After passionate speeches in the public forum, including a call from Grey Power chairman Stan Randle for one or two councillors to resign in protest at the proposed increases, the annual plan, which included the rates rise, was adopted unanimously.
Protestors, some carrying placards, greeted the councillors as they arrived in Alexandra for the vote this morning.
Central Otago Mayor Tim Cadogan said the rates increase was far higher than anyone wanted it to be, due to the immediate cost pressures the council, and other councils around New Zealand, were facing.
"Not a single elected member is happy about this situation. We totally understand the effect an increase such as this will have on households, but options were limited given the cost and compliance issues we and all councils face.
Mr Cadogan had previously been criticised for suggesting people take out a reverse mortgage on their homes to help pay for the rates rise.
Councillors all spoke to the decision. Cromwell member Sarah Browne said she could not afford the increase and had had a "hard conversation" with her children about what the family would have to cut out to pay their rates.
Omakau member Tracy Paterson said they were all hearing what people thought in the supermarket, pub and around the dinner table.
Councillor Cheryl Laws broke the tension in the room when she assured that things were "not good in my household'' when discussing the increases. Her husband Michael Laws is a broadcaster and member of the Otago Regional Council.
