It’s a big week for the Otago Regional and Central Otago District councils, both setting their rates increases for the year on Wednesday.

The Central Otago District Council (CODC) will also be setting its fees and charges schedule as part of its Annual Plan consultation.

The changes to fees and charges are primarily driven by increased costs in electricity, fuel and insurance, in line with rising costs being seen across New Zealand. 

The CODC said it could not absorb these cost pressures, and this is reflected in a change in the cost in a range of its fees and charges.

Rates increases for Central Otago residents through the district council have been proposed at around 18% and for the Otago Regional Council (ORC) between 18% and 20%.

Dunstan ward councillor Gary Kelliher will be voting against the rates increase, and said his suggestions that the ORC be more financially prudent have been ignored. 

“The spending of ratepayer money is out of control and instead councillors want to push ahead with what staff want.” 

ORC estimates $315 million needs to be spent on flood and drainage protection over the next 30 years; including $67 million during the first 10-years of the Long Term Plan. 

Areas proposed to receive this investment include Alexandra, the Leith (North Dunedin), Lower, East and West Taieri, Tokomairiro, lower Clutha and lower Waitaki River areas. 

For many areas, there will be changes to flood protection, drainage, and river management rates, which will see the current targeted rates decline by more than $500 across around 2100 properties in most flood and drainage-defined areas.

But the general rate rise moves up between 10% to 20% in the areas impacted; Alexandra, Leith, Lower Clutha, Lower, East and West Taieri and Tokomairiro. 

ORC proposes to implement a new region-wide (general) rate of 20% of the amount required for flood protection and 10% for all drainage schemes. 

Proposed targeted rates for river management will see decreases in Dunedin (-33.9%), Whakatipu (-28.2%) and Wānaka (-19.2%) but Central Otago, with large waterways, would increase 40.2% and Waitaki will go up 57.5%. 

Central Otago will also have its own targeted rate for river management, such as willow removal and river maintenance, resulting in an increase of 40% in the amount collected from Central Otago for this activity.  There will also be a new air pollution strategy.