Dunedin City Council financial controller Gavin Logie said 2898 ratepayers received rebates in the 2016-17 rating year, and 128 applications were declined.
The total value of the rebates was about $1.62million, about $126,000 less than the previous year.
Managed by the Department of Internal Affairs, the rates-rebate scheme provides a subsidy to low-income homeowners for the cost of their rates and is administered by local councils.
Depending on income, their rates bill and how many dependants they had, people could receive a rebate of up to $620.
Since the 2013-14 rating year, the total rebates paid out to Dunedin ratepayers has declined by about $237,600.
Mr Logie said there were a number of reasons for applications being declined, which included exceeding the income threshold and duplicated applications.
Grey Power Otago president Jo Millar said even if superannuitants and other ratepayers on low incomes thought their rebate would be small, they should still apply for it.
"Even if it’s only $25 it is a lot better being in your pocket than it being in the council’s."
Mrs Millar said the income limit for rebates was too low, particularly for older people on superannuation.
"A couple both receiving superannuation would be very lucky to receive anything because the ceiling is far too low."
Proposed rate increases by both the city council and the Otago Regional Council would also affect the city’s older population.
"We know down here rates are low compared to other places but we’ve still got to meet them and there isn’t going to be an 8% increase in superannuation next April to cover the increases."
One positive was the scheme was now open to people living in retirement villages, she said.
Applications for the 2017-18 rating year close on June 30.
