The changes mean putting off paying stadium interest and cutting back on money the council is putting into assets for the future.
At the end of two days of deliberations at an annual plan hearings committee, where city councillors debated the merits of hundreds of submissions and requests for grants, the figure last night had climbed to 13.3%.
But plans put forward by deputy mayor Syd Brown and Cr Paul Hudson reduced the final figure to 10.3%.
Mr Brown said the level of depreciation for water, waste water and stormwater assets - money set aside to pay for asset renewals in future - was too high at 80%.
He suggested a cut of 10%, with the figure to head back towards 100% at a rate of 5% a year.
"At 80%, I think it's been too big a hurdle for the community to face."
It meant the present generation was paying proportionately more than the next would, Cr Brown said.
Chief executive Jim Harland told the committee the amount of depreciation being raised for the water, waste water and stormwater budget was above what was being used for renewals.
Finance and corporate support general manager Athol Stephens said the outcome for water schemes north of Dunedin was they would be paid for by about 21% cash and the rest by loans, instead of 50% cash and 50% loans.
"It's doable, but you've just got to watch it," he said.
Cr Kate Wilson asked if the council was making next year's increase look good at the expense of making finances worse later - to which Mr Harland answered that it was a political decision.
Cr Dave Cull asked if depreciation was not set aside, but spent on renewals, "what don't you spend it on?" if depreciation was cut.
Mr Stephens said the council would just raise more debt. The committee voted unanimously for the proposal.
Cr Wilson, while saying it was "a wonderful solution", was concerned councillors had not shown the discipline to make cuts.
Asked after the meeting if the council was dipping into future budgets to pay for the present, Cr Brown said that was not the case.
He said he chose the water and waste water budget because many of its assets were newly commissioned, and had a very long life.
The council was paying high depreciation on the Mt Grand water treatment plant, for instance, which was expected to last 100 years.
"I fully concur, if you're talking pumps, moving parts, things that break, it's totally different."
But for long-term assets the council was taking "a major hit at the front end" by paying high depreciation.
Cr Paul Hudson came up with the plan to cut the rate increase by capitalising stadium interest.
That meant, instead of paying interest of $704,00 in the next year, it would be added to the project's capital and paid later.
The committee voted unanimously for the idea.
