Cathedral levy gone as Christchurch ratepayers face 6.6% rates increase

Thursday, 26 June 2025

Christchurch ratepayers face a 6.6% rates increase from next week — but will no longer have to pay a levy to rebuild the cathedral — as the city council approved a $1.6 billion budget for the coming year.

Following months of planning and briefings, weeks of community consultation, and a decision-making meeting that lasted a day and a half, councillors approved the council’s budget for 2025/26 on Thursday.

It has decided to stop charging ratepayers $6.52 annually for the Christ Church Cathedral levy — three years before it was due to end. Ratepayers will give $5 million to help the Air Force Museum of New Zealand at Wigram build an extension, and $200,000 will be spent on a study to see if there is a case to reinstate the central city shuttle.

The average rates increase for all ratepayers will be 6.6%, lower than the 7.58% proposed in the draft plan.

This translates to a 6.49% increase for the average house ($828,000) — $4.96 a week. or $257 a year.

The $683m One New Zealand Stadium at Te Kaha, which will open in April, is contributing to 1.75% of that increase, meaning without that, rates would be around 4.85%.

The council had been expected to approve the annual plan on Tuesday, but almost 60 last-minute changes to the budget proposed by 11 councillors pushed the meeting into a second day.

On Tuesday, Cr Sam MacDonald tried to prevent councillors from considering or voting on any changes to the annual plan that increased rates even further, but the bid failed to gain enough support, losing by seven votes to 10.

MacDonald did, however, end up voting for many amendments on Thursday, which added to the rates.

Most of the changes proposed had no rating impact, but the 17 that did added a total of 0.04% to the rates increase.

Some of the last-minute amendments that were approved included introducing a discounted rate for teritary students at the council’s pool facilities from July 2026, building a raised platform outside Harewood School, and bringing forward funding for the continuation of a bus lane on Lincoln Rd between Curletts and Wrights roads.

The council will also spend $5m on improving roads in Bromley over the next two years, and will increase the number of chlorine-free public water taps in the city.

Staff said a surge in subdivisions being processed meant the rating base had increased, resulting in a $1.5m reduction, or 0.21%, in the rates increase.

The council will spend about $648m on capital projects in the next 12 months, which is about $88.2m lower than what was proposed, mostly due to moving $71.5m to later years, based on what the council believed it could deliver.

It will spend about $871m on day-to-day operations.