Waitaki Mayor Gary Kircher said the increase was more than the council was happy with, but it had to be balanced with ''smart spending'' caused by growth in the district.
In particular, he highlighted additional rates spending of $402,900, subject to a subsidy from the New Zealand Transport Agency, to strengthen the rural roads network, an issue raised frequently during last year's election. The council planned to spend an extra $3 million over the next five to 10 years on rural roads.
Not as much had been spent on rural roads as should have been in recent years, particularly with the increase in traffic, which was partially caused by dairy conversions.
What had to be considered was dairy conversions increased the capital value of farms, which meant more roading rate was collected from them, but the money was being spread across all roading projects and not just used to deal with the problems caused by conversions.
All the increase will go on new projects, but some are also being funded from other sources such as loans, funds and bequests.
Other major expenditure funded by rates includes $87,500 to pay property debt incurred on an internal loan, $43,000 to implement the Otago rural fire district scheme and $42,500 to improve parking in the former railways goods yard.
The council is also proposing to put $180,000, funded by an internal loan, into water, wastewater and roading infrastructure for the retirement village planned by its own company, Waitaki District Health Services Ltd, on Hospital Hill in Oamaru.
The public consultation process opens today and closes on April 22. It will follow the same process as in the past, including clinics at the Oamaru Opera House.
The council has also written to 43 groups, offering to attend their meetings to explain the plan.
Submissions will be heard by the council on May 14, although whether one day will be sufficient will depend on the number received and how many submitters want to speak.
The council is scheduled to adopt its annual plan on June 25, in time for the start of the new financial year on July 1.
