North Shore local boards set to lose millions

John Gillon from John Gillon - Kaipatiki Local Board

Auckland Council is currently considering a new funding model for local boards that will strip investment from the North Shore. Last week the Kaipātiki Local Board unanimously opposed it and pointed out that it may be illegal.

The new model moves away from funding local boards based on current assets and services, and instead redistributes funding based on a formula of Population, Deprivation and Land Area (80:15:5). This new formula would effectively strip millions of dollars from both the Kaipātiki Local Board and Devonport-Takapuna Local Board and give it to other local boards, meaning less investment into our area and possibly the closure of public assets (buildings, playgrounds, bridges, parks, etc) or cuts to local services. Both local boards already don’t receive adequate funding to maintain assets, so this is a real concern.

What we say:
Attached is our feedback on the proposal and an alternative fairer funding model that we have put forward. Instead of the Governing Body (Mayor and Councillors) receiving all income and allocating a small amount to be shared between the 21 local boards, we believe that each local board should instead keep a percentage of the rates raised from its own area, and then pay a levy to the Governing Body to cover regional expenses. We have provided figures showing that if the levy was set at only 33% of the rate take, that every local board would be better off and able to fulfil their obligations under the law. The Governing Body would still receive the lions’ share of 67% of rates. We have also suggested that any revenue generated from fees or charges (for example, Leisure Centre fees) should be allocated to the respective local board in addition to the rates amount.

We have also pointed out that it is potentially illegal for the proposed funding formula to not factor in the rates collected and the revenue generated in a local board area. The Local Government (Auckland Council) Act 2009 clearly states that the funding formula must have regard to both rates and revenue derived from each local board area. From what we can tell, these have not been considered, let alone included, in the proposed funding formula.