What is the city council spending on?​

Otago Daily Times

2 days ago

Construction of One New Zealand Stadium at Te Kaha accounts for $92m of this year's Annual Plan budget. PHOTO:CCC
About $1.6 billion will be spent on Christchurch City Council's Annual Plan this financial year.examines where it is going.
Significant amendments to the draft Annual Plan were made by city councillors, with funding going to unexpected projects.
The Air Force Museum of New Zealand will now receive $5 million towards its $16m extension project. The new wing will house the museum's C-130H Hercules and P-3K2 Orion.
Another amendment is a pause in the Christ Church Cathedral reinstatement levy after the project was put on hold. The cathedral levy cost ratepayers $6.52 annually and was planned to last at least another three years.
Other notable spending greenlighted through amendments include more chlorine-free water taps like those at Burnside Park and Rawhiti Domain.
The taps will be installed with $900,000 allocated to the programme over three years from July next year. This will be enough to install at least two stations a year and potentially more if Government water regulations are relaxed as has been speculated.
University students are winners of the budget with discounted prices for city council pools. A student ID will reduce prices to $4.90 from $6.70, in line with gold and community services cards. The reduced prices will start in July next year.
Altogether, amendments added 0.04% to the rates increase.
Rates have gone up by 6.6% on average to help pay for the $1.6 billion budgeted to cover the cost of running Christchurch.
There will be $871 million in operational spending on day-to-day services and $648m in capital spending, including $95.5m for One New Zealand Stadium.
Debt repayment will cost $81m.
The city council will borrow about $366m to meet a budget shortfall with the goal of returning to surplus in 2028.
Total debt will reach $2.8b after this year's Annual Plan.
Mayor Phil Mauger says the Annual Plan strikes a 'difficult but necessary' balance between maintaining spending on services and keeping rates manageable.
'Across New Zealand, both organisations and households are grappling with challenging economic conditions and rising living costs, and our council is not immune to these pressures.'
The rates increase will be 6.6% overall, including commercial properties, and 6.49% for the average household.
This compares to a 9.52% average increase in the 2024/25 Annual Plan approved last year.
Mauger points to 1.75% of this budget's rates increase going towards the One New Zealand Stadium build.
'If you take that out of the equation, the overall increase is below 5%,' he said.
'We will build on the foundation set this year – ensuring that Christchurch is well-positioned to face whatever lies ahead.'
Several notable projects already had funding allocated in the draft Annual Plan ahead of the final budget.
They include $20.3m for the continued Ōmōkihi South Library and Service Centre rebuild, expected to open end of next year.
Flood protection and control infrastructure get $20m, which will help improve service and meet increasing demand.
There is $19.6m for the activated sludge reactor at the Bromley waste plant, which aims to reduce greenhouse emissions and odour.
Ongoing construction of the Ōtākaro-Avon River Corridor City to Sea shared pathway will cost $9.7m. It is due to open end of next year.
The Akaroa Wharf will get $6.8m for its continuing upgrade, expected to finish in 2027.
City council-funded community housing will receive $5.2m for any needed improvements.
The Eastman Sutherland and Hoon Hay Wetlands will get $4.5m to improve stormwater capacity and reduce flooding.
There is $3.5m for the Botanic Garden's Cunningham House, or main greenhouse, for an ongoing upgrade expected to finish next year.
City council-owned companies and private organisations continue to receive significant grants from the city council.
The funding includes Canterbury Museum getting $9m to continue its redevelopment and $4m going to city council-owned Venues Ōtautahi for any upgrades to major venues such as the Town Hall or Wolfbrook Arena.
The city council-owned economic development agency ChristchurchNZ will receive $966,000.
There is a $618,000 fund which major events hosts can request grants from.
Some other well-known organisations receiving grants are Orana Wildlife Park ($260,000), The Arts Centre ($250,000) and the Watch This Space Street Art Programme ($250,000).
City council income
Rates cover about half of city council income with borrowing about a quarter. The rest mostly comes from fees to access city council services, and facilities and dividends from investments, particularly the city council's owned strategic assets such as Lyttelton Port Company and Christchurch International Airport.
Rates: 52% $837m
Borrowing: 25% $366m
Fees, charges and operational subsidies: 12% $197m
Dividends and interest from investments (including council-owned companies): 6% 102m
Capital contributions, grants and subsidies: 3% $51m
Development contributions: 2% $24m
City council spending