Wellington city councillors have thrown out the idea of a rates freeze -- but payment deferrals will still be allowed

The council held an extraordinary meeting via Zoom late this afternoon, forming a pandemic response plan.

Council staff will now prepare detailed scenarios of a 4.95 percent or 2.15 percent rates increase to help form a Covid-19 emergency budget.

A six-month free deferral of rates payments will also be available to businesses and residents who can give proof of financial hardship.

The council's also dumped the idea of free street parking until June - paid parking will return two weeks into alert level 3, with revenue going towards community grants.