Council proposes 4.65 per cent rates increase

Christchurch City Council adopted its draft budget on Tuesday with a 4.65 per cent rates increase - but is "promising" to work to bring ratepayers' costs down while still maintaining services.

Said Mayor Lianne Dalziel: "The rate increase outlined in the draft Annual Plan approved by the council today is lower than forecast in the 2018-28 Long Term Plan (LTP) but our work is far from done.

"Between now and when the budget is finalised in June, we will be looking for additional savings and ways of reducing the pressure on the public purse."

The average rates increase across all ratepayers would be 4.65 per cent, which is lower than the 5 per cent that was budgeted for in the LTP.

The rates collected will be used to fund the council’s day-to-day operations, debt servicing costs and part of the capital programme.

The council is also proposing a capital spend of $511.9 million. This money will be invested in new facilities and infrastructure to support the city’s growth.

About a quarter of the council’s total $1.2 billion spend will go towards providing drinking water, wastewater and stormwater services, 18 per cent will go on roads and transport, while another 12 per cent will go towards providing recreation and sport facilities.

Ms Dalziel says securing the water supply and continuing to upgrade the city’s roads, footpaths and facilities remains a priority.

"We’re still working to regain our secure drinking water status.

"This draft Annual Plan is focused on meeting the standards we have set in the water safety plan, which we’re hoping will be signed off before this Annual Plan takes effect.

"Every year we hear from residents that they want us to focus on getting the basics done. Improving the quality of our parks, roads and footpaths has a direct impact on residents’ experiences of living in this city."

The draft Annual Plan 2020-21 will go out for public consultation on Monday, February 24. There will be five weeks to provide feedback.

Where funding will go in 2020-21

• Drinking water, wastewater and stormwater: 26 per cent
• Roads and transport: 18 per cent
• Recreation and sport: 12 per cent
• Parks, heritage and coastal environment: 9 per cent
• Rubbish and recycling: 5 per cent
• Libraries: 4 per cent
• Regulatory and compliance: 4 per cent
• Debt repayment: 4 per cent
• Strategic planning and policy: 4 per cent
• Art Gallery/museums: 2 per cent
• Housing: 2 per cent
• Community development (Civil Defence, customer services, etc): 3 per cent
• Governance: 2 per cent
• Other (unallocated interest costs, and capital expenditure largely relating to the Canterbury Multi Use Arena, IT projects and the Performing Arts Precinct project): 5 per cent