Auckland Council has voted in favour of putting up rates 3.5 percent as it tries to plug a massive financial hole caused by the coronavirus pandemic and lockdown.
Despite the hike, the council is still expected to make cuts to services, investment and staffing - but fewer than it would have under a lower increase.
Submissions from residents had overwhelmingly called for just a 2.5 percent increase, with nearly one in 10 even asking for a rates cut. Less than a third backed a 3.5 percent increase.
But the financial situation for the city's biggest council has worsened since then.
"When we went out to consultation we were looking at a $500 million deficit in our budget, because that was the level of income we are losing in the current financial year," Auckland Mayor Phil Goff said earlier this week.
"What we hadn't covered in consultation was an additional $239 million, which is the cost of putting in place new water treatment plants to help stave off a severe water crisis caused by the prolonged drought."
The difference between 2.5 and 3.5 percent for a typical residential property would be 47c a week - a $1.35 increase under 2.5 percent, and $1.82 under 3.5 percent.
All the local boards backed the bigger increase, as did most councillors prior to the vote.
"I appreciate that some people will be suffering as a result of COVID-19; that is why we are setting aside $50 million for rates relief and also suspending the targeted rate on visitor accommodation," Goff said on Wednesday.
"That said, we need to match our spending to our reduced income. Council has to become a leaner and more adaptable organisation. With a reduction already of over 600 temporary and contract workers, there will be a further reduction of over 500 permanent jobs. Staff and elected members have taken salary cuts and budgets for non-essential spending slashed.
"Cuts have been made in services and investment in some infrastructure projects have been deferred, reducing spending by hundreds of millions of dollars."
