Rates are creeping up again as the Dunedin City Council signals a plan to sell property to pay for a South Dunedin community complex.
The draft budget now includes a 3.8% rates increase for 2015-16, up from 3.7% before long-term plan (LTP) deliberations began last month.
That remained beyond the council's self-imposed rates limit, which sought to hold any rates increases to no more than 3%, after councillors yesterday opted to find extra funds for Otago Museum and the Otago Therapeutic Pool Trust.
However, the rates increase was still below the 4% rise suggested by Mayor Dave Cull, and later pushed for by Cr Jinty MacTavish, who argued it would free up funds to accelerate debt repayments.
That move fell flat, with councillors instead preferring to send a signal asset sales could be used to fund a South Dunedin community complex, including a new library.
The idea was among a suite of changes put forward by Cr Richard Thomson, chairman of the council's finance committee, and in a revised budget yesterday.
The new budget included the gradual return of dividends from the council's companies, used to offset rates, which had been missing from the pre-draft LTP.
The income stream was now budgeted to begin again in 2018-19, at $500,000, before rising gradually to $2 million a year by 2021-22.
That was less than half the $4.5 million in dividends previously paid by the companies, before plans by the companies to invest in deferred maintenance and other needs were announced last year.
Cr Thomson's changes, tabled yesterday, would also see the council budgeting for the first time to receive income from development contributions.
The council had not previously budgeted for any, due to uncertainty predicting the likely sums, but would now budget for a ''conservative'' income from 2018-19, councillors decided.
The council expected to receive between $6.3 million and $19.2 million over the next decade, but would budget for the ''low end'' figure, averaged over the next decade, beginning in 2018-19.
Any funds received before then would be used to pay down debt, while later sums received from 2018-19 could offset suitable capital costs.
Repayment of $30 million of stadium-related debt being transferred to the council's books would also be accelerated in later years, beginning in 2021-22.
Cr Thomson said the LTP aimed to accurately reflect the city's strategic direction, and ignoring likely income streams would see the council ''fail to do that''.
''Those assumptions do not seem to me to be risky assumptions.''
In particular, selling one of the council's investment property assets to pay for a South Dunedin community complex would avoid the need to borrow $5.2 million for the project, he said.
Otherwise, the change would amount to a swap from one council-owned building for another, both with tenants that paid rent to the council.
''I don't think we are doing anything odd or unusual. We have got assets. We should be using them to do the best thing we can for our ratepayers,'' he said.
Deputy mayor Chris Staynes was among those to agree, saying the idea appeared to be ''relatively'' cost-neutral.
''I struggle to understand what is so bad about it.''
Cr Hilary Calvert disagreed, questioning why the approach was only being suggested to pay for the South Dunedin community complex.
''I think it's fraught with all sorts of assumptions, and I don't think it's a good way forward.''
Cr MacTavish doubted the idea would be cost-neutral for ratepayers, and also argued against other changes, including loading more debt repayments on to future councils and their ratepayers.
''I don't aspire to be part of a council that does that.''
Mr Cull disagreed, saying that was exactly what a long-term plan was for.
Cr Lee Vandervis poured scorn on the process, saying the ''good ship DCC Titanic is having its deck chairs moved yet again''.
However, Cr Thomson pointed out core council debt would still drop by about $100 million, from about $250 million, over the 10-year budget.
''I don't think that's just rearranging the deck chairs.''
Councillors voted to accept the changes.
