An early look at next year's rates

Councillors are considering the factors that will impact next year’s rates increase, as they come together on 6 December for the first public briefing on the Draft Annual Plan 2023/24.

The Draft Annual Plan is Christchurch City Council’s yearly budget that sets out what it plans to achieve over the coming financial year, and how it will be funded.

“Christchurch City Council is committed to maintaining the levels of service that the people of Christchurch expect, but we’re experiencing all the same challenges as every other organisation,” Chief Executive Dawn Baxendale says.

“And because we’re a big organisation, the economic factors we’ve all heard so much about – inflation, interest rates, supply issues – are having a big impact.

An initial calculation had the 2023/24 rates increase in the 14% to 15% range, and work so far has reduced it to the 9% to 9.5% range. Councillors will consider this publicly for the first time on Tuesday 6 December.

“We know ratepayers are dealing with rising cost across the board. That’s why we’re keen to stress that this is all still a work in progress, and our staff and councillors are working hard in very challenging circumstances to reduce rates increases as much as possible,” Mrs Baxendale says.

Mrs Baxendale says the Council is continuing its enhanced approach of having these discussions pre-Christmas, in public, so the community can get a handle on the big issues and decisions that have to be made as a city.

“We’re looking at every financial lever we can pull to reduce the impact of these external economic factors on our operations and help balance our rates increases over time, as well as looking at options for re-phasing capital spending.

“With supplies and labour tight at the minute, keeping realistic and focusing on what we can actually pull off is essential to keeping budgets no bigger than they need to be, and to keeping rates increases manageable.

“Everyone will get the opportunity early next year to see the Draft Annual Plan in full and submit on our plans.”

The Draft Annual Plan 2023/24 is scheduled to be adopted in early 2023, with public consultation occurring in March/April.