On average rate payers will pay 1.5% more in 2020-21.
The increase is greatly reduced from the planned hike prior to the Covid-19 pandemic, which stood at 6.76%.
Wanaka residents will see a slightly higher percentage increase than those in Queenstown, but the former’s rates remain lower.
Councillors nodded the increase through as part of a much revised annual plan, discussed at the council offices on Gorge Rd this afternoon.
Cr Niamh Shaw proposed one amendment to the annual plan, which was to have the chief executive consider spending on consultants.
This was accepted as part of the whole plan, which Cr Niki Glading said she could not support because of reservations over capital expenditure.
She argued Queenstown-Lakes District Council could not know what revenue it would receive post-virus.
‘‘If we pursue one thing, we can’t do something else. She said submitters had wanted council to ‘‘press pause on stuff that was not necessary’’.
‘‘I don’t understand how potentially pushing forward with an arterial road and moving ahead with massive council [support] for Lake View ahead of a return on that is prudent at this time.
‘‘I think we need to create the space for the next long term plan, for likes of the climate reference group, which needs to be established next week, no later hopefully.’’
Both Cr Glading and Cr Shaw commented on how much of the council’s grant money had be allocated in prior year’s budgets.
Cr Glading said submissions to council took time and it was unfortunate more could not receive support.
She further called for greater clarification on what obligation grantees were held to and what room there was to reallocate funds.
Cr Quentin Smith noted other councils in New Zealand had promised a rates freeze and had ultimately been unable to deliver.
He said officers had done well to get the increase down to an average of 1.5%. Cr Penny Clark described the limited rate increase as a ‘‘miracle’’.
