Wayne Brown agrees to help local boards

A wave of relief has swept across Auckland’s 21 local boards after they were offered a temporary reprieve from cost pressures.

The local boards have united in a letter to Auckland Mayor Wayne Brown, strongly objecting to the expectation that they absorb a $17.6 million budget shortfall.

Auckland Council's proposed cost-cutting measures are tied to the Fairer Funding initiative – a scheme intended to ensure more equitable funding across Auckland's local boards.

The Ōtara-Papatoetoe Local Board was the hardest hit, facing a deficit of $1.3 million.

Chair Apulu Reece Autagavaia said he was "super happy" to hear that local boards wouldn't need to seek additional funding for the cost pressures this year.

The mayor responded after receiving the letter, dated 10 March, from the combined chairs voicing their concerns.

“The mayor replied, saying he had directed staff to respond to the letter just days after we sent it," Apulu said.

"Then, just yesterday [Monda], staff responded, stating that local boards would not need to look for funding for the cost pressures."

The news provided temporary relief, but the chairs remain concerned about next year’s financial outlook.

Ōtara-Papatoetoe local board chair Apulu Reece Autagavaia is "super happy" that local boards will not need to seek additional funding. Photo/PMN News Mary Afemata

"We don't have to find cuts, but we'll have to have the same discussion next year because it's built into the LTP (Long-Term Plan) in terms of the funding," he says.

"We're super happy about this financial year, but again, it's likely we'll have to have this discussion all over again for next year."

While most, if not all, chairs wanted to ensure they are equitably funded, it has also meant that some local boards have lost out in funding or being able to cover rising costs, Apulu says.

He says the announcement provided more time to consider a fairer solution ahead of next year's budget.

“One of the issues is that the full financial picture of each local board is hard to get because there are 21 boards, and there’s only so much staff can do. It’s really difficult for us to make decisions on where to make savings or efficiencies without the full picture.”

With limited staff and 21 local boards, getting the complete financial picture is tough, making savings decisions even harder. But for now, services remain safe from cuts. Photo/Ōtara Papatoetoe local board Facebook

A portfolio review is expected to provide clearer insights, but Apulu says it will be ready next year.

He says this will assess the different assets in each board and provide advice, but for Ōtara-Papatoetoe, staff won’t be able to do that until next year.

“It’s really hard for us to make the savings the mayor wants us to make when we don’t have the right information to make those decisions.”

Auckland’s Mayor Wayne Brown recently told LDR that the transition to the Fairer Funding Model has to be better managed, and it will be.

Listen to Apulu Reece Autagavaia's full interview below.

"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."

Ross Tucker, Auckland Council’s Group Chief Financial Officer, says, "Auckland Council is embarking on a challenging transition to an equity-based funding model that will see Local Boards empowered with more budget autonomy and greater budget responsibility.

“Following discussions with the Mayor, Council staff contacted Local Board chairs on 17 March to advise that the coming financial year, 2025/2026, will now be treated as a transition year. This will address cost pressures without any reduction or redistribution of the proposed fairer funding top-ups for 2025/2026.”

Tucker says local boards will not be required to make service level changes for the coming year. Instead, budget mitigations will be managed through other means in the Annual Plan process.

Starting in 2026/2027, staff will collaborate with Local Boards to reduce cost pressures, increase revenue, and develop long-term solutions.

LDR is local body journalism co-funded by RNZ and NZ On Air.