There is a catch though - extra costs for those communities most affected by some activities.
The council's finance and corporate committee will consider the draft Long Term Council Community Plan 2009-19 at a meeting tomorrow.
Corporate services director Wayne Scott said given the economic times and the projects being considered by the council, being able to keep the general rate increase to 1%, or about $45,000 more than the 2008-09 year, was "stand-out". The uniform annual general charge was estimated at $12.70, the same as last year.
It was an outcome made possible by debt funding, with a targeted rate to cover the balance, the $37.4 million Otago Stadium contribution and funding the proposed new office building by using Port Otago dividends, proceeds from the sale of the Stafford St building, asset replacement reserves and general reserves, he said.
A dividend of $6.8 million from Port Otago was being used to subsidise the general rate and the balance of $200,000 would be used towards the new building, a report to the committee said.
The extra costs for ratepayers came from the proposed new targeted rates to fund the stadium, Clean Air, Clean Heat programme, new bus services in Queenstown and the Shotover Delta work.
In the worst-case scenario, the new rates could mean an owner of a $500,000 Arrowtown home might be facing a 138% increase in their rates to $160.
Ratepayers in Alexandra, Cromwell, Arrowtown, Clyde and Milton could be faced with a new four-year rate to help improve air quality to meet the Government's standards by 2013. It would fund the continuation of the Clean Heat, Clean Air project which involved insulation of homes in Otago.
Also affecting Queenstown ratepayers was a proposed targeted rate for managing the flood risk affecting Lake Wakatipu communities, including Kingston and Glenorchy.
Work was estimated to cost $1.3 million over two years with Queenstown Lakes District Council paying about $550,000 towards it and the balance by the targeted rate. Some Taieri ratepayers who already paid targeted rates for flood and drainage schemes could face increases in rates of up to 29% as significant investment in new pumps and floodbank development was proposed.
However, "big ticket" items would be funded by loans.
Uncertainties over how much the Leith Lindsay Flood Protection Scheme would cost meant only the original estimate of $21.4 million could be included in the plan. A report to be presented to the committee tomorrow said the estimate was insufficient to complete the works, and an amendment to the plan would be needed to include the additional costs.
Dunedin's transport rate was also proposed to increase by 7.5% to $3.7 million to allow for the upgrade to the city's bus system to continue.
Other significant proposals in the draft included a 25% increase in bus fares (excluding Palmerston) from July 1, a $400,000 increase in the budget for the Regional Plan: Water and $200,000 for water-quality monitoring.
Over the 10 years, general rate increases were estimated to range from 0.5% to 4.95% (adjusted for inflation) to meet expenditure which was predicted to peak at $72 million in 2010-11 and decrease in the years after, ending up at $45 million in 2018-19. If adopted by the committee, the draft plan will be discussed by the full council at a meeting on March 25, before being opened to public submissions on May 1.
It was proposed hearings be held from May 11.
