As had been signalled earlier, the Dunedin City Council yesterday adopted an annual plan for 2024-25 that produced an overall rates rise of 17.5% and a projected deficit of about $28.5 million.
Council debt is also set to rise by about $120.5m in the next year to $709.5m.
The plan was described as continuing critical infrastructure work amid rising costs while also bringing in the revamped rubbish and recycling kerbside collection service.
Dunedin deputy mayor Cherry Lucas said the extent of the rates rise had caused her many sleepless nights as she considered the impact on the community, but it was not a budget full of "nice-to-haves".
Despite the council not shifting from the 17.5% it had proposed, Cr Lucas said it was important for people who presented their thoughts about the plan to "know you have been heard".
Key decisions included the council taking over ownership of Logan Park artificial hockey turfs that need to be upgraded, increasing a levy for Tūhura Otago Museum, increasing community housing rents by 11% and continuing to fund Dunedin’s wildlife hospital.
She noted the budget had no plan to pay down debt.
Cr Sophie Barker was conscious the council was putting more cost on to people during a cost-of-living crisis.
Tough decisions were ahead for the council in determining what should be in the 2025-34 long-term plan and there would need to be a careful examination of operational expenses and capital projects, she said.
Cr Christine Garey said much of the rates increase was beyond the council’s control and central government needed to shoulder some responsibility.
Rates rises around the country showed the city council was not an outlier, Cr Garey said.
She also said it was easy for some people to call for cuts to senior management.
"If you want the work done, you need to have the staff to do the work," Cr Garey said.
The council voted 10-3 to adopt the annual plan.
Crs Brent Weatherall, Lee Vandervis and Carmen Houlahan were against.
Cr Weatherall said he viewed the plan as a business-as-usual budget — "charge the ratepayers what we can and borrow the shortfall".
The projected debt rise was obscene, he said.
Cr Vandervis said some levels of service should be reduced.
A 17.5% rates increase was unaffordable for many ratepayers, especially those on fixed incomes, he said.
Cr Andrew Whiley said investment in infrastructure produced a better city and Cr Jim O’Malley said the council needed to responsibly "face the costs in front of us".
Cr Steve Walker said Three Waters responsibilities were "bloody expensive" and he did not want to see a city eventually forced into closing swimming pools and museums and reducing library hours.
When it came to approving the council chief executive being able to draw down debt from within a total debt cap of $735m, Cr Houlahan departed from voting protocol by offering a muddled no-yes-no answer.
The vote was carried 10-3, as Crs Vandervis and Weatherall were also against.
Mayor Jules Radich did not attend the meeting, as he is on leave.
