PHOTO: ODT FILESThe level of Dunedin City Council’s debt could climb appreciably after councillors decided a debt ceiling of $350 million would be far too limiting. Ahead of development of the 2021-31 10-year plan, they chose to approve a debt limit to be calculated as a percentage of revenue and then opted for that figure to be 250%. Projected revenue for 2020-21 is $279 million, which would result in a debt limit of $698 million. About $900 million of the 10-year capital programme is considered necessary just for maintaining and fixing infrastructure, rather than new capital projects. Dunedin Mayor Aaron Hawkins said the city had been out of step with other metropolitan councils and constraining itself with an arbitrary debt limit no longer made sense.

Source: Otago Daily Times November 10, 2020 18:10 UTC