Dunedin (Friday, 24 January 2025) – The Dunedin City Council will continue its renewal of core infrastructure, while balancing competing demands and cost pressures in other areas, Mayor of Dunedin Jules Radich says.

“We need to keep investing in our city, but the delivery of basic services now costs more, placing enormous pressure on rates. We’ve also heard from our residents that the rates burden is too high and that the focus needs to shift.”

Consequently, for this draft plan, some projects have been removed, others modified, and savings have been made in the face of rising construction, maintenance and insurance costs. The rates rise has been reduced to less than 10%, dropping to 6% over the course of the draft plan. The budget is set to balance early in the draft plan and debt repayment feasible by the end, Mayor Radich says.

The draft plan also includes $33.25 million for short-term infrastructure improvements designed to alleviate flooding risks in South Dunedin, as well as funding for community priorities like improved roadside vegetation maintenance.

Mayor Radich says Councillors will be asked to make tough choices and identify trade-offs when they consider the draft plan for the purposes of public consultation next week. To find a balance, some projects previously on Council’s books have been removed, including $17.1 million for a performing arts centre and $4.775 million for new public toilets.

“Taken together, these changes and others within the budget will save Council $272 million over the 9 years of the draft plan and reduce pressure on rates. A further $59.8 million has been removed from Transport budgets, including $22.4 million for the Dunedin Tunnels Trail project.

“None of the proposals will be easy decisions for Council. This budget seeks to strike a balance and reflects the changing priorities of our community, as well as the cost burdens we are all facing.

“I look forward to next week’s discussions and the community consultation to follow.”

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