After two days of close scrutiny, the Waitaki District Council has managed to reduce the rates increase proposed for the next financial year.
But, at 9.77%, it is still unpalatable for most councillors.
They have an opportunity on Monday to make further cuts, but the sticking point is the increase in the council's operating budget, which makes up 6.27% of the total increase.
Cr Jim Hopkins said business as usual - the operating budget - was having a major impact on the rates increase.
There might be a point at which the council had to reduce service levels or peg rates going into that budget, requesting managers to "cut their cloth accordingly".
Waitaki Mayor Alex Familton said councillors would have to address the position it had got into, which was getting deeper and deeper.
The draft budget had a rates increase of 14.88% when the council started its deliberations on Tuesday.
After a day working through the 280-page draft annual plan, the council had managed to reduce that to a 14.37% increase.
Yesterday, the council started to cut its biggest item of expenditure, the roading budget, which contributed almost 4% to the increase.
Big ticket items pruned from the roading budget included $150,000 for protection to roads from coastal erosion, $750,000 to relocate a portion of Waianakarua Rd eroded by the Waianakarua River and $100,000 from installing limestone and bluestone heritage kerbing and channeling in lower Thames St.
That reduced the impact of roading on the rates increase to 2.72%.
The draft budget will go before the council on February 3, then out for public consultation.
