Residents and businesses impacted by Covid-19 will be eligible for a six-month rates remission.
At the city council's meeting on Thursday, which was held via audio call, city councillors unanimously agreed to grant businesses with a 30 per cent decline in actual or predicted revenue over the course of a month compared to the same period last year due to the virus, a six-month extension on rates payments.
Individuals who have suffered a loss of employment or have qualified for the Government's wage subsidy will also be eligible for the six-month extension.
A relief package for commercial council tenants including sports clubs, hospitality sites and childcare facilities was also agreed upon.
This involves the city council deferring chasing debt owing tenants until May 1, providing a rent holiday of three months effective from the beginning of March and suspending the lease for businesses which have ceased operation, adding the suspended term to the end of the lease.
Mayor Lianne Dalziel said this would give people "breathing space."
City councillors decided against rates postponement policy focused on longer-term postponements for the elderly as a key response to Covid-19.
ln the report discussed at Thursday's meeting, the city council's financial position amidst the Covid-19 lockdown was outlined in detail.
Excluding any rates relief and other financial factors, a four-week lockdown is estimated to cost the city council $5.7 million, causing a 1.1 per cent increase in rates this financial year.
A two-month lockdown would cost the city council $6.7 million and result in a 1.3 per cent rates increase, three months would cost the city council $6.9 million and a cause a 1.3 per cent rates rise.
The report also states the city council's investment arm Christchurch City Holdings Ltd has signalled there is a risk their previously forecasted dividend of $26.3 million to the council may need to be reduced, which could lead to further rates rises.
A worst-case scenario which caters for a three-month lockdown costing the council $6.9 million, the dividend from CCHL not being received, $2.25 million being used in rates relief would see the council lose a total of $35.15 million.
This would require a 6.75 per cent rates increase in the 2020/2021 financial year to cover the total impact and allow the council to deliver critical services.
The city council is proposing an average rates increase of 4.65 per cent across all ratepayers in this year’s Draft Annual Plan, which is currently under public consultation and will be finalised before July 1.
The 2018-2028 Long Term Plan also predicts a 50 per cent rates increase over 10 years.
