However, councillors in Wairoa and Central Hawke's Bay may even get an increase closer to 10 per cent -- in line with Remuneration Authority increases for similar-sized rural councils elsewhere.
The consumers price index increased by just 0.1 per cent in the year to March, the lowest annual rise in inflation since 1999. An 11 per cent fall in petrol prices during the year was the major factor in keeping the index virtually unchanged.
Mr Dalton's increase -- due to be approved by councillors at their next meeting tomorrow -- will take his pay from $117,950 to $122,300. Deputy, Faye White, is set to receive a 4.6 per cent rise from $44,325 to $46,373. Other Napier councillors will receive a similar percentage increase, to $38,500 or $44,217 for those who chair council committees.
Mr Dalton said his councillors had worked "harder than they've ever worked" in the past year, including dealing with a record number of submissions on the city's long-term plan.
Councils had no option but to accept the pay rates decided by the Remuneration Authority, he said.
"Some years ago when times were really tough we attempted to refuse our increase and were told in no uncertain terms that we were just messing up the system and that sooner or later we would have to play catch-up. So the answer is to just let the system get on."
Hastings Mayor Lawrence Yule said he had not yet seen the authority's new pay settings for his council.
Mr Yule, who is also president of Local Government New Zealand, said the lobby group, which represents the interests of all councils, had previously called for a change to set councillor pay for three years in line with the election cycle.
"I've spoken to our members all around New Zealand about it and there is a variety of views."