Steep rates rise looms as council agrees draft budget

Thursday, 14 March 2024

An average rates rise of 12.4% - and 57.8% over the next decade - is on the cards for homeowners in Christchurch after the city council signed off its draft long term plan.

Christchurch’s draft budget for the next decade - including $16.8 billion of spending over the 10 years - has been officially approved.

City councillors adopted the draft long term plan on Thursday, following sign-off from Audit NZ.

It includes a 12.4% rates increase for the average household for 2024/25, equating to $416 a year, a 14.2% rise for rural properties and 15.4% for businesses.

The cumulative rates increase over the 10 years will be 57.8%.

Of the almost $17b in the budget, there are plans to spend $4.9b over the next three years, including $226m on road, footpath and cycleway renewals, $480m on water network upgrades, and $286m to complete the stadium Te Kaha.

The plan will be open for public consultation from Monday until April 21. Public hearings are expected to begin in early May.

Homeowners across the country are facing average rates rises of 15% as basic infrastructure rockets in price by a third, research for Local Government New Zealand found.

They will will have to find, on average, $8 more per week to keep up with rates demands. Between 2002 and 2022 the average rates rise was 5.7% per year, while in 2023 it was 9.8%.