Auckland Council is required to adopt a local boards funding policy as part of its long-term plan. This sets the governing body’s formula for allocating funds to boards.
The formula must allocate funds in a way that provides an equitable capacity for the local boards to enhance the wellbeing of the communities they serve.
The 2015-2025 Long-term Plan funding policy for local boards has the following characteristics:
Locally-driven initiatives (LDI) funding, which is discretionary. The governing body determines a total LDI funding envelope, and it is allocated to local boards based on population, size of the local board area and the level of deprivation. (With the exception of Waiheke and Great Barrier islands, where an adjustment is made because of their low populations) . Examples of LDI expenditure include local events, community grants, increases to library opening hours, feasibility studies, youth connections, and local playground enhancements. The local board has discretion to move funds within and across activities.
Asset-based services (ABS) funding where:
i) operating expenditure is determined on the basis of the costs to run the assets in a local board area. This primarily supports financing, renting, and maintaining assets, as well as the staff costs associated with delivering services from those assets (i.e. library, pool, community and leisure centre staff). Examples include funding for standard library opening hours, maintenance of local parks etc. The local board has the governance oversight of these assets and can change service levels over time.
ii) Capital expenditure is determined based on regional priorities and asset management plans. Examples include funding for a new swimming pool or renewal of a library.
Governance services funding (also called administration costs) which is primarily driven by the number of members covering members remuneration (set by the remuneration authority, independently of Auckland Council) and Local Board Services costs
Auckland Transport ring-fences $10 million for local boards to fund local transport initiatives. This funding is allocated across the local boards on the basis of population (again, with the exception of Waiheke and Great Barrier islands where an adjustment is made due to their low populations).
Each local board has the ability to propose a targeted rate to its community, to fund projects, improve service levels, or for new assets.