Dunedin faces significant rates rises and increased debt over the next 10 years as the city council considers what it is calling an ambitious spending programme for the city.
The council is also planning to sell off assets to invest in the city.
The draft 10-year plan for Dunedin was released today before meetings next week to begin the process of discussion and public consultation before councillors decide on a final version.
The plan said the council had been focusing on paying down debt and limiting rates increases.
"We didn't do many new things and we concentrated on getting our house in order and making sure we had the right structures in place.
"This 10 year plan is different as we've built a strong foundation and we're now in position to invest and do the things we've talked about for years.''
The plan includes capital investment of $854 million over 10 years.
That will include $38 million for stormwater improvements and flood alleviation in South Dunedin and Mosgiel, a new city to waterfront connection at a cost of $20 million, and below- and above-ground infrastructure in the central city at a cost of $60 million.
"To pay for everything that's currently included in the draft budgets, we will need to increase rates and raise more debt.
"To make sure we don't borrow too much, we'll focus our investment in assets and infrastructure in Dunedin and sell assets that are outside of Dunedin.''
Rates rises in the draft budget are set for 6.9% next year, and an annual increase of 4.5% for the next nine years.
Debt is set to increase by $68 million in the next 10 years, with $63 million of assets to be sold.
See the Otago Daily Times tomorrow for thorough coverage.