Invercargill City councillors will meet on Tuesday to consider the proposed 7.03% increase included in the annual plan, which is on the agenda for adoption.
The increase comprises a 5.52% water services rates increase and a 7.91% non-waters rates increase.
Invercargill Mayor Tom Campbell said the increase had risen as a result of changes to bus, pool and parking fees and charges.
Council chose not to proceed with bus fare increases and pool fee increases as consulted on.
‘‘Our community was integral in providing its feedback on how it wanted to see council balance taking a user-pays approach versus funding services through our rating base, during public consultation on our proposed fees and charges schedule,’’ he said.
The changes to fees and charges were confirmed by the council last month.
Before this, the rates increase had been forecast at 6.93%, Mr Campbell said.
‘‘[The] council has worked extremely hard to minimise our expenditure, while ensuring we can maintain the levels of service our community wants us to deliver,’’ he said.
In a report to be tabled at the meeting, council strategy, policy and engagement manager Rhiannon Suter states the rates increase is still less than the 8.43% increase predicted for year three of the long-term plan cycle.
Money had been saved by a $100,000 reduction to the community wellbeing fund for one year, a $200,000 reduction of the built heritage fund for one year and the closure of the Wachner Pl toilets, she said.
Council was forecast to return to a balanced budget in year three of the long-term plan.
The changes made last year and the further changes included in the annual plan would defer this to year five (2028-29), she said.
