Christchurch residents will again be asked to consider paying for their excess water use.
Christchurch Mayor Lianne Dalziel. Photo: RNZ/ Eden Fusitu’a
The proposal is part of the Christchurch City Council's draft 2021-2031 long-term plan, released today.
A similar plan to charge residents for excess water was scrapped last year following a public backlash, but it is now back on the table.
The city council wants to charge households that use more than 700 litres of water per day. It is well above the daily average (per year) water use of 540 litres.
Beyond that amount, they will be charged at a rate of $1.35 per thousand litres.
Christchurch Mayor Lianne Dalziel said the previous proposal made it appear that people with more expensive properties could use more water.
The previous proposal looked at property values when allocating the amount of water that could be used without excess water charges.
The new proposal is blanket for all households in the city.
Dalziel said she wanted people focusing on the issue of water conservation.
She said there was enough water for everyone, but conservation would protect the city's infrastructure.
"I'd rather us actually have a conversation about the issue, which is, we use way more water in our area than other parts of the country do, where they have responsibility for paying for the extra," she said.
Council chief executive Dawn Baxendale said 20 percent of people in the city used 50 percent of the water.
Spending and cost savings
The draft $13.1 billion 10-year budget includes provision for core capital spending of $400 million in the first year, $420m in the second year and $443m in the third year. For the remaining seven years, the spending will increase between $500m and $550m a year.
And $253m is for the council's contribution to the development of the new covered stadium.
The council also has $21.1m remaining to pay for its $151.3m contribution for the Metro Sports Facility.
Of it $5.6b over 10 years has been allocated to cover the city's operating costs.
It also wants to spend $18.3m annually for the first three years of the draft budget on road resurfacing.
Meanwhile, the council is forecasting savings of $329m over the next decade in the day to day running costs of the city.
Baxendale said this has been achieved by trimming back across "everything" in the city.
Examples of this are reducing opening hours at certain city libraries, and closing of the Riccarton Road bus lounge.
The council has also been holding job vacancies, and reducing the use of external consultants to save money.
Baxendale conceded jobs would be lost in this process but insisted the city was not taking the austerity approach.
She said the council would maintain similar levels of service.
"There will be some [job losses], but it's not the sort of thing you're expecting," Baxendale said.
"The impression we often get ... is austerity slash and burn, and it's not what we're proposing."
Baxendale said it was about navigating the balance between meeting Christchurch's needs and keeping the city in a strong financial position.
"If we try to spend more, we won't be able to deliver on our ambitions and will leave ourselves less financial headroom in the event of another event like an earthquake or pandemic."
Rates rises
The council is proposing an average residential rate increase of 5 percent for an average-valued house (detailed rates table below) for the 2021/22 financial year. The increase equates to an extra $142.25 a year or $2.74 a week.
It also wants to see an average rate increase of 5.91 percent for commercial property owners and 5.83 percent for remote rural properties that currently pay land drainage rates.
Also being proposed is the excess water use targeted rate (mentioned above), along with targeted rates to help restore heritage buildings (which will come out of the general rate) and one specifically for the Arts Centre Te Matatiki Toi Ora.
The Central City Business Association rate is being proposed to only apply to CBD businesses, instead of coming out of the general rate.
Councillors will vote on the draft long-term plan next week. The public will be able to have their say from 12 March until 18 April.
Following public feedback, the final long-term plan will be adopted in June.
How will rates be impacted?
Photo: Supplied