Christchurch City Council staff now have the direction they need to finalise the city’s Annual Plan for 2026/27.

The Annual Plan sets out the council’s budget for the coming financial year, including the services it will deliver and how they will be funded.

The Draft Annual Plan went out for public feedback in February. Mayor Phil Mauger and councillors have now considered that feedback and given staff guidance on the budget they want prepared.

The proposed plan is based on a $1.6b budget and an overall average rates increase of 7.83 percent.

Finance and Performance Committee chair Sam MacDonald said the latest rates figure was lower than the 7.96 percent proposed earlier this year.

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

“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.”

MacDonald said the mayor and councillors would also continue to guide staff as work begins on the Long Term Plan 2027–2037.

That plan will target rates increases of no more than 6 percent, 5 percent and 4 percent over the next three years, in line with the Government’s proposed rates cap.

MacDonald said public feedback had also given elected members enough direction to make decisions on restoring some of Christchurch’s earthquake-damaged heritage buildings.

“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,” he said.

“We have a forecast cash operating surplus of $44.4m 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 $300m problem for $30m.

“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.”

Under the proposal, Canterbury Museum and Christ Church Cathedral would each receive $15m, provided the Government also contributes $15m to each project and other conditions are met.

A further $1.8m from the surplus would be used to complete collection of the Christ Church Cathedral targeted rate.

The council would also provide a $28.6m loan to Canterbury Museum, to be repaid through an international visitor levy.

Christchurch School of Music would receive $4m, provided it can match the funding and show a clear pathway to completing its project.

The remaining surplus would go toward repaying council debt.

If the conditions for funding the heritage projects are not met, the money allocated to them would also be used to repay debt.

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

Final rates bills for the next financial year will also be affected 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.