Otago Regional Council (ORC) has approved its Annual Plan for 2025-2026, which will bring an average rates increase of 5.5 percent - a drop from the 13.8 percent originally forecast in the Long Term Plan (LTP).

The rates had been reduced by cutting some public transport upgrades, reprioritising environmental implementation funding, reduced inflation costs, and work to gain efficiencies, ORC chair Gretchen Robertson said.

“Port Otago’s dividend has been increased [by] $2M which benefits all ratepayers, as it helps to offset costs that would otherwise need to be paid by rates,” she said.

“Also benefitting ratepayers, $2M of council reserves will be used to pay for the first year of a new environmental fund.”

She said the Annual Plan will still continue the council’s work to underpin resilient and well supported communities.

Key changes in the year ahead include some targeted upgrades to public transport, increased environmental funding, and further work on natural hazards and engineering, and “a rates increase is still required to help fund this work”. 

“This includes the investment in climate change and biodiversity strategies, as well as rising costs in areas like insurance, depreciation, and property rentals,” she said.

Large scale environmental work will get an extra boost in the 2025-26 year with a new $2 million a year large-scale environmental fund; from council reserves in the first year.

While some regional upgrades will not happen - due to “co-funding gaps” - Gretchen said ORC is “committed to finding ways to improve connectivity options for … Central Otago”.

The overall rates increase for 2025/26 is 5.5 percent but the rates impact for individual properties is different and can be influenced by a range of things including location and the services provided.

ORC councillors adopted the annual plan at Wednesday’s (June 25) meeting.