Getting the balance right
Christchurch is growing and we need to ensure that we have invested in what we have now and what we need to provide for future growth.
We expect that by 2034 there will be an additional 32,000 people living in Christchurch. We’re also expecting to see our population age, with the proportion of residents over the age of 65 years expected to increase from 16% to 20% over the next 30 years.
We’re mindful of the pressure rates increases put on our residents and businesses, and we’re aware that affordability is an issue for many in our city and Banks Peninsula. But we also need to make sure the city can support population growth and is prepared to meet the future needs of our residents.
In developing this Draft LTP, the Council has had to make compromises to ensure our borrowing remains reasonable and there is enough ‘headroom’ to repay our debt, as well as respond to future events and pressures.
Views of our residents
Our annual Residents Survey provides us with information about how satisfied our residents are with a range of the services that we provide.
The results of the 2024 residents survey show that resident dissatisfaction is highest for services that require the most capital to address – core infrastructure (roads, footpaths, water supply, etc.). This poses challenges at a time when we also need to be considering the rising cost of living and the impacts of rates increases on households in the city.
As in previous years, the services with the highest levels of satisfaction among residents were services where residents have direct contact with Council staff who they see as approachable, knowledgeable and helpful. These included customer services, libraries, recreation and sport centres, waste management, the Botanic Gardens, Hagley Park and Mona Vale, cemetery administration and partnership approval services, resource consenting and education programmes.
We’ve also heard that our residents are not satisfied with the ongoing rates increases and often don’t agree that the Council is making wise spending decisions.
Read more about our residents’ survey results at ccc.govt.nz/residents-survey
Our challenge is to balance the needs and perceptions of all our residents, as well as thinking about the city’s future needs. However, we cannot afford to do everything.
Economic challenges
Across the country, organisations and individuals are grappling with challenging economic conditions and the rising cost of living. The Council is no different – we’re facing cost increases outside our control, including changes to interest rates and inflation, increased project capital costs, the rising cost of insurance and electricity, higher costs to maintain our assets and reductions in external funding.
The Council has addressed some of the pressure through cost savings and we will continue to look for ways to reduce costs while still providing our core services and maintaining critical infrastructure.
Climate resilience
Across all our work we try to manage the challenges of climate change – and balance this with what we can realistically deliver, and what ratepayers can afford.
We’re responding to climate change by working towards targets for reducing emissions, and by helping our communities prepare for and adapt to our changing climate.
This draft LTP reconfirms what we committed to in our last LTP 2021-2031, and sets the scene for further work in the next LTP, which will cover 2027–2037.
Looking after our assets
We’re planning on spending $6.5 billion on our capital projects over the next 10 years.
Of this, $3.5 billion is planned to be spent on renewing and replacing existing assets. This will help address the range of demands that our aging infrastructure creates while also delivering the infrastructure required to support our growing population.
A recent review showed that the data used for our asset management varies in quality. Those areas where better data is needed are now the subject of an asset management improvement project and will be addressed before the next LTP.
Financial impact of Te Kaha
Christchurch will soon be home to a state-of-the-art multi-use arena.
The $683 million project will have a seating capacity of 30,000 for sports events and will hold 36,000 spectators for large music events.
The Crown provided $220 million towards the project from the Christchurch Regeneration Acceleration Fund. For the remainder of the construction, the Council has allocated $286 million in this LTP.
As identified in last year’s Annual Plan, completing the construction of Te Kaha will have a financial impact in the first two years of this LTP, with the rates impact in the first year sitting at 2.17%, 1.78% in the second year and 0.69% in the third year.
Changes in Government policy and priorities
This Draft LTP has been developed against the background of major changes in government policy in three key areas:
- water services
- resource management
- transport funding
The uncertainty surrounding these changes has created challenges in planning and budgeting.
Water services
The Government passed the Water Services Acts Repeal Bill in February 2024, returning the responsibility for water services delivery to local authorities. The Minister of Local Government has announced that two bills will be introduced in mid-2024 and mid-2025, emphasising local decision-making and compliance with water quality standards.
This will give councils the option to separate out their water services into council-controlled organisations (CCOs) and provide new financial tools. They will also set up regulatory backstop powers, to be used if councils were failing to meet the requirements to deliver financially sustainable and safe water services.
While there is uncertainty on how this will unfold, we are continuing to focus on ensuring Christchurch’s water is safe and secure. We are also continuing to invest in the infrastructure required for the collection and disposal of wastewater and stormwater.
Resource management reform
Following the repeal of the Natural and Built Environment Act and Spatial Planning Act in December 2023, new Resource Management Act reform is anticipated. The Fast-track Approvals Bill passed its first reading and was referred to the Environment Select Committee on 7 March 2024. This bill proposes a one-stop-shop fast-track consenting process for regional and national infrastructure projects of significance.
Until this wider reform occurs, the Resource Management Act and national direction under it will continue to shape the Council’s planning programme, including plan changes to enable housing.
Transport
The new Government Policy Statement (GPS) for Land Transport was launched for consultation on 4 March 2024, with consultation closing on 2 April and the final GPS due in July. This sets out Government priorities for land transport investment over the next 10 years and details how funding from the National Land Transport Fund is to be spent. The Minister has signalled that priorities will focus on “achieving four key strategic priorities: economic growth and productivity, increased maintenance and resilience, safety and value for money. As part of GPS 2024 we are embarking on a significant programme of new and improved land transport infrastructure”.
We’ve developed our current transport programme for Christchurch and Banks Peninsula based on best practice and the guidance that we’ve received to date, particularly from New Zealand Transport Agency Waka Kotahi.
The final shape of the new Government’s priorities will not be confirmed until later in the year. If the new Government’s funding priorities impact on the proposed transport works programme, the Council will consider options and, where appropriate, consult the community.
Given this level of uncertainty, there is a high risk to the Council’s projected revenue for transport projects arising from uncertainties in how government policy and priorities will translate into funding decisions.
In this context, we propose to spend $1.6 billion over 10 years across the entire transport network.
Find out more about our approach to water and transport.
