Hard call made to strike significant rates increase

Annual plans are about planning for the future and facing reality, but today’s adoption of the Central Otago District Council 2024-25 Annual Plan, and a significant rate rise, was not a reality that anyone wanted to face.

An average rate increase of 18.3%, which will be around 30% in in residential areas, was struck at the Council meeting in Alexandra today.

Regrettably, the rates increase in the coming financial year was far higher than anyone wanted it to be, due to the immediate cost pressures the Council, and other councils around New Zealand, were facing, Central Otago Mayor Tim Cadogan said.

“Not a single elected member is happy about this situation. We totally understand the effect an increase such as this will have on households, but options were limited given the cost and compliance issues we and all councils face.

“Councillors were united in being unwilling to run at a deficit and pay the price in the 2025-26 financial year or cut depreciation funding and let the next generation of Central Otago ratepayers pay the cost of the assets we are consuming today.

The average rates rise would be in the vicinity of 1.6% higher, if projected population growth was not factored in, he said.

For the Annual Plan consultation this year, the community was asked to help identify priorities so that they could be reflected in the 2025-34 Long Term Plan which will be next year’s focus. The feedback ranged from submitters wanting the Council to reduce project spending and focus on delivering core services to proceeding with the current projects.

Work would continue to reduce costs in the year ahead and review levels of service whilst not compromising our ‘must do’ services, in the preparation of the LTP. Consultation for the LTP will be held in March - April next year, CODC Chief Executive Peter Kelly said.

The community would be on consulted on what services to prioritise and how to deliver them, and in a separate conversion later this year, continuing to explore achieving economies of scale by consolidating services and facilities as district-funded activities rather than at a ward level.

Information about the Annual Plan can be found on Let's Talk: Annual Plan 2024-2025 | Let’s Talk Central Otago (codc.govt.nz)