One-off rates reduction measure presented to Councillors

Councillors today have been presented with an option to take a one-off measure that would reduce Christchurch City Council's proposed rates increase for the coming year from 7.88% to 6.33%.

This would involve taking one-off revenue receipts that would normally be used to reduce debt and apply that instead to reducing rates increases.

Chief Executive Dawn Baxendale says this isn’t normally something the Council would do.

“With a Long Term Plan coming up next year and a lot of variables affecting the wider economy, this measure could provide some short-term relief at a time when many homeowners really need it,” Mrs Baxendale says.

“The downside is that by making this type of one-off revenue change, we’ll need to find the savings elsewhere in the following year – that means some tough choices as part of the Long Term Plan as we seek to reduce rates increases in future years.

The Council’s Draft Annual Plan 2023/24, its budget for the coming year, went out for consultation in March and proposed an overall average rates increase of 5.68%. Based on public feedback, and some new developments which will affect the Council’s spending in the coming year, the new proposed average rates increase is 7.88%. The one-off adjustment being considered would reduce that figure to 6.33%.

“The pros and cons of using one-off revenue in this way are something Councillors will have to consider carefully when they adopt the final budget on 27 June,” Mrs Baxendale says.