Otago Regional Council rates will increase by 3.85% this year, and if not paid by November 1, ratepayers will face a 10% penalty.
The council yesterday adopted its long-term plan for the next 10 years and associated rating impacts.
Among the impacts was a 5% increase in bus fares to meet the funding policy and a new irrigation infrastructure grant funded by $1 million from council reserves and $200,000 of general rates annually.
Finance and corporate committee chairman Duncan Butcher said the increase was "very small" and "well below" the threshold the Government was thinking of recommending for rates increases in the future.
Most targeted rates had also been kept low with the exception of those on the Taieri, where residents were facing higher rates to pay for pumping scheme replacements, he said.
Alongside the rates increase came a change in the council's payment options and penalty dates. The council had moved its penalty date from Christmas to November 1 and introduced an option of tri-annual direct debit payments effective for this year.
Cr Butcher suggested every rates bill needed a reminder of the changes so ratepayers did not forget.
"I can hear the screams coming already from people used to putting it on top of the fridge for six months before paying it."