Christchurch council keeps rates rise under 10%

Christchurch ratepayers may be breathing a slight sigh of relief, as a major rates hike looks set to be avoided.

Councillors have been debating the city's long term plan this week, including signing off on a proposed 9.95 percent average rates increase.

And while any rates hikes are usually unwelcome, that's down from a proposed 18 percent rise flagged at the start of the process. 

Councillor Sam MacDonald. IMAGE: GEOFF SLOAN
Councillor Sam MacDonald. IMAGE: GEOFF SLOAN
The lower figure also includes a 2.1 percent rates increase to pay for the $683 million Te Kaha Stadium.

Councillors achieved the reduction, thanks to a dividend from the council's commercial arm and by delaying some projects until later in the 10-year cycle.

Mayor Phil Mauger admitting the deferrals were work which needed to be done, but argued they didn't need to be done right now.

The council is proposing to offer a lifeline to two major Christchurch attractions, with cautions attached.

The cash-strapped Christchurch Arts Centre is set to receive $1.5 million over the next two years, with a further $500,000 annually for eight years after that.  That's far less than the $1.8 million-plus the centre had told council it needed each year to survive.

The cash-strapped Christchurch Arts Centre is set to receive $1.5 million over the next two years...
The cash-strapped Christchurch Arts Centre is set to receive $1.5 million over the next two years, with a further $500,000 annually for eight years after that. PHOTO: GEOFF SLOAN
Councillor Sam MacDonald launched a scathing attack on the management of the Arts Centre, urging them to "step-up".

"I think actually the $860,000 they're going to be receiving this next financial year is huge. I would implore the trustees... I'll thank them initially, because they are volunteers, but I would implore them to look at the structure of their organisation."

He is not convinced the trust fully appreciates the economic position it was in.

"It's incumbent upon the trustees to work with the management of that organisation and deliver something that is effective and long term. Because it's not at the moment, and I personally don't think they're at the point where they're prepared to accept the challenges, and I think they need to".

MacDonald hopes the large sum of ratepayer money would give the centre's trustees breathing space to get it right.

"While we've had the signs up saying to Save the Arts Centre, I'd almost like to see something saying thank you, the ratepayers of Christchurch. You actually have saved the Arts Centre."

The council's also likely to approve more than $510,000 a year to support Orana Wildlife Park for the next three years.

The wildlife park's also faced questions over its ongoing financial stability, prompting it to undertake a year-long external review.

The Christchurch City Council's long-term plan is set to be formally adopted on Thursday.

- By Geoff Sloan, made with the support of NZ On Air