Many of you will know that the Dunedin City Council decided at its June meeting to stop the increase in funding for place-based community groups that had been approved during the Council’s ten-year plan deliberations 31 May – 4 June 2021.

We were very disappointed by this decision as it undermines a hard-won commitment by the Council to support and invest in the invaluable community-led development done at local level across our city.

Public Forum on 25 June

At the start of the meeting, representatives from several community groups spoke in the Public Forum. They painted a clear and compelling picture of the critical work that place-based groups do in building strong, healthy, engaged communities and demonstrated the value of the Council’s investment in grassroots community building across Ōtepoti.

Ignorance about what place-based community groups do
In the debate that followed, many councillors said they didn’t know the background to decisions about the place-based community fund and didn’t feel they had enough information about what place-based groups do, how they work and how they relate to the Dunedin City Council.

In our view, this is surprising as a number of reports and submissions have gone to Council over at least the last nine years. We also note that councillors have many opportunities to attend community events, and most place-based groups have newsletters and engage strongly with their communities. Substantial detail is also held in funding applications, budgets and the reporting requirements that groups meet as part of their funding agreements.

Concerns about operational funding

Some councillors commented that staff and trustees who represented place-based groups were not the “real community”, and questioned the provision of funding for operational purposes. This perspective is out of sync internationally with the fundraising sector advocating strongly, and with growing momentum, for funders to consider operational costs a critical and non-negotiable part of any service or project delivery.

We deeply value the difference that place-based groups can make when they have adequate resourcing for staff and operational stability – and we fear that the community ecosystem will collapse if this significant funding pool is frozen, reduced or discontinued.

The cost of this decision

As well as freezing the previously confirmed annual increase for place-based community funding, the Council agreed to further consider the existing resolution after the Grants Review has been completed as part of the nine-year plan (2025-2034).

The existing resolution increased the place-based funding pool from $300,000 in 2020/21 to $550,000 per annum by 2026/27, with a one-off increase of $100,000 in 2021/22 followed by five annual $30,000 increases until 2026/27. The existing resolution also commits the Council to keep the funding pool at $550,000 per annum from 2026/27 until the end of the 10-year plan in 2030/31.

The fund is currently sitting at $460,000, having increased by $160,000 since the existing resolution was passed.

If there is a future decision to continue the freeze on funding or to reduce or remove it, the loss to our community sector will be substantial and exponential. A $30,000 annual increase to this fund barely addresses the current inflationary environment and cost of living crisis that is increasing the demands on our grassroots groups and the communities they serve.

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What we’re doing

Ōtepoti Community Builders will continue our work to connect people across the community and arts sectors, and to share your voice and community perspectives wherever possible to create change and equity.

• We’re developing a postcard campaign – more on this later

• We’ve started planning our third Funding for Change hui for later this year (date TBC)

• We’re working on a thought piece about the history, impact and future of the Place-Based Community Fund.

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What you can do

• Add councillors to your mailing lists (contact info here)

• Invite them to your events 

• Invite them to visit your facilities and projects

• Think about who in your community you would like to see at the Council table after next year’s election and how we can collectively support those people to stand

• Take the opportunity (as capacity allows) to speak at Council public forums about the work you’re doing and the needs and dreams of your community