Funding cuts of $1.2million for planned public transport upgrades was one of the reasons why the Otago Regional Council’s proposed rates increases for 2025 have decreased to 7.8 per cent.

The Annual Plan was now out for public consultation, but the regional council was still investigating a transport option for commuters from Alexandra and Cromwell to Queenstown.

Chief executive Richard Saunders said that recognised the volume of traffic between Central Otago and Queenstown, including commuters, and replaced the previously proposed trial for these towns.

The Wānaka/Upper Clutha public transport business case would not go ahead as a result of the funding constraints, due to reduced government co-funding.

Environmental implementation funding has also been reprioritised, shaving off $1m, and approximately $500,000 has been reduced through general efficiency savings and a reduction in inflation.

In his report to council this week, Richard said the overall spending in the draft annual plan had reduced $6m from the approved Long Term Plan position. 

The initial rates increase was forecast to be 13.8 per cent, but how rates were set for each property was different and influenced by a range of things including location and the services provided, so ratepayers are encouraged to use the estimator on the ORC website to see

what the rates forecast would be for them.

Less than half of ORC’s funding comes from rates — the rest is from fees and charges, grants, reserves, dividends from Port Otago and investment income.

The annual plan provides information about ORC’s work programme for the coming year and what that will cost. It details any key changes from the Long Term Plan 2024-34, including changes to planned transport improvements.

Large scale environmental work will get an extra boost when a new $2m a year environmental fund is introduced in the coming year.

“This new fund was part of the Long Term Plan process which the public gave feedback on in 2024. It was designed to support large-scale environmental work, helping communities with activities that benefit our special Otago environment,” he said.

 People can find out more about the annual plan, use ORC’s rates estimator and have their say at orc.govt.nz/ap2025.

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