The Central Otago District Council this week decided on three options for a new rating system to be offered for public consultation.
Mayor Tamah Alley said the purpose of the rating review was to create a more fair and equitable rating system.
"But there will be a number of people who think it’s fair and a number of people who think it’s not fair, depending on the type of property they have, where it is and what they use their properties for."
Mrs Alley said she did not like talking about winners and losers but this was "a quintessential case of some people pay less rates under all of these proposals and some people will pay more".
Chief financial officer Paul Morris said changing the rating system would not generate additional income for the council.
Instead, it would redistribute how rates were collected and contribute to the council’s strategic priority of a "fair, flexible and future-proofed system".
Thirteen new rating systems had initially been considered, he said.
After five workshops with elected members since November the options were narrowed down to three.
One option was to change nothing and the other two depended on expanding the general rate to include most of the existing targeted rates, such as those collected for the library, community facilities and tourism.
The expanded general rate would be the same across the district.
Waste and ward-based grants would continue to be specific to each locality.
Changes to collecting rates based on property land value to capital value, or the combined value were also proposed.
Mr Morris’ report to councillors said commercial properties could bear the brunt of rates with a suggestion they would pay double the new general rate applied to residential properties.
That was rejected strongly by councillor Curtis Pannett and deputy mayor Cr Tracy Paterson.
Cr Pannett said he disagreed with Mr Morris’ assertion that commercial businesses had an advantage in being able to claim tax and GST deductions from rates.
Cr Paterson said she agreed with Cr Pannett.
She was not convinced all businesses would be levied equally as it would not capture home-based businesses, and it would risk discouraging people from having commercial premises.
The review followed last year’s controversial decision to rate across the region, rather than in each of the four wards — Vincent, Cromwell, Teviot Valley and Maniototo.
At the time, chief executive Peter Kelly said the council was looking at every possible path to address rising costs.
Mr Morris’ report to councillors yesterday said the traditional rating method had led to a complex and inequitable rating system.
Now was the time to review the change, which was implemented with the 2025-34 long term plan.
Community feedback during the long-term plan process emphasised the need for the council to consider vulnerable residents in the review and ensure rates were fair and transparent, he said.
Government announcements regarding rates caps and potential amalgamations also had to be considered at this stage, Mr Morris said.
The proposals for public consultation would be presented to the next council meeting in July.
