Additionally, "non-budgeted investigations" cost the council $216,000 after the Clutha River dumping scandal hounded the council over the year.
As councillors discussed the difference between what was spent on legal fees and what had been budgeted, outgoing Cr Hilary Calvert said there was money spent every year that was now "expected" even if it was unknown what it was specifically going to be spent on.
"Each year we spend several million dollars on 'legals and things' and never do we rate for it," Cr Calvert said.
In order to balance the budget next year, she asked Dr Borren to look into rating for what she characterised as chronic overspending on legal and other expenses.
"I'll look into it," he said at the meeting.
Yesterday, Dr Borren said he agreed with Cr Calvert's assessment.
However, he gave no indication the council planned to increase rates to account for overspending on legal fees.
Instead, he said in the past year the council's financial "under-performance" was due to lower than forecast revenues instead of overspending.
"This related to several areas of our business which did not bring in the budgeted revenues; especially public transport, for a range of reasons mostly outside of our control," Dr Borren said.
He said the higher than budgeted legal costs were mostly associated with reviews around the council's regional statement and other environmental court challenges.
"We are working hard on ensuring that our services across ORC are fit for purpose and meeting the needs of our communities across Otago.
"Ultimately, if people want better services they will need to pay for them either through user charges or through rates.
"However, we are also acutely aware that we have increased rates significantly over the past two years with a view to addressing these very concerns."
