Otago Regional Council (ORC) has approved its draft 2023/24 Annual Plan, forecasting an 18.8 per cent average increase in rates across Otago.

The increase is up 6.8 per cent from the previous forecast, equating to an $84 rise in annual average rates per household. 

It has been attributed to inflationary pressure.

Two of the three Dunstan constituency councillors have opposed the increase, and the third has acknowledged that, while they don’t like the increase, the full OCR work programme must continue.

Cr Michael Laws said he and Cr Gary Kelliher opposed the 18.8 per cent rate increase “as an offence against commonsense and the financial struggles of so many in our community”.

He suggested deferring some work, deferring staff recruitments, and not proceeding with the $60M plus new headquarters building for Dunedin,

Cr Alexa Forbes was unhappy with the proposed increase but remained adamant the regulatory body continue its prescribed work programme as laid out in the Long Term Plan (LTP).

“We’re an environmental council now more than ever. We have to keep to our work programmes.

“Are the weather events we’re experiencing telling us that we cannot afford to not keep up with our work rate? In fact, in my mind, the work programme is nowhere near enough,” she said.

ORC chair Gretchen Robertson said the council has agreed there is no substantive change to the council’s long-term work programme as funded by this year’s rates. 

“Last year, we absorbed inflationary pressures, and unfortunately, that is no longer an option, given significant rising costs similar to many other local authorities.

“We understand that any rates increase is a very difficult message at this tough time for people. However, the council is also affected by inflation on wages and goods and services,” she said.

“The council can communicate that the planned-for work continues and that the cost of that, with cumulative inflationary pressures now built-in, will proceed also.”

From mid-March, residents can download a copy of the draft annual plan from the ORC’s website and provide feedback on the proposed programme of work and its related costs.