The Dunedin City Council has signed off on its ''ambitious'' $850million plan for the next 10 years.
After months of debate and consultation, councillors voted to adopt its 10-year plan at a full council meeting yesterday.
Only Cr Lee Vandervis voted against it.
The plan includes large projects such as the central-city upgrade, an architecturally designed walking and cycling bridge and upgrades of the city's ageing wastewater infrastructure.
To pay for the projects and renewals rates will be increased by 7.8% in the first year of the plan, fees and charges will increase by an average of 4% and the council will borrow an extra $135million.
In his report presented to councillors, Audit New Zealand audit director said in his opinion the plan provided a reasonable basis for long-term decision-making and accountability of the council to the community.
At one point during the discussion on the plan, Mayor Dave Cull had to interject to ask Cr Vandervis to stay on topic after he asked the audit representative his opinion of the plan and in particular the amount of debt held by council companies.
Council chief executive Sue Bidrose also told Cr Vandervis under the Local Government Act the 10-year plan was not able to cover the debt of council companies.
Cr Vandervis said he could not support a plan which increased rates, fees and debt, a plan which went against what ratepayers had voted for at the most recent city council election.
''I'm proud to be the only councillor to vote against this 10-year plan,'' Cr Vandervis said.
No other councillors agreed.
Cr Mike Lord said the financial backing of the plan had been well covered throughout the process and ratepayers would not end up being ''lumped'' with a large amount of debt and nothing to show for it.
''Rates rises in the first year will mainly be spent on infrastructure not a bridge, not an upgrade of the central city, but on things which will stop people's houses flooding.''
Mr Cull said the plan was the most thorough and well thought-out he had been involved with since he first came on to the council [in 2007].
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Comments
This report says that rates will rise by 7.8% in the first year. But this is a 10 year plan and my understanding is that rates increases (above the present generally affordable 3%) are planned by this council for the subsequent 9 years as well. So these increases will be compounding. This could mean this present council is planning for Dunedin rates to double over the next ten years.
But Dunedin has a significant population of retiring baby-boomers. Any Dunedin superannuitants with no other income are already eligible for the maximum central government rates subsidy. They cannot expect their income to increase much.
So what is the full story about the affordability of these rates increases over the whole ten year period? This is something Dunedin home-owners need to know, considering that local body elections take place next year. These council 10 year plans can be reviewed every three years so it is not too late to elect a council which will spend only what present ratepayers can afford. Otherwise, many of the present owners will be rated off. Then It won’t be much use to them if they have paid for Dunedin to become a ‘great small city.’
Keeping in mind that the franchise extends to non ratepayers.
I keep voting for you Lee for this very reason, the only councillor to question things properly.
I did choose the $20m bridge option in the 10y plan, but thought that the CBD does not need an upgrade at this time (either option), as it can get by for now with a lick of paint, water blasting and relaying/releveling of path and road bricks/tiles. Also voted against the uni area upgrade, as that is only benefiting students, not the general population.
Vote the bums out! Increasing our rates 4x more than the growth rate of average after tax income. Grandiose plans for a deluded council, paid by DCC ratepayers whose voice they do not want to accept, understand or care about. Arrogance by definition.
This was well publicised during the consultation period.
7.3 % increase for year 1 (now 7.8%), followed by annual increases of about 4.5% (from memory).
The council shifted away from its previous 3% ceiling in order to adopt a plan that has significantly more capital expenditure than previous plans. There was no secret about this - it was a deliberate (albeit unpopular to some) strategy.
Once again Vandervis proves himself the only councillor without his hands in the pockets of Dunedin ratepayers.
Shame on the rest of them!