Water is seen spouting from a broken water main in central Dunedin in June 2022. One of the driving factors behind the proposed rates hike is upgrades to the city's water infrastructure. Photo: Supplied/ Cindy Diver
Dunedin residents may face a rates rise of close to 18 percent.
The city council is preparing to debate its 2024-25 draft annual plan at a meeting on Tuesday before approving a version for public consultation.
The major driving factors are upgrades to the city's water infrastructure, depreciation and a revamped rubbish collection.
Mayor Jules Radich acknowledged the proposed 17.5 percent total rates rise was a distressing number to present to ratepayers, and it would be upsetting for them.
The city needed upgrades to its water plants, pipes and process and there was no government money for three waters to soften the blow, he said.
"We expect tap water to be drinkable and wastewater taken care of. Like it or not, we are going to have to pay for it ourselves and we have to get on with the job. That adds 5.4 percent to rates."
Dunedin Mayor Jules Radich says the city needs to aim for financial stability and the council is working on an investment plan that is expected to reduce the need for such large rates increases in coming years. Photo: Supplied
The revamped rubbish collection which would supply red bins to homes from July accounted for an increase of 4.4 percent in rates.
Radich said the council had reviewed and trimmed many of its budgets but the savings had been largely offset by rising costs including substantial inflation and interest rate increases.
"Budgeted staff numbers have reduced by over 50 positions, projects have been deferred and service levels reviewed but there has been no avoiding an increase of 1 percent in general costs plus 4.9 percent in depreciation," Radich said.
"Council is actively working on an investment plan that is expected to reduce the need for such large increases in coming years.
"Financial sustainability for Dunedin is the goal and it would be preferable for our city to be in a position to halt its ever-growing debt and forge a pathway to reduction."
