Christchurch City Councillors are considering a one-off measure to reduce a proposed rates increase for the coming year from 7.88% to 6.33%.
The move would involve taking one-off revenue receipts that would normally be used to reduce debt and apply that instead to reducing rates increases.
“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,” said Council Chief Executive, Dawn Baxendale.
“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.