Westland ratepayers are on track for a 0% rates increase after the adoption of the Westland District Council's draft annual plan on Monday.
However, staff and councillors have warned that costs will be higher next year and beyond.
Corporate services group manager Lesley Crichton said it would not be possible to continue at such a low level in the future.
"There will be costs that we've taken out of this year plan that we will need to put back in next year and those costs will be continuing."
It was likely the 2021 rates would go back to the 8.5% initially forecast.
Okarito councillor Ryan Kennedy said the impact of Covid-19 was being felt district-wide, especially in South Westland.
With more and more job losses it would impact on ratepayers' ability to pay their rates.
"A rates freeze given the current climate is the minimum for me."
Deputy Mayor David Carruthers said council had been sensitive to "the mood of the region" as a consequence of the pandemic.
However, the issues - and costs - behind the original rate increase had not gone away.
"Prior to this we of course were looking at a reasonably significant rate increase and I think it needs to be made clear in fairness to the ratepayers of our district, that producing a zero rates rise this year doesn't necessarily mean that this is going to be what is going to happen for the next few years."
Cr Latham Martin said it was important people were aware of the positive and negative implications of the 0% rate rise particularly around debt funding, and what that meant in terms of debt repayment.
Ngati Waewae representative Francois Tumahai said: "We need to make sure that it's very clearly communicated that there will be costs somewhere down the track."
He acknowledged the efforts of staff in delivering the result.
"Having to crunch numbers under these circumstances would have been tricky."
Cr Jenny Keogan said it was a huge task and she wanted to see that acknowledged.
"We all know its unprecedented times. Not all councils are able to be doing what we've done so its great short term work for us."
Makaawhio iwi representative Paul Madgwick agreed.
"To achieve a 0% rate rise; I haven't seen that for many, many years for local government anywhere. The trouble with this of course is that the pain is postponed until next year and future years, but that probably also means that it's incumbent on the council to look even harder at budgets over the next year.
"It doesn't need to be necessarily the same going forward because I think it's going to be a long time before we're out of this mess."
Submissions to the annul plan budget will open from Thursday.
- By Janna Sherman of the Hokitika Guardian
