Dunedin is in a better position concerning New Zealand
Transport Agency funding for roading over the next four
But the city is planning for how it will deal with annual
reductions for the three years after that, the Dunedin City
The DCC will receive from the NZTA a flat funding assistance
rate of 59% of the cost of road works and road construction
work required in Dunedin in 2015-16. The rate will reduce 1%
a year from then until the target rate of at least 52% is
The funding rate is better, overall, than the council
previously received from the NZTA.
It is expected to remain that way until 2020-21, when the
annual decreases will bring the total funding available down
to below what is available from the NZTA at present.
DCC transportation programme engineer Michael Harrison said
the news, released in the past few weeks, was the best result
the council could have expected. Whether services, and what
specifically, would need to be cut from 2020-21 was yet to be
But the long transition would mitigate what would otherwise
have been a significant financial burden on ratepayers.
The council had previously been concerned a sudden change to
the worst-case scenario, at that stage a 49% funding rate,
would have amounted to $2.15 million less income each year.
Ratepayers would have had to pick up the shortfall to retain
the same level of service.
That figure would now be much less.
Mr Harrison said he was analysing what the future decreases
would mean year by year and a report would go to councillors
in the next few months.
Central Otago: Bridge replacements major
North Otago: Changes cause of council
South Otago: Could push rates up 7.2%
Southland: Council 'can live with' reduced
Queenstown: Affordability a major issue