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The district council consulted on the options for the rates levels in the next financial year as part of the Annual Plan.
During deliberations of the public submissions on Thursday, district councillors voted to proceed with the option that would increase the general rate by 3 percent, the water supply rate by 4 percent and the water race rate by 3 percent.
This would mean an average rates increase across the district of about 1.6 percent.
Residents were expecting an average 3.5 percent increase in rates.
The district council will now formally adopt the Annual Plan on July 24.
One of the other options being considered for rates levels during the coming financial year was to keep them at the same level as they are now.
A total of 233 public submissions were received on the draft Annual Plan, with 60 submitters asking to be heard in person at the public hearings held last week.'