Queenstown Lakes district residents face a 9.1% rates increase, up from the 7.7% predicted in June.
QLDC deputy chief executive and general manager finance Stewart Burns said the number of rateable properties dipped below forecast for the first time in more than a decade.
"The actual growth in the rating roll was 1.8%, which is slightly less than the forecast 3.2% and has had a minor impact on the final setting of the rates for the 2010-11 year," he said.
The rates could not be formally set until the final capital values for the district were known, as of July 1.
The increase of 9.1% was 0.6% higher than the 8.5% increase signalled in the 10-year plan and just over 1% higher than the 7.9% increase consulted on through the draft annual plan, which flagged that the figure was subject to growth.
"Most residential property shows an increase of around 0.5 to 1.2% more than the position shown in the draft annual plan. In dollar terms this is a difference in the range of $2.83 to $21.11 per annum," Mr Burns said.
"Clearly, we are seeing some continuing fallout from the recession. We will be closely monitoring our growth forecasts for next year," he said.
The council will be asked to set the rates at its meeting on Tuesday.
Mayoral candidate Cr Vanessa van Uden voted against the adoption of the Queenstown Lakes District's 2010-11 annual plan in June, describing the average rates rise of 7.7% as "unacceptable". Yesterday, she said she found the size of the rise unacceptable in the first place "because we are spending too much money" and now the situation was worse.
Simon Hayes, who announced his bid for the mayoralty yesterday, said the rates increase was "unpalatable and unacceptable".
Rates on his Dalefield property had gone up 215% in nine years.
"Councils are by their very nature monopolistic but must find ways to change their modus operandi . . . You can't fix it in one go. There will have to be a real concerted effort and hard decisions made," he said.
The increases mean the Albert Town residential rate will rise 4.5% from $1550 to $1620 and rates for a Wanaka country dwelling will go up 13% from $1483 to $1676.
Rates will rise 11.5%, or $202, for a Queenstown residence and 5.3%, or $100, for a Wanaka residence.
