Invercargill City Council plans to hike rates and take on an extra $104 million worth of debt over the next decade to pay for its huge renewal projects.

The Long-Term Plan 2021-31 - dubbed the Roadmap to Renewal - goes out to public consultation next week and it is a game-changer for the city and its inhabitants. 

It sets out the council's "vision for Invercargill and surrounding areas for the next 10 years, as well as our infrastructure investment plan for the next 30 years", says Invercargill City Councillor and LTP project champion Alex Crackett.

Key projects include the $20m city centre masterplan project, the $52m Southland Museum and Art Gallery project, the $1.8m Bluff Boat Ramp renewal and other Bluff tourism projects, and the $1.5m Surrey Park Grandstand renewal. 

There's also the $9.4m Rugby Park renewal, the $4.9m city centre urban play space, the $17.6m Arts and Creativity Invercargill project and the $8.2m additional pool at Splash Palace. 

ICC will pay $112m towards these capital projects over the next 10 years under the plans, supported by external funding.  

The more mundane matter of infrastructure spending is also covered in the roadmap, from three waters to transport, roads and managing climate change. 

And, crucially, so is how the council is going to pay for all this. 

Council plans to increase rates by 5% on average next year, but it will also change the way it collects them. 

It intends to spread the cost of services, such as city centre street lights, transportation and footpaths, across all properties, rather than placing the burden on those living nearby. 

That means about 20% of properties (5,120) will pay less than this year, while 41% (17,200) will see their rates increase by between 0-5%, and 14% of properties (3,600) face an increase of more than 10%. 

Farms, high value residential properties and apartment blocks face the meatiest increases under the plans, while owners of commercial / industrial and lifestyle properties can also expect to be hit in the pocket. 

But, owners of lower value residential properties will fair better. 

Cr Crackett says: "Many properties will see a change to the share of rates they contribute. 

"People will be able to see what the proposal will mean for their property on our website, with a special tool we’ll be launching when consultation opens." 

Cr Alex Crackett

The council forecasts rates will rise by an average of 4% over the subsequent five years, then an average of 3% per year for the remaining four years to 2031. 

In dollar terms, it will increase its revenue from rates from $56.8m this year, to $60.3m next year, and beyond $80m by 2031.

And that's not all. 

The council also intends to massively increase its borrowing. The net debt is expected to hit $59 million by the end of the 2020/21 financial year. By 2031, it will reach $163 million. 

"To put it into perspective, this is equivalent to every household in Invercargill taking out a $4,000 loan", the consultation document reads.

The draft plan goes before councillors on Monday. If approved, consultation opens on Tuesday, 30 March, and will close Monday, 3 May.

Cr Crackett adds: "It is so important that everyone has a chance to check out Our Roadmap to Renewal, and to consider what changes Council is proposing.

"We will be offering lots of ways for you to have your say, including some public drop-in sessions where you can come and ask questions or share your feedback directly with your Councillors."

To find out more about ICC’s 2021-31 Long-Term Plan Consultation, Our Roadmap to Renewal, and to make a submission, visit www.icc.govt.nz/roadmaptorenewal from 30 March.

But, Southland App readers can take a sneaky early peak at the draft version here.