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Annual plans
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ORC's work is either set by the Government or decided by Councillors through plans we make with the community each year - either the Long-Term Plan or Annual Plan - which detail work programmes, cost and how the work will be paid for.
Councils create an Annual Plan each year. This plan outlines the work they’ll do over the next 12 months, how much it will cost, the rates impact and any fees or charges for services.
Every three years, councils must produce a Long-Term Plan instead of an Annual Plan. This sets out the key projects and spending for the year ahead as well as work for the next 10 years, as required by the Local Government Act.
In the two years between Long-Term Plans, the Annual Plan shows any updates form the Long-Term Plan such as changes to work programmes or budgets.
The Annual Plan budget is used to help set rates (both general and targeted).
The 2025 Annual Plan resulted in an overall rates increase of 5.5% in the 2025/26 year which was a significant drop from the 13.8% originally forecast in the Long-Term Plan.
Contributing to the less than forecast rates increase were cuts to some planned public transport upgrades, reprioritisation of environmental implementation funding, reduced inflation costs and work to gain efficiencies.
The annual plan focused on finding efficiencies in ORC’s work programme while continuing vital work that underpins resilient and well supported communities.
Ratepayers have also benefitted from an increase to the Port Otago dividend – raised by $2 million which helps to offset costs that would otherwise need to be paid by rates.
Also benefitting ratepayers, $2 million of Council reserves will be used to pay for the first year of a new environmental fund
Key changes in the year ahead include some targeted upgrades to public transport, increased environmental funding, and further work on natural hazards and engineering.
A rates increase is still required to help fund this work. This includes the investment in climate change and biodiversity strategies, as well as rising costs in areas like insurance, depreciation, and property rentals.
Public transport
Improving bus services remains a priority and some upgrades are planned for the 202/26 year.
- Queenstown will see upgrades, funded by ORC and Government co-funding.
- Planned improvements for Dunedin did not receive government funding and are unchanged.
- Fare changes are also planned.
- A business case to assess Wanaka public transport options attracted strong public support and will go ahead.
- Some regional upgrades will not happen due to co-funding gaps, but we’re committed to finding ways to improve connectivity options for Ōamaru, Balclutha and Central Otago.
Environmental funding
A large-scale environmental fund will start in 2025/26, designed to support large community-led initiatives that deliver enduring environmental outcomes in Otago.
The $2 million a year fund will be paid for by Council reserves in the first year.
Natural hazards and climate change
Planned work in 2025/26 includes investigations looking at hazards in Middlemarch and for Lindsay Creek (North Dunedin), resilience work for the Kaikorai Stream near Green Island, and river mouth monitoring technology installation in key areas.
Rates and financial information
The overall rates increase for 2025/26 is 5.5% but the rates impact for individual properties is different and can be influenced by a range of things including location and the services provided.
Less than half of ORC’s funding comes from rates — the rest is from fees and charges, grants, reserves, dividends from Port Otago and investment income.
Rates examples for median value residential properties
|
District |
Median CV |
Rates 2024/25 |
Rates 2025/26 |
Increase |
Increase |
|
Central Otago |
740,000 |
$332.23 |
$340.94 |
$8.71 |
2.62% |
|
Clutha |
370,000 |
$283.10 |
$296.04 |
$12.94 |
4.57% |
|
Dunedin with public transport rate |
590,000 |
$410.54 |
$436.41 |
$25.87 |
6.30% |
|
Dunedin – other |
590,000 |
$263.49 |
$272.77 |
$9.28 |
3.52% |
|
Queenstown with public transport rate |
1,475,000* |
$635.00 |
$642.18 |
$7.18 |
1.13% |
|
Queenstown – other |
1,475,000* |
$482.37 |
$493.61 |
$11.24 |
2.33% |
|
Waitaki with public transport rate |
425,000 |
$359.13 |
$381.33 |
$22.20 |
6.18% |
|
Waitaki – other |
430,000 |
$258.93 |
$263.39 |
$4.46 |
1.72% |
* Queenstown Lakes District has updated valuations.
Planned cost of work
Where ORC funding comes from
2025 Annual plan
The Annual Plan outlines our budget, funding impacts, and any changes to the projects and funding from the Long-Term Plan.
The Source - March
Our latest issue focuses on the ORC annual plan, explaining how rates may change, funding for environmental work, investment in public transport and how we mange natural hazards.
