Local ratepayers are facing a 2.97%increase in civic fees for the next financial year.

The Dunedin City Council completed deliberations on its annual plan earlier today, following extensive community consultation and discussion.

Councillors finally settled on spending which keeps the rates increase below 3%.

They're utilising a million dollars of money which had been earmarked for cricket pitch lights.

Just over $150,000 was also shaved off budgets from the draft annual plan.

A hearing for the council's second generation district plan also began today.