Dublin city businesses will have a 1% rates bill increase following a vote by councillors.

The annual budget meeting heard that the city council's budget for next year will be €969.6 million.

The council's Head of Finance Kathy Quinn said that there would have been a deficit were it not for a credit of €19.5 million largely because of difficulty in recruiting staff and a reduction in bad debts.

Ms Quinn said a "reasonable and modest" rate increase of 1% would raise an additional €3.8 million to pay for the rising cost of services.

The meeting heard that 58% of ratepayers pay less than €5,000 a year, but 2% of businesses pay for half the total bill of €338 million.

Fine Gael councillor Paddy McCartan said the Fine Gael group was opposed to increases as the majority of ratepayers are small businesses who have just recovered from a recession.

Lord Mayor Nial Ring said that 58% of them would be paying less than €1 a week extra.

Councillors agreed to keep the refund for vacant properties at 40%.

Spending on homeless services will increase by approximately €5m to just under €150 million next year.

Ms Quinn also said that central government had failed to fund national pay agreements for staff leading to a shortfall of over €9m over this year and 2019.

The meeting also agreed to increase waste collection charges for 9,500 council tenants in flat complexes from €2 to €3 a week to pay towards the cost of introducing a segregation scheme.

The rent payable by council tenants 'subsidary earners' - those living in the home with a principal earner - will increase by €2 to €21 a week.

On-street parking charges will also increase by 10% in Yellow and Red zones from next July.

Yellow zone prices will be increased from €2.90 to €3.10 and Red zone from €2.40 to €2.60 an hour.

A report stated that this will bring charges closer to the €3.38 average for off-street car parks.   

Amendments from Sinn Féin, Labour, Greens and Independents reduced the increase in waste charges for flat complexes, allocated €200,000 for the provision of two public lavatories in the city centre, €1.08m for local areas to fund bulk waste collections and €30,000 to reduce the proliferation of signage poles in urban villages.