Derelict buildings could be targeted in DCC rates review

Charging owners of vacant buildings higher rates and being more transparent about rates for Forsyth Barr Stadium are two matters that could be explored in a Dunedin City Council review. The council’s finance and performance committee has been asked for direction about a range of ideas that could be investigated further by staff before the 2027-37 long-term plan is prepared. Options for heritage buildings could be one area of focus in the council’s review of rating and financial policies. In a report to be discussed by the committee on Thursday, it was suggested vacant or derelict heritage buildings might be discouraged by implementing a higher general rate differential on those buildings. On the other hand, redevelopment could be encouraged by postponing a rates increase that would follow an increase in capital value associated with redevelopment. Providing rates relief for protected heritage places by implementing a new, lower general rate differential was another suggestion. The committee was asked to provide direction on which options could require further investigation. Council staff noted rating treatment of Forsyth Barr Stadium was “not easily understood”. The council could provide greater transparency on the cost to ratepayers, the report said. OTAGO IMAGES/OTAGO DAILY TIMESThe Dunedin City Council is to consider whether more transparency is needed about how rates are charged to Forsyth Barr Stadium. Photo: Peter McIntosh Forsyth Barr Stadium is rated under a specific differential for both general and targeted rates. For the 2026-27 rating year, rates revenue from the stadium equated to about $219,648. Options could be explored to achieve greater transparency if the committee wanted to investigate that, The council could also consider how rates were applied to the tertiary education area in the city. Properties there have access to what has been described as an enhanced service of kerbside collection of rubbish and recycling, as it is more frequent. The council could look into the possibility of implementing two different targeted rates based on the level of service. Another issue in the area was “repairing damage to roads and street sweeping to manage higher levels of litter and debris”. Potential options included a special rating area for the tertiary area and investigating fees and charges to recover costs. Changes to the method of rating would not directly determine the total rates revenue received by the council. They would affect the allocation of the rates burden across ratepayers. A review of how the council rates for water services is to start soon. It is not expected to be completed before the 2028-29 annual plan is adopted. The report for Thursday’s meeting also commented on rates affordability in general. “Affordability of rates has been a topic of increased focus and discussion in recent years, including from central government and the community,” it said. “This has been driven at least in part by cost-of-living pressures, recent rate increases around the country and historical underinvestment in infrastructure.” Efforts were being made to correct that, the council said. An “environmental scan” of rates affordability across a series of councils included the observation infrastructure pressures were the main driver of affordability concerns. The committee was asked whether an “affordability metric for ratepayers” should be developed for inclusion in the financial strategy. The council noted the government had proposed bringing in a cap on rates increases. “Regardless of the outcome of this proposal, affordability to ratepayers remains a consideration.”