The increase was agreed following consultation on the 2016-17 annual plan earlier this year.
Councillors agreed at yesterday's full council meeting to formally set the agreed rate and approved the annual plan.
Dunedin Mayor Dave Cull said the coming financial year's plan ‘‘marks this council's continued shift to long-term thinking''.
The council agreed to fund several community facilities, including a hockey turf at King's High School, anew scoreboard at University Oval and topping up the Dunedin Heritage Fund to the tune of $100,000 after that much was committed to restoring Dunedin's Dominican Priory, during the annual plan deliberations.