The savings, totalling $1.295 million, were presented to councillors by staff at the beginning of two days of 2009-10 annual-plan deliberations yesterday, following last week's round of public submissions.
If still unspent at the end of today's deliberations, the spare money could see the rates increase for the next financial year reduced to 6.3%, down from the 7.8% signalled with the approval of a draft budget in January.
Council financial planner Carolyn Howard told councillors yesterday the savings had come in part from a downward revision of forecast cost increases for the council's multi-year roading contracts.
The council had earlier forecast an 8% increase in the New Zealand Transport Agency's construction cost index (CCI), used to adjusting multi-year contracts for inflation.
The increase had been revised down to 5% for 2009-10, saving $615,000 in the council's roading budget annually, she said.
At the same time, the carry-over of some council debt servicing, as the timing of some large projects was reviewed, had also achieved a one-off saving of $650,000, she said.
The projects included the Dunedin Centre and botanic garden building rationalisation.
The beginning of the stage two upgrade of the Tahuna wastewater plant had also slipped from original expectations, although the project's completion date had not, she said.
The result was potentially a saving for the next financial year, although it was "possible" the changes meant the 2010-11 rates increase would be worse, she said.
Council chief executive Jim Harland confirmed the changes would result in the rates increase rising to 9.8% in 2010-11, if the changes remained.
The tweaks prompted some councillors yesterday to call for a special effort to keep the proposed rates increase for 2009-10 to 6.3%.
Mayor Peter Chin said councillors needed to debate the "philosophy" of what to do with the savings before addressing individual submissions requesting additional funding, but his "initial thoughts" were that councillors limit themselves to spending only where there was a legal or moral obligation to.
"Theoretically, we now have a window of opportunity of $1.295 million," he said.
Crs Michael Guest, Richard Walls and John Bezett were in agreement that the starting point for the council's budget deliberations should be the proposed rates increase was now 6.3%, rather than thinking an extra $1.295 million was available to spend.
"That's hefty enough as it is," Cr Guest said.
Crs Kate Wilson and Bill Acklin believed it was important to think about draft rates increases over the next three years, not just next year, with Cr Wilson suggesting a 6% target for rates increases in the next financial year, while Cr Acklin said councillors' energy should be focused on considering requests for large amounts of money.
"It's the big amounts I think we need to be putting time and energy into.
"That will make the biggest difference," Cr Acklin said.
Cr Paul Hudson said, to achieve savings, councillors might need to revisit what was included in the draft annual plan, while Cr Acklin argued that might not be fair on those who had money allocated to their organisations in the draft, and had therefore decided not to submit.
Cr Chris Staynes said the "biggest problem" was larger rates increases in coming years, not next year's increase, and more effort should be made to shift the burden by deferring non-critical projects.
The budget will not be finalised until approved at a full Dunedin City Council meeting next month.
