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After consultation and a series of hearings and debates since January, councillors voted yesterday to adopt the 2020-21 plan.
The council has an unbalanced budget, where expected revenue does not meet council expenses, because of the economic fallout from Covid-19.
Cr Mike Lord said the pandemic was a unique event, and the council could not have anticipated the mothballing of Dunedin Railways as a cost.
Cr Steve Walker said the decision to reduce the rates rise was the right choice.
‘‘I would say 4.1% instead of 6.5% ... is definitely in my mind something that gives us best opportunity to mitigate what are going to be some hard-felt impacts.’’
Only Cr Lee Vandervis voted against the annual plan adoption and rates increase, saying there was no real recognition of the ‘‘fundamental and substantial change’’ Covid-19 had wrought for Dunedin.
Councillors also approved an amendment to the 2018-28 10-year plan to reduce the community services targeted rate from $240.50 to $100 in 2020-21.
The long-term plan will be redrafted next year.