Infrastructure required maintenance, repairs, upgrades and sometimes expansion and the city council was spending the necessary money to get the job done, Jules Radich said.
"We’ve shifted our spending to that and I think we can’t wave a magic wand and have it all instantly installed, but this council has taken the brave decision to actually increase expenditure on infrastructure and get things sorted out, finally."
In such a situation, calls for low rates rises — amid high interest rates and inflation — presented an "impossible conundrum", Mr Radich said.
The Dunedin City Council adopted its 2025-34 long-term plan this week, which included a rates rise of 10.7% for 2025-26.
The $4.5billion nine-year budget for operating costs included more than $1.3b for Three Waters, $708 million for roading and footpaths, $504m for upkeep of city properties, $440m for governance and support services, $451m for community recreation and $412m for waste minimisation.
Councillors endorsed a $2b capital programme over nine years, including $1b for Three Waters and $505m for roading and footpaths.
Cr Lee Vandervis decried projected increases in debt, including a $121m jump in 2025-26, following a $120m increase.
Council debt is projected to exceed $1b by mid-2029 and end up about $1.165b in 2034.
Cr Vandervis suggested the next council — after this year’s elections — would need to go back to the drawing board to reduce its vulnerability around debt.
Matters that would have to be revisited might include spending on cycleways, zero-carbon initiatives and borrowing for some grants, he said.
Cr Brent Weatherall gave the budget a B- score after the council stopped posting deficits.
More financial discipline should have been shown, he said.
Deputy mayor Cherry Lucas said she did not believe the plan was fiscally prudent.
Cr Sophie Barker said the council needed to take a closer look at its operational spend.
The council had more work to do to ensure it was delivering value for money, she said.
Cr Steve Walker listed a series of decisions he believed were positive.
They included support for Dunedin Railways, finishing the Otago Peninsula roading and cycleway project and going ahead with the Smooth Hill landfill.
He was less pleased about lack of ambition for community housing and the council not reserving space at the South Dunedin library complex for the South Dunedin Community Network.
Cr Jim O’Malley said getting on with necessary capital expenditure, such as on Three Waters, was the right approach.
"But if you don’t bite the bullet and do it, then you are faced with having to do it as your system collapses on you, as is happening in Wellington."
Cr Andrew Whiley said the plan was about putting a strong foundation in the ground for growth.
"If you do not invest in infrastructure, you struggle with everything else and the liveability of the city diminishes."
Cr Christine Garey said decisions about supporting arts venues were positive and the importance of zero-carbon work was plain.
Cr Kevin Gilbert was disappointed the council decided against charging international visitors for entry to its cultural institutions.
