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The main
proposals in the Draft Annual Plan 2026/27 are:
· Rates –
a proposed average rates increase of 7.96% across all
ratepayers (which is higher than the 5.80% signalled in the Long-Term Plan
2024–34) and an average residential rates increase of 7.4%.
· General
rate business differential – a proposal to lower the differential
paid by business property owners from 2.22 to 2.00 to keep the current
overall proportion of rates paid by business and residential ratepayers the
same.
· Fees and charges – proposal for some
changes to fees and charges, while some fees will remain unchanged, to help
avoid creating barriers for residents, others will be adjusted in line with
the rising cost of providing services.
· The
Climate Resilience Fund – the Draft Annual Plan proposes continuing
to fund the Climate Resilience Fund by maintaining the 0.25% rates increase
from July 2025 and applying an additional 0.25% increase each year of the
Long-Term Plan. Alternatively, Council could pause the planned 0.25% rates
increase for 2026/27 and resume contributions to the fund from 2027/28.
· Contestable community grants - the Draft
Annual Plan proposes to provide $7.12 million in funding for contestable
community grants in 2026/27. Alternatively, Council could reduce the amount
available in some contestable grant schemes by 5%, saving $356,100 in 2026/27
and lowering the rates increase by 0.04%.
· Environmental Partnerships Fund
– the Draft Annual Plan proposes to increase the Environmental
Partnerships Fund by $300,000. Alternatively, Council could retain funding at
the current $700,000 per year and reduce rates by 0.04% in 2026/27.
· Operational
spending – operational spending to be
$56.4m higher compared with the LTP, main reasons for increases are:
o $22.6 million in software development
costs moved from capital to operational spending
o $18.2 million increase in staff
salaries and wages, due to contract settlements, living wage changes, and
shifting some contractor and consultant roles into permanent staff positions.
o $16 million in grants, mainly for the
Air Force Museum of New Zealand ($5 million) and the Ōtautahi
Christchurch organics processing facility ($15 million). These increases are
partly reduced by lower funding for Venues Ōtautahi ($3.2 million) and
ChristchurchNZ, as we bring its urban development function in-house ($1.8
million).
o $9.4 million in additional inflation,
reflecting higher-than-expected inflation for 2025/26.
o $10.6 million reduction in insurance
premiums, achieved through direct engagement with insurance brokers.
· Capital
programme - proposed adjustments to reduce the 2026/27 capital
programme to $598.9 million, which is $86.7 million lower than the amount
forecast in the LTP.
· Potential disposal of Council-owned properties - proposal to sell a small number of
properties that Council has found no longer serve their original purpose. Any
properties confirmed as surplus would be sold through transparent, market‑value
processes in line with the Council policy. Several properties are in the
Board’s area – refer to list – Potential Disposal of Council
Owned-Properties.
· Restoring our iconic buildings - views on investing in the restoration of four
iconic buildings:
I. Christ Church Cathedral
II. Canterbury
Museum,
III. Canterbury
Provincial Chambers and
IV. Te
Matatiki Toi Ora The Arts Centre.
Council
estimates that the total funding gap between the estimated restoration costs
and the funds committed from all sources is around $290 million.
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