The plan was adopted after little discussion but Ms van Uden told the Otago Daily Times after yesterday's meeting she had opposed the move as a matter of principle.
"While I acknowledge the final version of the annual plan has been made on a more financially prudent basis than previously, a 7.7% rates increase is still not acceptable," she said.
"We should have spent more time reviewing how we deliver services in the most cost-efficient way. This has a direct impact on the rates, so we should be held accountable for it."
Mayor Clive Geddes said he was happy with next year's annual plan.
"It reflects the work the council started last year to deliver an effective and affordable capital works programme, and to ensure value for money. I am sure this will continue throughout next year," he said.
The draft annual plan had attracted 273 public submissions.
Projects requested through those submissions received funding, including $200,000 earmarked to improve lighting in Queenstown CBD and investigate installation of closed-circuit television cameras.
Additions to the plan were offset by savings of $533,000 in depreciation costs, which QLDC finance manager Stewart Burns said was a result of some capital works projects not being completed in 2009-10.
The resulting average rates increase of 7.7% was a slight improvement on the 7.9% in the first draft of the plan, and down 0.8% on the 8.5% increase forecast in the council's 10-year plan.
The actual rates increases depends on the type of property and the location, and varies from a 3.63% increase for a residential property in Albert Town to an 11.67% increase for a country dwelling in Wanaka.
The rise in rates for a residential property will be 10.41% in Queenstown and 4.37% in Wanaka.
The rate increase does not include the effect of the increase in GST, which will be effective from October 1.
Mr Burns said this would result in a further cost to the ratepayers, pushing the rates up by an additional 1.66%.
