Invercargill City councillors have shaved 2% off the overall rate rise forecast in its draft annual plan.
At an extraordinary meeting of the council on Tuesday the draft plan was approved including an overall rate rise of 7.11%, with a water rate rise of 14.04% and non-water 3.46%.
Under the new water reforms, the council is required to manage its water service separately which means there were two rates rises: one for those receiving Three Waters services and one for those who do not.
Council consulted on the annual plan between March 13 and April 13 and hearings were held at the end of April.
At the time of consultation the forecast overall rates increase was 9.47%, with a water rate increase of 20.46% and non-water, 3.67%.
In the three-hour meeting councillors discussed various options including cutting funding to services the council supports which would allow the rates to be kept as low as possible.
Had the maximum savings options been chosen by councillors the forecast rates increase was an overall rise of 6.55% and water, 14.04% and non-water 2.6%.
However, Invercargill Mayor Nobby Clark said councillors faced a balancing act of maintaining services but keeping the rate increase low.
It was disappointing that the proposed rate increase of 9.47% did not feature in the public consultation feedback, he said.
"That gives me the feeling that ... the majority of our community are leaning towards trying to maintain what we’ve got ... and to be careful about what we cut away."
It was useful to compare the proposed rate rise with what was happening with similar sized councils throughout the country, he said.
During the savings discussion councillors were divided as to what level of funding Great South should receive and were divided as to whether funding should be retained at the same level or cut.
Councillor Ria Bond said she wanted to keep the funding level as it was.
Mr Clark said last year the council requested Great South cut 25% of its staff.
"Cutting again I think, will create a huge amount deal of pain."
Councillor Trish Boyle said she was in favour of cutting the funding.
Councillors resolved to continue the same level of funding.
The draft annual plan was passed unanimously and will be brought to the council in June for adoption.
