Deputy mayor Cherry Lucas said the council was "incredibly conscious" that people in the community were "doing it tough" and that any rates rise was a "tough sell" in the current climate.
"I’ve had many sleepless nights, worrying about the impact of this increase on our community, but this is not a budget full of ‘nice-to-haves’."
"The DCC — like other councils — is not immune to the inflationary cost pressures facing many people and organisations, but we need to take responsible decisions when it comes to our core infrastructure and key services, and that is what this budget does."
The increase includes 4.4% for the city’s new kerbside collection service, and 5.4% of increased funding for the maintenance or replacement of ageing infrastructure.
The council has increased funding for Tūhura Otago Museum by 4.3% and has provided a $75,000 grant for Dunedin’s Wildlife Hospital.
The budget also includes the council’s decision to take ownership of the Otago Hockey turf, and it has approved work to develop a draft young person action plan.
Much of the rest of the increase covers the rising costs of insurance, inflation, depreciation and fuel, which are unavoidable.
"That doesn’t make it any easier for ratepayers, but I want to thank everyone who submitted and shared their feedback on this budget. We have heard you all," Cr Lucas said.
