Next year's rates up for debate

The Annual Plan 2025/26 will determine any changes from the Long Term Plan 2024–34, which set out the services and capital projects the Council will deliver over the coming decade. 

The 2025/26 financial year promises to be an exciting one for Christchurch, with both Parakiore Recreation and Sport Centre and One New Zealand Stadium at Te Kaha scheduled to open, reaffirming Christchurch’s status as great place to live, work and play. The cost of running these facilities has already been included in the budgets for the Annual Plan. 

Other items factored into the Annual Plan include the Ōtākaro Avon River Corridor, Akaroa Wharf, Te Nukutai o Tapoa – Naval Point, Takapūneke Reserve, sports field development, developing and maintaining water networks, and road and footpath renewals and replacements. 

Chief Financial Officer Bede Carran says the Mayor, Councillors and Council staff are all acutely aware of the financial impacts that rates increases have on the community, particularly on those with modest and fixed incomes.  

“Together, we’ve been holding workshops to identify opportunities for further projects and programmes of work that deliver what the community has told us they want, while managing the cost impact they’ll have on the community.    

“We’ve pencilled in a $738 million capital programme, $859 million in operational spending, and no reduction in service. The key to the Annual Plan process is to factor in the current financial situation and make the tweaks necessary to pay for it all.” 

Following on from these workshops, Council staff have prepared a report that recommends an overall average rates increase of 8.76% as the starting point for developing next year’s Draft Annual Plan 2025/26. 

This is made up of the 8.48% set out in the second year of the Long Term Plan 2024–34 plus an additional 0.28% to cover Government costs related to Local Water Done Well. 

This would translate to 8.4% for the average household, or $5.95 per week. 

“Our report recommends a mix of financial levers that will let us deliver this package with a relatively smaller rates increase in 2025/26, a small spike in 2026/27, and ultimately lower increases in the longer term," says Mr Carran.

“Other options mean higher short-term increases and lower long-term ones, or vice versa, but we’re putting forward this mix as striking a good balance for the things our residents have told us they want – immediate affordability, maintained service levels, investment in the future, and financial headroom if we get any surprises.”

Following Wednesday’s decisions, staff will use the guidance to develop the Draft Annual Plan 2025/26 throughout December and January. The Draft Annual Plan is set to be adopted on 12 February 2025 and will go out for public feedback in March.   

Read the Council report here.