Christchurch city councillors James Gough, Sam MacDonald, Catherine Chu, Phil Mauger, Aaron Keown and James Daniels have sent a letter to Mayor Lianne Dalziel asking her to lead a conversation as to how a zero per cent rates increase could be achieved this year.
The city council is proposing an average rates increase of 4.65 per cent across all ratepayers in this year’s Draft Annual Plan, which is currently under public consultation until April 5 and will be finalised before July 1.
The 2018-2028 Long Term Plan also predicts a 50 per cent rates increase over 10 years.
Said Cr MacDonald: “In the current environment, it’s clear business as usual is not appropriate and the council needs to look at how we enable this 12-month rates increase freeze to occur, it’s crucial for the economic confidence of our city.”
“Calm heads must and will prevail,” she said.
“Our residents and businesses will be depending on us to make adjustments, and we will, however, we will need advice on the impacts on all aspects of the council’s budget, which is not entirely funded by rates, and the consequences that will flow from decisions we make.
“The Annual Plan is not signed off for three months so we have time to get this advice. At the same time, the council is meeting with our economic development agency, ChristchurchNZ, the Canterbury Employers’ Chamber of
City council chief executive Dawn Baxendale did not rule a zero rates rise out.
“We’re considering a series of options in light of the extraordinary circumstances related to Covid-19. We will discuss these options with elected members as we develop the Annual Plan,” she said.
The push from city councillors for a freeze on rates rises comes shortly after Minister of Finance Grant Robertson announced a $12.1 billion package to aid the economy in response to the Covid-19 pandemic.
The biggest boost is $5.1 billion towards wage subsidies for affected businesses in all sectors and regions.
