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Christchurch City Council

Supplementary Agenda

 

 

Notice of Meeting:

An ordinary meeting of the Christchurch City Council will be held on:

 

Date:                                    Wednesday 14 February 2024

Time:                                   9.30 am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Mayor Phil Mauger

Councillor Pauline Cotter

Councillor Kelly Barber

Councillor Melanie Coker

Councillor Celeste Donovan

Councillor Tyrone Fields

Councillor James Gough

Councillor Tyla Harrison-Hunt

Councillor Victoria Henstock

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Sam MacDonald

Councillor Jake McLellan

Councillor Andrei Moore

Councillor Mark Peters

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

20 February 2024

 

 

 

Principal Advisor

Mary Richardson

Interim Chief Executive

Tel: 941 8999

 

 

Samantha Kelly

Team Leader Hearings and Committee Support

941 6227

samantha.kelly@ccc.govt.nz

www.ccc.govt.nz

Note: The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted. If you require further information relating to any reports, please contact the person named on the report. To watch the meeting live, or a recording after the meeting date, go to: http://councillive.ccc.govt.nz/live-stream To view copies of Agendas and Minutes, go to: https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 

Council - Long Term Plan 2024 - 2034

14 February 2024

 

 

Council - Long Term Plan 2024 - 2034

14 February 2024

 

TABLE OF CONTENTS NGĀ IHIRANGI

 4.       Resolution to Include Supplementary Reports Te Whakataunga Whakauru Pūrongo āpiti         4

5.        Draft Long-Term Plan 2024-34 Amendments Update.............................................. 5


Council - Long Term Plan 2024 - 2034

14 February 2024

 

 

4. Resolution to Include Supplementary Reports Te Whakataunga Whakauru Pūrongo āpiti

1.       Background Te Horopaki

1.1          Approval is sought to submit the following report to the Council - Long Term Plan 2024 - 2034 meeting (which commenced on 14 February 2024) and will be considered at the reconvened meeting on 21 February 2024:

5.      Draft Long-Term Plan 2024-34 Amendments Update

1.2          The reason, in terms of section 46A(7) of the Local Government Official Information and Meetings Act 1987, why the report was not included on the main agenda is that it was not available at the time the agenda was prepared.

1.3          It is appropriate that the Council - Long Term Plan 2024 - 2034 receive the report at the current meeting.

2.       Recommendation Te Tūtohu

2.1          That the report be received and considered at the Council - Long Term Plan 2024 - 2034 meeting (which commenced on 14 February 2024) and will be considered at the reconvened meeting on 21 February 2024.

5.      Draft Long-Term Plan 2024-34 Amendments Update

 

 

Council - Long Term Plan 2024 - 2034

14 February 2024

 

 

5.     Draft Long-Term Plan 2024-34 Amendments Update

Reference / Te Tohutoro:

24/272071

Report of / Te Pou Matua:

Russell Holden - Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

Senior Manager / Pouwhakarae:

Russell Holden, Acting General Manager Resources/Chief Financial Officer (russell.holden@ccc.govt.nz)

 

 

1.   Purpose and Origin of Report Te Pūtake Pūrongo

1.1       The purpose of this report is to update the Mayor and Councillors on the latest draft Long Term Plan rates increases.

1.2       This report is the update requested of staff following the Amendments agreed for incorporation into the draft Long-Term Plan 2024-34 at the Council Meeting on 14th February 2024.

2.   Officer Recommendations Ngā Tūtohu

That the Council - Long Term Plan 2024 - 2034:

1.         Receive the information in the draft Long-Term Plan 24-34 Amendments Update report.

3.   Brief Summary

3.1       Following the Council meeting which commenced on 14 February 2024, the financial implications have been updated for the agreed amendments and additional Christchurch City Holdings Limited dividend advised ($5M for 2024/25).

3.2       The rate increases are provided below:

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3.3       The draft rates increase is 13.24% in year one of the Long-Term Plan (LTP) - 2024/25, and then 7.76% in 2025/26, and 4.67% in 2026/27.

3.4       The significant reduction in the draft rates increase in 2024/25 and 2025/26 is due to the reduced rating for renewals and additional dividend from Christchurch City Holdings Limited (CCHL).

3.5       The increases in draft rates increase in the mid years of the LTP are due to restoring the rating for renewals strategy and the additional $183M for the new surface flooding programme over the life of the LTP.

3.6       The Council is now proposing average rates increases for the next three years of the LTP as follows:

 

 

 

Average LTP rates increases Years 1 – 3

 

Base Rates

Te Kaha

Total

2024/25

11.08%

2.17%

13.24%

2025/26

5.98%

1.78%

7.76%

2026/27

3.99%

0.69%

4.67%

 

The 2024/25 total residential average increase is 12.4% compared to total business average of 14.2% and the total rural average of 15.4%.

3.7       The draft rates increases mean that in 2024/25 an average-valued residential house ($764,364) is proposed to be rated an extra $416.23 a year or $8.00 a week. The cumulative average rates increase over the 10 years of this Long-Term Plan is 57.8% up from the previously advised 53.6%.

3.8       Other key financial changes over the Long-Term Plan, determined by the 14 February 2024 decisions include:

3.8.1   Capital Programme expenditure increase of $247m.

3.8.2   Borrowing increase due to rating for renewals change of $83.8m.

3.8.3   Total gross borrowing increase $330.8m, after increased debt repayments is a net increase of $277.6m.

3.8.4   Balanced budget benchmark is not met in first three years.

3.8.5   Additional interest costs incurred are $71.4M.

3.8.6   Headroom in 2028 is down by $170M to $1.06B (still well within strategy limits).

3.8.7   Additional CCHL dividend of $5M.

 

Attachments Ngā Tāpirihanga

There are no attachments to this report.

 

In addition to the attached documents, the following background information is available:

Document Name – Location / File Link

Not applicable

 

 

 

 

Confirmation of Statutory Compliance Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories Ngā Kaiwaitohu

Author

Russell Holden - Acting General Manager Resources/Chief Financial Officer

Approved By

Russell Holden - Acting General Manager Resources/Chief Financial Officer

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance