Wellington City Councillors have finalized a 5.8% rates increase, the lowest for property owners in the capital since 2020. This decision comes after significant cost-cutting measures within the council, which had initially anticipated a double-digit rates rise. The Planning and Finance Committee's meeting was crucial for finalizing the annual budget, allowing the council to set the rates to be issued on July 1. The cuts included not funding $13.5 million in depreciation and reducing the consultancy budget by $1.1 million, alongside decreased funding for international tourism attractions. Additionally, the council has introduced a new rates differential for properties used as short-term accommodations, such as those listed on Airbnb, which will be charged 2.6 times the rates of other residential properties. This change reflects a broader effort to address housing affordability and generate revenue. However, the council indicated that this rates differential could be reassessed if the Government agrees to implement a bed tax, responding to ongoing discussions among local councils.