Thursday 26 February 2026
Balancing important environmental work and finding cost efficiencies were the key focus for Otago Regional Council in preparing the draft 2026-27 Annual Plan, considered by Council on Wednesday.
The draft plan delivers an overall zero rates increase in 2026-27 - a significant drop on the 8.7% increase forecast during the Long Term Plan process.
Chairperson Hilary Calvert says “Councillors sought to keep rates as low as possible while delivering important work to protect the environment and provide public transport services for Otago. We’re confident we can deliver for Otago’s people and environment within the zero-budget increase proposed.”
The draft annual plan has no increase in the value of the overall rates amount collected, but rates for each property varies depending on things like location and the services provided. Some properties will still see a change with rates increasing or decreasing.
“For the average residential property in Dunedin, Clutha, Waitaki and Central Otago, rates drop slightly. In Queenstown, properties that pay a public transport rate will see an increase. This is due to the cost of extra services introduced after public consultation, such as the new Arrowtown to Jacks Point bus service and increased frequency of services on other bus routes.”
Overall general rates (a set amount for each property) are reducing by 3.5%, but some properties will see increases for targeted rates for specific locations or services. The directive from government to pause planning work, meant ORC will spend less than budgeted in 2025-26 and will end up with a surplus. Some of this surplus will be used to deliver work in 2026-27.
“Factors helping to reduce rates include cost savings and efficiencies in work programmes, extended timeframes for some work and finding alternative revenue sources.”
| District | Median CV | Rates 2025/26 | Rates 2026/27 | $ change | % change |
|---|---|---|---|---|---|
| Central Otago | $740,000 | $340.94 | $338.60 | -$2.34 | -0.69% |
| Clutha | $370,000 | $296.01 | $293.58 | -$2.43 | -0.82% |
| Dunedin (with public transport rate) | $590,000 | $436.41 | $426.98 | -$9.43 | -2.16% |
| Queenstown Lakes (with public transport rate) | $1,475,000 | $642.18 | $665.53 | $23.35 | 3.64% |
| Queenstown Lakes (without public transport rate) | $1,475,000 | $518.69 | $513.44 | -$5.25 | -1.01% |
| Waitaki (with public transport rate) | $430,000 | $383.27 | $375.22 | -$8.05 | -2.10% |
While government is proposing significant reform in the local government sector, if these changes go ahead, they will take some time to happen, Cr Calvert says.
In the meantime, it’s important that we continue to work hard for Otago, including providing public transport, monitoring Otago’s air, land, waterways and natural hazards, compliance monitoring and enforcement, river management, flood and drainage schemes; harbourmaster functions and emergency management response.”
More information and a copy of the draft Annual Plan can be found on the ORC website at orc.govt.nz/ap2026. A rates estimator will be added by mid-March so people can look up their estimated rates.
As no significant changes have been made to what was consulted on in the Long-Term Plan for the 2026/27 year, Councillors have chosen not to go to the expense of formally consulting with the community on this annual plan. The draft Annual Plan will be put to Council for adoption in late April 2026 and we will then turn our focus to the next 10-year plan and how we can hear from the community on this.
