Dunedin City Council Cost Blowout – $40 Million Over Initial Budget
Today it has been revealed the budget for Dunedin’s new landfill has almost doubled to $92 million following recommendations made by council staff.
“How on earth did they get it so wrong with their initial $52 million proposal only four years ago?” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.
“Councillors voted not to pursue a partnership with private operator who could harbour the cost and better manage the project – citing this would be too complex and expensive to establish”.
“Now it’s ratepayers on the hook for an additional $40 million, which we all know will likely grow even higher when construction begins in 2027, as things often do in council.
"Remember, last year alone the city faced an average rates increase of 17.5 percent.”
“Also in the background, officials recommended against exporting waste to other areas by truck, which would be odds with their zero-carbon policy and relationship with mana whenua.”
“It seems in an effort to maintain autonomy and not share profits with a more capable provider – Dunedin City Council has chosen the least efficient and most expensive option. Time will tell if this project can be done, even at the escalated cost.”