Invercargill City Council Keeps Promise on Less Than 10% Rate Increase

• Invercargill ratepayers to face 9.8% rate increase for 2024/25.
• Several project delays and rejections to manage economic pressures.
• Community support initiatives like Wellbeing Fund maintained.

The Invercargill City Council yesterday confirmed residents can expect an average 9.8% rate increase for 2024/25, following deliberations on its Long-term plan.

Elected members have today made a number of changes to the draft Long-term plan, as a result of both feedback and changes in the economic environment. These changes aim to reduce the impact inflation and increased interest rates will have on ratepayers.

• The planned painting of the Doon Street water reservoir has been deferred until 2025/2026, and the proposed introduction of fortnightly, separate glass recycling has been rejected, with a request that Wastenet reconsider future options for glass recycling.
• Investment in emissions reduction activities will continue, but at the lower level of $100,000.
• Following the removal of Government subsidies, Council has made the decision not to extend current bus services at the start and end of the day, but has committed to a full review of the current offering.
• Proposed funds budgeted for further maintenance work on Rugby Park stadium have also been rejected, although elected members retained the funding for scoping work into a possible outdoor multi-sports precinct.

Following considerable public feedback, the Low Mow pilot will end on 30 June 2024.

A recommendation to reduce the Community Wellbeing Fund by $65,000 has been rejected, with Councillors identifying the importance of the fund to the community. The total Community Wellbeing Fund for 2024/25 will be $565,000.

The Heritage Strategy Fund will increase from $180,000 to $200,000 as opposed to the $300,000 recommended in the draft Long-term plan, and funding to Great South will rise by a lower level of $72,500 compared to the $145,000 originally recommended.

Combined, these changes will ensure that the rate increase will not exceed 10%, with Council’s Long-term plan due to be adopted on 25 June.