Proposed rates rise still 9.8%

AFTER three days of discussion, the proposed rates increase in Dunedin remains at 9.8%.

It will soon be up to the public to tell Dunedin city councillors what they think of that, as well as a projected rise in debt of about $560 million in the next 10 years and a decade’s capital spending worth about $1.5 billion.

Council staff presented draft budgets to councillors, who made few changes to the proposed programme this week before public consultation about the draft 10year plan, starting in March.

Mayor Aaron Hawkins said the council had to invest in the city — ‘‘not just for those of us lucky enough to live here now, but those who come after us’’.

‘‘We currently have some of the lowest rates of any city in the country, and the new financial strategy still has us sitting below average,’’ he said.

Staff would still need to find $4 million of savings to keep the proposed rates rise down to 9.8%.

‘‘While for most people it works out as a few dollars a week more, we’re mindful that for some that will still be challenging,’’ Mr Hawkins said.

The previous debt ceiling was $350 million but — if councillors do not cull projects in May — debt could balloon to $869 million by 2031.

Mr Hawkins said there had been years of debate about projects in the capital budgets.

‘‘Twothirds of it is to fix our ageing infrastructure, which people are reminded of every time there’s heavy rain or a burst water main.’’

The new capital includes projects such as the Mosgiel Pool, the South Dunedin library and ‘‘investing in a 21st century transport network’’.

‘‘The discussions this week were incredibly useful for us to get a better understanding of our operating budgets and the pressures and challenges council staff face in delivering it.’’

Councillors voted to include capital expenditure of $1 million a year for the next 10 years for the development of new community housing.

This, along with an alternative option of $2 million a year, will be part of the public consultation on the draft 10year plan.

Cr Lee Vandervis, a critic of escalating debt and what he describes as wasteful spending, voted against releasing the draft plan for public consultation.

Councillors will debate in May what to keep in the plan.