Manager Financial Advisory

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

20 May 2025

Value for Money Review - Group Property Framework

File No.: CP2025/05358

Te take mō te pūrongo

Purpose of the report

1. To receive an update on the Group Property Review and the development of the Group Property Framework to improve how property is managed across the Auckland Council Group.

2. To endorse the proposed property principles and phased implementation of the Group Property Framework

Whakarāpopototanga matua

Executive summary

2. Auckland Council Group manages physical assets valued at nearly $70 billion, expected to grow to $108 billion by 2034. Property is a subset of these assets and is critical resource to delivering community services, enabling growth, and supporting infrastructure.

3. This report presents the draft Group Property Framework developed through a review of property management across the Auckland Council Group.

4. The review found that current property management practices are inconsistent and underdeveloped. The framework seeks to improve property management by proposing a consistent, principle-based approach to planning, managing, and governing property. It introduces:

· Core principles

· Shared language and classifications

· Clearer roles and decision-making authorities and accountability

· Improved processes and governance mechanisms

· Mechanisms to improve consistency and practice for managing property, including sharing of commercial expertise

· Recommendations to improve the quality of property advice received by decision makers (including local boards), including by improving data and systems

· Recommendations to embed and evolve this framework

5. The framework is built on six core principles:

· Property serves a purpose

· Property has economic value

· Property needs to be actively used and managed to maximise public value

· Property needs change over time

· Property is part of a shared portfolio

· Categorisation and accountability matter.

6. If endorsed, staff will begin implementation through:

· Establishing a cross-council Property Steering Group

· Rolling out a phased implementation plan

· Engaging local boards and aligning with the council-controlled organisation (CCO) transition programme

· Embedding clearer accountabilities, financial advice, and reporting systems to track performance and outcomes

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) ohia / endorse the proposed property principles as a foundation for a more consistent and coordinated approach to property management across the Auckland Council Group.

b) tuhi ā-taipitopito / note that staff have completed a review of the property management across the Auckland Council Group, identifying challenges and a schedule of recommendations to support improved outcomes.

c) tuhi ā-taipitopito / note the intent to further develop and phase the implementation of a Group Property Framework, including work to clarify classifications, strengthen governance, and improve decision-making processes.

Horopaki

Context

7. In September 2024, the Revenue, Expenditure and Value Committee approved the Group Property Review Terms of Reference as part of a Value for Money work programme.

8. The scope of the review proposed to cover the real estate functions within the Auckland Council Group – including planning, acquisition, management, optimisation, and disposal. It identified significant issues with the current state, including inconsistent decision-making, fragmented planning, and limited visibility of property use and performance.

9. A key output of the review is the Group Property Framework. The framework proposes a consistent, principle-based approach to managing Auckland Council’s property, aiming to improve service delivery, financial performance, and governance oversight. It includes core principles, property classifications, decision-making roles and a phased implementation plan. The framework identified some of the following improvement areas:

· inconsistent decision-making

· missed optimisation opportunities

· inefficient use of resources

· unclear roles and responsibilities

· limited ability to measure success.

10. The framework defines core principles, property classifications, governance roles and a three-phase implementation plan to embed change.

11. The Auckland Council Group manages a complex and diverse physical asset portfolio valued at nearly $70 billion, forecast to increase to $108 billion by 2034. These assets include service properties such as parks, libraries, and community facilities, as well as non-service properties including land held for future use and properties acquired for urban renewal.

CCO Transition

12. On 12 December 2024, the Governing Body approved the Mayoral Proposal 2025/2026: Council-Controlled Organisation Reform, which included agreeing, transferring and integrating all of Eke Panuku’s functions to Auckland Council, and transferring and integrating Tātaki Auckland Unlimited’s economic development function to Auckland Council.

13. As part of the scope of transition, a new organisation structure will be established for those functions coming into council. The scope of the Group Property Framework is the implementation of a wider operating model to support the organisation design. The Group Property Framework can be adopted outside of the transition work.

Tātaritanga me ngā tohutohu

Analysis and advice

14. The Group Property Review was informed by workshops with stakeholders, cross-functional interviews, and process mapping with property staff from across the group. A cross-agency steering group was also established which included representatives from Auckland Council, Auckland Transport, and Eke Panuku.

15. The review identified six core challenges that currently limit the effectiveness of the Auckland Council Group’s property functions:

· Strategic misalignment and fragmented planning

· Unclear roles and responsibilities

· Disconnected and siloed systems

· Underdeveloped commercial and financial advice for property, including how to maximise use of property and plan for future needs

· Governance complexity

· Inconsistency in ways of working across property teams.

16. These findings highlight the need for a consistent framework that promotes standardisation, better supports informed decision-making, and enhances the value that the council’s property assets deliver to Aucklanders.

Proposed principles for managing property

17. The framework sets a consistent foundation for governance and decision-making, grounded in the following principles:

Proposed property principles
1. Property serves a purpose We hold property to deliver planned services or outcomes — not for its own sake.
2. Property has economic value Property carries financial and opportunity cost; value should be recognised in decisions.
3. Property needs to be actively used and managed to maximise public value Property should be managed to ensure every asset contributes to community outcomes or financial sustainability. a. Non-service property should deliver optimal financial return Where property is not required for service delivery, its best use is to generate financial return. b. Property has the potential for multiple uses Many properties can serve more than one purpose over time or simultaneously (including financial return). Co-location, shared use, or adaptive design should be actively explored to maximise public value.
4. Property needs change over time We plan and adapt our portfolio to respond to future demand and challenges.
5. Property is part of a shared portfolio Decisions must consider network, optimisation, and trade-offs across the group.
6. Categorisation and accountability matter Classification defines who decides, funds, and manages each asset.

18. These principles are supported by a shared language and a common set of definitions across the council group. This enables more consistent reporting, clearer funding responsibilities, and improved advice to elected members.

19. A phased implementation plan will support change management and help embed improvements over time (see below).

Anticipated benefits

20. Implementation of the framework is expected to deliver benefits, including:

· Improved service delivery by aligning property use with community and organisational needs

· More strategic decision-making / planning around acquisition, disposal and the use of property to meet current and future needs

· Stronger financial management, including clarity on the cost and value of property holdings

· Greater transparency and accountability in property decisions, especially through the clarification of roles and responsibilities and establishment of the Property Steering Group.

· More efficient processes, reducing duplication and delays

· Improved support for local boards, enabling more informed local decisions

· Better use of data to support long-term planning and optimisation

· Enhanced collaboration and consistency across the council and CCOs

· Aid in the implementation of the delivering differently programme, especially regarding the optimisation of local activity properties as determined by local boards.

21. A summary of the Group Property Framework is in Attachment A.

Tauākī whakaaweawe āhuarangi

Climate impact statement

22. The framework supports Auckland Council’s climate goals by embedding principles of sustainability and resilience into property decision-making. It encourages environmentally responsible asset management and long-term planning.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

23. The framework was developed in collaboration with key stakeholders across the council group, including Auckland Transport, Eke Panuku, Tātaki Auckland Unlimited, and Watercare. Its adoption will help streamline governance, improve coordination, and align all entities to common property management principles.

24. The Group Property Framework will integrate with other parts or work programmes of the group, such as the Asset Management Centre of Excellence and Delivering Differently.

25. The framework will support the CCO transition work underway, including providing clarity on roles and responsibilities within the new structure.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

26. The Group Property Framework has been developed with a strong emphasis on recognising the important role of local boards in the management and optimisation of community assets. With increased decision-making over local service properties, local boards play a critical role in ensuring property decisions reflect community needs and aspirations within a wider portfolio.

27. The framework supports increased local board decision-making by providing clearer categorisation of property types (e.g. service vs non-service, local vs non-local), streamlining delegations, and offering more consistent advice and support. In particular, the framework aims to improve how local boards are supported in making decisions about service property optimisation, such as potential reinvestment of proceeds from the sale of underutilised service assets, and balancing budgets through property-related levers.

28. To assist local boards with their property decisions, the framework includes recommendations for:

· A single point of accountability for service property optimisation

· Standardised financial advice and improved tracking of optimisation proceeds

· Improved support and reporting through matrix teams that include Governance, Finance, Leasing, and Portfolio Review staff.

Tauākī whakaaweawe Māori

Māori impact statement

29. The Group Property Framework aligns with Kia Ora Tāmaki Makaurau, Auckland Council’s Māori Outcomes Framework, by embedding principles and approaches that support improved outcomes for Māori across the property portfolio. The framework recognises the critical role property plays in delivering on Māori outcomes, including manaakitanga (enhancing community wellbeing), kaitiakitanga (guardianship of the environment), and tino rangatiratanga (enabling Māori to exercise self-determination).

30. As property assets are acquired, managed or divested, the framework emphasises the importance of engaging with mana whenua and mataawaka where appropriate. It supports earlier and more meaningful engagement to ensure Māori aspirations, values and mātauranga Māori are considered in property decision-making.

31. In particular, the framework contributes to the following Kia Ora Tāmaki Makaurau priorities:

· Kia ora te Whānau – Supporting connected, resilient, and thriving Māori communities through access to fit-for-purpose facilities and community spaces.

· Kia ora te Taiao – Integrating sustainable land and property practices that uphold Māori environmental values.

· Kia ora te Hononga – Strengthening partnerships with Māori by embedding collaboration into the council’s property planning and governance.

Ngā ritenga ā-pūtea

Financial implications

32. The Group Property Framework is expected to deliver significant long-term financial benefits by enabling a more strategic and transparent approach to managing Auckland Council’s property portfolio.

33. One of the key drivers for the development of a Group Property Framework is to better understand how property assets contribute to the council’s financial position — both in terms of supporting service delivery and in optimising value. By improving the clarity of roles, categorisation of assets, and decision-making processes, the framework supports a more disciplined, portfolio-level approach to property management.

34. An optimised property portfolio will strengthen the council’s balance sheet by:

· Identifying surplus or underperforming assets for potential divestment or optimisation

· Supporting reinvestment into higher-priority or revenue-generating assets

· Reducing holding costs and operational inefficiencies over time.

35. In addition, the framework provides a foundation for better financial information and reporting, including:

· Standardised valuation and revenue tracking for council properties

· Greater visibility of opportunity costs and asset performance

· More consistent advice to elected members on the financial implications of property-related decisions.

36. As the recommendations of the framework are adopted, it will enable elected members to make more robust and transparent investment, divestment, and service delivery decisions, improving the long-term financial sustainability of Auckland Council.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

37. There is a risk that the CCO transition and wider organisational changes may affect the delivery of the framework. This will be mitigated through working closely with the transition team and considering a phased implementation approach that is aligned with transition deliverables.

38. Establishing a Property Steering Group will further support consistency and alignment. The group will provide oversight of the framework’s implementation, help resolve cross-organisational issues, and ensure that interpretations of roles, processes and property classifications remain consistent across the council group. It will also serve as a forum for coordinating actions, sharing insights, and maintaining momentum throughout the phased rollout.

Ngā koringa ā-muri

Next steps

39. If the Revenue, Expenditure and Value Committee endorses the proposed property principles, staff will develop a phased implementation plan to give effect to these principles through the ongoing development of the Group Property Framework.

40. Staff will also establish the proposed Property Steering Group to provide oversight, ensure alignment, and support the rollout of the framework.

41. Further engagement will be undertaken with local boards to present the framework, seeking feedback where appropriate, and ensure ongoing alignment with their decision-making responsibilities.

42. Where relevant, staff will work with the CCO Transition team to align implementation activities with broader organisational changes.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Auckland Council Group Property Framework - Summary

Ngā kaihaina

Signatories

Authors

Chantelle Subritzky - Head of Value For Money

George Clarke - Senior Advisor

Authorisers

Anna Bray - General Manager Group Strategy, Transformation and Partnerships

Max Hardy - Director Group Strategy and Chief Executive Office

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

20 May 2025

Better Value Projects update and presentation of case studies

File No.: CP2025/08113

Te take mō te pūrongo

Purpose of the report

1. To update the Revenue, Expenditure and Value Committee (REVC) on the Better Value Projects programme’s progress to implement the ten better value principles and present case studies of three projects as part of our improvement activity.

Whakarāpopototanga matua

Executive summary

2. The Better Value Projects programme responds to a call for change in how the council group procures and effectively spends ratepayers’ money on projects. The programme has been structured around ten better value principles that have been communicated across the council organisation and group.

3. This month the programme has been formalising its approach, confirming in more detail the benefits, suite of workstream initiatives and expected outputs across the totality of the work. We are also expanding our communication and education approach so that all council group staff involved in decisions with fiscal implications are doing this through a value for money lens. This will also assist with the buy in, and culture change required at all levels of the council organisation and group, to ensure the ten principles are being considered in our day-to-day work.

4. A key element of the engagement strategy for the programme is with local boards and council-controlled organisations (CCOs). Several opportunities have been taken this month to engage with various stakeholders in these areas to raise awareness of the programme and begin work to change practice. This engagement is an integral part of the ongoing change, communications and delivery approach for the programme.

5. Three new case studies are presented this month, with further case studies to be presented to this committee on a bi-monthly cadence. Case studies continue to be a valuable learning exercise, focused on the adoption of the better value principles.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a. tuhi tīpoka / note the progress update on the Better Value Projects programme

b. whiwhi / receive the following case studies: 

i. Ōrewa walkway and seawall – reinstatement of the walkway and seawall (Attachments A) 

ii. Activating Auckland (A Happy Guide) – Finnish tourist ad campaign (Tātaki Auckland Unlimited) (Attachment B) 

iii. Te Wero Wynyard Crossing Bridge – repair and remediation work (Eke Panuku) (Attachment C). 

Horopaki

Context

6. The Better Value Projects programme responds to direction in the Mayoral Proposal for the Annual Budget 2025/2026 which identified how Auckland Council procures and effectively spends ratepayers’ money (particularly on capital projects) as an area where changes are needed. 

7. The programme has presented updates at recent meetings focused on the provision of case studies, the approach to expansion of the delivery principles across council group and local boards, and the criteria for selection of future case studies which will be presented to this committee every other month.

8. This report is focused on providing the committee:

· information on the programme delivery approach

· an overview of recent successes and areas of immediate focus for the programme

· examples of engagement activity across council group and how this is resulting in increased uptake of the delivery principles; and

· the presentation of three further case studies which we are using to inform our lessons and improve delivery practice.

Tātaritanga me ngā tohutohu

Analysis and advice

Better Value Projects programme plan and delivery approach

9. The programme has been established to obtain better value from our projects which will optimise our delivery to communities. The programme is primarily focused on integrating ten better value principles into project delivery across the council group.

Programme purpose

10. The purpose of the programme is to:

· investigate, design and implement process improvements with a focus on how the organisation procures and delivers projects; and

· drive a coordinated approach to procurement and effective spending improvements.

Programme outcomes and benefits

11. The investment of time and resource in this programme will result in:

· a demonstrable reduction in the perception and reality of wasted expenditure in investments

· an increase in transparency and financial accountability in relation to project delivery

· strengthened trust and confidence from Aucklanders and elected officials in the delivery of current and future projects.

How will we know we’ve been successful?

12. The programme is working on success measures. These need to be validated and baselined so that improvements can be measured. Example success measures that are being considered for this programme are:

· at least one full in-flight project proactively reported via REVC meetings utilising the project delivery principles, with clear changes and lessons identified

· at least 80 per cent of projects recorded in Sentient (the council‘s project management software) are consistently applying the project delivery principles

· 80 per cent of projects being assessed have been repositioned / adjusted or stopped due to the application of the ten delivery principles.

13. The programme is being delivered through three primary workstreams. These are:

· commercial / procurement practice

· design and engineering

· project practice and governance.

14. All three workstreams are focused on delivering the following outputs:

· clear processes, tools, standards and methodologies across a range of disciplines (project management, procurement, design, consenting etc.)

· improved portfolio and project governance to aid accountability for value for money outcomes and improved holistic decision making around investments

· improved capability through significant education and training in critical areas through the duration of the programme

· reviewing critical systems (e.g. asset management) to ensure they are fit for purpose in enabling value for money investment delivery

· assessing key resourcing requirements in procurement, design and project delivery disciplines to ensure we focus on in-house capability before sourcing external expertise

· improving our lessons learned practice and enhancing our lessons library in relation to project delivery through the ongoing use of case studies

· enhancing internal auditing practice to provide continuous assessments of value.

15. The programme commenced in February 2025 and delivery is planned through three tranches. The programme is estimated to hand over to business as usual in June 2026.

16. The programme is also focusing on broad communication and education across the council group on the delivery principles and encouraging all staff involved in decision-making with fiscal implications (not just those working on projects) to utilise the principles. This will also be important to support the culture change anticipated for council group resulting in an increased value for money focus.

Recent successes and areas of immediate focus

17. The programme has quickly focused on certain areas deemed to either be ‘quick wins’ or of the most significance to get underway to deliver the long-term benefits of the programme. We have already had some successes:

· Ready contracts has now been rolled out as the new all of council procurement system. All contracts will require supplier performance to be captured as part of BAU. Reporting is being set up to ensure this is shared across Auckland council group with this visibility available for all supplier selections in the future.

· The ten better value principles have been integrated into project management training as part of the curriculum leading to an output document verifying decision making.

· Conversations at the tender stage are being had with our consultants to drive value in providing solutions rather than award winning outputs.

· Delivery teams are focusing / highlighting on value for money through savings leaderboards / dashboards for projects

Engagement with Local Boards

18. The Better Value Projects programme has been presented to the Local Board Chairs Forum and the Local Board Members Forum. The programme will provide regular updates to these forums and support new members through education around the delivery principles in the induction process post local elections.

Engagement with CCOs

19. In April, there has been further engagement with CCOs on the importance of the better value principles. Auckland Transport (AT) have been a priority focus given their large capital delivery portfolio. AT report that:

· The principles are widely shared and communicated to the capital delivery, procurement and finance teams within AT. These principles are part of AT’s recent Procurement Strategy documents.

· Better value principles are shared in AT supplier briefing sessions and industry forums as guiding principles. AT will be sharing this through the Consulting and Engineers forum and Civil Contractors NZ industry forums. Some principles like setting maximum prices, use of standard designs and continuous value assessment at every stage are relevant to suppliers who will be working in collaborative delivery models like Design and Construct and Early Contractor Involvement.

· For supporting focus on local suppliers, AT has new initiatives like Kake Mai Programme to select Māori suppliers who are emerging suppliers like Council’s Emerging Supplier panel. AT has also recently completed a market exercise which resulted in shortlisting local and small to medium sized suppliers into the panel in support of this principle. There is a good mix of Tier 2 and Tier 3 suppliers in this panel to support local suppliers.

· Procurement teams from AT and Group Shared Services are collaborating to share the lessons and actions taken in the council which can be used or shared with AT delivery teams. There was a collaboration meeting between the council team and Finance and Procurement in AT to share what the council is doing in support of the principles. Further collaboration will be undertaken with the capital delivery leads.

Case studies

20. Three case studies are to be presented to the committee this month. These are:

· Ōrewa sea wall

· Activating Auckland (A Happy Guide)

· Te Wero Wynyard Crossing Bridge (please note you may also have recently seen a post-project review in relation to this item)

21. Lessons from these case studies have been built into the Better Value Projects lesson library and continuous improvement practice.

22. A communication went out to elected officials on 2 May 2025, after our discussion on the criteria for selection of future case studies. We have also engaged the business, and our council group colleagues, and have put several projects through the agreed criteria. We will next be reporting to this committee in July with further case studies for presentation.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23. Emission reductions and climate impacts will be considered as improvements from the Better Value Projects programme as the ten principles are progressed.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24. All council group entities (excluding the Auckland Future Fund) currently deliver capital projects and spend significant sums of public funds and are therefore included within the scope of delivery for the Better Value Projects programme.

25. Engagement with CCOs is continuing and we will use group mechanisms shared services, strategies and policies to engage with the delivery principles and contribute to improvements in practice and outcomes.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

26. Local boards commission and oversee a significant capex programme and operational expenditure. Utilisation of the Better Value Projects delivery principles will enable well informed fiscal decisions with a balance of focus on expenditure and value derivation.

27. Engagement with local boards is a key component of the Better Value Projects programme. The team have already presented on the programme and the delivery principles to local board chairs and the online members forum. Continued engagement with local boards is planned within the programme.

Tauākī whakaaweawe Māori

Māori impact statement

28. Council continues to work with mana whenua to ensure efficient and meaningful engagement that leads to projects that have benefits for both mana whenua and the wider community including value for money.

29. For the council to improve both value for money outcomes and outcomes for Māori, high quality engagement with mana whenua early in the project scoping and problem definition stage is critical.

30. Māori engagement and opportunities are being actively pursued in the operational workstreams.

31. The programme team is working with a Māori outcomes lead to review further opportunities and ensure that the Better Value Projects programme achieves Māori outcomes.

Ngā ritenga ā-pūtea

Financial implications

32. Improvement of our procurement and capital delivery processes is expected to result in improved value for money for Auckland ratepayers. Reducing the number and size of project cost overruns will reduce financial risk and help improve the council’s financial resilience.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33. As part of detailed programme planning, the risks have been updated. The key risks and mitigations include:

Risk	Impact	Mitigation
Misaligned stakeholder expectations	This programme has an extremely wide range of interested stakeholders. There is a risk that there are differing views of success and what ‘wasteful’ spending is or is perceived to be.	· clear programme plan  · early and ongoing alignment of expectations  · transparent communications
Case study selection does not lead to critical lessons	Case studies are a critical tool to make transparent the lessons and improvements required in project planning and delivery. If the wrong case studies are prioritised, then learning opportunities will be missed.	· A set of prioritisation criteria has been endorsed by the committee (REVC).  · All case studies will be assessed against the criteria before commissioned to undertake the work.
The scope of the programme is too large	The scope of the programme has already expanded, originally being focused on capital projects. While there are benefits of extending scope, we need to be careful to ensure the programme has clear deliverables it can achieve to realise benefits and that it is not seen as the ‘silver bullet’ for all procurement, project and operational delivery issues.	· clear programme plan with scope identified  · escalation of any further scope changes to steering group  · performance monitoring of the programme and adjustment of priorities
Insufficient programme resourcing and potential key person risk	There is a dedicated programme manager, but all other resources are currently undertaking programme work on top of their regular day job. For some roles, like the Business Lead, this is a substantial amount of extra work. Workstreams have a substantive amount of work to be delivered in a relatively short timeframe.	· continue dedicated programme resources · backfill substantive roles where possible  · continual monitoring of what is achievable and reprioritising programme work as required
Insufficient change management	A large component of the success of this programme is dependent on changing mindsets and behaviours. If we do not address this sufficiently, it will impact the likelihood of long-term, sustainable change.	· requested resource for dedicated change management  · focus on change management at the programme level for org wide opportunities, as well as at the individual initiative level

Ngā koringa ā-muri

Next steps

34. Next steps for the programme include driving some of the changes in the business through process and delivery and prepare a pipeline of case studies to enhance the lessons learned library and provide some real change across the projects.

35. Case studies will continue on a bi-monthly cadence.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Ōrewa seawall case study
b ⇨	Activating Auckland case study
c ⇨	Te Wero Wynyard Crossing Bridge case study

Ngā kaihaina

Signatories

Authors

Hannah Thipthorpe - Programme Manager, Better Value Projects

Mike Lichtwark - Executive Officer, Group Finance

Mark Townshend - Business Lead, Better Value Projects

Authoriser

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

20 May 2025

Group Shared Services Quarterly Update (May 2025)

File No.: CP2025/08093

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the implementation of Group Shared Services for Auckland Council Group.

Whakarāpopototanga matua

Executive summary

2. In June 2024, a Group Shared Services (GSS) construct was formally established in response to decision making for the Long-term Plan (LTP) 2024/2034, seeking to consolidate and reduce duplication with enabling support services across the council group, delivering measurable benefits to ratepayers.

3. GSS reports progress on a quarterly basis to the Revenue, Expenditure and Value Committee. The 18 February 2025 paper provided an update on programme progress to date (ECPCC/2025/7), to deliver all business cases for the 1 July 2025 deadline. The paper for this agenda highlights programme progress since the last update (Attachment A), and value delivered to Aucklanders by GSS in the meantime (Attachment B). A comprehensive year end programme delivery report will be provided after the 1 July deadline, at the next scheduled GSS quarterly update to this committee on 19 August 2025.

4. The GSS business is functioning well, particularly in the more established customer base of Auckland Council, Eke Panuku and Tātaki Auckland Unlimited (TAU). Delivery of committed benefits for year 1 of the LTP are on track, employee engagement remains strong, and work is focused on building the pipeline of business cases that will enable progress to accelerate. While the transition of further services to a GSS model has been slower than optimal, this is primarily a result of the significant workloads within each customer (CCO) entity and the detailed considerations that must be worked through for each entity to reach consensus decisions. Work is however underway to meet the Budget Committee decisions made on 4 December 2024 regarding GSS i.e. to accelerate progress and complete as many business cases for all in-scope functions by 1 July 2025.

5. To date, three business cases have been approved by the GSS Board. The People Services Business Case (Project Galaxy) was approved in July 2024. The Corporate Services Business Case and the Procurement Business Case were approved on 14 April 2025. Work has now begun to consider the implementation requirements for the decisions supported in the business cases. Detail on all GSS Board decisions can be found in the summary of information report in this agenda, noting that GSS Board summary agendas and the full meeting minutes will now be included in that section of the agenda for the Revenue, Expenditure and Value Committee each month.

6. The next two months through to 1 July 2025 are critical for GSS to complete the remaining three business cases, being the Customer and Digital Business Case, the Data Business Case and Technology Business Case. Approval of these business cases will then allow the team to shift to executing the work required to achieve the indicated benefits, based on critical priorities and where real value can be derived.

7. Some risks remain in relation to delivering GSS expected benefits, including timeliness to access entity information required for business cases and managing complexity and volume sufficiently to support decision making and implementation to realise benefits (see Attachment A for full description and mitigations). To mitigate the risk of insufficient time to consider all remaining business cases before the 1 July 2025 deadline, the 3 June GSS Board will focus on the Customer and Digital Business Case and the Data Business Case only. The remaining Technology Business Case will be considered at the 7 July GSS Board meeting, with decisions on all business cases on track to be made early July, to inform the 19 August Revenue, Expenditure and Value update.

8. Business case implementation is considered as part of business case development. The GSS Board have agreed to a horizon approach for implementation of business cases decisions, allowing work to be planned to horizons that align to the (different) circumstances and priorities of each entity and enabling a consensus decision regarding the overall benefit and intent of business case objectives.

9. A horizon approach to implementation requires analysis and consideration of when benefits and efficiency will be realised. This is being considered as part of business case development and advice to the GSS Board, to ensure effort and time required to evidence these decisions is balanced with the required timeframe to realise the benefits of the intent of the GSS model. Further analysis and detail on this will be shared in the 19 August Revenue, Expenditure and Value committee once a decision has been made on all business cases and more is known about the requirements of implementation.

10. GSS continue to deliver value to Aucklanders alongside business case development. Recent examples are included in Attachment B and outlined below:

· the GIS Aerial Imagery upgrade, resulting in potential to deliver up to approximately $30m of value to Auckland’s economy

· the in-house community recovery data analysis achieving $150,000 in cost avoidance to Aucklanders

· cost avoidance of circa $5.68m opex over a proposed ten-year lease period through location of Auckland Emergency Management in Auckland House

· cost avoidance of circa $12m ($2.7m per year) over a ten-year period through renegotiation of the GIS license for Auckland Council

· Watercare Services Limited cost avoidance of $130k over a two-year period for the Zscaler cyber security licence by using the lower negotiated Auckland Council rate

· quick turnaround on standing up the Vote Aucklanders Website, delivering the website in 6 weeks rather than the standard 3–6-month development period through rapid prototyping of an in-house approach.

Group Shared Services are happy to present more information on these examples as part of demonstrating better value investment as a case study at a future Revenue, Expenditure and Value Committee.

11. The estimated total annual cost (and opportunity) across council group of the functions and services potentially in scope for GSS is circa $430m. The total annual cost of confirmed GSS functions currently established and in operation is circa $230m.

12. The GSS programme office that is tasked with mobilising the eco-system necessary to mark the success of implementation is currently tracking within budget, with a spend to date of $1.31m against a total FY 2024/2025 budget of $2.3m.

13. GSS continue to work collaboratively with each entity within the Council Group and acknowledge the input of each entity in the development of these business cases to date.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpoka / note the update and provide any feedback on progress to date and next steps

b) tuhi tīpoka / note that the details of decisions made by the GSS Board are recorded in the summary of information report on this agenda

c) whakamihi / thank Group Shared Services kaimahi for their efforts to realise benefits of the Group Shared Services programme for Aucklanders.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	GSS Programme Update
b ⇨	GSS Value Delivered

Ngā kaihaina

Signatories

Author

Taryn Muir - Executive Officer

Authorisers

Richard Jarrett - Director Group Shared Services

Helen Robinson, Independent Chair Group Shared Services

Ross Tucker - Group Chief Financial Officer

Resolution Number	Item	Status
ECPCC/2025/34	Better Value Projects update	Direction on the Better Value Projects programme has been incorporated into CCOs Statements of Intent. Case studies continue to be progressed on a bi-monthly cadence, with three presented to the committee this month.
ECPCC/2025/38	Confidential: Variation for the central, northern and southern operations and maintenance contracts	The information in the Council’s system has been updated to include the additional values approved by the committee, for the initial term till 30 June 2026, in line with the resolutions made by the committee. The area operations teams will complete the annual contract reviews to adjust the price schedules for consumer price index and any amendments to scheduled items that will take effect from start of next financial year.

Revenue, Expenditure and Value Committee

20 May 2025

Summary of Revenue, Expenditure and Value Committee information memoranda and briefings (including the forward work programme) - 20 May 2025

File No.: CP2025/06810

Te take mō te pūrongo

Purpose of the report

1. To note the progress on the Revenue, Expenditure and Value Committee forward work programme appended as Attachment A.

2. To whiwhi / receive a summary and provide a public record of memoranda or briefing papers that have been distributed to Revenue, Expenditure and Value Committee.

Whakarāpopototanga matua

Executive summary

3. This is a regular information-only report which aims to provide greater visibility of information circulated to Revenue, Expenditure and Value Committee members via memoranda / briefings or other means, where no decisions are required.

4. The following information items have been distributed:

Date	Subject
13/05/2025	3 March 2025 Group Shared Services Board meeting agenda summary
13/05/2025	3 March 2025 Group Shared Services Board meeting minutes
13/05/2025	7 April 2025 Group Shared Services Board meeting agenda summary

5. This document can be found on the Auckland Council website, at the following link:
http://infocouncil.aucklandcouncil.govt.nz/

· at the top left of the page, select meeting / Te hui “Revenue, Expenditure and Value Committee” from the drop-down tab and click “View”;

· under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

6. Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary. Committee members should direct any questions to the relevant staff.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) whiwhi / receive the Summary of Revenue, Expenditure and Value Committee information memoranda and briefings (including the forward work programme) – 20 May 2025 report.

b) tuhi tīpkoa / note the progress on the 2025 forward work programme appended as Attachment A of the agenda report.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Revenue, Expenditure and Value Commitee Forward Work Programme - 20 May 2025
b ⇨	3 March 2025 Group Shared Services Board meeting agenda summary
c ⇨	3 March 2025 Group Shared Services Board meeting minutes
d ⇨	7 April 2025 Group Shared Services Board meeting agenda summary

Ngā kaihaina

Signatories

Author	Phoebe Chiquet-Kaan - Governance Advisor
Authoriser	Ross Tucker - Group Chief Financial Officer

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Greg Sayers
Members	Mayor Wayne Brown (Ex-officio)	Cr Daniel Newman, JP
	Cr Chris Darby	Cr Sharon Stewart, QSM
	Cr Julie Fairey	Houkura Chair David Taipari
	Houkura Member Tony Kake, MNZM	Cr Ken Turner
	Cr Kerrin Leoni	Cr Maurice Williamson

Purpose of the report

Executive summary

Attachments

Signatories

Purpose of the report

Executive summary

Attachments

Signatories

Exclusion of the Public: Local Government Official Information and Meetings Act 1987