The remainder will be covered by higher targeted rates for water, waste water and refuse.
The Long-term Plan sets the council's budgets and strategic direction for the next 10 years.
Kerbside recycling is back on the agenda as part of the council's plan and is one part of its proposed new Waste Strategy for the district.
The council says demand for kerbside rubbish and recycling collection is high and its preferred option is to dump the old weekly brown paper rubbish bag collection for fortnightly collections of rubbish and recycling.
Households would be provided with a 140l wheelie bin for general household waste along with a 240l bin and a 60l crate for recycling and glass collections.
The council says the option would save $30 a year for each rateable property in the district if it went ahead.
However, the council has put forward six options for waste collection and disposal for which it wants community input.
There are no plans at this stage to close the in-town recycling centre.
"Further consideration needs to be made as to how the refuse and recyclables would be disposed. This is currently being done via the landfill and recycling centre. Closing the landfill and disposing to an alternative landfill out of the district would lead to a $70 increase per ratepayer.
"There may be an opportunity to partner with a commercial operator for the provision of collection, disposal and landfill operations. If this could be done at a price comparable to our business as usual option, do you think Council should do so?," the consultation document asks.
The document states that significantly less waste is going to the Atiamuri landfill which costs $2.2 million a year to run with $600,000 of that total being spent on monitoring and the treatment of leachates.
Currently, waste collection costs ratepayers an average of $226 a year and has increased over time due to the reduced revenue from the landfill.
In the coming weeks the Rotorua Daily Post will cover the main points of the council's Long-term Plan consultation document before the consultation period ends in little over a month's time.
- Once the document has been released it will be available from www.rdc.govt.nz, the Civic Centre on Haupapa St and the Rotorua District Library on Arawa St.