Where your rates go

How your rates will be spent 2011/2012

Council relies on rates for approximately 55 per cent of its income and will collect $287 million (GST exclusive) of rates during 2011/12.  This is $4 million higher than forecast in the 2009-19 Long Term Council Community Plan and represents an average increase in rates of 7 per cent to existing ratepayers.

In a normal year, much of Council spending goes toward providing the “business as usual” services that are needed to keep the city running smoothly. This includes services like maintaining our roads, parks, sewerage systems and water supply. Council must also allow for increased demands on infrastructure due to population growth, and the need for new roads, subdivisions, parks and open spaces.

As a result of the earthquakes in September 2010 and February 2011, Council faces significant additional earthquake response costs as well as the costs of reinstating infrastructure and other assets and maintenance of the temporary emergency works.  The Council has also lost a number of revenue sources, particularly in relation to parking, and faces additional insurance, planning, and other costs.  As a result of this the Council expects to make a $30 million operating deficit in 2011/12. 

It plans to fund this deficit through borrowing, and to repay the borrowing over a five year period by adding an additional 1.76 percent increase to rates in 2011/12 and the following four rating years.  For the average ratepayer this equates to approximately $27 each year and is included within the 7 per cent average increase noted abov