Auckland’s 21 local board chairs have united in a letter to Mayor Wayne Brown, objecting to an expectation that they absorb a $17.6 million budget shortfall.
The board chairs have unanimously rejected the council’s proposed cost-cutting measures which are tied to the Fairer Funding initiative — a scheme intended to ensure more equitable funding across Auckland’s local boards.
The letter, dated March 10, highlighted that significant cost pressures were beyond the local boards’ control and more than half ($9.1m) of the deficit resulted from changes in the Facilities Scheduled Maintenance Contract.
The letter stated: “Local Boards have absolutely NO control over this budget which is negotiated and decided upon by officers and Governing Body members. This has nothing to do with Fairer Funding. It is cost shifting without discussion.
“At the November 12, 2024 meeting of Revenue, Expenditure and Value Committee, all decisions were made without any reference to any Local Board when deciding on the future of the Full Facilities Contract.
“Having made that decision and council budgeting accordingly, it is disingenuous to now expect Local Boards to pick up the tab, not just for this year but going forward indefinitely.”
The impact of this transfer was also highly disproportionate, the chairs agreed.
Under the Programmed provider, Albert Eden faced $2.5m in total cost pressures, with $2.32m of that for scheduled maintenance. Puketapapa had $1.66m in cost pressures, of which $1.39m was for scheduled maintenance. The Whau faced $1.8m in cost pressures, with $1.62m allocated to scheduled maintenance.
Despite the promise that no local board would be worse off under the Fairer Funding model, the chairs say the reality was that many boards, including Ōtara-Papatoetoe, were experiencing serious fiscal shortfalls.
“At this point, each of us is facing a shortfall of over a million dollars,” Apulu Reece Autagavaia said.
The chair of the Ōtara-Papatoetoe Local Board said Ōtara-Papatoetoe was the hardest hit, facing the largest deficit, followed by Māngere-Ōtāhuhu and Henderson-Massey.
“So Ōtara-Papatoetoe $1.3 million, I think Māngere-Ōtāhuhu has to find a million dollars, and Henderson [is] just under a million. And so the staff right now, they’re trying to find savings, a way to bridge that gap, the hole.”
Apulu said that of the Ōtara-Papatoetoe Local Board’s $16m budget, more than 90% was allocated to contracts and asset management, leaving just $1.6m in discretionary funds. With a $1.3m shortfall, only $300,000 was available for next year’s expenses.
“All of the local boards have seen that this is not good enough; that we’re not happy with the way things have turned out. And so we’ve all agreed to a letter that was sent to the mayor and councillors.”
One option, he said, was that the mayor and councillors looked at other solutions, such as increasing rates.
“I think a 0.6% increase would cover the hole we’re looking at,” Apulu said, but acknowledged the mayor and councillors opposed further rate hikes.
Apulu said the viability of pools, libraries, leisure centres, and events like the Santa Parade were all being questioned.
Dr Will Flavell, Deputy Chair of the Henderson-Massey Local Board, said funding imbalances have existed across Auckland’s 21 local boards since the formation of the Supercity, with funding previously based on the assets and services provided by the old councils before they merged.
“For example, Henderson-Massey, we were the heart of the former Waitakere City Council. So we had a number of council facilities and assets and services in our area.
“There’s absolutely nothing to cut back anymore, and, with the loss of services, it’s connected to a loss of jobs, and that’s so harmful to our community in West Auckland. Man, we need services out here. That’s vital for our communities.”
In response, Auckland’s Mayor Wayne Brown said: “The transition to the Fairer Funding Model has to be better managed, and it will be. As we navigate teething problems with the implementation of a new equity-based funding model, I want the organisation to try and absorb the current cost pressures.
“We want to empower our local boards and communities by delegating greater decision-making powers and budgets. But, let me be clear: Accountability goes hand-in-hand with autonomy. Everyone is in a tough situation right now. We’re all facing cost pressures, including Auckland households. I expect local boards to be increasingly disciplined and financially responsible.”
LDR is local body journalism co-funded by RNZ and NZ On Air.
