In the ORC’s just-released Annual Report, Chair Hilary Calvert highlighted that across New Zealand, the environment for local government was changing, with ongoing resource management reform, discussion about the future structure of regional and local councils, and higher expectations of affordability, performance and accountability.

“Through this period of uncertainty, ORC has remained focused on delivering core services, supporting our communities and preparing for the future,” Chair Calvert says.

Financial Performance

ORC has reported a total comprehensive revenue and expense surplus of $70.644 million which comprises an operating surplus for the year of $10.89 million and a revaluation gain of $59.754 million. The surplus of $10.89 million is $10.16 million greater than the budgeted surplus of $729,000.

The following major items contributed to this variance:

• Grants revenue and subsidies are $2.425 million greater than budgeted revenue of $25.162 million. The main factors for this variance were due to budgets being set prior to the agreement of the funding agreements.

• $1.039 million in funding for LiDAR map scanning

• $896,000 increase in grant funding received for wilding pine eradication which was offset by increased operating expenditure on eradication work.

• $1.177 million increase from budgeted revenue for Waka Kotahi NZTA for Total Mobility passenger transport services. This was partially offset by increased operational costs.

Expenses are $4.29 million below budgeted expenditure due to the following:

• $3.857 million less spent in the Policy and Planning and Land and Water $0.920 million in Science activities due to work in these activities being put on hold due to government reform.

• $2.234 million less spent in Biodiversity large-scale environment fund that has been deferred to 2026/27 financial year.

• $1.413 million unbudgeted operating expenditure on Lower Clutha flood protection scheme to repair flood damage.

Council holds 100% ownership of Port Otago and considers it a strategic asset held on behalf of the Otago community. Each year, Port Otago pays dividends to ORC, which help reduce general rates required from ratepayers, effectively sharing the financial benefits of ownership across the region.

Key achievements during the year

• Regional resilience: the around the clock flood warning service was maintained through a number of severe weather events.

• Flood protection and drainage scheme maintenance: 97% of planned scheme maintenance was completed, exceeding the target of 85%.

• Community engagement for land and water activities: 43 workshops and events were delivered, well above the annual target of 12.

• Biosecurity and freshwater projects: 100% of externally funded projects/programmes implemented/delivered as per agreements with central government.

• Performance monitoring: 109% of scheduled returns were completed, exceeding the target of >90%.

• Programme inspections/audits: 123% of scheduled inspections and audits were completed, exceeding the target of > 90%.

• Total Mobility Scheme: achieved a 94.5% 3-year rolling average satisfaction, exceeding the 90% target.

• Public transport: 99.5% of scheduled Dunedin services delivered. 98% of scheduled Whakatipu services delivered. Queenstown boardings increased 7%.

• Second year record public transport passenger; Dunedin: Steady at 3.5 million trips; Queenstown: 7% increase, 2 million trips – a record for Queenstown

However, Chair Calvert highlighted the annual patronage report for public transport showed that in Dunedin, there was a 32% decline in child fare patronage since the reintroduction of child fares, which had been free for some time, and a similar impact in Queenstown, with a 23% decline in child patronage since the $1.50 fare was introduced in September 2025.

“This issue was discussed at length when Council reintroduced child fares, with Councillors concerned about cost-of-living pressures and impact on school attendance. Councillors will continue having these conversations with Central Government, focused on achieving the balance between public transport cost recovery and supporting families and ensuring children can get to school,” Cr Calvert says.

Elsewhere, service challenges were seen in work affected by changes in central government direction, including the paused Land and Water Regional Plan and Air Plan review, Cr Calvert says.

“Continued effort will focus ORC on delivering value for ratepayers, and on the areas that matter most to Otago communities,” Cr Calvert says.