The council spent about three hours yesterday going through projects it wanted to include in its 2008-09 annual plan before finalising the rates rise.
Mayor Alex Familton said New Zealand was facing 5% inflation this year.
"We are just above that," he said of the rates increase.
"We would like to have done better, but people have worked hard to get that."
The council went through reports prepared by staff on issues and projects raised by public submissions on the draft annual plan.
From the first item - putting $30,000 in the budget to clear wilding trees on Quailburn Rd at Omarama - there was a division between those who wanted to add more money and who did not. The project was included in the budget.
Other projects included as a result of submissions were. - $19,000 to seal the footpath between the Omarama Hotel and The Wrinkly Rams (from the Omarama amenity rate).
$160,000 for road improvements if the Holcim (New Zealand) Ltd cement plant is built near Weston (no cost to council, funded by Holcim).
$30,000 to design erosion protection on the Oamaru foreshore north of the harbour (from loan).
$32,000 for the Hampden waste transfer station (from existing rates).
$294,000 for the local authority protection campaign ($245,000 from the disaster fund and $49,000 from rates).
$1000 to join the sustainable living programme for a year (from rates).
$19,000 for parks and reserves operation (from rates).
$25,000 for a full-time archivist at the museum (from rates).
$10,000 for skateboard facilities at Hampden, Kurow and Palmerston (from Resource Management Act reserves).
$37,000 for the Oamaru Horse and Carriage Trust (from car parking surpluses).
The council changed its charges for the disposal of solid waste at the Oamaru landfill, which will add an $108,000 of revenue to meet operation costs.
The new charges (with the old charges in parentheses) are: residual waste, $120 a tonne ($100), $40 a cubic metre ($35), and $1.70 for bags ($1.50).
For green waste, the charges are $40 a tonne ($40) and $15 a cubic metre ($17.50).
The council will formally approve its final plan on June 24.