"I have always voted against the proposed $92.4 million capital cost of a Smooth Hill landfill, because our debt levels are already unsustainably high and rising," Cr Lee Vandervis said.
"This indebtedness should mean that Smooth Hill is deferred until we get to more sustainable debt and rates levels."
Rates are projected to rise by more than 10% in each of the first three years of the council’s 2025-34 draft long-term plan.
Cr Vandervis was picking up on themes in the latest advertisement about Smooth Hill by Dunedin mayoralty candidate Andrew Simms and his Future Dunedin team ticket.
Among the points by Future Dunedin was the capital cost of building Smooth Hill would add to the council’s debt when waste could instead be sent to the existing privately operated AB Lime site at Winton, Southland.
A statement of support was provided by GHC Consulting managing director Dave Hanan, who said the council’s plan to construct the Smooth Hill landfill did not make economic sense.
"Assuming the current tonnages remain static ... it will be substantially cheaper to dump the city’s waste to AB Lime in Winton, rather than Smooth Hill."
Mr Hanan was also the lead consultant for the new Taiko landfill operated by Canterbury Environmental Solutions.
The council’s projected capital spend was a significant investment towards something that could end up being a "white elephant", he said.
However, council staff concluded exporting waste out of Dunedin was "not economically favourable when compared with the option of building at Smooth Hill".
Exporting would also reduce the council’s level of control over its waste.
Having sufficient tonnage to provide revenue to fund construction and operation of the landfill was "not necessarily inconsistent with council’s waste minimisation goals".
Cr Vandervis said rates levels were influenced by debt and the council’s draft nine-year plan "does not anticipate any significant paying back of our unsustainable DCC or DCC company debts".
Council debt was more than $642m at the end of February and it is forecast to exceed $1billion by 2030.
The rise was projected to slow after that and the total would near $1.1b in 2034, the draft nine-year plan said.
The council’s companies also hold significant debt, including more than $550m for Aurora Energy and the council and its treasury arm had a credit rating downgrade this year.
Council chief financial officer Carolyn Allan said at the time of the downgrade it reflected rising debt levels across the local government sector — and this was in part due to increasing investment in renewal of infrastructure.
The council has signalled about $1.1b of capital renewal activity is needed over the next nine years and about $867m of it would be to replace key Three Waters and transport infrastructure.
Cr Sophie Barker voted for Smooth Hill in November and said the amount of waste generated in Dunedin was still substantial.
"We also have the Kettle Park landfill to dispose of," she said.
The old landfill under Kettle Park is threatened by coastal erosion and it is expected excavation will be necessary and material might then be sent to Smooth Hill.
About 220,000cu m of the old landfill could be dug up.
"This is likely to equate to more than 300,000 tonnes of waste," a report for councillors said.
Cr Barker said the council had received "strong feedback about keeping ownership of city assets within our control, so that also needs to be part of the equation".
Cr Andrew Whiley — the second councillor who voted against Smooth Hill in November’s 11-2 result — said he preferred incineration to deal with most waste, "especially as technologies dramatically improve in that space".
Residents would have a chance to present their views before councillors finalised their decision and investment in Smooth Hill, he said.
"But personally, I am not a supporter ... of Dunedin’s waste being shipped to AB Lime in Winton or other locations out of the region [in the long term]."
Public submissions on the council’s nine-year plan close on Wednesday.
