Council to Undertake Comprehensive Rates System Review
The Central Otago District Council (CODC) agreed to undertake a full review of its rates system at its meeting on Wednesday, 17 December.
In the previous triennium, the former Council indicated a desire to review all aspects of its rates in light of three waters being transferred to a regional water entity, Southern Waters; the impact of district wide funding of rates, and the significant rates increases some ratepayers have faced in the past two years.
In the new triennium, Council held a workshop on 24 November to introduce councillors to the review process.
On 1 December, the Government announced a proposal to cap council rate increases at a 2% to 4% annual target band to set a limit on how much councils can increase rates each year.
Councils around New Zealand have been asked for feedback on the proposed formula. In a tight turn around, CODC, like all councils, has until 4 February 2026 to make a submission.
A CODC rates system review will allow Council to assess and, if appropriate, redesign its rating framework. It will also examine ways to ensure a more equitable distribution of rates following the transfer of three waters responsibilities to a council-controlled organisation, effective 1 July 2027.
“Council has a responsibility to ensure our rating system is fair, transparent, and equitable for all ratepayers," Central Otago Mayor Tamah Alley, said. "Reviewing the system will help address significant fluctuations, particularly in the rural sector, and create a framework that delivers greater consistency across rating years while ensuring compliance with legislation.
"At the same time, we remain mindful of potential Government proposals for a rates cap.”
This review will also provide input into the Revenue and Financing Policy consultation after June 2026 and inform the Long-term Plan 2027–2037.
The rating system has not been reviewed in many years, and Council considers it timely to assess the system in its entirety to ensure it remains fit for purpose.
