Whakarāpopoto huamoni 2020/21

This section is the summary of our budget for the 2020/21 Annual Plan. It has information our Operating Expenditure, Capital Expenditure and Revenue, as well as outlining our borrowing position.

You can find more details about Rates and also changes to Fees and User Charges on separate pages.

The 2020-21 Annual Plan covers the third year of our Long-term Plan (LTP) which was set in 2018. The LTP is due to be updated next year.

Before the Covid-19 pandemic there was extra pressure on the Council's finances including:

  • recovering from the impact of earthquakes on Council property for example - the Central Library.
  • improving aging infrastructure e.g. waste water systems; and
  • continuing to invest in the development of the City.

The proposed Annual Plan budget outlined a balance between rates affordability, continuing existing services and investing in the city.

Since the consultation started several cost pressures have arisen that have been incorporated into the final Annual Plan. To ensure these did not impact on the level of rates funding needed, the Council has agreed to find further cost savings, accept some additional financial risk and borrow further in 2020/21. More information on these can be found in the More Financial Details tab below.

The budget of the final Annual Plan includes the following impacts:

  • The economic shut-down substantially reduced income from fees and user charges, grants, Central Government subsidies, and other sources such as interest and dividends from investments and alongside rates, this income pays for our operating expenditure.
  • In addition - apart form marinas and landfill - we are also not increasing any fees this year as well as maintaining our levels of service to the community (e.g.roads, footpaths, and libraries to festivals, museums, sports fields, animal control) as much as we can.
  • We are forecasting an income loss of about $38m this year. We have not added this loss to rates, as that would have meant an additional 12% increase. That is not sensible at this time.
  • The lower revenue means we are proposing to increase the amount we borrow this year to cover our losses, and pay the extra borrowing off over 10 years.
  • We are forecasting debt to cover 10.7 percent ($62m) of operational expenditure (our day-to-day spend). This is up from 2.4 percent ($13.5m) in 2019/20.

The articles below have now been updated to provide more information on our final 2020-21 Annual Plan budget.

See the feedback from those who have taken part in the Annual Plan consultation by viewing our interactive dashboard of participation here

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