Photo: RNZ / Nate McKinnon
The Dunedin City Council has voted to take a proposed 17.5 percent rates hike for the coming year to the public.
The council has decided to defer its long-term plan - its 10-year budget - until next year while it grapples with the ramifications of the government axing Labour's three waters reforms.
The government offered councils alternatives and the Dunedin City Council had opted to produce an annual plan for the coming year instead.
The 17.5 percent rates rise was driven by three waters spending, the introduction of a new rubbish collection service and increasing depreciation.
However, the proposed rates hike was almost three times what was predicted in the council's last long-term plan in 2021.
Councillors overwhelming voted in favour of the proposal 13 votes to one.
Only Lee Vandervis was opposed.
"I have a long history of having to, on behalf of the ratepayers I believe I represent, present alternative views to the majority around the table, especially regarding spending.
"The mayor has said, just now, that we cannot slash our way to success. What is very evident to me is we cannot wantonly spend our way to success. We cannot increase debt by over a hundred million dollars every year to success," Vandervis said.
Mayor Jules Radich said the council found itself in uncertain times and needed to invest in the city and its future.
"We're faced by interest rate rises, inflationary adjustments and cost of living confrontations on a regular basis, and political changes at central government are still producing policy details and they'll take some time to be fully revealed," he said.
"We're developing an investment plan so the council can achieve long-term financial sustainability because we cannot keep on increasing debt year-on-year. We need to turn then corner and start paying it down to ensure our future viability. So until the details of our investment plan are determined we will have uncertainty of ongoing income."
Other councillors said they did not like the idea of such a high rates hike, but council could not afford to not invest in the city.
The council will now consult with the public on the plan.