Invercargill City Council’s expected revenue is forecast to drop about $1million in the next financial year.
Councillors adopted its annual plan at a full council meeting on Tuesday in light of the Covid-19 impact.
The document stated as a result of Covid-19, including forecast increased levels of rates postponement, reduced consents requirements and other areas of reduced revenue from fees for service, revenue was forecast to be approximately $1million lower.
Council strategy and policy manager Rhiannon Suter said due to reduced revenue and a lower rates rise, council would operate a deficit budget.
Rates would be affected and while the council’s long-term plan projected a 3.14% rates increase, councillors voted to cut that to 2%.
Rates revenue was expected to increase from $63.7million to $65.3million.
"This allows council to continue its essential programme of renewals and other capital works, which will provide employment opportunities and support for business."
Infrastructure projects in the 2020-21 annual plan include sewerage renewal ($7.0million), water supply ($7.1million) and roading ($6.8million).
Other projects on the document were the demolition of Esk St West ($2.5million), street-scaping/bus terminal of CBD ($2.2million), museum storage facility ( $2.0million), Anderson House strengthening ($1.7million, Water Tower strengthening ($1.4million), administration building ($1.0million).
Cr Nobby Clark said he believed councillors had a short time to consider the long document that was missing much information.
However, his counterparts did not agree and adopted the plan.
