A petition from 85 Roxburgh ward residents concerned about rising rates was tabled at last week's Roxburgh Community Board meeting.
Increasing rates would drive people away from the Teviot Valley, the co-ordinator of the petition, Roxburgh farmer John Rowley, told the board.
Mr Rowley made a submission to the board as an advocate of the petition and as a spokesman of the Roxburgh and Districts Community Planning Trust.
The petition stated that high rates were making life in the valley unaffordable.
In his own submission on the Central Otago District Council's long-term council community plan (LTCCP), he said Roxburgh ratepayers were paying more in rates but were getting fewer services.
Ratepayers were already facing fuel and energy price rises which boosted living costs, especially for families.
"The facts are overwhelming. Our costs are rising faster than our income and can result in only one conclusion: the council's rates are unsustainable," Mr Rowley said.
The level of rates would drive people away from the Teviot Valley and with a drop in population, other services such as medical, educational, recreational, business and retail would also decline.
The 500-page, two-volume LTCCP document was not "user-friendly", yet it was the "most challenging report" to come out of the Central Otago District Council in 20 years, he said.
Powerpoint presentations in each town would be a better way for the council to consult the ratepayers.
Mr Rowley's own rates had gone up by 42% between 2006 and 2008.
To cut spending, he suggested the council cut funding for Sport Otago, Tourism Central Otago, the Clutha Development Committee and the new arts co-ordinator role.
Mr Rowley said it was inappropriate for ratepayers to chip in for a feasibility study into the Lawrence-to-Roxburgh Clutha Gold walking and cycle trail.
Board member John Lane said the board was facing dramatic increases in the cost of providing services.
For example, wastewater costs had doubled in the past five years.