Deputy Mayor Pauline Cotter is nervous of a very large rate hike in the near future and says asset sales may have to be considered. Photo: RNZ / Adam Burns
The deputy mayor of Christchurch is warning residents could bear costs down the track, despite the council keeping rates increases below inflation.
The Christchurch City Council adopted its 2023/2024 annual plan on Tuesday, landing on an overall average rates increase of 6.41 percent.
A 6.33 percent rise had been proposed but the figure was adjusted after several hours of debate by elected members over the council's fiscal plan for the next 12 months.
The increases included a residential average of 6.6 percent and 5.71 percent for commercial properties.
Rural properties will receive an average 0.48 percent decrease.
Cost of living pressures was a common theme for councillors, with many eager to limit further hurt for the ratepayer.
Phil Mauger Photo: RNZ / Nate McKinnon
Christchurch Mayor Phil Mauger said the plan balanced council's delivery costs while reducing the rates burden.
"All of us, elected members and staff alike, are very aware of the importance of reducing the burden council's rates place on households given the increasing cost of living, especially for those on low and fixed incomes," he said.
"Through this whole process, we've been absolutely committed to keeping rates increases below inflation, which is 6.7 percent.
"Late last year, we were looking at an increase of 14.6 percent."
But Deputy Mayor Pauline Cotter suggested residents could face financial pain further down the track.
"Watch this space, be alert and above all... beware."
Earlier in the day, Cotter had advanced a tightening of a proposed $10 million of additional "subvention" funding to offset rates, requesting it be changed to $5m.
The amendment would have meant a rates increase of more than 7 percent.
However, the deputy mayor's proposed changes were vetoed following a four to 13 vote around the table.
Fendalton ward councillor James Gough said now was not the time.
"I definitely don't favour choosing to thrash our residents more than they already are being thrashed, by high interest rates, a cost of living crisis, and when our country is literally now in recession."
Cotter said she was worried that a very large rate hike was on the cards in the near future.
"And rather than elected members become unpopular with the public, the options of asset sales, slashing the capital programme, and reducing levels of service will be the only other levers to be considered.
"So just beware of that."
Other decisions made today included a boost to the targeted rate for excess water supply - the average daily allowance increasing from 700 litres to 900 litres for residential properties.
The uniform annual general charge remains at $153.
An extra $36m investment in the transport network has been allocated which council stated "reflects residents' views on the need for ongoing focus on roading and enabling travel choice".
As well, $2m has also been earmarked to a roving footpath maintenance crew.