Councillors were met with banners and the strains of We’re Not Going to Take It pumping out from loudspeakers.
Mayor Jamie Cleine and several councillors mixed with the crowd before they entered the meeting.
Cars tooted and cheers of protest rang out as more protesters arrived.
During the meeting, Cr Graeme Neylon said firms, including Coastwood in Greymouth, had to lay off staff due to the economic downturn.
"People are under stress ... They are cutting things and trying to put food on the table and pay their mortgages," he said.
"Why aren’t councils tightening their belt? Why are they hellbent on business as usual when we are in this economic crisis.
"I don’t think we’ve drilled down hard enough."
Cr Rosalie Sampson said government compliance had added to costs.
Cr Joanne Howard said it had kept her awake at night.
"The issue really is the local government funding."
Outside the meeting, Loretta Duncan said she was protesting because she did not want rates to rise.
"It’s not only affecting my family, it’s affecting my pets too, because we are struggling to feed them."
Lynne Duncan said she was in touch with elderly people and they did not have the energy to fight against the rates rise.
"Another $40-$50 coming out of their bank accounts each week is crippling."
Others felt the council was spending money unwisely and in the wrong places.
By Laura Mills and Lisa Gregory
