However, Southland’s forecasted deficit had increased almost 35% in relation to the projected amount in the long-term plan.
Southland District Council yesterday approved its annual plan with a rate increase of 2.31%.
The amount is less than the 3.27% forecast in the long-term plan and slightly less than the predicted 2.65% rise discussed in April.
Finance manager Sheree Marrah said the reduction was possible by using $1.7 million from the roading reserve and $400,000 transferred from the forestry reserve.
This was a one-off approach.
She also highlighted council would have a deficit of $4.8million — an increase of the projected $1.7million, from $3.1million.
Council also anticipated it would require a $20million loan of long-term external debt to be repaid over 30 years and it forecast to be in overdraft at the end of next financial year by $2.7million.
"It might result in further increases for the other years," she said.
Councillor Don Byers highlighted it was "quite notable".
"It is a very significant jump in debt in one year and [I] hope that when we are looking to the long-term plan, we also considered our operating expenses as well."
He said council was taking a "prudent"response to Covid-19 and was able to do so as council was conservative with its finances in the past.
Cr Ebel Kremer said a big part of the money was related to ageing infrastructure.
Cr Byers disagreed with that and suggested the capital work was in fact "a small portion of what the organisation spent in total."
During the meeting yesterday, council also revoked the delegations and dissolution of the emergency committee which was put in place to make decisions during the Covid-19 pandemic.
Southland District Council resource management team leader Marcus Roy also presented a report seeking endorsement from the council to review the Natural Features and Landscapes section of the Southland District Plan with a view to compiling and notifying the plan change.
He said this was something that is required to be done every 10 years and the most recent review was in 2009.
The cost to council to facilitate engagement and plan change process had been approximately $100,000, excluding staff and what has already been spent.
Cr Paul Duffy agreed and said this was something that should be done as the cost of not doing was "probably greater" than doing it.
