If planned funding remains in Dunedin City Council budgets, the one-off $100,000 increase will be followed by $30,000 annual increases until 2026-27.
That would take the total from $300,000 to $550,000.
The pool of money is for what the council calls place-based groups, which are typically area networks or small groups of volunteers.
Cr Steve Walker, who proposed the increases, said the council got tremendous value from the money it put into place-based groups.
The pool was over-subscribed, he said.
Deputy mayor Christine Garey said she had historically been sceptical about the value offered by such groups, but she now considered them pivotal for community wellbeing.
Mayor Aaron Hawkins and Cr Carmen Houlahan said the council was supporting community development, while allowing neighbourhoods to decide for themselves projects that would work for them.
Cr Lee Vandervis said the increased funding was heading to a nebulous cause.
South Dunedin Community Network chairwoman Eleanor Doig said the council’s move was fantastic.
Organisations such as hers knew their areas and provided a ‘‘very real resource’’ for the city.
Crs Vandervis, Sophie Barker and Jim O’Malley voted against boosting the funding.
