Rates Calculator - Rates Rises - Frequently Asked Questions

Frequently Asked Questions:

Annual Plan FAQs - for Annual Plan consultation document click HERE

Q: How much are my rates going to increase by?

A: The average rates increase for 2024/25 is 21.4%. To find out a more accurate rates estimate for your property please check our Rates Calculator at: Rates Search (codc.govt.nz)

Q: Why are my rates increasing so much?

A: A combination of factors out of our control has led to major, unavoidable and ongoing increases to Council’s costs, including:

• Global and nationwide forces hiking up our expenses:
  • Inflation has increased Council’s direct costs by 18% this year
  • Infrastructure costs have risen sharply in the past three years across councils with the average cost of building:
    • roads 27% more expensive,
    • bridges 38% more expensive,
    • water supply systems 27% more expensive
    • sewerage systems 30% more expensive.
• Central Government’s February 2024 repeal of the Affordable Water Reform legislation has kept the substantial costs of Three Waters infrastructure and servicing with Council.
• Extra operational costs to comply with stricter national standards and regulations in Three Waters, roading and waste.

Q: What is Three Waters?

A: The term ‘Three Waters’ refers to wastewater, drinking water and stormwater. Government’s plans in this space has meant responsibility for all water infrastructure and services, as well as the significant and growing costs to maintain them, remains with councils.

Q: What is Council doing to reduce costs?

A:Council has worked very hard to find cost savings of $10 million in the Annual Plan budget, which reduced the rates increase down from the 45.4% we were initially confronted with.

The following are some of the key ways Council has reduced costs:

• •Reduced operating costs where we can without impacting levels of service
• •Implemented new technology and operational products in pools and library services
• •Deferred some parks maintenance and renewal projects
• •Reduced staff travel budgets
• •Reduced some staff costs by entering into shared services agreements with other Councils
• •Not budgeting for all vacant Council positions
• •Removed the budget from this year for the review of the District Plan. This work will be to be completed using unspent funds from previous years
• •Deferred earthquake strengthening capital expenditure to be addressed in the 2025-34 Long-term Plan (LTP)
• •Deferred some costs for Cromwell Town Centre expenditure. This project will be reconsidered in the 2024-34 LTP
• •Reduced about $600,000 worth of depreciation funding (money that is used to replace assets at the end of their life) by utilising what Council already has in reserves for replacement of these assets.

Q: How are rates figured?

A: Rates are calculated throughout Central Otago at a district and ward level. They are determined by several factors, such as the type of property you own – residential, lifestyle, rural, or commercial – its location within the district and the services you are connected to. To find out a more accurate rates estimate for your property please check our Rates Calculator: Rates Search (codc.govt.nz)

Q: Do I have an opportunity to provide comments on this rates increase?

A: Yes, you are welcome to comment and provide input on your priorities for the Council in the future. To learn more and provide your submission on the 2024-25 Annual Plan, please go to Let’s Talk Central Otago (codc.govt.nz) from Friday 26 April 2024.

Q: I’m not sure I can afford this rates increase, what options do I have?

A: We are aware that the rates increase may pose a significant financial burden at a time when Central Otago residents are dealing with higher cost of living expenses. For more information about who to call for help, please see the available resources below. List also available HERE.