Feedback sought on draft budget
Residents, businesses and interest groups have two weeks to give feedback on the Christchurch City Council’s draft budget for the coming year, which was adopted by Council this afternoon.
The Council was determined that residents should have the opportunity to give feedback on the proposals outline in this year’s Draft Annual Plan, despite the fact that the normal process was interrupted by the earthquake and the timeframe reduced. The earthquake dramatically affected the normal Annual Plan process causing a complete revision of budgets, capital projects scheduling and levels of service. Because of the earthquake the Council is facing budget deficits of $73.8 million over the next three years and is proposing an additional rate of 1.76 per cent to pay for this, over and above the 5.32 per cent rate increase indicated before 22 February.
In the past the Council has always run a five-week public submission period, public hearings, and a staff feedback period before a final plan is adopted before 1 July. This year due to rework of the initial draft plan and time constraints, the draft plan for feedback was adopted today, with written feedback sought from the public over the next two weeks, deputations from community boards heard on 29 June, then the final plan adopted by the Council on 30 June.
Christchurch Mayor Bob Parker says that most of the $2.5 billion of damage to city infrastructure caused by the quake will be covered by insurance and Government subsidies. However, the city will still be faced with significant costs and this will affect our budget and rates. The exact cost is still to be determined as negotiations with insurers and Government continue.
“These are unbudgeted costs and they will impact on our activities, our major projects and our finances. In addition, we are faced with a significant loss in revenue as a direct result of the earthquake including: loss of dividends from Council-owned companies of $14 million, loss of parking revenue of $6.9 million and loss of income from sports facilities.
“All of this adds up to a forecast deficit of $27.2 million for the current financial year (and a total of $73.8 million over the next three years). It is unusual for the Council to face a deficit – over the past four years we have recorded surpluses of $23.7 million – but we are in extraordinary times and this is the most prudent way for the City to cover the costs of the earthquake.”
The Council is proposing that the deficit be paid-off over five years through an additional 1.76% on rates for five years, over and above the 5.32 per cent rates increase forecast for 2011/12 prior to the February earthquake.
“It is worth noting that the budget is likely to change over the coming year as the Council progresses negotiations with insurers and Central Government, and as recovery plans for the city – such as the Central City Plan and Infrastructure Rebuild Plan – are developed,” Mr Parker says.
How you can give feedback
The details of the plan and a summary of its contents are available on the Council’s website www.ccc.govt.nz/annualplan and from service centres and libraries that are currently open.
Feedback can be made until 10am Monday 27 February in the following ways:
Online using the form provided at www.ccc.govt.nz/haveyoursay
Email your feedback to 11-12AnnualPlan@ccc.govt.nz
Post your comments to: Freepost 178, Christchurch City Council, Draft Annual Plan 2011/12, PO Box 237, Christchurch 8140
* Please make sure your name and full address is included in your feedback. No late feedback will be accepted.