Dunedin residents are one step closer to a 17-and-a-half percent rates increase

Rate payers will soon have their say, after councillors signed off on the proposed rise yesterday.

Councillor Carmen Houlahan says rates shouldn't be the only tool, and other options need to be brainstormed.

She says the Government needs to talk to Local Government NZ about different ways of generating funds for councils.

Councillors will continue the draft Annual Plan meeting today.