The cost of next year's rates for the 312 Earnscleugh ratepayers who have just been moved into the Alexandra ward, hangs on a legal opinion, after the Central Otago District Council (CODC) tried several other options to allow some of the increase to be remitted.
The council voted to allow a remission of $200 for each of the affected rating units and, in an unusual move, has ordered the Vincent Community Board to pay back the total remission costs of $62,400 if the board is legally allowed to do that.
An audit opinion will be sought.
If that option fails, the 312 ratepayers will be left with the full cost of their new rates - an average of $400 more per ratepayer.
An earlier resolution to agree to a $200 rates remission and spread the cost over the district was lost by five votes to four.
Ratepayers are facing an average 40% rates increase over and above any general rates increases this year, as they help fund Molyneux Park, Molyneux Stadium, Molyneux Aquatic Centre and the Clyde pool.
Councillors struggled for more than two hours to find an answer to the problem which is only for the next rating year, as a complete rates overhaul is due after that.
Fifteen submitters against the increase took up much of the day and they were vocal in their disapproval.
"The whole thing's a bit of a nightmare for people. The royal commission changed the boundaries but you set the rates, and you are the ones who can change the rates in the meantime, until you sort yourself out.
"But if nothing changes, you could be facing a ratepayers' revolt," Chapman Rd resident Lewis McGregor told the council.
Warren Watt faces a 58% increase in his rates at Letts Gully.
"I don't receive the same services and benefits as Alexandra people and I am only prepared to pay an extra 10%," he said.
John and Yvonne Stiles, from Letts Gully, questioned whether joining the Alexandra ward meant they would get Alexandra services.
"We would like kerbside recycling, water reticulation and better footpaths," they said.