ORC proposing 9.1% rates rise

Marian Hobbs gets familiar with her new offices. PHOTO: GREGOR RICHARDSON
Otago Regional Council chairwoman Marian Hobbs said the rates increase was necessary to accelerate the council’s important work. Photo: ODT
The Otago Regional Council is proposing a rates increase of 9.1% but is telling residents the hike will not be significant in dollar terms.

The proposed increase comes as the council is stepping up work across its priority areas, including in the areas of freshwater, climate change, urban development, and biodiversity.

The estimated total expenditure of its activities in the 2020-21 financial year is $75.494m, up from $67.702m in the current financial year, and up against the Long-Term Plan (LTP) forecast expenditure of $64.728m.

While the predicted expenditure increase is $7.792m higher than the current financial year, the proposed increases to general and targeted rates took up only $1.45 million, with an increase in the Port Otago dividend from $7.9m to $10.1m and the use of $4m from general reserves taking up the rest,

Chief executive Sarah Gardner said the proposed rates increase, subject to consultation, would not be significant in dollar terms.

"We know rates are increasing for a lot of people around the region, and we understand that another increase may cause some anxiety. That’s why we have proposed offsetting the rate requirement with additional dividends and reserves.

"The dollar impact of the proposed 9.1% general rate increase on individual properties would be small.

"For example, we estimate that a median CV, $420,000 home in Dunedin would be charged general rates of $90 in 2020-21, compared to $81 in 2019-20,” Mrs Gardner said.

Chairwoman Marian Hobbs said the rates increase was necessary to accelerate the council’s important work.

“Otago is the most beautiful region in the country, but we face our share of environmental challenges and our communities have been asking ORC to do more.

"The Annual Plan for the coming year proposes to accelerate the important work that is already set out in our long-term plan across the priority areas of freshwater, climate change, urban development, and biodiversity.

People will be able to submit feedback on the proposed plan between March 26  and April 24 , and hearings will be held between 21 and 26 May.

Comments

Go on, tell us it's the price of a cup of coffee.....I dare you!

Too funny! We need more of your money "to accelerate the council’s important work". Important work? I have important work around my home. That $9 does make a difference. Want to know why? I have control over how its spent and I see directly, first hand the results of the spend. I am sick and tired of ORC and DCC mentality of "It's only a $9 increase over what you paid last year". Let's apply the same logic in reverse. How about you cut your spending? Staff? Reduce pay and bonuses? Ever hear of "do more with less"? No...i didnt think so. No accountability, just flush more money down the drain. By the way, feeding my kids and buying shoes is far more important than the crap you people are doing!

How about the ORC rates are included in the DCC rates and other councils rates around the Otago region. Once a year every 6 months or every 1/4, those councils write out a fat cheque to the ORC for what is owed. This would reduce admin, mail, paper, coin saved and people having two rate bills to pay, I can't go to my employer and say the cost of living is or has gone up I now need you to pay me more.

Ms Hobbs, condescending, smug photo and comments are objectionable to say the least. Every year DCC and ORC rates increase to pay for frivolous ideas that do nothing. People work hard for many years to own their own home and once they retire, receive NZ Superannuation and find that it's nowhere enough to cover the cost of increased living expenses and exorbitant rate increases. The Government bleats on about wanting to keep older people in their own homes then City Councils do their best to screw every cent possible out of them.
Ms Hobbs, the ORC, Mayor Hawkins and the DCC should be ashamed of themselves. Their organisations are nothing but a pack of leaches.
I couldn't agree more with FrankieC, he hit the nail on the head.

The photo is indeed unfortunate. They take them as publicity shots when they're elected and of course, they're all smiles. Maybe the they should also take one of them trying to look contrite that the ODT can use when they announce a 3 times inflation rates increase for the second year running. See also DCC.