"An average rates increase of 3.92 is not to be sneezed at."
Thwaites said the Western Bay of Plenty residents who have been "long suffering" would get some relief, with median residential properties facing a 2.65 per cent rates increase and upper quartile just over 3 per cent.
"It certainly highlights the challenges ahead that we have to make savings."
Councillor James Denyer said the rates increase was below the nationwide average and it would bring the council down in the leader table of high-rating councils.
Kaimai Ward councillor Margaret Murray-Benge said the lower rates increase was "quite significant" in comparison to Tauranga City Council, which passed a 13.7 per cent increase on Monday.
She said Western Bay can "hold its head up high" because as a council, it set a standard of being closer to the people, more effective in decision making and holding costs while providing services.
After the meeting, Mayor Garry Webber said with inflation and other pressures facing the community, the council took another look at the projects planned and considered the community's most urgent needs.
"We looked at the programme and what we'd planned, and where appropriate, we have made some changes," Webber said.
"Important projects will still carry on, but as a council, we have worked hard to keep the rate increase for existing ratepayers to 3.92 per cent, below the 4 per cent commitment we made in our long-term plan."
Projects highlighted in the annual plan include a $1.83 million spend on pensioner housing, with around $1.1m brought forward to address the current need.
Council will spend $6.3m on wastewater capital works across the district, $1.3m has been earmarked for the Two Mile Creek bank protection in Waihī Beach and $1m will go towards community groups, with another $1m set aside for walking and cycling initiatives.
The annual plan remained largely unchanged from the long-term plan, with the only significant change relating to the future of the Pukehina Development Rate.
For 21 years, ratepayers in Pukehina paid a fee towards a potential wastewater scheme, but with uncertainty around the Three Waters Reform, councillors voted to pause it for two years, after consultation with the community.
Each of the 632 rateable properties in Pukehina have paid a yearly $20 targeted rate, with the balance of the fund currently at $483,500.
Webber said a two-year pause is a sensible approach that will allow for more clarity on the Government's Three Waters Reform programme.
"With the uncertainty around central government's Three Waters Reform still in the air, we wanted to take this opportunity to talk with the community about the future of the fund.
"Our job is to make decisions on behalf of the community, and we have done just that by pausing the fund for two years," Webber said.
The 2022-23 Annual Plan comes into effect from July 1.
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