Queenstown Lakes property owners will pay $34 to $125 more in rates if the district’s proposed annual plan is approved on Thursday.
After signalling a 6.76% rise for the 2020-21 year, the district council has dragged that down to 1.59% after a line-by-line review in the wake of the Covid-19 pandemic.
Council finance manager Stewart Burns said it set itself a revised target of 1.8% — in line with inflation — to ease the impact of rates on a community suffering financially.
However, Lakes District Accommodation Sector group spokesman Nik Kiddle, also an apartment operator, said it was "very disappointing" there was any rates increase at all.
Mountain Scene last month reported the group, of which there are about 70 members, wanted a rates freeze and threatened a rates revolt if an inflation-adjusted rise went ahead.
Last night Mr Kiddle said the group’s position had not changed.
"We’re still facing the toughest times ever.
"Many of us are facing incomes that have been slashed up to 90%, so for us to be asked to pay additional rates at a time when we have very little, if any, income is incredibly insensitive."
Mr Kiddle said most businesses were cutting costs while trying to "retain as many staff opportunities as possible".
The cost-cutting "has just gone right down to the bone".
"For us to be facing any increased costs anywhere is going to create additional hardship and difficulty and probably result in more redundancies and more insolvencies.
"The bottom line is rates are going up at a time when incomes have collapsed."
He said there had been "general enthusiasm" from the group for a rates revolt, which would almost inevitably end up with penalty interest rates being charged on rates arrears, but said another option for the council was to defer the rates increase for businesses which were "financially stressed until such time as they can afford to pay".
Mr Burns said the council was proposing a $4.7 million reduction by cutting 20 proposed or vacant full-time equivalent roles, and freezing salaries.
Contractor costs would be reduced by about one-third, or $1.7 million.
