The New Zealand Transport Agency's (NZTA) provisional decision will result in most councils being paid a subsidy of 52% for agreed roading projects, with reductions of 1% a year until that figure is reached. It will take nine years for some councils to reach the new level.
Southland district was funded at 55%, Mr Bourque said.
''We are probably still facing a reduction of an average of $300,000 a year for each of the next three years ... although NZTA is not really saying yet that is definitive.''
It could mean a reduction of about $1 million a year from the 2018-19 financial year onwards if Southland continued to carry out the same level of roading projects, he said.
''We can, reluctantly, live with that.
''It is far more palatable than the $3 million-$4 million we would have lost if NZTA had adopted one of the [review] options, which was to drop subsidies to 49%.''
Southland has the largest local roading network in the country, almost 5000km.
As a result, 32% of Southland district ratepayers' bills already go towards roading - about 18 times the amount paid per property in Auckland.
Mr Bourque said the council ''did not mind pushing itself to ... make savings'' on roading projects, but after cost-cutting for several years it was at the point where it was difficult to make further cuts.
The review had not addressed two suggestions the council had made in its review submission, he said.
The first was an alternative method of funding which would start from a fixed charge per person or rateable property. The council argued this strategy would distribute the burden of a national roading network more evenly.
The second was a higher subsidy for Stewart Island.
Mr Bourque said it seemed it would be ''status quo'' for Stewart Island, even though the NZTA paid higher subsidies for places such as the Chatham Islands.
''We thought a higher subsidy was justified, because ... everything is more expensive to do over there.''
Around Otago
Otago: Road funding consternation
Central Otago: Bridge replacements major expense
North Otago: Changes cause of concern
South Otago: Could push rates up 7.2%
Queenstown: Affordability a major issue
Dunedin: Funding better than expected
