Christchurch City Council staff now have all the guidance they need to begin finalising the city’s Annual Plan 2026/27.

The Annual Plan is effectively the city’s budget for the coming financial year, outlining the services the Council will deliver and how it will pay for them. The Council took its Draft Annual Plan out for public feedback in February.

The Mayor and Councillors have now weighed up all the public feedback and given direction on the sort of budget they want staff to build – broadly, a $1.6 billion budget with an overall average rates increase of 7.83%.

Finance and Performance Committee Chair Sam MacDonald says the latest rates figure is lower than the 7.96% proposed in February.

“The lower rates figure can be attributed to new information becoming available, and broader changes in the financial landscape, like interest rate changes,” Cr MacDonald says.

“However, the figure still factors in sentiment from the public about what matters most to them, and we’re able to point staff in a direction that continues to invest in the city while keeping the community’s financial concerns in mind. We heard loud and clear that residents want the services we provide protected.”

Cr MacDonald said the Mayor and Councillors will also continue to provide guidance to staff as they develop next year’s Long Term Plan 2027–2037, which will see the Council target rates increases of no more than 6%, 5%, and 4% over the next three years, as per the Government’s proposed rates cap.

“We also have enough from the public to let us do the job we were elected to do – make the hard decisions – and set out our approach to restoring some of Christchurch’s earthquake-damaged heritage buildings,” Cr MacDonald says.

“We have a forecast cash operating surplus of $44.4 million this year, so we’re in a unique position to show leadership on some of these long-standing opportunities for the city.

“We think we’ve found a pragmatic approach that lets us tackle a $300 million problem for $30 million. There are still a couple of steps left, but this is the direction we want staff to head in as they iron out the details.”

Canterbury Museum and Christ Church Cathedral would each receive $15 million, on the condition the Government also contributes $15 million to each, among other conditions.

Another $1.8 million from the surplus would complete collection of the Christ Church Cathedral targeted rate.

The Council would also provide a loan to the Museum of $28.6 million, to be paid back by the Museum from an international visitor levy.

Christchurch School of Music would get $4 million, provided it can match the funding and provide a clear pathway to completion.

The remaining balance from the surplus would go towards repaying Council debt, and if the conditions for granting money to the iconic buildings can’t be met, that allocated money would go towards repaying debt too.

Staff have been instructed to continue with the planned 0.25% rates increase for the Climate Resilience Fund, $7.12 million for contestable community grants, and a $300,000 increase in funding for the Environmental Partnerships Fund.

The final rates bills for next year will be impacted by the 2025 general revaluation, with new property values taking effect from 1 July.

Councillors will meet again on Tuesday 23 June to consider and adopt the final Annual Plan 2026/27.