In a special closed session of council on Friday morning, the council adopted its lowest-ever rates increase of one per cent.

EARLIER: Gold Coast rate rises will this year be kept to the level of inflation and money is set aside to start the city's new arts precinct.

On Friday morning Mayor Tom Tate presents his fourth Gold Coast City Council budget, a $1.11 billion package geared to readying the region for the 2018 Commonwealth Games.

While the average rates increases will be 1.4 per cent, some Gold Coast suburbs will find home rates rises higher.

Key projects

The budget includes funding for the $37.5 million stage one of the new arts precinct at Evandale behind Surfers Paradise, a project on the drawing board for three decades.

Stage One will be started next year and includes an outdoor concert space called "The Splash", a riverside hub with an art gallery and plenty of outdoor public artwork.

It also allows for design work on the city's new "Green Bridge" from Chevron Island.

Friday's budget also contains $220 million for the Council's 2018 Commonwealth Games contribution, funding a share of the Games venues and facilities, now under construction.

A citywide kerbside pick-up - which has been trialled in six divisions - will be introduced.

Gold Coast Chamber of Commerce president Peter Yared said local businesses wanted rates and charge increases "as low as possible"; and extra incentives for local businesses.

"I know they are trying to be as Gold Coast specific as they can, but anything they can do – especially with the Commonwealth Games approaching – that would be really good as far as we are concerned," he said.

Cr Tate said the budget would expand the council's incentives to give local businesses "first bid" right to all council contracts.

In 2012 Gold Coast businesses won about 30 per cent of council contracts, now valued about $250 million a year.

"It is now sitting at about 67 per cent," Cr Tate said.

"But we expect local procurement to hit around 75 per cent, so we are providing additional incentives to lift that even higher."

Water price rises frozen

Gold Coast water price increases will be kept at 2014-2015 levels, giving Gold Coast ratepayers breathing space after the AllConnex debacle.

Gold Coast ratepayers have faced water price rises of an extra $48 a year after the council severed their connection to water utility AllConnex three years ago, when the utility decided not to pay a dividend to its member councils.

That decision meant the Gold Coast City Council had to lift water prices as it struggled to recoup the $80 million debt the decision cost ratepayers.

Recreation, city transport and open-space levies also frozen

The city's $29-a-year recreation space levy; raised by $5 a week in 2014-15; stays at $29 a year.

The  $117-a-year City Transport levy and their $38 open space levy are also frozen.

Kerbside pick-up

The Gold Coast will introduce a city-wide kerbside pick-up service, which is a regular feature in larger councils, such as Brisbane.

While individual councillors have funded it within their individual divisional budgets, it has never been offered across the city.

Councillors recently voted 14 to 1 to introduce citywide kerbside collections and money to begin the operation is included in this year's budget.

Where is the money for key projects coming from?

Gold Coast City Council began selling off council-owned land in September to fund its $300 million-plus arts and entertainment precinct mega-project.

That includes land set aside in Robina for the previous council's $400 million "Taj Mahal" council chambers.

Savings from a review of Gold Coast City Council – where eight departments have been reduced to five – have been directed to let ongoing projects proceed, a council spokesman said.

A decision to buy off-the-shelf project management software has saved $4.5 million.

The Federal Government's decision to axe the carbon tax also saved Gold Coast City Council $4.7 million, and from November ratepayers were advised they would receive a $14 refund on their next rates notice.

Councillors meet on Friday to vote on the budget proposals.