The council’s 2023-24 annual plan, still in its drafting stages, outlines what the council plans to spend on projects and day-to-day services over the coming financial year and how that work will be financed.
Invercargill Mayor Nobby Clark said the council was aware the community was being greatly affected by rising costs of living and were focused on keeping a rates increase to a minimum.
"The increase is slightly higher than the 5.05% forecast last year. As a community were going to face some difficult decisions to bring the budget back into balance next year in the long-term plan," he said.
The rates rise would mean an average increase of $145, or $2.78 per week, for residential ratepayers, Mr Clark said.
Council acting group manager finance and assurance Patricia Christie said the 2023-24 draft annual plan incorporates the changes agreed in the 2022-23 annual plan, including the new plans for the museum Project 1225.
"Savings of almost a million dollars have been found, although these have been offset by increases in delivery costs linked to inflation, interest rates and depreciation. Depreciation refers to the funds council needs to put aside each year to pay to replace infrastructure as it ages," she said.
"Depreciation is one of the biggest challenges we have faced this year. The value of all our infrastructure has risen which has significantly increased depreciation costs."
Figures were subject to change over the next three months as new information became available ahead of the final plan being presented to council for adoption in June, Ms Christie said.
"We know that many in our community are finding it hard, and there are ways that council can help," she said.
The Government’s rates rebate scheme is available to low income-earners. Council also has rates remission and postponement policies and is in contact with other support agencies, she said.
"If you have trouble paying your rates please get in touch with us early," Ms Christie said.
Council strategy and policy manager Rhiannon Suter said there was no public consultation around the draft annual plan, but people can still let council know their feedback.
The 2023-24 draft annual plan update was to be presented to the council next week.
