The increase is slightly above expectations set out the 2022-23 annual plan, adopted by the Queenstown Lakes District Council on June 30.
Councillors completed the annual plan process yesterday.
"The average rates increase of 6.5% is now slightly above the self-imposed net rates increase limit (6% net of growth)," council finance manager Stewart Burns said in a report.
Cr Niki Gladding asked how much of rates went towards promoting the district and whether hydro-electric companies and utilities contributed.
Mr Burns said a relatively small amount of general rates went to district promotions.
The bulk — 95% — of the grant to promotional organisations came from targeted rates.
Hydro-electrics and utilities were commercial entities and paid targeted rates, he said.
Cr Penny Clark noted the community had asked for extra funding for climate change processes.
"We need to back that," she said.
The total number of rateable units in the district is estimated at 31,364, up from 30,229 last year.
New valuations were used to assess rates for 2022-23.
The total capital value grew by about 52%.
Early in the annual plan process, a 5.96% rates increase was indicated, but after public and staff submissions it shifted to 6.5%.
The rates increase would not be evenly applied across the district.
Some types of properties were affected more by the revaluations, and some targeted rates were often ward- or scheme-based, Mr Burns said.
His summary of indicative total rate movements showed a $1.39 million Queenstown residence would have a 0.69% rates ($24) increase, while a $1.29 million Wanaka house would face a 6.81% ($217) increase.
In Luggate, the owner of a $788,000 house could expect a 5.55% ($161) rates rise, while a $1.4 million Arrowtown house would have a 9.50% ($304) increase.
Arrowtown residences would have the highest percentage increase.
Arrowtown commercial property owners would also receive high increases (19.16%), largely driven by an increase in capital value of over 100%.
Country dwellings in Wanaka and Wakatipu also face high increases of 11.94% and 17.37% respectively.
Cardrona now has a reticulated wastewater scheme, meaning two new targeted rates have been assessed for the first time: a $18,228 capital rate per dwelling and an operating rate of either $750 or $375, depending on the connection.
The capital rate can be paid two ways: as a development contribution or as an annual deferred payment over 30 years.
