27 Feb 2015

Scale of Christchurch rates rise still uncertain

2:24 pm on 27 February 2015

Major factors influencing whether the council needs to go ahead with a 28 percent rate hike are still to be determined, according to Christchurch mayor Lianne Dalziel.

Lianne Dalziel

Lianne Dalziel Photo: Christchurch City Council

Christchurch City Council's proposed rates hike, to be spread over three years, passed its first hurdle yesterday when the council voted 8-6 in favour. The proposal goes out to public consultation in two weeks.

Ms Dalziel said the proposal includes some estimates, which may become firmer during the consultation period.

One aspect still to be determined was what savings the council could make in its capital expenditure and internal cost cutting.

The council is also yet to get a final earthquake insurance settlement, she told Nine to Noon.

A third unknown element was how much the Government will contribute towards repairs to infrastructure such as roads and the water system.

The consultation document the council voted on yesterday also includes a proposal to sell an increased stake in the council's assets, up from the $550 million agreed late last year to $750 million.