That amount could allow the Dunedin City Council to maintain service levels. A capital expenditure programme worth more than $1.85 billion over nine years has also been pitched.
Council debt could exceed $1b by mid-2034.
An enormous amount of budgeting material and various reports were published on the council’s website yesterday ahead of what shapes to be a lengthy meeting next week about the draft 2025-34 long-term plan.
Dunedin Mayor Jules Radich said core infrastructure had to be renewed and there were competing demands and cost pressures.
"We need to keep investing in our city, but the delivery of basic services now costs more, placing enormous pressure on rates," he said.
"We’ve also heard from our residents that the rates burden is too high and that the focus needs to shift."
This would result in the council posting a deficit in 2025-26 of almost $9.5m.
Mr Radich said councillors would be asked to make tough choices and identify trade-offs before putting out the draft plan for public consultation.
Some projects previously on the council’s books had been left out of draft budgets, including $17.1m for a performing arts centre and about $4.8m for new public toilets.
Some money had been taken out of transport budgets, including $22.4m for the Dunedin Tunnels Trail project, he said.
The trail has about $1.8m of council funds from the 2024-25 financial year, but further development has been mainly hindered by national subsidies being curtailed after the change in government.
Cr Carmen Houlahan said she was disappointed $17.1m in the 2021-31 long-term plan for development of theatre space after the closure of the professional Fortune Theatre was now absent from draft budgets.
"I will advocate for it to be included so that we can get a professional theatre in our city again," she said.
Cr Houlahan suggested the council should have resolved the situation by now.
A report indicated a proposal from the performing arts community was coming together, but cornerstone funding for it would have to add to rates, instead of being considered capital expenditure.
"There are a range of details still to be addressed in putting forth this proposal," the report said.
Of the overall proposed nine-year capital spending exceeding $1.85b, about $1.1b was for renewal of assets.
More than $866m of this was provided to replace key Three Waters assets and transport infrastructure.
