Otago Regional Council Adopts Annual Plan – 5.5% Rates Increase
Councillors today adopted the Annual Plan 2025-26 which will see ORC rates increase 5.5% overall in the year ahead - a significant drop from the 13.8% originally forecast in the Long-Term Plan.
ORC Chairperson Gretchen Robertson says contributing to the less than forecast rates increase were cuts to some planned public transport upgrades, reprioritisation of environmental implementation funding, reduced inflation costs and work to gain efficiencies.
The annual plan focused on finding efficiencies in the work programme while continuing the council's vital work that underpins resilient and well supported communities.
'Port Otago's dividend has been increased $2 million which benefits all ratepayers, as it helps to offset costs that would otherwise need to be paid by rates.
'Also benefitting ratepayers, $2 million of Council reserves will be used to pay for the first year of a new environmental fund,' Cr Robertson says.
'Alongside our core responsibilities, key changes in the year ahead include some targeted upgrades to public transport, increased environmental funding, and further work on natural hazards and engineering.
'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.'
Cr Robertson says, 'Improving bus services remains a priority. Queenstown will see upgrades with Government co-funding, but planned improvements for Dunedin did not receive funding, so current services will remain unchanged there. Fare changes are also planned. A business case to assess Wanaka public transport options attracted strong public support and will go ahead. Some regional upgrades will not happen due to co-funding gaps, but we're committed to finding ways to improve connectivity options for Ōamaru, Balclutha and Central Otago.'
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.
'This fund invests in large, community-led initiatives that deliver enduring environmental outcomes and excellent value for money,' says Cr Robertson.
Planned work in the year ahead includes investigations looking at hazards in Middlemarch and for Lindsay Creek (North Dunedin), resilience work for the Kaikorai Stream near Green Island, and river mouth monitoring technology installation in key areas.
The overall rates increase for 2025/26 is 5.5% but the rates impact for individual properties is different and can be influenced by a range of things including location and the services provided.
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.
Rates examples for median value residential properties
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