Otago Regional Council (ORC) has published a report ahead of this Wednesday’s meeting (March 24) which outlines funding arrangements for its draft long-term plan 2021-2031.

“The proposal includes what we recognise is a hefty rates increase in year one, with smaller increases in the following years,” ORC chair Andrew Noone said.

In dollar terms, the proposed general rates rise for an average household is an increase of $80, or just over $1.50 per week. 

These are jumps of 48 per cent for year one, 18 per cent for year two, 12 per cent for year three and six per cent for the remaining years of the plan.

Andrew said Otago has historically had some of the lowest rates in the country. 

ORC chair Andrew Noone said he acknowledged the proposed rates increase is “hefty”. PHOTO: Supplied

“That is no longer sustainable with the work programme expected from us by our community and government,” he said. 

A long-term plan process decides what a council will deliver to the community over the next 10 years (its work programme), how much it will cost, how it will be funded and how council will report progress on delivering its work. 

This graph illustrates the proposed rates increases over the coming years. IMAGE: ORC

The draft-long term plan report says the ORC faces a “significant financial challenge” as a result of rapid population growth, increasing infrastructure requirements, a changing physical environment, environmental management costs and more.

“Central government requirements have increased as have community expectations,” the report said.

The ORC will meet to discuss the draft long-term plan on Wednesday (March 24) and public consultation will follow.

“It’s important to remember that these are still proposed figures for a draft plan,” Andrew said, “and there will be opportunities for the community to have their say on the LTP through a consultation starting in April.”

Read ORC’s draft long-term plan here (starts page 58).