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The Dunedin City Council has approved a 10-year plan that will help build a resilient city that people want to live in, Mayor Aaron Hawkins says.
The mayor said the city had become confident in itself and he had been worried Covid-19 would put this at risk, but Dunedin had so far come through that challenge "in a way that hasn't pushed us off course".
The council approved a total rates increase of 9.8% for 2021-22.
Council debt is budgeted to triple in the next 10 years and much of it is to pay for roading and increased capital spending for water, wastewater and stormwater systems.
Cr Doug Hall said the council had to catch up on spending it should have undertaken in the past 10 years.
Cr Andrew Whiley said he was on the losing side of many votes about spending, but the 10-year budget reflected the priorities of councillors who residents had voted for.
He backed the infrastructure spend as part of the overall package.
"Infrastructure is the big winner in this budget," Cr Whiley said.
Veteran councillor Chris Staynes said it was the best 10-year plan he had been part of and a vast number of people had talked to the council.
"This plan reflects most of what those people were saying to us."
Key elements of the 10-year plan include a decision to subsidise community housing with rates, a rubbish and recycling collection revamp, a proposal to develop a performing arts venue and a transport package designed to offset traffic disruption associated with building of the new Dunedin Hospital.
The council also wants the city to achieve net carbon neutrality by 2030, excluding biogenic methane.
Cr Lee Vandervis, who voted against adoption of the 10-year plan, said it was fundamentally unsustainable.
"We can't afford it, especially with the amount of debt we're raising."
Cr Jim O'Malley said projected debt was not out of line with cities of Dunedin's size.
Deputy mayor Christine Garey said the council had proposed a progressive plan, it had listened to the community and meeting challenges associated with climate change was at the heart of it.
Cr Rachel Elder said a 9.8% rates increase was a scary prospect for people on fixed incomes.
Ratepayers had access to some support, including a rates rebate scheme, she said.
Cr Mike Lord said councillors who spoke against the extent of the rates increase had not moved motions that would have significantly altered that increase.
Crs Carmen Houlahan, Vandervis, and Jules Radich voted against setting the rates for 2021-22.
They also voted against adoption of the 10-year plan.
Cr Houlahan voted for approving the 10-year plan, but against adopting it.