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CCC releases Draft Annual Plan for consultation

MEDIA RELEASE 17 March 2008

CCC releases Draft Annual Plan for public consultation

The Christchurch City Council has released its draft Annual Plan 2008/09 for a month-long public consultation process.

The Annual Plan is how the Council annually updates the Long Term Council Community Plan (LTCCP) forecast for the fiscal year commencing 1 July, using the most up-to-date financial and project information available. The LTCCP shows what the Council will be doing over the 10-year period of the LTCCP, why it is going to do these things, and what the costs will be.

Consultation on the Draft Annual Plan closes on 21 April and hearings and Council deliberations are proposed for 12 to 14 May. The Council is expected to adopt the Annual Plan/Amendments to the 2006-16 LTCCP on 25 June 2008.

The Plan proposes a total rate requirement for the year 2008/09 of $243.4 million (net of GST). This equates to a 5.1 % increase in the rates collected from the residential rating base. The proposed rate increase includes the cost of a new kerbside collection system which will be funded partly in the general rate and partly by a fixed annual charge of $82.

This is half the rate increase signalled in the LTCCP: The LTCCP had predicted a 9.14%. The kerbside collection system would have added a further 2.8%.

The 2008/09 Plan signals an 8.34% average increase for businesses (plus an $82 annual charge for the collection system where it operates), and an average 3.1% increase for rural properties (which includes the cost of the new collection system).

Some rates will increase above the average while others will be below. This depends on the capital value increase of each property compared to the average.

The commercial sector rate increase is higher than the residential because following the 2007 revaluation of the city, the increase in valuations for the commercial sector was by comparison on average much higher. Also, the business sector is apportioned a higher proportion of roading costs, which continues to be an area affected by large cost increases.

Other features in the draft Plan are changes to a variety of fees and charges and the introduction of the three-bin kerbside collection system.

For further information phone Mayor Bob Parker on 0274 434 575 or Tony Marryatt, CEO, 941 8554

Note on rates
Under the Draft Annual report proposal:
- The average rates collected from the residential rating base has increased by 5.1%. This is the closest estimate we have to the average overall increase in rates to residential ratepayers.
- The difference between the rates for an "average value house" and the average residential rates is due to:
o The varying impact of revaluations on individual properties
o Properties excluded from the average property calculation (vacant land and conversions) - residential houses include all houses and unit flats
o The impact of the targeted rate on varying properties

Notes on revaluations
The total Capital Value of Christchurch and Banks Peninsula is $75.7 billion, up from $52.3 billion before last year’s revaluation, an increase of more than 40%. Effective from 1 August 2007, the new values will be used for rating from 1 July 2008.

The new valuations were prepared by Good Earth Matters (GEM), the Council’s valuation provider, and their release was approved by the Valuer General of New Zealand.

The new valuations are being used by the Council to assess the 2008/09 rates, however rates do not increase by the capital value change. Instead, the proportion a property-owner pays of the overall rate-take might alter slightly depending on the increase in their property value compared to the city average.

Notes on Consultation

The Annual Plan will be available Monday 17 March 2008 during ordinary office hours at the following places:

1. Civic Offices, 163 Tuam Street, Christchurch (reception, ground floor)
2. All Christchurch City Council libraries
3. All Christchurch City Council service centres.

A copy of the Draft may also be viewed on the Council’s website www.ccc.govt.nz/LTCCP or may be requested by phoning (03) 941-8999 or 0800 800 169 (freephone for Banks Peninsula residents only).

Submissions on the Draft may be made in writing to the Council between Monday 17 March and Monday 21 April 2008, closing at 5pm. These may be made:
- Electronically at www.ccc.govt.nz/haveyoursay;
- By using the submission form contained in the document;
- By emailing ccc-plan@ccc.govt.nz
- In any other written form.

Submissions may be sent to: Freepost 178, Annual Plan, Christchurch City Council, PO Box 237, Christchurch 8001.

All submissions will be published on the Council’s website from Friday 2 May 2008. Hearings will be held from Monday 12 May to Wednesday 14 May 2008.

Public information meetings to discuss the Draft Annual Plan 2008/09 will be held as follows:

Date: Venue: Time:
Tuesday 1 April Our City Otautahi159 Oxford Terrace, Central City 12noon-7pm
Wednesday 2 April Akaroa Gaiety Hall 105 Rue Jolie Akaroa 12noon-3pm
Tuesday 8 April Lyttelton Recreation Centre 25 Winchester Street Lyttelton

LTCCP amendments consultation
The Council proposes to make amendments to the LTCCP 2006-16 at the same time as it adopts the Annual Plan 2008/09. The period for making submissions on the Amendments varies from the Annual Plan dates, opening on Monday 31 March and closing 5pm on Thursday 1 May 2008. The Amendments document will be available from the same locations and submissions can be made through the same channels as for the Annual Plan.


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