The Otago Regional Council is confident that the budgets allowing proposed zero rates increases are not setting them up for substantial rises in the future.

“But I would put a caveat on that, that the implementation of the new resource management system is a total unknown, in terms of scale of resource required and the cost to this organisation fulfilling our part of that function,” chief executive Richard Saunders told the meeting this week.

Dunstan ward councillor Gary Kelliher questioned how the 0% rates rise has been achieved, whether it was through meeting efficiencies, “or an opportunistic situation which arose through delaying work… because that will come back to us and be a cost.”

Richard said there have been some savings, including reducing consultants on specific projects, as well as an element of underspends (including the $600,00 from the Regional Air Plan, now on hold).

Cr Kelliher said he he wanted to give confidence to ratepayers, and not have the regional council set itself up for a shock, “that will return of a substantial scale, that will move everyone back to double digits rate increase again, like what had happened in the past,” following the pandemic.

But Richard assured the meeting that the organisation understood that expectation, to be diligent in its financial planning.

The draft position in its Annual Plan includes an operating expenditure of $146.09 million which is a reduction of $8.62 million compared to the adopted Long Term Plan year three (2026-27).

This will result in a total rates requirement of 68.47 million, which is the same as the 2025-26 rates take (0% increase), and a decrease of $11.80 million compared to adopted LTP year three (2026-27).

The Otago Regional Council approved its draft annual plan for 2026/27, which will be completed and presented to council for adoption at its April 29 meeting.

Following adoption of the Annual Plan 2026-27, the regional council rates resolution will be provided to the June 2026 council meeting for approval.

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