Auckland Mayor Phil Goff has promised investment in wages, infrastructure and tackling climate change in his annual budget proposal.

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The annual Budget proposal, which was received today by Auckland Council’s Finance and Performance Committee, details a $2.7 billion capital spend into extending the living wage to cleaners, reducing public transport fares for children and environmental projects.

There was also a need for the council to lead by example on climate change, Mr Goff said.

"Following our climate emergency declaration in June, we are taking further steps to cut our carbon emissions in this Budget before more substantive changes once we agree on the climate action framework."

In last year’s 10-year Budget, $130 million was invested in a climate response fund and coastal asset management.

"However, we can't afford to wait to take action," Mr Goff said. "I am proposing urgent initiatives to demonstrate the council’s leadership in taking measures to cut its own emissions.

"Under my proposal, we will cut our emissions by nearly 20 per cent by moving swiftly to decarbonise our vehicle fleet and shifting to sustainable energy across our community facilities."

The proposal includes $2.7 million to expand tree planting activities throughout the region by 50 per cent, with at least 1.5 million mainly native trees set to be planted over the next three years to absorb carbon emissions.

Mr Goff said work is also being done in the public transport sector, including reducing traffic congestion and emissions, and reducing costs for children using the services.

"Our work on climate change will complement the more than $700 million we are investing in water and environmental projects, as well as the $57 million we will spend on land for parks and open spaces over the 2020/2021 year," he said.

Other Mayoral Budget Proposals include progressively extending the living wage to council-contracted cleaners and investing $500,000 a year over the next three years to work towards ending homelessness in Auckland.

"Making sure our city is looking after our lower-paid and more vulnerable citizens is something that is critical to our being an inclusive city," Mr Goff said.

"Having already ensured a living wage for council staff, I intend to extend the living wage to contracted cleaners, to ensure that those who do an honest week’s work are paid fairly and can provide for themselves, their children and families.

"We will also continue to work with the government, Housing First Auckland and other NGOs so that no one is forced to sleep rough, in vehicles or emergency accommodation because no alternatives are open to them."

Mr Goff said his proposal was focused on investing in infrastructure and services, as well as showing leadership on climate change, but he's also gearing up for Auckland to host the 36th America's Cup, APEC, Te Mataini and other events.

"2021 is going to be the most exciting year for our city since we hosted the Rugby World Cup almost a decade ago. This budget proposal will ensure we are ready for 2021 and also setting up for the longer term," he said in a statement today.

"It's about maximising the value of every dollar we spend to ensure we can meet the challenges our city faces and seize the opportunities available to us.

"This budget proposal provides continuity, stability and certainty as we enter a new decade and a new phase of development for our city."

Formal public consultation will take place between February 21 and March 22 next year. During April and May, local and regional workshops will be held to discussion consultation feedback and several finance and performance workshops will be held to discuss and refine the Budget.