Three options were presented to council, with the conversation mainly focusing on either a 9.8% increase or a 12.25% increase, the latter helping the council to pay down debt.
Cr Mel Cupit suggested while a lower rate rise could incur further debt, a "serious look at service level cuts" during the long-term plan consultations could save money.
GDC chief executive Debbie Lascelles said while this was an option, saving money from service level cuts was "not an easy thing to do", as getting the community to agree on which services were cut or dropped "may be harder to do than what you realise".
After a suggestion by Cr Nicky Coates that property maintenance was cut, Ms Lascelles noted the council had already performed significant cuts and she did not think they could cut them any more.
Cr Coates asked if it was a possibility to do it, but Ms Lascelles reiterated the council was doing it to the "max" and there was "no more money to be taken back from that".
Cr Donna Bruce said councillors had not been given the opportunity to see where they could make cuts, and were now facing a choice without being able to "look into things deeply" before being reminded it was time for questions, not debate.
Ms Lascelles said, with the waters costs being taken out of council budgets, it was hard to forecast what the future rates would be, calling it a "whole different ball game".
Cr Bruce then asked if the council was aware people could not afford a 12.25% increase, to which Ms Lascelles said in her experience, there had "always been residents unable to afford rates" and this was something "she was always aware of".
After some more questioning, Cr Cupit moved to amend the recommendation to instead vote on 9.8% as a rate increase, which was seconded by Cr Bruce.
Mayor Ben Bell said he was hesitant towards going to a 9.8%, calling the 12.25% an "undershoot" for the next year, as economy was in a trepidatory situation.
"With fuel prices increasing, with inflation about to spike, I think we’re going to be in a much harder position in 12 months’ time than we are right now," he said.
Mr Bell said kicking 3% into the next year could spike into 6% or 7%, which was a concern for him, but Cr Bruce said affordability was a problem right now.
"People can’t afford a big rate rise. They’re suffering right now. I don’t accept the 12.25% whatsoever. My rates were $100 a week now, and adding that extra pressure now, with the war and other cost of living crisis, it’s not fair on them," she said.
Cr Paul McPhail said a massive concern in the community was council’s debt, and saving in the year through debt funding was similar to "kicking the can down the road", which would "come back to bite us".
Cr Rob McKenzie agreed debt was a big issue for the community.
Cr Fraser said he could not support a 9.8% increase.
Cr Cupit, in reply, said the council was spending beyond its means and needed to make reviews. She urged councillors to vote for a 9.8% increase, saying the community could not afford continual rate increases.
"I don’t think it is kicking the can down the road. Other councils around New Zealand have sat down, been tough, and made cuts, including user-pays. It can be done," she said.
Cr Coates agreed and said elderly people on fixed pensions could not afford to go out and have a cup of tea and "there were not 12.25% left in their budgets", suggesting many would need to sell their homes or flats.
Cr John Gardyne said he was supportive of the 9.8% increase, stating the water scheme and amalgamation could drastically shift the finances of the council.
Cr McPhail was also in agreement with the 9.8% increase.
Voting on the 9.8% increase, the table was split in half, with six on either side.
When Mr Bell said he would not use his casting vote to vote against the 9.8% increase, debate opened back up.
Again a majority was not passed for a 12.25% increase, with five voting for and seven against.
Cr Gardyne suggested an 11% rate rise, which went to motion and was subsequently passed with a majority of eight to four.
