City council locks down yearly budget, sets rates

Invercargill rates for the next year are lower than what was expected, and the Invercargill City Council’s investment company could be the one to thank.

The city council has approved its 2017-18 budget with a rates rise of 3.9 per cent - lower than the 4.7 per cent proposed at the start of consultation.

This month, the council received notice of an increased dividend of $550,000 from Invercargill City Holdings Limited, up from an expected $200,000.

At a full council meeting on Tuesday, finance and policy committee chairman Darren Ludlow said for someone with a home worth about $215,000, the increase was an extra $74.81 per annum.

‘‘It breaks down to about $1.44 per week.’’

The increased dividend from Invercargill City Holdings Limited (Holdco) was fortunate, he said.

It was a major factor to keep the rate increase low, he said.

‘‘This brings the total dividend Invercargill City Holdings pays to the city each year to $5,850,000.’’

Cr Lindsay Thomas said since they started with ‘‘a quarter of a new council’’ at the onset of the annual plan, he thought the council had done exceptionally well to get rates down.

Thomas said he commended the councillors for the work they’d put in.

‘‘Now that we know that we can have robust discussion and debate around these, I know we’ll be looking forward to the next session for the next rates.’’

The council consulted on six key items, which were variances to the council’s 2015-2025 Long Term Plan.

The councillors received 60 written and electronic submissions and listened to verbal submissions before finalising budget decisions.

The Stead St Stopbank will be renewed and upgraded at an estimated cost of $1.33m. The project will be loanfunded and will mean better protection from flooding and storm surge for the Invercargill Airport and the residential area of Otatara.

Prior to consultation, the council’s preferred option was to increase funding to the Events Fund by $50,000.

The council decided not to increase the events fund by $50,000. This would result in a decrease of 0.1 per cent to the 2017/18 rates proposed.

The purchase of further festive lights was not approved. Councillors have decided it was not affordable in the current year.

Towards Invercargill development the council has allocated $500,000 to develop and initiate proposals.