Otago Regional Council has forecast an overall rates increase of 7.8% in the 2025/26 year as the ORC prepares its annual plan, detailing work programmes for the year ahead.

The increase is less than the 13.8% previously forecast.

Chief Executive Richard Saunders says cuts to planned public transport upgrades, reprioritisation of environmental implementation funding, reduced inflation costs and work to gain efficiencies have contributed to the less than forecast rates increase.

“We’re also fortunate to be able to increase the dividend received from Port Otago by $2 million and this will help to reduce rates increases for property owners.”

Despite cuts, an increase to rates was still needed to help fund ORC’s work.

Mr Saunders says, “The proposed rates increase is partly due to the new large-scale environmental fund, a climate change strategy and biodiversity strategy, as well as the costs of doing business, including insurance, depreciation and rental costs.”

How rates are set for each property is different and can be 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.

Mr Saunders says “Planned public transport improvements for Dunedin, Oamaru, Balclutha, Central Otago and Wanaka have changed due to reduced government co-funding which resulted in proposed improvement plans being pared back.”

Public transport changes now planned are:

• Investigating a service between Ōamaru to Dunedin; an alternative to an around town option.
• Investigating a transport option for commuters from Alexandra and Cromwell to Queenstown. This recognises the volume of traffic between Central Otago and Queenstown, including commuters, and replaces the previously proposed trial for these towns.
• Investigating a transport option to connect Balclutha to existing Dunedin bus services instead of trialling a Balclutha – Dunedin Airport – Dunedin bus service.
• In Dunedin, increasing service frequencies on Route 5/6 (Pine Hill - Calton Hill) and Route 10/11 (Opoho - Shiel Hill) will not go ahead.
• Expanding bus services in Queenstown will go ahead - increased frequencies, improved connections and an Arrowtown ‘direct’ route via Malaghans Road are planned for 2025. Queenstown Ferry services will continue but won’t be expanded.
• Funding constraints mean a Wānaka/ Upper Clutha public transport business case won’t go ahead.

Large scale environmental work will get an extra boost when a new $2 million a year large-scale 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.”

To pay for this fund, ratepayers will see an increase in their Catchment Management Rate. For around 77% of ratepayers this is less than $15.

Flood protection, drainage and river management are an important part of ORC’s work.

While more flood protection work is planned across the region over the long term, less than forecast will be spent in 2025–26 as the focus is largely on planning for efficient project delivery in subsequent years.

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 we plan to install river mouth monitoring technology in key areas.

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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