The 6% rates rise Central Otago residents will pay next year is the lowest in Otago, Southland and Timaru, the mayor says.
The Central Otago District Council confirmed an average general rates increase of 6.34% for the 2026-27 year at a full meeting last week.
Central Otago District Mayor Tamah Alley congratulated the council’s finance team for reducing the rates from the projected 7.26% in the long-term plan and nearly halving last year’s 12.47% increase.
"It’s positive that we’re able to set the rates nearly a whole percentage down from the forecast at a time when community costs for everything are going up and up," she said.
On the other hand, the price of water for anyone connected to a council supply would increase from $1.60 to $2.40 per cubic metre.
Last year the fixed water charge was reduced to $684.66 per connection down from $843.54.
Water services would move from the council to Southern Waters — a jointly owned entity — on July 1, 2027.
The council also approved the annual plan for 2026-27 at the meeting.
Council risk and procurement manager Amelia Lines said the draft annual plan was taken to the council in March and little had changed.
The savings in the plan which had allowed for the reduction in rates were achieved by a mixture of things — "some changes to capital programming, as well as the use of operational reserves to reduce the impact on rates", she said.
Capital expenditure for 2026-27 was budgeted at $61.827 million, with $17.202m for capital projects carried forward from last year across Three Waters, property, roading and waste management.
The finance report identified key projects in the next year as the opening of Te Puna Mahara — Cromwell Memorial Events Centre, construction progress of the Omakau Community Hub, the replacement of Bridge 145, also known as the Halls Ford Bridge, in Maniototo, and reinstatement planning for the Roxburgh Entertainment Centre.
During the annual plan discussions deputy mayor Tracy Paterson asked why there was a six-month difference between when different areas had to pay the new higher water rate.
"A six-month period seems excessive for some people who are going to be copping it right at the start to the end."
Chief executive Peter Kelly said it was simply because of the way the council read the water meters.
"We literally can’t read all the meters on day one and so that’s why there’s that lag.
"And the lag was last year as well [when the price rose to $1.60].
"We got ourselves into a spot of bother with the communication that went out around that, to address that."
Chief finance officer Paul Morris said no-one would be disadvantaged and everyone would have 12 months on each rate.
The delay also occurred when the price initially went up, he said.
The Waitaki District Council finalised an average 17% rates increase for the next year and Invercargill City Council settled on an average of 7.03%.
Timaru District Council ratepayers will face, on average, a 9% increase in their rates bills.
