Proposed rates rise still 9.8%

After three days of discussion, the proposed rates increase in Dunedin remains at 9.8%.

It will soon be up to the public to tell Dunedin city councillors what they think of that, as well as a projected rise in debt of about $560million in the next 10 years and a decade’s capital spending worth about $1.5billion.

Council staff presented draft budgets to councillors, who made few changes to the proposed programme this week before public consultation about the draft 10-year plan, starting in March.

Mayor Aaron Hawkins said the council had to invest in the city — "not just for those of us lucky enough to live here now, but those who come after us".

"We currently have some of the lowest rates of any city in the country, and the new financial strategy still has us sitting below average," he said.

Staff would still need to find $4million of savings to keep the proposed rates rise down to 9.8%.

"While for most people it works out as a few dollars a week more, we’re mindful that for some that will still be challenging," Mr Hawkins said.

The previous debt ceiling was $350million but — if councillors do not cull projects in May — debt could balloon to $869million by 2031.

Mr Hawkins said there had been years of debate about projects in the capital budgets.

"Two-thirds of it is to fix our ageing infrastructure, which people are reminded of every time there’s heavy rain or a burst water main."

The new capital includes projects such as the Mosgiel Pool, the South Dunedin library and "investing in a 21st century transport network".

"The discussions this week were incredibly useful for us to get a better understanding of our operating budgets and the pressures and challenges council staff face in delivering it."

Councillors voted to include capital expenditure of $1million a year for the next 10 years for the development of new community housing.

This, along with an alternative option of $2million a year, will be part of the public consultation on the draft 10-year plan.

Cr Lee Vandervis, a critic of escalating debt and what he describes as wasteful spending, voted against releasing the draft plan for public consultation.

Councillors will debate in May what to keep in the plan.

grant.miller@odt.co.nz

Comments

Councillors, it is now time for you to sell off distressed assets to pay down debt. Do not assume low interest rates are going to continue for over a decade. Do NOT tell ratepayers the rises will amount to just a few dollars per week, remember the claim that the stadium would cost ratepayers no more than $65 per annum?

The "need" for a South Dunedin library seems to date back to a promise made by a councillor decades ago to placate Sth Dunedin for some grievance. It has never made sense. Today with ready internet access to information and entertainment by the phones that have taken over in people's lives from the landline phone and big computer on the desk of only the well-off, it makes even less sense. A special bus shuttle between a South Dunedin "hub" i.e. a place judged to be as accessible to the potential users of a Sth Dn library, and the bus hub, would be cheaper. It would serve to unify Dunedin rather than separate it into "needy disadvantaged" out south, and the rest of us in the caviar on silver salvers suburbs central and north.
By the way, how easy is it to get from the heights of Corstorphine to King Edward St, vs to bus hub?

 

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