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Alden Williams / Things
Christchurch City Council Executive Director Dawn Baxendale says it is unlikely that a zero rate increase can be achieved.
A 0 percent rate hike is simply “unrealistic” in light of the Covid-19 crisis, the executive director of the Christchurch City Council warned.
Some council members have been lobbying not to raise rates this year to ease the burden on taxpayers struggling to pay their bills.
But Dawn Baxendale told councilors Thursday that they needed to be “realistic” about the issue because the world was fundamentally different from what it was eight weeks ago.
“So what may have been seen as a proposition, and I’ll say it from a simple mathematical perspective, none of the percent will be too unrealistic to be able to achieve it.
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He said his staff was still looking at the option of not increasing the rates, but encouraged council members to realistically analyze the situation after the impact Covid-19 was having on the council’s finances.
The council faces a deficit of $ 33.2 million this financial year, thanks to Covid-19. Most of that deficit comes from the loss of an expected $ 26.3 million dividend from commercial council companies (CCHL), including Christchurch Airport, and next year’s dividend is also under threat.
Counselors will consider various budget options in a series of workshops over the next two weeks before making a decision on May 29 on which to consult with the public.
Councilmen have previously said that everything would be seen as a way to save money, including capital and operating budgets, staff numbers, fees and charges, and service levels.
The council decided Thursday to alter its annual plan, annual budget, and work plan, to consider the financial impact of Covid-19 and to consult with the public again.
The consultation will reopen on June 12 and people will have until June 29 to present the new draft of the plan, which must be approved before July 30.
A rate increase of 4.65 percent was proposed before the Covid-19 crisis.
