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Lower rates rises, revised budgets and increased borrowing will be discussed by Dunedin city councillors as part of the annual plan process in May.
The council is starting to send out rates bills for this financial year’s final instalment, due in May, but is urging those who cannot afford it to ask the council for help with payment plans.
"Please do not just stop paying your rates or cancel your direct debit. If rates are not paid then our recovery will be slower, more painful and more expensive next year,’’ council chief executive Sue Bidrose said.
At present the council is consulting on a 6.5% rates increase for the 2020-21 financial year.
Other options, including reduced rates rises, reviewing budgets and more borrowing, would now be discussed by councillors when they met to debate the proposed budget for 2020-21, in May, she said.
Dunedin Mayor Aaron Hawkins has publicly expressed support for a rates freeze, wanting in its place to borrow the $10million the proposed 6.5% rates rise would have generated.
He has already indicated some major projects the council was involved in might be put on hold.
Other councils around the country have already indicated they will look to reduce rates rises, though some are sticking with the same levels as those proposed in drafts, saying they cannot afford to take less if services and projects are to remain on track.
The Dunedin City Council, like all others, had no choice legally but to send out rates payment notices in the meantime, Dr Bidrose said.
It recognised some people were experiencing financial hardship as a result of the Covid-19 lockdown, but affected ratepayers were asked to pay what they could. People could contact the council for advice.
No late payment penalties would be imposed for ratepayers facing financial hardship who followed the recommended steps to agree a payment plan, she said.