Councillors mull over rates increase

Chris Lynch
Chris Lynch
May 10, 2020 |

Christchurch City Councillors will make one of the biggest decisions of their political careers – how to help ratepayers during the Covid-19 global pandemic, while not cutting essential services. The pandemic has forced thousands of residents out of work and onto benefits. But that hasn’t stopped the big spending attitudes of some councillors. Newstalk ZB host Chris Lynch asked councillors three questions:

1) Do you support retaining the current proposed 4.75 percent rates increase?

2) Do you support a zero rates increase for this year’s annual plan?

3) What ‘shovel ready’ projects should be prioritised?


Councillor Aaron Keown is not supporting the proposed 4.75 percent rates increase and wants a freeze on rates increases saying “it’s not about cuts, it’s about being a lot more clever with our spending.”

We have put in for $73 million for 2 cycleways. I believe the people of Christchurch would much prefer that $73m went on a hospital car park.:

— Christchurch City Councillor Aaron Keown

He says councillors haven’t had feedback on where savings can be made. “It’s all under the control of the staff. Mr Keown says a hospital car park should be prioritised. “We have put in for $73 million for 2 cycleways. I believe the people of Christchurch would much prefer that $73m went on a hospital car park.


Councillor Sara Templeton

Councillor Sara Templeton says a zero percent rates increase is unrealistic.

“I cannot support a specific number currently as I do not know the detail of what that would look like for our communities and our economy.”

“I support an evidence based approach to our annual plan and the recovery from the current crisis. Projects that build future resilience and bring government funding to the city should be prioritised.”

Councillor Mike Davidson says it’s important to show residents what 0% looks like “but I believe that with the loss in dividends and other revenue streams, having a 0% rates increase will hurt the city and its citizens more than it would help it.”

He says for households and businesses that are struggling because of covid, it’s not the rates increase that is the issue, it’s the whole rates bill.

“Instead of spreading relief thinly across everyone no matter what their circumstances are, we should target those who need council support.”

Mr Davidson says councillors need to set a rate that acknowledges the current circumstances, but also lets the city move forward. He would like to see any rates increase “less than 5 percent.”

Councillor Yani Johanson doesn’t support the rates increase. He says “we need to get all the information and consult the community. It is too early to say as this has had a huge impact on council finances.”

“It is essential that we look at what we can do to reduce costs in the short term as the impact is so significant.”

Councillor Anne Galloway didn’t want to comment on rates increase and said she was “expecting direction from central government on what should be prioritised.

She’s hoping the Government will step in to help employment opportunities as quickly as possible.

Deputy Mayor Andrew Turner supports a rates increase “which is as low as possible” while maintaining levels of service and delivery of capital projects to meet residents expectations.

“I hope to achieve a rates increase which is lower than the 4.75% detailed in the draft annual plan.”

“I realise that many individuals, families and businesses have been affected financially by the Covid-19 situation.

I believe we need to look seriously at all ways that council could provide rates relief to support those in our community who are in need at this unprecedented time.”

Mr Turner says he wants to prioritise capital projects where there is the opportunity to take advantage of co-funding from government, and prioritise capital investment which reduces operating expenses. He gave no examples.

Looks crazy that some of the wealthiest companies are getting public welfare when they could much more easily afford to look after themselves than some of the more smaller and local businesses

— Christchurch City Councillor Yani Johanson

Mr Johanson says “we need to look at reducing costs, but also need to get the full picture of the financial impact on the council and then consult our community.”

He says he’s in favour of targeting help to those who need it.

“This is becoming apparent after looking at the wage scheme it looks crazy that some of the wealthiest companies are getting public welfare when they could much more easily afford to look after themselves than some of the more smaller and local businesses who are struggling and probably need much greater help.”

Yani Johanson has been a big advocate for spending council funds on getting infrastructure first.

“Council’s priority should be “basic infrastructure- remember we still have a huge backlog of earthquake repairs to fix. We must get on top of the basic services in regards to renewals and repairs of our basic infrastructure.”

Councillor Sam MacDonald who’s been a vocal critic of council spending, says he doesn’t agree with the 4.65 percent increase of rates “and didn’t agree at the time it was voted on.”

”You will recall I was one of six re: zero rates, I still believe in that approach, without predetermining my decisions on the annual plan that is.”

Mr MacDonald says shovel ready projects should ideally be core critical infrastructure projects, but if the government is going to fund anything 100% I think we should take it to get it off our capital funded programme.”

Councillor James Daniels is one of six councillors pushing for a zero rates increases.

He says he didn’t support the increase in the Draft Annual Plan and is on record seeking a zero rate increase “but that was before COVID-19 hit us harder than an earthquake. I await the evidence and advice before confirming my stance.” Priorities? Mr Daniels says the ball is in Central Government’s hands.


Councillor James Gough

Councillor James Gough says no to the proposed rates increase.

“I did not support it in draft form prior to COVID19 and I most certainly do not support it now.”

Mr Gough supports a zero rates increase for this year’s annual plan.

“Everyone needs to cut their cloth accordingly and the council is no exception.”

His list of ‘shovel ready’ projects include multi use arena, hospital car park, Harewood/Breens Road lights which he says are primarily projects “in dire need to progress for the betterment of the city, especially those that will lead to operational efficiencies and/or promote economic benefit.”

He says “definitely NOT pet-projects that are being proposed for the sake of it and certainly NOT projects that will lead to an increase in OPEX.”

If we spend $16 million on a cycleway in Redcliffs for about 800 metres in length and not on worn out infrastructure like water, sewer, stormwater we should be shot!

— Christchurch City Councillor Phil Mauger

Councillor Phil Mauger agrees with Mr Gough and says as far as shovel ready goes “If we get money from the government we must be prudent what we spend it on.”

“If we go and spend on $16 million cycleway in Redcliffs of about 800 metres in length and not on worn out infrastructure like water, sewer, stormwater we should be shot! The hospital car park will benefit everyone.”

Councillor Pauline Cotter says the council is faced with less revenue, and increased costs than we had in the figures on which we set the draft.

“Of course a lesser increase is desirable, but the challenge is how to get there. We are currently waiting for detailed information on what could/should/would be  sacrificed to do so, whether it be capital works, community facilities, lower levels of service for the city of Christchurch, reduced operating hours for libraries pools etc.”

“I do not support cutting essential projects , but I do support working hard to find efficiencies and subsequent reduction in expenditure.” Ms Cotter didn’t say what should be cut.

Councillor Jimmy Chen says he does not support the rates increase of 4.75 percent.

“Rates should be increased as low as possible, but not the zero rates increase.”

He’s concerned ratepayers, including the businesses and property owners, have been affected by the pandemic and their income and profits have been dropped significantly.

“Council should bear the responsibility to meet the people’s needs by providing the level of services (for example rubbish collections, three waters and community facilities) as well as delivery of the capital projects.”

“CCHL’s dividends will be reduced significantly, so the council will have to consider the reasonable rates increase to meet the people’s needs.”

“The current draft annual plan proposal with the 4.75 percent rates increase has to be a significant change to reflect the COVID-19 crisis. We are waiting for the options (zero rates increase possibly will be one of the options) provided from the staff at the moment.”

He says shovel ready projects should include three waters, transport (including roading, major cycleway routes, pedestrian safety improvements) and flood & environmental protection work.

Councillor Catherine Chu says she’s never supported a 4.75% rates increase and “I certainly won’t be supporting to retain this level of increase.”

“I’ve wanted council to work towards a 0% rates increase even prior to COVID19 and I think we need to look into this an deliver on this now more than ever given the situation.” Top priorities are the hospital car parking and multi use arena.

Christchurch Mayor Lianne Dalziel said last month we are determined to get to zero rate increase.” You think you can do it? Asked Lynch in a radio interview – “yes absolutely.” Ms Dalziel says “the organisation has been working behind the scenes in order to achieve this.”

Councillor Tim Scandrett and ‘People’s Choice’ Councillors Jake McLellan, and Melanie Coker did not respond to written questions.

Chris Lynch
Chris Lynch

Chris Lynch is a journalist, videographer and content producer, broadcasting from his independent news and production company in Christchurch, New Zealand. If you have a news tip or are interested in video content, email [email protected]

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