Invercargill City councillors approved the annual plan for the next financial year at an ordinary meeting of council on Tuesday, that will see an an average rates increase of 5.67%.
This is an adjustment to the previously forecast increase of 4% and the further adjusted figure agreed on in 2022 of 5.05%
Strategy and policy manager Rhiannon Suter said the increase was primarily as a result of inflation and interest rate changes, which had a combined effect across both the operational and capital programmes.
She said the annual plan had been worked to respond to the cost of living, and some adjustments had been made within funding for three waters. Mayor Nobby Clark added the adjustment was also impacted by the increase of minimum wage.
"We started out this journey with about 20% at one stage. To be in the position we’re at is an excellent result when you consider what other councils are putting up. We will be in the very, very bottom cluster of increases," he said.
"We’ve taken a little bit of service delivery flack for some of the stuff that we’ve had to trim back on but that’s a a good healthy process by my way of thinking."
Projects on pause are the City Streets Stage 2 while council reconsiders scope and timing, the Rugby Park and Surrey Park projects which are being reassessed with a refocus on ensuring basic levels of earthquake safety are met, and the redevelopment of the Civic Administration Building which is now being focused on maintenance.
Plans for construction of new housing for elderly people to replace older stock has been brought forward.
Some funding for the Branxholme pipeline has been carried over, although the whole project budget remains unchanged.
Deputy mayor Tom Campbell said the annual report was an excellent document and noted the huge amount of work that had gone into keeping rates at that level.
