A planned rates rise of 13.8% was cut to 7.8% after nearly $6.1 million was trimmed from next year’s operating spending, the staff report, due to be presented to councillors today, said.
It showed a roughly $4.7m decrease in public transport spending for the coming year, year 2 of the council’s 2024-34 long-term plan.
A range of transport projects were cut from council plans late last year after 16 service improvements the council wanted to get under way did not receive funding from NZ Transport Agency Waka Kotahi (NZTA).
In a separate report to today’s meeting, council chief executive Richard Saunders said councillors would be asked today to consider the current draft annual plan as the basis of proposed community consultation.
"Proposed savings were achieved through a reduction in transport spend, removal of proposed new permanent staff, the removal of the next tranche of ORC-led environmental projects and a general review of all expenditure across the council business," Mr Saunders said.
The staff report to be considered today said the 7.8% rates increase now planned reflected the introduction of a $2m, large-scale environmental fund, inflation of 2.2% (rather than the 2.7% assumed in the long-term plan), increased overhead costs including insurance, software licences and rent costs for the move to the new Dunedin council headquarters, and a $2m increase in the dividend paid by Port Otago (to $20m) to offset general rates.
"Other areas where estimated expenditure has been reviewed and reduced include river management (decommissioning of non-scheme risk assets) and land and water implementation (rationalise remediation projects)," the staff report said.
The report showed regional council rates on a Queenstown property worth $1.25m were $635 this year and would rise by $50.07 next year to $685.07; a Waitaki property worth $430,000 would pay $274.34 next year (a $15.41 increase); and a Dunedin property worth $590,000 would pay $436, an increase of $25.46.
Because the rates rise was an average, a "rating estimator" tool would be available on the council website for consultation, the report said.
Total operating spending in the draft budgets for next year was $137.89m compared with $143.96m as consulted and approved for year two of the long-term plan, it said.
