Finance and
Performance Committee of the Whole - Terms
of Reference
/ Ngā Ārahina Mahinga
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 Chair
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Councillor
MacDonald
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Deputy Chair
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Councillor
McLellan
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Membership
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The Mayor and all councillors
are members of
this committee.
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Quorum
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Half of the members if the number of members (including vacancies) is even, or a majority of members if the number of members (including vacancies) is
odd
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Meeting
Cycle
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Monthly
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Reports To
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Council
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Delegations
The Council delegates to
the Finance
and
Performance Committee authority
to
oversee and make decisions
on the following
matters:
Capital Programme and operational expenditure
·
Monitoring the delivery of the Council’s
Capital Programme and associated operational
expenditure,
including inquiring
into any material discrepancies
from planned expenditure.
·
Approving
amendments to the Capital Programme outside the Long-Term Plan or Annual Plan
processes.
·
Approving
Capital Programme investment cases, and associated operational expenditure, as
agreed in the Council’s Long-Term Plan.
·
Approving
any capital or other carry-forward requests and the use of operating surpluses.
·
Approving
the procurement plans (where applicable), preferred supplier, and contracts for
all capital expenditure where the value of the contract exceeds $15 million
(noting that the Committee may sub-delegate authority for approval of the
preferred supplier and /or contract to the Chief Executive, conditional on
compliance with the procurement plan strategy).
·
Approving the procurement plans (where applicable),
preferred supplier,
and contracts, for
all operational
expenditure
where the value of the contract exceeds $10 million (noting
that
the Committee may sub-delegate
authority for approval of the preferred supplier and/or contract to the Chief Executive, conditional on compliance with the procurement plan strategy).
Non-financial performance
·
Reviewing the delivery of services under
s17A.
·
Amending levels of
service targets, unless the decision is precluded
under section 97 of the Local Government Act 2002.
·
Exercising all of the Council's powers
under section 17A of the Local
Government Act 2002, relating to service
delivery reviews and decisions not to undertake a review.
·
Exercising all of the Council's powers under
section 17A of the Local Government Act 2002, relating to service delivery
reviews and decisions not to undertake a review.
Council Controlled Organisations
·
Monitoring the financial and non-financial
performance of the Council
and Council-controlled Organisations.
·
Making
governance decisions
related to Council
Controlled Organisations under sections 65
to 72 of the
Local Government Act
2002.
·
Exercising the Council’s powers
directly as the shareholder, or through CCHL, or in
respect of an entity
(within
the meaning of section
6(1) of the Local Government Act 2002) in relation to:
-
(without limitation)
the
modification of constitutions and/or trust deeds, and
other governance arrangements,
granting shareholder approval of
major transactions,
appointing directors or trustees, and approving
policies related
to Council Controlled
Organisations; and
-
in relation to
the approval of Statements of Intent and
their modification (if any).
Development
Contributions
·
Exercising all of the Council's powers
in relation to development
contributions,
other than those delegated to the Chief Executive and
Council officers as set out in the Council's Delegations Register.
Property
·
Purchasing or disposing
of property where required for the delivery of the Capital Programme, in accordance with
the
Council’s Long-Term Plan, and where those
acquisitions or disposals
have
not
been delegated to another decision-making body of the
Council or staff.
Loans and debt write-offs
·
Approving debt write-offs where those debt write-offs are not delegated to staff.
·
Approving amendments
to
loans, in accordance with the Council’s Long-Term Plan.
Insurance
·
All insurance matters,
including considering legal
advice from the Council’s
legal and other advisers,
approving further actions
relating
to
the issues, and authorising
the taking of formal actions
(Sub-delegated
to
the Insurance Subcommittee
as per the Subcommittees
Terms of Reference).
Annual Plan and Long Term Plan
·
Providing oversight and monitoring development of the Long Term Plan (LTP) and Annual
Plan.
Submissions
·
The Council
delegates to
the
Committee authority:
-
To consider
and
approve draft
submissions on behalf of the
Council on topics within its
terms of reference. Where the timing of a consultation does
not allow for consideration of a draft submission by the Council
or relevant Committee,
the
draft submission can
be considered and
approved on behalf of the
Council.
Limitations
·
The general delegations to this Committee
exclude any specific decision-making powers that are delegated to a Community
Board, another Committee of Council or Joint Committee. Delegations to staff
are set out in the delegations register.
·
The Council retains the authority to adopt policies, strategies
and bylaws.
The following matters
are prohibited from being subdelegated in accordance with LGA 2002 Schedule 7
Clause 32(1) :
·
the power to make a rate; or
·
the power to make a bylaw; or
·
the power to borrow money, or purchase or
dispose of assets, other than in accordance with the long-term plan; or
·
the power to adopt a long-term plan, annual
plan, or annual report; or
·
the power to appoint a chief executive; or
·
the power to adopt policies required to be
adopted and consulted on under this Act in association with the long-term plan
or developed for the purpose of the local governance statement; or
·
the power to adopt a remuneration and employment
policy.
Chairperson
may refer urgent matters to the Council
As may be necessary from
time to time, the Committee Chairperson is authorised to refer urgent matters
to the Council for decision, where this Committee would ordinarily have
considered the matter. In order to
exercise this authority:
·
The Committee Advisor must inform the
Chairperson in writing of the reasons why the referral is necessary
·
The Chairperson must then respond to the
Committee Advisor in writing with their decision.
·
If the Chairperson agrees to refer the report to
the Council, the Council may then assume decision-making authority for that
specific report.
Urgent
matters referred from the Council
As may be necessary
from time to time, the Mayor is authorised to refer urgent matters to this
Committee for decision, where the Council would ordinarily have considered the
matter, except for those matters listed in the limitations above.
In order to
exercise this authority:
·
The Council Secretary must inform the Mayor and
Chief Executive in writing of the reasons why the referral is necessary
·
The Mayor and Chief Executive must then respond
to the Council Secretary in writing with their decision.
If the Mayor
and Chief Executive agree to refer the report to the Committee, the Committee
may then assume decision-making authority for that specific report.
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3. Draft
Annual Plan 2026/27
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Reference Te Tohutoro:
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26/81358
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Responsible Officer(s) Te Pou Matua:
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Peter
Ryan, Head of Corporate Performance & Planning
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Accountable ELT Member Pouwhakarae:
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Bede
Carran, General Manager Finance, Risk & Performance / Chief Financial
Officer
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1. Purpose and Origin of the Report Te Pūtake Pūrongo
1.1 The
purpose of this report is to present to the Committee for consideration and
adoption:
· The Draft Annual Plan
2026/27, including attached documents;
· The Draft Annual Plan
2026/27 draft Consultation Document; and
· The Draft Annual Plan
2026/27 consultation and engagement process to be undertaken.
1.2 The
Council is required to prepare and adopt an Annual Plan for each financial year
(s.95(1) Local Government Act 2002 (LGA)). The purpose of the annual plan is
to:
· contain the proposed
annual budget and funding impact statement for 2026/27;
· identify any variation
from the financial statements and funding impact statement in the
Council’s Long-Term Plan for 2024-34;
· provide integrated
decision-making and co-ordination of the Council’s resources; and
· contribute to the
accountability of the Council to the community.
1.3 The
decisions in this report are of high significance based on the Council’s
Significance and Engagement Policy.
2. Officer
Recommendations Ngā Tūtohu
That the Finance and
Performance Committee:
1. Receives the information in the Draft Annual Plan 2026/27
Report.
2. Notes that the decisions in this report are
assessed as being of high significance based on the Christchurch City
Council’s Significance and Engagement Policy.
3. Notes the Recommendations of the
Council’s Audit and Risk Management Committee at its meeting on 02
February 2026 (refer Attachment A).
4. Notes that the information and options
provided in the Draft Annual Plan 2026/27 report are as directed by the
resolutions of the Finance and Performance Committee (on behalf of Council) at
its meeting of 17 December 2025.
5. Confirms the staff recommendation as the
preferred option upon which to base development of the Draft Annual Plan
2026/27, noting that key components detailed below result in an average overall
rates increase of 7.95% for 2026/27:
a. the reduction of the planned core capital
expenditure to $586.2 million following a review of the deliverability of the
Council’s capital programme; and
b. the in-housing of the Council’s urban
development functions; and
c. the application of $6.3 million of analytical
savings to debt reduction, by increasing rating for renewals; and
d. the application of $10.0 million of the
forecast 2025/26 operating cash surplus to reduce borrowing in 2025/26,
reducing opening debt for 2026/27; and
e. reducing the Business differential on the
Value Based General Rate from 2.220 to 2.000; and
f. a breach of the balanced budget financial
prudence benchmark for 2026/27 (as indicated in the LTP).
6. Approves and adopts for consultation the information contained or referred to in the
staff report which provides the basis for the Draft Annual Plan 2026/27,
together with any amendments made by resolution at the meeting, and which
includes the following attachments of this report:
a. Financial Overview, including financial
changes to that contained in the Long-Term Plan 2024-2034 (Attachment B)
b. Funding Impact Statement (Attachment C)
c. Rating Information (Attachment D)
d. Rating Policies (Attachment E)
e. Financial Prudence Benchmarks (Attachment F)
f. Proposed Capital Programme, including schedule
of changes to LTP (Attachment G)
g. Proposed Minor Changes to Levels of Service
(Attachment H)
h. Proposed Fees and Charges (Attachment I)
i. Prospective Financial Statements (Attachment
J)
j. Statement of Significant Accounting Policies
(Attachment K)
k. Reserves and Trust Funds (Attachment L)
l. Capital Endowment Fund (Attachment M)
m. Summary of Grants (Attachment N)
n. List of properties for seeking the community
views and preferences as to their future use (Attachment O)
7. Approves and adopts for public consultation
the draft Consultation Document for the Draft 2026/27 Annual Plan (under
separate cover).
8. Approves the following process for the Draft
Annual Plan 2026/27 consultation:
a. All relevant information and documents,
including the Consultation Document, be made available on the Council’s
website from 27 February 2026.
b. Hard copy information and documents to be made
available at Council libraries and service centres from 27 February 2026.
c. The period for making submissions will run
from 27 February 2026 to 11.59pm on 27 March 2026.
d. For people who indicate they wish to present
oral submissions, hearings will be held from late March to April 2026 (exact
dates will be confirmed and communicated to those submitters closer to the
time), noting that only the name of the submitter is published with the
submissions.
9. Authorises the General Manager Finance, Risk
and Performance/CFO to make any non-material changes to the Draft 2026/27
Annual Plan documents and/or information attached to or referred to in the
staff report.
10. Notes that the Council will meet on 23 June
2026 to adopt its Annual Plan 2026/27.
3. Executive Summary Te Whakarāpopoto Matua
3.1 The
purpose of an Annual Plan is to provide a one-year schedule of updates to the
Long-Term Plan (LTP), if any are required by changing circumstances.
3.2 Annual
Plans are not designed as a mechanism to revisit the entire LTP. To give
effect to the latter requires an amendment to the LTP, and that requires (among
other matters) that the amended LTP is audited.
3.3 Where
that list of updates is not material a local authority may opt to not consult
on its Annual Plan.
3.4 Annual
Plans, being limited in scope relative to an LTP, are not required to be
audited. The options and recommendations set out in this report meet the
criteria for an Annual Plan, in contrast to an amendment of the LTP, and were
workshopped extensively with Council after the 2025 triennial elections.
3.5 The
Council has provided clear direction on the process to be followed. Councillors
advised that the process would be for an Annual Plan, and that the draft Annual
Plan would be consulted on with the community.
3.6 Recent
announcements by central government on local government reform - notably those
concerning a proposed rates capping model will, if enacted, have a significant
impact on the 2027-2037 LTP and future Annual Plans. It should be noted that
these proposals do not directly impact the Annual Plan 2026/27.
4. Background/Context Te Horopaki
Starting Position
4.1 In
accordance with the LGA, the Council adopted its Long-Term Plan 2024-34 in June
2024 (LTP 2024 – 34). The LTP sets out service delivery, capital
programmes and budgets over that ten-year period. The LTP 2024 – 34 was
based on several key Council decisions:
· that levels of service
would not be reduced;
· that the core capital
programme (excluding One New Zealand Stadium at Te Kaha) would increase from
483M in 2023/24 to 668M in 2026/27;
· that the One New Zealand
Stadium at Te Kaha would be completed and hosting events by the beginning of
the 2026/27 financial year;
· staff would be recruited
for the new Parakiore Recreation and Sport Centre;
· asset renewals would be
sustainable; and
· that a variety of climate
resilience and environmental initiatives / grants would be funded.
4.2 The
LTP 2024 – 34 and Annual Plan 2025/26 (AP 2025/26) factored in inflation
based on the BERL Local Government Cost Index (LGCI) forecasts (BERL’s
LGCI is the Cost Price Index (CPI) for local authorities and accepted by Audit
New Zealand as providing a reliable measure of the LGCI).
4.3 Subsequently,
the Council adopted the AP 2025/26 (year two of the LTP 2024 -34) on 26 June
2025.
4.4 The
decisions made when adopting the AP 2025/26 initially put the rates increase
for the Annual Plan 2026/27 at 10.52% as shown below:
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Major Drivers
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2026/27
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Cost changes – inflation
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2.96%
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Based on BERL 3.1% Opex, 3.4% Capex for
2026/27.
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Rating for Renewals
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2.78%
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Increase in rating for renewals to
achieve fully funded renewals by 2032 per the Financial Strategy.
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Capital Programme
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2.78%
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Planned capital programme expenditure of
$713.0m in 2026/27.
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Use of 2024/25 Surplus
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2.06%
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$17.0m of surplus applied to 2025/26
rates reduction in 2025/26 AP.
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Climate Resilience Fund
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0.25%
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$2.1m fund contribution increase (total
2026/27 contribution $4.1m).
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Operational Expenditure
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0.39%
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Corporate Revenues & Expenses
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(0.72%)
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Subvention receipts, CCO on-lending
interest, dividend projections.
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Rating Growth
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(1.00%)
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1% city capital value growth
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Base requirement
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9.50%
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One New Zealand Stadium at Te Kaha
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1.02%
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Debt repayment & interest expense
resulting from borrowing to fund One New Zealand Stadium at Te Kaha
completion.
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Initial Position
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10.52%
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4.5 Since
the adoption of the AP 2025/26 there have been further changes with financial
impacts based on Council direction and updated information becoming available.
These have reduced the current rates increase for the Annual Plan 2026/27 to
7.95%. Material changes include:
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2026/27
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2027/28
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2028/29
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2026 Annual Plan Rates Increase above
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10.52%
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9.11%
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5.73%
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Changes incorporated in the initial
budget build (reduced
insurance, updated subvention receipt forecast, Burwood Landfill extension,
2024/25 reduced capital expenditure)
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(1.30%)
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0.40%
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0.24%
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2026/27 Capital Programme deliverability
review (reducing
the 2026/27 planned core capital expenditure from $778.8m to $586.2m.)
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(0.71%)
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(0.89%)
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0.52%
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In-housing Urban Development functions
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(0.19%)
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0.01%
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0.01%
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Analytical Savings ($6.3m of savings which do not
impact LoS, based on historic performance to the proposed budget)
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(0.73%)
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0.06%
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0.05%
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Additional Rating for Renewals ($6.3m of analytical savings
applied to rating for renewals, reducing interest and debt repayment costs)
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0.73%
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(0.11%)
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(0.09%)
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Draft Annual Plan Build (17 Dec 2025)
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8.32%
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8.58%
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6.46%
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Additional savings identified ($0.8 million, various minor
adjustments and savings)
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(0.10%)
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0.01%
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0.01%
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Updated opening balance sheet debt ($10.0 million reduction in
2025/26 borrowing based on capex forecast)
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(0.10%)
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0.01%
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0.01%
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Updated opening balance sheet debt ($10.0 million reduction in
2025/26 borrowing based on opex forecast)
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(0.10%)
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0.01%
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0.01%
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Updated rating growth (Rating growth increased $0.6
million based on 2025/26 actual rates strike after adjustments)
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(0.07%)
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0.02%
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0.02%
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Proposed Draft Annual Plan
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7.95%
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8.63%
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6.51%
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Purpose and
confirmation of process of the Annual Plan
4.6 The
affordability of rates is a key concern for the Council. When considering how
rate increases can be moderated it is important to keep in mind the legal and
administrative mechanisms of the Annual Plan, such as changes to levels of
service and their implementation.
4.7 Following
the election of the new Council in October 2025, staff began a series of
workshops with the Mayor and councillors on the Annual Plan 2026/27. The
following related information session/workshops have taken place for the
members of the meeting:
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Date
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Subject
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6th
Nov 2025
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AP Workshop
1: General update on Annual Plan 2026/27
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12th
Nov 2025
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AP Workshop
2: Update on Capital Programme review
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19th
Nov 2025
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AP Workshop
3: Council only day
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27th
Nov 2025
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AP Workshop
4: Council only day
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4th
Dec 2025
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AP Workshop
5: Council only day
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9th
Dec 2025
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AP Workshop
6: Feedback on Council only days and potential savings options
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17th
Dec 2025
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Finance and
Performance Committee Meeting – Confirmation of content – Draft
Annual Plan 2026/27
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27th
Jan 2026
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Council
Workshop: General Revaluation and Rates Update
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4.8 Staff
prepared options on various ways to reduce the rates increase while still
meeting (1) the decisions made by Council in the LTP24-34, (2) the fixed costs
which must also be met, and (3) the Council guidance on the Annual Plan
process.
4.9 It
may be helpful when considering options to note as a quick guide that $8.3m of
rates funded operational expenditure (OPEX) equals a 1% rate increase. A
one-off saving (additional revenue or reduced cost) reduces rates for one year
but has a corresponding increase the following year. To reduce rates on an
ongoing basis the savings must be permanent and not savings identified for a
particular year only.
Capital Programme Deliverability
4.10 Staff
have reviewed the capital programme to ensure it reflects realistic delivery
capacity, aligns with strategic priorities and addresses growing infrastructure
demands. The proposed adjustments reduce the 2026/27 core capital budget from
$778.8 million (including approved carry-forwards from 2024/25) to $586.2
million, focusing on key projects such as transport upgrades, water supply
renewals, wastewater improvements, and stormwater management / flood reduction.
This approach balances affordability and deliverability, lowering the rates
increase by 0.7% and reducing borrowing requirements, while continuing to
invest in essential infrastructure and community facilities.
4.11 Capital
expenditure (Capex) and/or borrowing of approximately $110m equals a 1% rate
increase spread over 2 years (year 1: 0.27%, year 2: 0.73%).
5. Financial Implications Ngā Hīraunga Rauemi
Rates
5.1 The
proposed draft Annual Plan 2026/27 includes an average overall rates increase
of 7.95% for 2026/27, compared to the LTP24-24 average overall rates increase
of 5.80% for 2026/27.
5.2 The
proposed draft Annual Plan 2026/27 average overall cumulative rates increase
since 2024/25 (first year of the LTP) is 26.47%, marginally higher than the
LTP24-34 cumulative rates increase of 26.13% by 2026/27.
5.3 A
general revaluation of rating units for rating purposes occurred as at August
2025 and will be effective for the 2026/27 year.
5.4 The
revaluation has increased overall capital values unevenly between rating
sectors with the overall average increases shown below:
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Rating sector
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2022 Average Capital
Value
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2025 Average Capital Value
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Overall Average Increase
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Standard (Includes Residential)
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830,000
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845,000
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1.8%
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Business
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2,490,000
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2,734,000
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9.8%
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Remote Rural
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1,910,000
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1,905,000
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-0.3%
|
5.5 Staff
note that many individual properties will have valuation changes that differ
materially from the above overall average.
5.6 As
a result of the above, the draft Annual Plan 2026/27 proposes an adjustment to
the value-based general rate business differential, decreasing the differential
from 2.220 to 2.000, to maintain the proportionality of rates charged to each
sector. Staff note that during the preparation of the 2023/24 Annual Plan,
Council increased the value-based general rate business differential from 1.697
to 2.220 to smooth the rates increase to standard (including residential) rate
payers incurred as a result of the 2022 rating revaluation and to maintain the
proportionality of rates charged to each sector. The recommended change to the
business differential partially reverses the previous change.
5.7 An
average overall rates increase of 7.95% to existing ratepayers is estimated to
translate to the following rating sector increases for an average capital value
property in that sector:
|
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Existing Business
Differential (2.220)
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Proposed Business
Differential (2.000)
|
|
Rating sector
|
Rates % Increase
|
Weekly $ Increase
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Rates % Increase
|
Weekly $ Increase
|
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Standard (Includes Residential)
|
5.5%
|
$ 4.48
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7.4%
|
$ 6.05
|
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Business
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14.3%
|
$ 53.99
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8.7%
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$ 33.09
|
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Remote Rural
|
4.6%
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$ 3.54
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8.0%
|
$ 6.19
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5.8 Staff
also note that technical updates have been made to the Funding Impact Statement
– Rating Information (Attachment C), updating the definition of
short-term accommodation in relation to the business differential to remove the
minimum 60-day requirement.
5.9 Minor
updates have been made to the Rates Remissions Policy (Attachment E),
affecting the date to which the remission for a new claim on an
earthquake-damaged property will be back dated.
Financial Prudence Benchmarks
5.10 In
relation to the Financial Prudence Benchmarks, the Council will not meet the
following:
5.10.1 The
Rates Affordability benchmark
· Benchmark
<7.8%, Annual Plan 2026/27 9.0%.
· The Council
meets the rates affordability benchmark if its planned rates increase for the
year equals or is less than each quantified limit on rates increases.
· The Council
has not met this benchmark for 2026/27 with the rates increase for 2026/27
being 1.2% higher than the quantified limit. The 2025/26 Annual Plan rates
increase was reduced (2.06%) using some of the 2024/25 operating surplus. This
was a temporary saving which effectively moved the increase to the 2026/27
year.
5.10.2 The
Balanced Budget benchmark in 2026/27 (as indicated in the LTP).
· Benchmark
>100%, Annual Plan 2026/27 94.8%.
· The Council
meets the balanced budget benchmark if its revenue equals or is greater than
its operating expenses.
· The Council
has not met this benchmark for 2026/27 as was forecast in the LTP24/34. This is
a result of the delay in the increase to Rating for Renewals in the Long Term
Plan to assist in managing the level of planned rates increases.
5.10.3 The
Debt Servicing benchmark (as indicated in the LTP)
· Benchmark
<10%, Annual Plan 2026/27 10.6%.
· The Council
meets the debt servicing benchmark if its planned borrowing costs equal or are
less than 10% of its planned revenue.
· The Council
has not met this benchmark for 2026/27 as was forecast in the LTP24/34. This
benchmark includes interest costs relating to debt that is on-lent to
subsidiaries and funded by them, and it accounts for 12.6% of Council’s
interest costs, without which the Council’s ratio would by 9.4%. There is
no concern around Council’s ability to service debt.
6. Fees and Charges
6.1 A
schedule of proposed Fees and Charges is included (refer Attachment I).
In recommending the proposed fees, staff have been conscious of the financial
pressure on residents and ratepayers and have attempted to avoid increases that
would create a barrier to the community’s utilisation of Council’s
services.
6.2 As
a result of the above, limitations imposed by the market, and the varying
inflationary impacts on costs and limits on cost recovery, fee increases
proposed for 2026/27 vary but generally align to expected Council inflation of
3.1%.
6.3 New
fees are proposed in the schedule of proposed Fees & Charges associated to
the progression of private initiatives associated to the Ōtākaro Avon
River Corridor (refer Attachment I, Page 36).
7. Changes to Levels of Service
7.1 There
are proposed minor changes to Measures of Success and targets (levels of
service) for two activities, accompanied by rationale (refer Attachment H).
These are the same as presented to Finance and Performance Committee at the
meeting of 17 December 2025.
7.2 In
summary the changes are;
7.2.1 Water
Supply activity: to align methods of measurement and targets with Department of
Internal Affairs (DIA) updates of Non-Financial Performance Measures Rules
2024, including updates to methodology and target values for those with
current/old methodology. Given the changes are already applied into reporting
requirements by Taumata Arowai, the Annual Plan 2026/27, supporting systems and
monthly performance reporting will be updated and will be applied across
2025/26 (the current financial year – to be retrospectively applied
through the Annual Report 2026), 2026/27 and future years.
7.2.2 Communications
and Engagement activity: Current levels of service targets are based on the
previous years’ result plus 1%, meaning that if the Unit scores well one
year, future year’s targets could be unachievable. The proposal is
to introduce targets based on “at least an average of the last three
years’ results” plus 1%. Doing so will provide a more appropriate
system whereby the level of service targets demonstrate consistency in
performance (one-off high or low results evened out by taking an average over
the preceding three years), while maintaining the highest standard possible.
7.3 These
minor changes are for administrative purposes and do not require consultation
with the community.
8. Potential Disposal of Council Owned Properties
8.1 The
Council owns many types of properties of varying configurations and sizes.
Owning property comes at a cost, and it is good financial practice to
frequently review the portfolio to ensure it remains fit for purpose. If a
property is no longer fit for purpose, then Council should decide whether to
keep it or release its value for community benefit.
8.2 Since
2021 the Council has when appropriate included in its draft LTPs and Annual
Plans a small portfolio of properties to be considered for disposal. The
properties have been put forward for consideration on the basis they were no
longer delivering the original activity or service for which they were
purchased.
8.3 It
is intended to replicate the process in this Annual Plan for a small number of
properties which have been identified as no longer used for the purpose for
which they were originally acquired. These have been assessed against and are
considered to meet the following criteria adopted by the Council at its meeting
of 10 December 2021:
8.3.1
Is the property still required for the purpose for which it was originally
acquired?
8.3.2
Does the property have special cultural, heritage or environmental values that
can only be protected through public ownership?
8.3.3
Is there an immediate identified alternative public use / work / activity in a
policy, plan or strategy?
8.3.4
Are there any strategic, non-service delivery needs that the property meets and
that can only be met through public ownership?
8.3.5
Are there any identified unmet needs, which the Council might normally address,
that the property could be used to solve? And is there a reasonable pathway to
funding the unmet need?
8.4 A
list of those properties considered suitable to be put forward for
incorporation in this draft Annual Plan for consultation purposes can be seen
at Attachment O.
9. Considerations Ngā Whai Whakaaro
Risks and Mitigations Ngā Mōrearea me
ngā Whakamātautau
9.1 Key
risks for the Annual Plan include:
9.1.1 Failure
to achieve project plan milestones. Mitigation: currently on track due to
direction provided by Council to staff at the meeting of Finance and
Performance Committee at the meeting of 17 December 2025. Adoption of the draft
Annual Plan 2026/27 in February 2026 remains critical to the process.
9.1.2 Not
meeting the decision-making requirements of the LGA due to a large number of
late amendments at the time of adopting the draft Annual Plan.
Mitigation: Workshops with Council to provide opportunity for matters to be
raised as part of the build of the draft Annual Plan.
9.1.3 Attempting
to amend the LTP with insufficient time to do so. Mitigation: Also currently on
track due to clear communication of Council guidance to date, legal and
logistical constraints.
9.1.4 Deliverability
of capital programme. Mitigation: this risk has been mitigated by the
recommended re-phasing of the capital programme. Historically, average
annual capital expenditure has been approximately $500 million, while the
proposed 2026/27 programme is $586.2 million— a 17% increase. This
increase includes $42 million for the Activated Sludge project at the
Wastewater Treatment Plant, delivery of which is now under contract.
· These delivery
risks will be further managed by focussing on key/critical projects,
strengthening oversight through regular performance reviews and working with
contractors to explore ways to increase delivery capacity.
· Looking ahead,
there is still a delivery risk for capital projects for future years (2027/28
to 2033/34) that will need to be addressed as part of the upcoming Long-Term
Plan.
Legal Considerations Ngā Hīraunga
ā-Ture
9.2 Statutory
and/or delegated authority to undertake proposals in the report:
9.2.1 The
Council must, at all times, have an LTP / Annual Plan in place (sections 93 and
95 of the LGA). The Annual Plan is required to be adopted prior to the
year to which it relates (section 95(3) of the LGA).
9.3 Other
Legal Implications:
9.3.1 The
Council has a legal duty to ensure that each year the projected operating
expenses are set to achieve a balanced budget (section 100(1) of the Local
Government Act 2002 (LGA)). Council can approve an unbalanced budget (in final
Annual Plan adoption of June 2026) provided it resolves that it is financially
prudent to do so, having regard to the relevant criteria set out in section
100(2) of the LGA.
9.3.2 There is
no additional legal context, issue or implication relevant to this decision.
Strategy
and Policy Considerations Te
Whai Kaupapa here
9.4 The
required decision aligns with the Strategic Framework adopted with the 2024
Long Term Plan.
9.5 This
report supports the Council's
Long Term Plan (2024 - 2034):
9.6 Internal
Services
9.6.1 Activity: Performance, Finance, and Procurement
· Level of Service: 13.1.1 Implement the Long-Term Plan and
Annual Plan programme plan - Critical path milestone due dates in programme
plans are met
Community
Impacts and Views Ngā Mariu ā-Hāpori
9.7 This
decision affects all existing citizens and ratepayers of Christchurch, and has
implications for future citizens, ratepayers, and Councils.
9.8 The
decision affects all wards/Community Board areas.
Impact
on Mana Whenua Ngā
Whai Take Mana Whenua
9.9 The
LTP 2024–34 saw consultation and engagement with Ngā Papatipu
Rūnanga, which resulted in a wide range of initiatives being undertaken in
the LTP. Those undertakings remain intact and are not proposed to be affected
by the Annual Plan.
9.10 The
decision will not impact on our agreed partnership priorities with Ngā
Papatipu Rūnanga.
Climate
Change Impact Considerations Ngā Whai Whakaaro mā te Āhuarangi
9.11 The
decisions in this report are likely to:
9.11.1 Contribute
to adaptation to the impacts of climate change, in line with decisions for new
initiatives and increases set out in the LTP 2024-34.
9.11.2 Contribute to stability of a whole-of-community climate response by
continuing to provide leadership through the funds established with LTP 2024-34
that will be used in future to mitigate the approaching impacts of climate
change.
10. Next Steps Ngā Mahinga ā-muri
10.1 After
adoption of the draft Annual Plan, consultation with the community will
commence (refer Attachment P to be provided under separate cover for the
draft Consultation Document) beginning on 27 February 2026 and running until
11:59pm, 27 March 2026.
10.2 At
the completion of consultation, Hearings will follow and are planned to be held
from late March to April 2026 (exact dates will be confirmed and communicated
to those submitters closer to the time).
10.3 After
completion of the Hearings, the results of the consultation feedback and
Hearings will be collated to inform Council Information Sessions/Workshops for
April/May/June 2026. (Exact dates will be confirmed and communicated with
Council closer to the time.)
10.4 Any
adjustments to the draft Annual Plan resulting from consultation, Hearings and
Workshops will be completed so that the Annual Plan report preparation process
can be reviewed by ARMC at the meeting of 15 June 2026 and included in the
agenda for the Council meeting of 23 June 2026.
10.5 The
Annual Plan 2026/27 is scheduled for consideration and final adoption at a
meeting of the Christchurch City Council on 23 June 2026.
10.6 Any
delay, impediment, stoppage or indecision in this timeframe is likely to result
in the Annual Plan 2026/27 not being adopted before the end of June, preventing
the striking of the new rates from 1 July 2026. This would result in a
significant loss of revenue and reputational damage until the new Annual Plan
can be adopted.
Attachments Ngā Tāpirihanga
|
No.
|
Title
|
Reference
|
Page
|
|
a ⇩ 
|
Audit and Risk
Management Committee Recommendations - 2 February 2026
|
26/230621
|
22
|
|
b ⇩ 
|
Financial
Overview
|
26/119985
|
23
|
|
c ⇩
|
Funding Impact
Statement
|
26/119977
|
33
|
|
d ⇩ 
|
Rating
Information
|
26/130005
|
37
|
|
e ⇩
|
Rating
Policies
|
26/131705
|
54
|
|
f ⇩ 
|
Financial
Prudence Benchmarks
|
26/119961
|
69
|
|
g ⇩
|
Proposed
Capital Programme
|
26/130177
|
71
|
|
h ⇩
|
Proposed Minor
Changes to Levels of Service
|
25/2475018
|
99
|
|
i ⇩
|
Proposed Fees
and Charges
|
26/3302
|
109
|
|
j ⇩
|
Prospective
Financial Statements
|
26/119938
|
193
|
|
k ⇩
|
Statement of
Significant Accounting Policies
|
26/149312
|
202
|
|
l ⇩
|
Reserves and
Trust Funds
|
26/119871
|
218
|
|
m ⇩
|
Capital
Endowment Fund
|
26/119844
|
221
|
|
n ⇩ 
|
Summary of
Grants
|
26/119945
|
223
|
|
o ⇩
|
List of
properties for consultation seeking the community views and preferences as to
their future use
|
26/116840
|
225
|
|
p
|
Consultation
Document (Under Separate Cover)
|
26/128435
|
|
In addition to the attached documents, the following background
information is available:
|
Document
Name – Location / File Link
|
|
Following the election of the new Council
in October 2025, staff began a series of workshops with the Mayor and
councillors on the Annual Plan 2026/27, to seek Council direction for
development of the draft Annual Plan for adoption. Below are links to the
recordings of the various public workshops and meetings, including agendas
and minutes related to this development:
|
Signatories Ngā Kaiwaitohu
|
Authors
|
Meg Wedlock -
Performance Analyst
Saba Azeem -
Senior Corporate Planning and Performance Analyst
Boyd Kedzlie -
Senior Corporate Planning & Performance Analyst
Paul Dadson -
Senior Capital Programme Advisor Parks & Facilities
Mitchell Shaw
- Principal Advisor - Finance
Ron Lemm -
Manager Legal Service Delivery
Bruce Moher -
Head of Finance
Peter Ryan -
Head of Corporate Planning & Performance
|
|
Approved By
|
Bruce Moher -
Head of Finance
Peter Ryan -
Head of Corporate Planning & Performance
Bede Carran -
General Manager Finance, Risk & Performance / Chief Financial Officer
|
