The Rotorua Lakes Council has adopted its Annual Plan for 2019/2020.
Mayor Steve Chadwick and six councillors voted in favour, but councillors Raj Kumar, Peter Bentley and Mark Gould voted against the adoption.
Councillor Trevor Maxwell was excused from the meeting.
The average rates rise is slightly less than what was proposed in the 2018-2028 Long-term Plan but predicted capital project spending and borrowing are higher.
At a full council meeting yesterday the council's chief financial officer Thomas Colle outlined just what those rates rises would be.
The regional council has also set its rates for the year to come.