Dunedin City Council has released its draft Annual Plan 2026/27 budgets, which will be considered by Councillors at meetings next week.
The proposed non-water rate increase is 6.9% – lower than the 8.5% forecast in the Council’s 9 Year Plan. The underlying increase is 6.1%, with the remainder reflecting an additional proposed payment for the Stadium of $1.25 million.
The 3 Waters rates increase is 16.7% – higher than the 9 Year Plan forecast of 15%. This is because the value of water assets has increased with a corresponding increase in depreciation, which Council is required to fund, explained Council Chief Executive, Sandy Graham.
“The DCC, along with many Councils around the country, are now providing the two rates figures – ‘non-water’ and ‘3 Waters’ – to reflect the changes required around the delivery of water services. This distinction will be important in coming years as the government’s proposed rates cap applies to non-water rates,” said Ms Graham.
“Staff have worked hard to find savings in non-water related activities across the organisation by reprioritising activities without compromising levels of service.
“However, there are some things we have no control over, such as the increasing maintenance costs, electricity and gas costs, interest rate movements and increasing depreciation cost. We are also challenged by the current economy and recent high inflation.
“The draft capital programme has increased in part due to delays in the current year’s programme. A further update will be provided to the Council in May and changes made to ensure the programme is deliverable and affordable,” she said.
