Rates could jump 24 per cent
The average Christchurch ratepayer could be an extra $250 a year out of pocket if steep regional council rate hikes, thought to be among the highest in the country, are brought in.
Environment Canterbury (ECan) is proposing increasing rates by either 24.5 per cent or 18 per cent, to cover the fallout from the Government’s new freshwater regulations.
This would be on top of district council rate rises, such as Christchurch City Council’s proposed 5 per cent increase, leaving many concerned about the combined toll of the cost to ratepayers.
Several city councillors derided the plan as ‘‘completely unsustainable’’ – James Gough, Sam MacDonald, Catherine Chu, Aaron Keown, Phil Mauger and James Daniels all criticised ECan’s 10-year budget.
‘‘[It] will further hit the back pockets of hardworking ratepayers, at a time when the public sector should be looking to drive efficiency,’’ Gough said.
MacDonald said ECan’s elected councillors would need to go back to the drawing board ‘‘urgently’’, and insisted staff work with them to reduce this increase significantly.
‘‘It sets a terrible precedent for future years.’’
The proposal has even been lambasted from within ECan – councillor Megan Hands was concerned it would be one of the steepest increases in the country.
‘‘Frankly, I think our proposed rise in expenditure, which has got us to the 24.5 per cent figure, is outrageous,’’ she said on Facebook.
Under its draft long-term plan released on Monday night, ECan’s first option covers work costing $246.54 million, about $46m more than this year.
Ratepayers would fund $143m of that, an average increase of $136 a property.
ECan said it includes all statutorily required work and provisions to accelerate key projects, including public transport and the Government’s essential freshwater package.
Option two represents work costing $240.19m, about $40m more than this year.
Of that, $135m would be ratefunded, with the rest made up of government grants and council userpays charges – an average increase of
‘‘It sets a terrible precedent for future years.’’ Sam MacDonald, city councillor
$110 per property.
The second option would deliver the same work, but some projects would be delayed, scaled back or not proposed for funding.
ECan chair Jenny Hughey said the council had to meet community demands and a rising tide of government expectations, including delivering programmes like the new freshwater package.
The Government’s national policy statement on freshwater management, designed to improve freshwater quality by controlling certain farm practices, came into force in September.
It includes new rules to keep stock further away from waterways, introducing a synthetic nitrogen fertiliser cap for farmers, and new bottomline standards for nitrogen and E.coli in waterways.
Under both options, ECan is proposing spending about $35m on water and land programmes, including about $6m on developing a freshwater regulatory framework by 2024.
Details of how the money will be used to meet the new standards in ECan’s 319-page plan are thin, but almost all the water and land portfolio projects will be covered by general rates.
Hughey said people’s ability to pay has been at the forefront of council discussions.
‘‘We know this is not an insignificant amount of money, but there is also a price to pay if we don’t continue to take action,’’ she said.
‘‘These are big decisions and council is looking for feedback from the community.’’
In the 2020/21 financial year, ECan increased rates by 4 per cent.
The initial draft annual plan had forecast a rate increase of 9.8 per cent, but councillors voted to cut it to recognise the impact of Covid-19 on the region.
Keown said the planned rates hike would not help Christchurch’s recovery post Covid-19.
‘‘If councils and Government impose these sizeable increases it will drive our economy to hyperinflation.’’
Hands said that although some proposed expenditure reflected Government policies, some was for new projects.
‘‘Our ratepayers are grappling with economic recovery, upwards pressure on house prices, and ever-increasing compliance costs.
‘‘Once the decision has been made to go to consultation I strongly recommend residents and ratepayers throughout Canterbury ensure our council gets a clear message around what expenditure is necessary.’’
ECan councillors will meet tomorrow to discuss the long-term plan, with public consultation from March 8 to April 11.