5.5% rates rise set to be approved

Photo: Supplied
Photo: supplied
Otago regional councillors are due to approve a 5.5% rates rise today, down from an earlier projected increase of 13.8%.

In a report to councillors, Otago Regional Council chief executive Richard Saunders said after annual plan deliberations, operating spending was pulled back by $3.3 million from the 2024-34 long-term plan year two estimate.

The council now planned on a total operating expenditure of $140.6m for the next financial year.

The associated rates requirement for the coming year’s annual plan was $68.5m, a decrease of $5.4m (-8.3%) against the long-term plan estimates, equating to an increase of $3.6m (a 5.5% increase) against the present financial year, Mr Saunders said.

The reduction in the rates requirement included a $1.2m decrease in transport rates, $1m in "freshwater implementation" and integrated catchment management resourcing and a roughly $500,000 reduction through "general efficiency savings and a reduction in inflation".

Mr Saunders said notable changes from the long-term plan included the removal of some transport work because of reduced government co-funding, the addition of contracted transport costs not included in the plan, the re-scheduling of land and water planning work to reflect central government direction, a different timeframe for the air plan and air strategy and changed timing of some flood protection and drainage work.

hamish.maclean@odt.co.nz

 

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