The Queenstown Lakes District Council voted yesterday to raise district rates by 9.1%, in response to a drop in the predicted rate of growth in the district.
In June, the council had forecast a 7.7% rise.
Deputy mayor John S. Wilson said yesterday managing growth was a huge challenge for the community and lessons had to be learned from other councils, such as the Tauranga City Council, which had cut infrastructure spending to try to keep rates down.
The Queenstown Lakes council had identified years 4-10 as "problem years" in the long-term community plan and had already worked to slash $150 million from the budget.
However, another $150 million still needed to come out, Cr Wilson said.
Two issues had arisen that had forced rates higher than expected.
They were reductions in value of land at Remarkables Park and Jacks Point and the $64,790 increase in funding for Lake Wanaka Tourism.
These had not been factored into financial forecasts.
"If you take these two exceptional items alone, we are very close to what was in the long-term council community plan," Cr Wilson said.
Cr Vanessa van Uden was the only councillor who voted against the recommendations by QLDC deputy chief executive and general manager finance Stewart Burns for setting rates.
Those recommendations are listed in tables in the agenda and reveal a range of increases across different wards and for different units.
For example, the rates bill for an Albert Town residential property will rise 4.5% from $1550 to $1620 and rates for a Wanaka country dwelling will go up 13% from $1483 to $1676.
Rates will rise 11.5%, or $202, for a Queenstown residence and 5.3%, or $100, for a Wanaka residence.
Cr van Uden said she was concerned about the demands being put on the community by growth but said the council had to be careful not to fund all capital expenditure through rates.
She agreed the council did not want to be in the position of the Tauranga council, but there was room to cut operating costs.
