A projected loss of $3.5 million of operating surplus at the Green Island Landfill will affect rates next year, the Dunedin City Council says.
The council says it needs a 6.5% increase in the rates take next year to maintain levels of service and deliver a balanced 2020-21 budget.
An overview of the draft budget, published yesterday, said a rates increase of 4.3% would maintain existing levels of service but a further 2.2% increase was required to offset the losses at the landfill.
"There are no changes to levels of services proposed in the draft budget. However, maintaining existing levels of service in a growth environment presents new challenges, which need to be addressed.
A review of service levels would be incorporated into the development of the next 10-year plan, a report to be tabled on Wednesday said.
"There have been significant changes in Dunedin since 2018.
"The population is growing at a faster rate than previously planned for, with Dunedin now being reclassified as a medium-growth city.
The report said building activity was increasing and house prices had risen sharply, as had demand for rental accommodation and social housing.
"These pressures are anticipated to continue, intensified by major projects in the city like the Dunedin Hospital rebuild."
The 2020-21 draft budget includes operating spending of more than $321.125million.
It shows overall rates revenue increasing by $10.241million.
The Local Government Act 2002 requires councils to have a balanced budget.
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Comments
Dear Council
Please accept my apologies for my not being able to afford to pay a further 6.5% for rates. I you feel this is unreasonable I can only tell you that your continual demands are taking an undue amount of stress on my finances and there is only so much money available in my life to pay for necessities such as food and heat. I'm told that there will be above average increases for my power too as a result of a council company's finances being mismanaged to cover debt repayments. Sorry once again.
Closely followed with:
Dear DCC our sincere and most torturous humble apologies, As the 'Funding Providers', we feel your performance hasn't translated well for our city. We wish to inform you that your salaries will be reduced by 6.5% pa for the next 10yrs. You may feel this reduction as unreasonable, and it may be cause for some stress on your personal finances. However, you would no doubt acknowledge that there is only a certain amount of money that can be distributed around a significant amount of services. We have noted, for many years, that you have been unable to achieve targets satisfactorily with a tendancy to drift into financially risky projects without a mandate from the 'Funding Providers". As your primary 'Funding Providers', we would remind you that basic services are maintained as would be normal employment practice. Please take this opportunity to review your civic contract. Going forward, we look forward to an positive relationship, especially in regard to balancing the books. Should you not wish to perform your mandated duties, please feel free to pursue another career.
Yours Sincerely,
Mr Sick to Death of Surprises and BS
Yes, wonderful, I suggested a couple of months back that on top of the Aurora Energy financial fiasco we will then face the landfill saga to further strain our rates. On top of that, we have increased Capital Value on property, which based on the current ratio charge will see a significant rates increase overall. And they're not finished with us yet. So before you all cry out in favour of the Fantasy Bridge and Ego Shell, and those that insist that the Plastic Yurt is paying for itself, remember that all that money comes from ratepayers pockets. The way things are going here, DCC will drive down the population.
More disinformation by the DCC. Landfill losses: my garbage monthly bill is increasing annually, so to make a loss something else is not being reported in full. To increase everyones rates bill by 2%+ to cover a $3.5m loss is excessive. How about a novel idea: live within the CPI or budget, everyone else has to- why not you guys at the DCC? Cut under utilised services, eg. empty buses, empty cycle lanes, a bridge to nowhere, reduce hours of operation for libraries,/pools, salaries of the executives, get the users of the 100 plus sports fields to do the upkeep of what they use, sell out of town assets, etc.. Think DCC out of the box, we are sick of paying for your departmental empire building.
Ahh the good old D.C.C. . .
No DCC. You have mismanaged your way into losses all over the place. Time to trim the ego budget. The George St destruction need not cost $60million. The Ego bridge can go. Just forget it. $20 million of ratepayer money on a folly that's not needed.
Mind you, as Dr Bidrose is now doing another job, she obviously isn't working full time for the council. Maybe part of her $400k can help relieve the pressure.
Who uses the landfill site now anyway with theirs fees!
Maybe dropping fees would get more revenue from the general public instead of employing staff they dont need!
How the heck could anyone or any local body make a loss on a rubbish dump? After all its the only tip in Dunedin, the DCC has a monopoly on dumping,and as the article states "the population is growing at a faster rate than previously planned for" so therefore more garbage has to be dumped,more $$$'s ? Well you would think so, wouldn't you?----
"Council staff say landfills have long made a profit for the council, and city councillors decided several years ago to let the landfill continue to make a surplus as a way to increase non-rates revenue and offset general rates"....ODT 11 Feb 2014.
And here we are, a mere 6 years later and the landfill is in debt......It looks like yet another case of poor management by the DCC.
Your service DCC is Below Standard on all fronts, What if rate payers said Oh I over spent on food and power last year, next year I'm not paying 10% of my rates. Stop the glamor projects as mentioned above and sort the required services the Council should provide. I now live overseas in a city that has a similar amount of of people and it is truly better, I've been questioning why. the other day I was at the lights next to a specialised truck, guess what it had council stickers on the side,- thats it they still have council workers not contractors pay them a fair wage, none of this contractor inflated prices for normal day to day council taskings. Rubbish should be a free service provided by the council
A clip from your comment above: "What if rate payers said Oh I over spent on food and power last year, next year I'm not paying 10% of my rates."
How about a Citizens initiated 'Rate Freeze'?.....*smirk* that would get some attention to budgets.
Buzz, you letter above is gold, something has to be done these clowns, (yes I'll call them clowns) not all are but what planet are they on? Something needs to be done the Rate payers are the scape goats for everything DCC, the new mayor is as bad as Cull if not worse. John Campbell or Mike Hoskings need to interview them, put them in the spot light and make them answer and keep doing it until the thick idiots get the message they can't just use rate payers to answer all the problems.
It is an absolute disgrace that municipal authority is attending to core business of getting rid of all the sh*t we create.
I'm quite surprised the Dunedin landfill made a loss. They charged me $2.8 million dollars to dump 4 bricks and an empty paint tin.
It's so expensive I'll never go back; clearly someone is misappropriating funds...