Download PDF version of Te Mātāpuna March 2025

An overall rates increase of 7.8% is planned for the 2025/26 year, which is less than the previously forecast 13.8% increase.

We are aware that people are facing economic challenges and are conscious of the impact of rates rises.

The overall rates increase for 2025/26 is 7.8% — less than the previously forecast 13.8% — the result of cuts to planned public transport upgrades, work to gain efficiencies, and reduced inflation costs.

To help keep rates down we have also increased Port Otago’s financial contribution by $2 million. An overall rates increase was still needed to help fund the work we do.

The rates increase in 2025/26 is partly due to the new large-scale environmental fund, a climate change strategy and biodiversity strategy, as well as the costs of doing business, including insurance, depreciation and rental costs.

The rates you pay help this council’s work to protect Otago’s natural resources — water, land and air — on behalf of the community.

That includes flood protection, natural hazard adaptation, public transport, compliance and a regional response to natural disasters.

Less than half of ORC’s funding comes from rates — the rest is from fees and charges, grants, reserves, dividends from Port Otago and investment income.

Some changes are proposed to ORC’s fees and charges. Find out more at orc.govt.nz/ap2025

What is behind rates changes

Contributing to reduced increase

• Planned public transport upgrades in Dunedin and regions not going ahead
• Increased funding from Port Otago
• Inflation costs are less than previously expected
• Decreases/deferral of work programmes

Contributing to rates increase

• Introduction of new large-scale environmental fund
• Rental cost of Whare Rūnaka (new office)
• Public transport upgrades in Queenstown
• Insurance costs

Planned cost of work

Where ORC funding comes from

_{*Queenstown only, does not include the wider Queenstown Lakes area}

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From July, environmental work in the region will get an extra boost when a new $2 million a year large-scale environmental fund is introduced.

This new fund was agreed in ORC’s Long-Term Plan last year, and is designed to support large-scale environmental work, helping communities with activities that benefit our special Otago environment.

To pay for this fund, ratepayers will see an increase in their Catchment Management Rate.

For around 77% of ratepayers, this is less than $15. Use our rates estimator to see the change in this item of your rates bill.

This will support significant work happening in communities to improve their environment. It comes on top of ORC’s existing work and environmental project funding.

The fund supports ORC’s work to enhance our environment and protect our flora and fauna — vital for wellbeing, communities and economy.

By funding environmental improvements, ORC is investing in current and future generations, our economy and the work communities do.

We’re helping to maintain environmental gains already made in Otago, such as dealing with plant and animal pests, and we’re supporting climate change work.

In the year ahead, we’ll build on a new catchment action plan programme that will empower communities to manage and restore their catchments, and we’ll have a stronger focus on biosecurity, such as keeping pests at bay, and biodiversity to help our native species thrive.

Otago Regional Council provides flood protection and drainage to around 43,000 ha of rural and urban land across Otago.

In 2025/26 that includes completion of the West Taieri contour channel resilience project, which has strengthened the scheme and reconstructed parts of the floodbank. This work is funded by ORC and central government.

While more work is planned across the region over the long term, less than forecast will be spent in 2025–26. This is because the focus is largely on planning for efficient project delivery in subsequent years.

Planned work in the year ahead includes investigations looking at hazards in Middlemarch and for Lindsay Creek (North Dunedin), resilience work for the Kaikorai Stream near Green Island, and we plan to install river mouth monitoring technology in key areas.

Communities will also be able to better feed into the shape of flood protection and drainage schemes from this year as ORC establishes liaison groups —a decision made during the Long-Term Plan process.

The first, Lower Taieri, was set up recently and will be followed by new liaison groups for the Lower Clutha and Tokomairiro catchment schemes.

ORC is responsible for a lot of infrastructure, including 218km of floodbanks, 14 pumping stations, 42 bridges, 535km of drains, and 369 culverts — all of which can be impacted by things like climate change, settlement trends and change in land use.

Over the next 10 years we plan to spend $67 million renewing infrastructure — doing more work on our rivers than we have in the past.

Otago Regional Council’s vision is for Otago’s environment and communities to be healthy and connected ki uta ki tai —from the mountains to the sea.

We’ve focused on finding better value for money while still doing important work for Otago’s communities and the environment. 

A key highlight for the coming year is introducing a new $2 million annual environmental fund, which, through our communities, will achieve meaningful environmental outcomes and widespread benefits across the region.

Improving bus services remains a priority. While enhancements are planned for Queenstown and attracted Government co-funding, proposed enhancements to Dunedin’s network did not attract co-funding and existing services will continue unchanged.

Co-funding gaps mean some regional improvements — including a business case for Wānaka — will not proceed as planned. We remain committed to exploring ways to improve public transport across the region and will investigate options for provision of some services for Ōamaru, Balclutha and Central Otago. 

Our essential services will continue, including civil defence, biosecurity, water and air quality monitoring and regulation, navigational safety, and 24-hour pollution response.

Addressing climate change also remains central to our work.

We’re working within our Climate Strategy to advance natural hazard adaptation programmes in South Dunedin, the Clutha Delta, Roxburgh and Head of Lake Whakatipu, alongside projects to strengthen our flood protection schemes.

We’ll continue to work with communities on the things that matter to them, including catchment management, flood protection and pest management.

I encourage you to learn more about the work proposed for the year ahead and give your feedback.

We look forward to hearing from you. 

Gretchen Robertson
Chair, Otago Regional Council

Download PDF version of Te Mātāpuna March 2025