Central Otago ratepayers are facing an average rates rise of about $60 this year.
Draft estimates approved by the Central Otago District Council yesterday will mean an average rates rise of about 3%.
The council's chief financial officer, Bernard Murphy, said staff had worked hard to prune costs to a minimum.
Depreciation was one of the significant factors in the rates rise and the council had no control over that cost.
‘‘Revaluation of council's assets resulted in an increase of 13% in depreciation. As depreciation makes up 28% of council's total expenditure, this increase has a significant impact on the overall rates increase,'' he said.
‘‘To come in at between 3 and 4% [increase] considering the depreciation ... it's a reasonably good effort to bring it down to that level.''
The consultation document outlining the estimates for the coming year would be brief and highlight only the main changes from the long-term plan, Mr Murphy said.
These included the cost of the Cromwell Memorial Hall redevelopment increasing by almost $2million.
Contract costs were down by $241,000, insurance renewals would be $110,000 lower than this year and development and reserve contributions were higher than estimated - $140,000 and $80,000 respectively.
Funding of $20,000 has been set aside for a proposed Centre for Space Science Technology, led by a Central Otago group.
It planned to create New Zealand's first satellite programme.
The group submitted a funding application for $15 million to the Ministry of Business, Innovation and Employment last week.
