The on average 1.5% hike for 2020-21 has been revised down from a possible 6.76% increase proposed prior to Covid-19.
During a meeting at the Queenstown Lakes District Council’s chamber in Gorge Rd, Queenstown, Cr Penny Clark described the limited increase as a "miracle" and paid tribute to officers for their hard work.
Wanaka residents will have a slightly higher percentage increase than those in Queenstown, but Wanaka rates remain lower.
A council media spokesman said it meant a residential rates bill would now increase by between $34 and $125 for the year, "with most businesses seeing a reduction in rates".
"To achieve these lower increases, the revised plan took into account significant reductions in staff costs of $4.7million, and a further $1.7million in contractor costs."
Councillors nodded the increase through in a nearly unanimous vote, as part of a much revised annual plan.
Councillor Niamh Shaw proposed one amendment to the annual plan, which was to have the chief executive consider what was spent on consultants.
This was accepted as part of the whole plan, which Cr Niki Glading said she could not support because of reservations over capital expenditure.
She argued the Queenstown-Lakes District Council could not know what revenue it would receive post-Covid-19.
Both Crs Glading and Shaw commented on how much of the council’s grant money had been allocated in prior year’s budgets.
Cr Glading said submissions to council took time and it was unfortunate more of those who applied this year could not receive support.
Cr Quentin Smith noted other councils in New Zealand had promised a rates freeze and had ultimately been unable to deliver on that assurance.
Cr Smith said officers had done well to get the budgetary increase down to an average of 1.5%.
