What we are consulting on

Changing the rating method – 3 Waters utilities

Every three years a revaluation of the capital value of Dunedin properties is undertaken.  This revaluation includes a review of the DCC owned 3 Waters utilities^[1], such as our network of pipes, reservoirs, and buildings.

A revaluation of Dunedin properties took place during 2025 and resulted in a 76.6% increase in the capital value of the 3 Waters utilities.  This valuation increase is significantly and disproportionately higher than any other property in Dunedin, including other commercial utilities, such as electricity and gas networks.

We use capital values as the basis for working out how much every property in Dunedin will pay in general rates, including our 3 Waters utilities.  The rates charged to our 3 Waters utilities is passed on to those ratepayers who use our 3 Waters services, through our targeted drainage and water rates.

The significant increase in the value of our 3 Waters utilities of 76.6%, means that the general rate allocated to these utilities is estimated to increase by around $6 million, and would result in a significant increase in targeted drainage and water rates charged to our ratepayers.

Our proposal

To prevent a large rise in rates for our water services users, we are proposing to create a new “General Rate Differential” for 3 Waters utilities.

A rating differential allows us to charge different rates (cents in the dollar) based on property types, such as residential, commercial, or lifestyle.

We currently have rating differentials where for example, commercial properties pay 2.5 times the amount that a residential ratepayer will pay.

Currently, our 3 Waters utilities are classified as a commercial ratepayer.  The increase in the capital value of the 3 Waters utilities and the resulting increase in rates charged will result in high increases in water and drainage targeted rates for water users, that don’t reflect any real change in the cost of providing water services.

We are therefore proposing to introduce a new rating differential of 1.34 for 3 Waters utilities, compared to the 2.50 differential currently in place. It has been calculated using what we charged water services in 2025/26, adjusted for inflation.  It prevents disproportionately higher rates charges for 3 Waters utilities from being passed on to other customers.

Introducing the 1.34 differential for the 3 Waters utilities will result in lower rates increases for lower valued homes, while higher value properties would see a slightly higher increase in rates than they would if we left the rating differential unchanged.

Other matters

Fees and charges

We are proposing some changes to our fees and charges that will apply from 1 July 2026.

• Proposed fees and charges

Footnote

1. Water services relating to drinking water, wastewater and stormwater

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