Overall, rates could rise by 47.5% in 2021-22.
Targeted rates could rise by 29%.
The startling figures are included in a long-term plan consultation document that councillors will consider next week.
They will need to decide if the document should be modified before releasing it as a draft plan for public comment.
Asked for comment ahead of the meeting, several councillors pointed out the dollar impact for households from the proposed changes was less alarming than the percentage changes and that Otago was coming off a low base.
They also said the council was obliged to meet expectations from the Government in matters such as freshwater regulations and to respond to community expectations.
Council chairman Andrew Noone said it recognised the first year’s rates increase under consideration in the 2021-31 draft plan looked "hefty" and this could be followed by smaller increases.
"Otago has historically had some of the lowest rates in the country," he said.
"That is no longer sustainable with the work programme expected from us by our community and Government."
The proposed rise for an average household was $80, or just over $1.50 per week, he said.
The main reasons for planned increases identified in council documentation included meeting new national freshwater regulations and looming Resource Management Act reforms, and reducing Otago’s effect on climate change.
The draft consultation document said the council’s preferred option was general rates increases of 73.2% in 2021-22, 15.7% in 2022-23 and 6.8% in 2023-24.
It was also proposing targeted rates rises of 29%, 18.2% and 14.2% in years one to three.
An alternative option is for the council to borrow money to pay for increased spending and to smooth rates rises over the next decade.
While this would avoid the large increase in year one, the same amount of rates funding would still be required across the 10 years.
The proposed consultation document described the alternative option as like "ripping the sticky plaster off slowly".
As well as dealing with mounting pressures, the council needs to catch up in some areas.
Cr Kate Wilson said keeping a rates rise in check this year due to Covid-19 meant it would be a "double whammy" next year.
The numbers looked "ugly" in percentages, but people should be looking at the "very low" starting point.
Cr Michael Laws said the rates bills arriving in letterboxes would still be "relatively inconsequential".
However, he wanted a clear comparison to be presented, showing how Otago rates stacked up with those of other regions.
The council had not been doing its basic job for years, he said.
Cr Laws said the proposed rates increase was huge, but Otago would still have the lowest average rates of any regional council in New Zealand.
Cr Michael Deaker said it had always looked like a misprint when comparing Otago’s rates to other regions and that "those days are over".
Crs Marian Hobbs, Alexa Forbes and Bryan Scott said the council had a lot of work to do to meet its responsibilities.
"We require the tools to deliver the environmental gains that are required," Cr Scott said.
However, Cr Gary Kelliher said he was sickened by what Otago ratepayers could be asked to stomach.
He and Cr Carmen Hope urged residents to read the consultation document and provide feedback.
Cr Hilary Calvert said she was concerned about the level of proposed increases and the council would need to get value for money.
Councillors will discuss the draft long-term plan consultation document at a meeting in Oamaru on Wednesday before approving it for public feedback.
The final plan is expected to be approved in June.
Related Stories
Comments
The natural hazards dept driven by gavin palmer are so conservative they are obstructive. The policy dept are spending millions of dollars writing rubbish documents and court processes. The consents staff are performing at a low rate of cost-recovery time and fix that by employing more staff. This council is broken.
"Intense workload" they don't do a damn thing for me, time these greedy clowns were gone.
People living week to week, trying to get ahead of all the increases, and keeping up with a mortgage, probably won't agree with this line of reasoning being presented. We face ever increasing costs imposed annually by entities over which we have no real control, we cannot avoid them. Reasons do not matter when the increases directly impact the living costs budget, in some cases it is the food budget that takes the hit. This increase may seem small by comparison to other councils, but it is yet another cost to be factored in to wage packets that in many cases have not increased annually. So, citing amongst other reasons that other Regional Councils rates are higher does not fill me with confidence that ORC is choosing this path for the right reason.
73.2% rates increases? Don't suppose they would possibly consider what most companies would do? A cut in salary for staff? Reduction in staff? Reprioritize projects etc. Nope, we can just take the money from people. Just because the rates are lower in Otago doesn't justify raising them! You can't compare the amount in otago to anywhere else. If a company in the private sector had finances this far out of whack the executives would be fired. ORC has mismanaged what they have now, giving them more money isn't going to make things better. The people here in dunedin need to wake up. Giving DCC and ORC more money is wrong. Don't let them lull you into stupidity with "It's only 80 dollars more a month"...it's 73% and rates never go down! What are you getting for that? Zip...zero...zilch...more wasted funds on pet projects.
It is literally insane to provide "Otago has historically had some of the lowest rates in the country," as justification for raising rates. This statement is beyond belief. Otago has also historically had the second lowest wage and salary rates in NZ (only Northland is lower). Does the ORC not consider that one explains the other?
The electorate down here seems to like putting the least qualified in office. Because of the housing shortage, we are all stuck paying whatever these dimwits mandate. Renters don't realize they foot the bill in increased rent and reduced upgrades on flats. I own a business, I just pass the cost onto you the consumer as does everybody else. Hey ORC, go for 150% increase, more than happy to pass that on to the consumer. In the end, it reminds us all how incompetent you folks are!
I completely agree, and I'm sure the DCC councilors along with the ORC councilors do not fall in the lowest paid category!!!! and lets remember we have a Mayor and councilors who said the same regarding rate rises
@Dr Jektyl, i suspect the councillors would rather consider the ratepayers as the 'waiheke island type' to tax us as. We are dunedin