20.58% rates hike set to breach cap

An artist’s impression of the proposed new Tapanui Library & Service Centre, integrated within an...
An artist’s impression of the proposed new Tapanui Library & Service Centre, integrated within an upgraded West Otago Community Centre, up for consultation during this year’s Clutha District Council annual plan. PHOTO: CLUTHA DISTRICT COUNCIL
Clutha’s mayor says a larger-than-expected projected rates hike of more than 20% this year is not a foregone conclusion.

Clutha District Council recently opened consultation on its 2026-27 draft annual plan, which, if adopted in full, would lead to a 20.58% average rates rise across the district.

Clutha District Mayor Jock Martin said although the figure was higher than the 18.92% increase signalled in the council’s 2024 long-term plan, it should not come as a surprise.

The projected increase would breach a self-imposed limit of no more than 20% per annum during the plan’s first three years, he said.

‘‘We had previously signalled an 18.92% increase for the 2026-2027 financial year in the long-term plan, reflecting our decision to distribute a 45% rate increase over three years, so this increase should not come as a complete surprise.

‘‘We are addressing the facts of our situation; borrowing further to lessen the rates impact is not a viable option.’’

Mr Martin acknowledged the complexities faced over the past two years and noted that the current year’s plan presented similar challenges.

He emphasised the 20.58% figure was ‘‘indicative’’ and subject to change based on the decisions made while completing the annual plan.

This would take into account public feedback, he said.

‘‘Rising costs and the need to future-proof our infrastructure present significant challenges.

‘‘Alongside my fellow councillors, it is crucial that we proceed in a focused and practical manner, always keeping every ratepayer in mind.

‘‘Our community’s feedback through submissions is vital to this process.’’

Key topics for consultation this year included the proposed closure of Milton Centennial Pool for 2026-27 season and integrating the Tapanui Library and West Otago Community Centre.

Residents were also asked to provide feedback on a voluntary targeted rates scheme, rural water scheme funding changes and urban water rating maps.

Consultation ends on April 28 and the council will review submissions and make decisions regarding the plan on May 19 and 21.

‘‘These decisions will ultimately influence the final average rates increase for the district, which will be set on June 25,’’ Mr Martin said.