Auckland’s struggling local boards unite in letter to Wayne Brown

Auckland’s 21 local board chairs have united in a letter to Mayor Wayne Brown, objecting to the expectation that they absorb a $17.6 million budget shortfall.

The board chairs have unanimously rejected the council’s proposed cost-cutting measures tied to the Fairer Funding initiative - a scheme intended to ensure more equitable funding across Auckland's local boards.

The letter, dated 10 March, highlights that significant cost pressures are beyond the local boards’ control and that more than half ($9.1m) of the deficit results from changes in the Facilities Scheduled Maintenance Contract.

The letter states, “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 12th 2024, meeting of the 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 chairs agree that the impact of this transfer is also highly disproportionate.

Under the Programmed provider, Albert Eden faces $2.5m in total cost pressures, of which $2.32m is for scheduled maintenance. Puketapapa has $1.66m in cost pressures, of which $1.39m is for scheduled maintenance. The Whau faces $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 is that many boards, including Ōtara-Papatoetoe, are experiencing severe fiscal shortfalls.

"At this point, each of us is facing a shortfall of over a million dollars," Apulu Reece Autagavaia says.

The chair of the Ōtara-Papatoetoe Local Board (OPLB) says Ōtara-Papatoetoe is 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 says that of the OPLB's $16m budget, over 90 per cent is allocated to contracts and asset management, leaving just $1.6m in discretionary funds. With a $1.3m shortfall, only $300,000 is 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."

All the local board chairs signed a letter to Mayor Wayne Brown asking for a fairer solution to the $17.6 million budget shortfall, which is disproportionately affecting their communities.Photo/Auckland Council

He suggests that the mayor and councillors consider other solutions, such as increasing rates.

“I think a 0.6 per cent increase would cover the hole we're looking at,” Apulu says, but acknowledges the mayor and councillors oppose further rate hikes.

Apulu says the viability of pools, libraries, leisure centres, and events like the Santa Parade are all being questioned.

Dr Will Flavell, Deputy Chair of the Henderson-Massey Local Board, says 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.

The local board chairs warn that the viability of community services, such as pools, libraries, leisure centres, and events like the Santa Parade, is at risk due to the budget shortfall. Photo/Auckland Council

"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 says, “The transition to the Fairer Funding Model has to be better managed, and it will be. As we navigate teething problems with implementing 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.