At yesterday’s Central Otago District Council meeting, Mr Cadogan said giving the public a "heads-up" about the rates was an appropriate course of action.
In his written report, Mr Cadogan said the council could not specify the actual percentage rise yet, but that it would be "well above 20%".
Speaking to the council, he acknowledged it was an unusual move to be talking publicly about rates rises.
"I’ve never done that before, and there’s a good reason for that — it’s because [rates rises are] a big scary number ... and then it gets massaged into some shape or form that’s much more palatable.
"The reality that needs to come through to our people is that in the [long-term plan] next year, the number is still going to be big and scary."
Serious conversations were needed about how the council would respond to the rates rise, he said.
"The line between a want and a need shifts when you’re dealing with numbers such as these."
His report stated factors included, but were not limited to, build and general inflation, resolution of bridge issues, compulsory audit fees and insurance cost increases.
Three Waters infrastructure was likely to account for 10% of the rates rise on its own, it said.
These were not costs the council could reasonably avoid.
Mr Cadogan recognised the impact a significant rates rise would have on residents.
"We will, of course, be looking at means to lessen this number, but there needs to be balance. I am not in favour of making tomorrow pay for today."
The Central Otago District Council was at the top of the bottom third of councils for average residential rates and had one of the lowest debt burdens in the country.
That meant it was facing the rates rises from a better position than many, he said.
"I recognise this will come as little solace to those finding things hard financially at present."
By Ruby Shaw
