Another councillor felt the draft operational budget of $2.8million a year for library services and property-related costs reflected modern challenges.
The $22m facility in King Edward St is due to open next year and the Dunedin City Council discussed ‘‘leasing options’’ in the public-excluded part of a meeting last week.
Councillors could not talk publicly about the leasing options, but they were able to discuss some financial information the council disclosed to the Otago Daily Times.
Cr Sophie Barker said she had been concerned about project oversight and costs.
‘‘I’ve been shocked to see the operational costs of $2.8m annually for the building,’’ she said.
This included about $1m in interest on debt to build the library and community complex.
‘‘This is a direct impact on rates, which we need to look to minimise in these times of huge budget challenges,’’ Cr Barker said.
In 2018, the council included $5.25m in its long-term plan for development of a South Dunedin community hub and the figure was revised to $11.56m in 2021 and became $22m this year.
A change of planned site was announced last year and construction started this year where the old Wolfenden and Russell buildings had been.
‘‘While I was part of the decision agreeing to the new build and new site, upon reflection I believe we should have had stronger planning and scope around the project from the beginning and throughout the project,’’ Cr Barker said.
Cr Steve Walker said there had been a monumental shift in construction costs since 2018, ‘‘so the figures are not in any way shocking or anomalous to me’’.
‘‘They’re a real reflection of modern-day building costs,’’ he said.
‘‘Again, the operational costs are the operational costs in the world of 2024 and whether we like it or not, that’s the world we now live in.’’
Cr Walker said people had been ‘‘screaming for austerity across the board’’, but it should not be forgotten promises had been made to the residents of South Dunedin over the years.
‘‘I’m all for looking at where we can reduce the rates burden on our residents — we just need to be looking in the right places,’’ he said.
South Dunedin library services were forecast to cost more than $1m in 2025-26, including more than $630,000 for personnel and $134,000 for operations and maintenance.
Estimated property services activity in 2025-26 included more than $1m for interest and $170,000 for occupancy costs.
