Rates provide half (51%) of the Council’s funding for the services and activities that keep Christchurch running.
In last year’s LTP we proposed an average rates increase of 8.48% for the 2025/26 financial year, which would have collected $844.3 million. This year, we are proposing a rates increase of 7.58% for 2025/26, which will collect $838.5 million (excluding GST) to help pay for essential services as well as capital renewal and replacement projects, events and festivals. This income is topped up with funding from fees and charges, government subsidies, interest, dividends from subsidiaries and development contributions. We borrow to fund a significant portion of the capital programme.
We have been able to reduce the rates increase from 8.48% to 7.58% by using some of our forecasted surplus from 2024/25 to reduce next years’ rates. This is partly offset by an increase in spending across our capital and operational programmes, as highlighted in this document.
Using one-off savings to reduce the rates increase means future rates increases would be more than were forecast in the LTP if no further savings or alternative sources of revenue are found, as shown in the following table:
| Long Term Plan | Draft Annual Plan | |
|---|---|---|
| Proposed for 2025/26 | 8.48% | 7.58% |
| Forecast for 2026/27 | 5.80% | 10.38% |
| Forecast for 2027/28 | 5.88% | 8.62% |
Changes to rates
Rates are a tax on property, and most are collected in proportion to the property’s value, meaning properties with higher values pay more.
Rates increases for an individual property will depend on:
- The property’s classification (whether it is a standard, business or remote rural property).
- Which rates the property pays (for example, a property only pays the sewer rate if it’s within the sewer serviced area).
- The capital value of the property.
- How many ‘separately used or inhabited parts’ (SUIPs) the property has. Fixed rates are paid based on the number of SUIPs. For example, a property with two flats will pay two fixed charges. Most residential properties have only one SUIP.
For the typical household, our proposed average rates increase for 2025/26 is 7.40%.
The average proposed rates increase across all ratepayers – households, and business and rural properties – is 7.58%.
Residential property rates
A typical house would see a rates increase of 7.40%.
Typical residential properties with different capital values will experience slightly different rates increases.
The following table shows average rates increases for residential properties based on their 2022 valuation.
Business property rates
A typical business property would see a rates increase of 8.21%
Typical business properties with different capital values will experience slightly different rates increases. Based on their 2022 valuation, those average increases are:
Remote rural property rates
A typical farm property would see a rates increase of 8.43%
Typical farms with different capital values will experience slightly different rates increases. Based on their 2022 valuation, those average increases are:
Changes to other revenue
Excluding rates, which are the Council’s biggest source of revenue, the total of other revenue for 2025/26 is $384.8 million, which is $30.1 million lower than what was projected in the LTP. This is mostly due to a reduction in expected capital revenues of $43.2 million from New Zealand Transport Authority Waka Kotahi. However, this is partially offset by:
- Revenue from Burwood Landfill of $6.8 million due to an extension of the consent which allows us to continue to use of the site.
- Increased subvention receipts of $6 million.
We are also using the remaining $55 million from the Christchurch Wastewater Treatment Plant insurance settlement to reduce borrowing in the interim, which reduces our interest costs.
Changes to fees and charges
We are proposing to change some Council fees and charges in the Draft Annual Plan. We are conscious of the financial pressure many of our residents and ratepayers are under, and we have attempted to avoid cost increases to the community that would create a barrier for them using our services. In other areas the proposed fee increase is in keeping with the increased costs the Council is facing. Fees in some areas are staying the same.
You can find more information about these proposed changes to our fees and charges from page 109 of the Draft Annual Plan 109 of the Draft Annual Plan
Changes to how we charge for trade waste
Trade waste is liquid waste that commercial and industrial operators discharge to the Council's wastewater network. Our Annual Plan sets out how much we charge for this service.
This year, we have reviewed the charging to help address a number of issues. Currently, we offer reduced rates for operators disposing of trade waste during off-peak hours (4pm–8am) to ease pressure on our wastewater system during peak periods. We are the only council in New Zealand with this approach. However, we are proposing some changes to how we charge to address the following concerns:
- The off-peak hours for commercial and industrial operators overlap with peak residential hours, which leads to a concentration of disposal at the same time. This puts added stress on our wastewater system.
- Storing trade waste for later disposal allows hydrogen sulphide levels to build up, which can degrade pipes, access chambers, and pump stations, which is costly infrastructure to replace. Hydrogen sulphide is also highly toxic, and elevated levels can pose health risks.
- Retention tanks used for storing trade waste require significant space, maintenance, and additional costs for chemical treatments and odour control.
To address these issues, we are proposing a new charge, from three new charging options, all of which are designed to be revenue-neutral and require less administrative effort. The distribution of costs associated with each option vary. All other councils in New Zealand use one of these options. Most have gone with Fixed, and Auckland and Wellington use Tiered.
Option 1: Three-tiered volume rate (the Council’s preferred option)
There would be a greater impact on small-sized companies that discharge 100% at off-peak rate but don’t reach the >20m3 tier. Ten companies would have their volume fee increase by $50 to $850 per quarter, or more than 90%. Medium-sized companies would benefit from the second tier.
With this structure, there would be around 60 consents with no billing change and around 70 consents with a net positive change in billing per quarter.
Option 2: Two-tiered volume rate
Option 3: Fixed volume rate
One set fee for all discharged volume from a site. This option would be the simplest to implement, interpret and calculate billing. It would result in a 33% volume bill increase for companies that discharge only during “off-peak” times – currently, around 20 sites do this. The greatest impact would be seen by seen by our largest dischargers. The charges would come to $10,000 to $40,000 per quarter, or a 33% increase.
