Plans for a new wheelie bin collection service in Dunedin have been given a nervous reception by Dunedin city councillors worried about the multimillion-dollar cost.
The new system, which would use three wheelie bins for rubbish and recycling, was debated at yesterday's infrastructure services committee meeting.
Councillors voted to proceed towards consultation on the proposed system, but also asked staff to investigate whether the consultation could be widened to include alternatives.
The move came after several councillors argued the scheme's $5.2 million annual cost was not affordable.
The cost would see rates grow by 5.5%, to 14.2%, in 2010-11, up from the 8.7% increase already projected.
The cost would be covered by a targeted rate costing the average household $190 each year.
Cr Paul Hudson questioned why councillors would "even contemplate" the scheme, which would increase rates "well above the level of inflation, and potentially well above the level of affordability for our community".
"I think the timing is absolutely wrong," he said.
Cr Neil Collins argued the new system would "more than double" the cost of rubbish and recycling collection for some people, such as those living alone, which was not affordable.
Cr Bill Acklin would not support the scheme until a "fair and equitable" payment system was identified, while Cr Chris Staynes did, but was concerned previous funding decisions meant councillors "have our hands tied behind our backs" when funding "basic infrastructure".
Cr John Bezett said councillors were lacking detailed information, particular on the cost of providing for people living in hard-to-reach parts of Dunedin.
"There will be hundreds, if not thousands, of people in Dunedin who will have real difficulties.
"This is going to add quite significantly to the cost," he said.
However, Cr Andrew Noone said the working party examining kerbside collection options - which he chaired - had examined user-pays and rates-funded models in detail.
The city's existing collection service had "served its purpose", and there was a need for change, he believed.
"There's still work to fine tune things, but I think we're on the right track," he said.
Responding to questions, council city environment general manager Tony Avery acknowledged the impact on rates would amount to "a big increase", although the cost of the existing service would also rise if it continued.
Last year's survey - which garnered nearly 10,000 responses and support for wheelie bins - included estimated costs, but not the projected impact on rates, he said.
Without the new service, the contract for the existing service would have to be extended, at increased cost, he said.
Several councillors yesterday supported consulting on more than one option, but deputy mayor Syd Brown warned the Local Government Act required one preferred option to be identified for consultation.
Mr Avery agreed, saying the council could otherwise be vulnerable in a judicial review.
Councillors voted 8-4 in favour of consultation.
A staff report to a special meeting of the committee on August 3 would detail whether other options could be included.
The council's economic development committee will meet today to consider trialling a free wireless internet network covering the Octagon.
