Up to $2m to go to new environmental fund

Cr Tim Mepham. Photo: ODT files

A new $2 million fund for environmental projects will go ahead next year, but in its first year it will not be paid for by the Otago Regional Council rates take.

Instead, in its first year, the fund will be paid for from council reserves.

At yesterday’s annual plan deliberations in Dunedin - in large part thanks to that decision - regional councillors trimmed a forecast 9.1% rates rise back to 5.7%.

The decision to go ahead with the new fund for large-scale environmental projects next year went ahead after a 6-4 vote.

The follow-up vote to take the money from council reserves rather than charging ratepayers was won 9-0, with Cr Michael Laws abstaining.

Cr Tim Mepham, who championed the fund at yesterday’s meeting, told councillors to have faith in council finance general manager Nick Donnelly’s ability to find the money in council reserves.

‘‘The ORC is a very financially strong organisation,’’ Cr Mepham said.

By having the fund available in the next financial year ‘‘it’s enabling access to the funds as soon as possible’’.

‘‘I think that we want to be able to support ‘wins’ who are out there.

‘‘We’ve had submissions from Predator Free Dunedin who are doing an exceptional job and it’s people or organisations like that that could benefit from this fund.

‘‘I don’t think we should overthink it.’’

Cr Kate Wilson said she was supportive of there being a large-scale environmental fund, ‘‘but I’m not supportive of $2m in the first year’’.

‘‘I actually think we need to start slowly. It is a big increase this year and I am mindful of how hard it is for people out there.’’

The council did not have to distribute ‘‘the whole $2m the first go-round if we don’t feel like it’s ready for that,’’ Cr Elliot Weir said.

Cr Alan Somerville said a lot of work by staff and councillors had already gone into the concept.

‘‘And we know there’s a lot of well-organised groups out there with good projects who would be able to make use of this.

‘‘I’m well aware that we can’t go on forever taking this from reserves.

‘‘On the other hand, there have been good arguments and good discussion where there is a case for doing it in the first year only.

‘‘And on that basis, I’m happy to support it.’’

Cr Laws said there needed to be ‘‘a much bigger conversation’’ about how the council could ‘‘meet the major biodiversity needs of our region’’.

‘‘We all know why we’re making this decision today. Let’s be honest, it’s to keep the rates down in election year.

‘‘Because we know that next year, and the year after, and the year after that, if this resolution is passed, $2m will be added to the rates demands of the Otago Regional Council upon the ratepayers and residents of the Otago region.

‘‘There’s a lot of politics involved in this, but not a lot of policy.’’

At yesterday’s annual plan deliberations regional councillors also removed $500,000 from the policy budget after staff identified it as a saving from the regional policy statement work under way.

They agreed to fully fund a $250,000 Wanaka-Upper Clutha public transport business case from general rates.

But they did not fund a Queenstown ferry service expansion.

They also decided not to fund an additional full time staff member for transport planning.

On the other hand, a bid by Cr Gary Kelliher to cut staff at the council from 360 to 300 fulltime-equivalent staff members through a sinking lid policy and the sparing use of consultants or temporary staff for special projects also failed.

The council rates resolution will be presented at the June council meeting following the adoption of the 2025-26 annual plan.

Cr Alexa Forbes sent apologies yesterday.