Most affected would be those living in flood-affected areas such as the Taieri Plain and around the Water of Leith, but all Dunedin bus users could also face a 5% increase in fares.
Of the general rate, 25% is funded by a uniform annual general charge on each Otago property, which is proposed to increase 8.5% to $13.19 ($12.81 in 2011-12).
The regional council's finance and corporate committee will tomorrow discuss the 2012-22 draft long-term plan - the blueprint for how the council will fund its activities and its spending priorities over the next 10 years.
Among those suggested priorities is $1 million being spent on a temporary council chamber and civil defence headquarters in the council's Stafford St car park and $200,000 to investigate a long-term solution to office-block overcrowding problems.
The council also proposes setting up a reserve to fund grants of up to $2 million for new irrigation infrastructure schemes.
The reserve would be funded by $1 million from general reserves and then $200,000 from general rates annually.
The increase in rates for those in flood-affected areas comes as the council plans $30 million in capital expenditure in the next 10 years, including $21 million on completing the Leith flood protection scheme and $1 million on new drainage pumps for West Taieri.
That means a 7% increase in targeted rates for those in north and central Dunedin, who would be most affected if the Water of Leith flooded, and 5% for Taieri ratepayers.
Alongside these projects was planned policy work - an updated regional policy statement is to be notified in December 2014, a hazards plan is to be prepared, and work continues on water quality and quantity plan changes.
Legislation that means the council cannot include reserves as operating income will see it go into deficit in 2017-18 ($440,000) and 2018-19 ($467,000), according to corporate services director Wayne Scott, who said estimated revenue would not cover estimated operating costs.
If approved by the committee, the draft plan will open for public submissions on April 27, with hearings held the week of May 7.
