Rates Review consultation to open

Central Otago District Council has adopted its Statement of Proposal for a rates review, opening the way for public consultation on how rates are shared across the district.

Council has been working through this review since late 2025, including a series of workshops with elected members looking at the current rating system and the options available once water services move to Southern Waters Limited.

Three options have been agreed on for community consultation:

• Option A – Rethinking our approach to rates

Switches the way the general rate is calculated from land value to capital value, meaning the total value of a property (land and buildings) would be used instead of land value alone. Targeted rates would still apply for waste management and ward-based grants, with all other services grouped under the general rate. The Uniform Annual General Charge (a fixed amount every ratepayer pays) would also be adjusted to stay below the legal maximum of 30% of total rates.

• Option B – Differentiating commercial

Includes everything in Option A, with an added differential applied to commercial properties, meaning businesses would pay a different share relative to residential ratepayers than they do now.

• Option C – Keeping things (mostly) the same

Retains the current land value approach for calculating the general rate, with adjustments to the Uniform Annual General Charge to keep it under the legal maximum.

Mayor Tamah Alley says the options put forward give the community a genuine chance to shape a rating system that's fairer and better suited to the district's future.

“This isn't about how much rates revenue Council collects overall – that's decided through the Long-term Plan and Annual Plan processes. Instead, this review looks at how that total is divided up between ratepayers.

Each option would affect ratepayers differently depending on their property type and value. Full details, including examples of how each option could affect different kinds of properties and a calculator to see the effects of each option, are available at Rates Review 2026 | Let’s Talk Central Otago.

Consultation will run between 3 August and 4 September. Residents and ratepayers are encouraged to make a submission, and feedback will be considered carefully before Council makes a final decision.