‘Stunned disbelief and anger’ over proposed 25.5% rates rise

Friday, 15 December 2023

Councillors have been getting negative feedback over a proposed 25.%% rates rise for next year while other ratepayers are more accepting, councillors say.

“Stunned disbelief and anger.”

That’s what city councillor Geoff Taylor’s hearing from ratepayers over plans to raise rates by 25.5% in Hamilton next year, he said on Thursday.

The steep rise - the highest proposed big city hike so far - is aimed at balancing revenue and spending under a government guideline in year one of the 2024-34 long term plan, rather than using expensive debt to fund operating deficits for longer.

It’s a fortnight since the proposed rise was signed off for public consultation by a solid majority of councillors, including Taylor.

Mayor Paula Southgate has said since that she’s been hearing from “distressed and anxious” ratepayers worried about the potential extra costs, while some view the proposals more pragmatically given the council’s tight financial circumstances.

She said this week 25.5% would likely “hurt a lot of people”.

At Thursday’s last council meeting of 2023, the Waikato Times spoke to seven councillors to hear what ratepayers have been saying.

Of those reacting negatively to the suggested rise, Taylor said some indicated they’ll submit formally on it “which is a good thing”.

Finance and monitoring committee chairperson Maxine van Ooosten says she’s received some pretty “raw feedback” over the proposed 25.5% rise, with some ratepayers wondering how they’ll be able to afford it.

“I think we need to redefine the way we do this as a council. There’s a whole lot that can be chopped out of the proposed budget.”

Finance and monitoring committee chairperson Maxine van Oosten said she’d had some “raw feedback” but added “it’s a bit mixed”.

Some said the council was being “heroic” in terms of trying to balance the books and help future councils pay their way better.

“Others are pretty concerned about how they can afford it.”

Economic development committee chairperson Ewan Wilson, who proposed the 25.5%, said: “Some are shocked at the figure but quickly understand the magnitude of what’s led up to this.”

The city had been borrowing too much for too long to plug operating expenditure deficits, he said.

Councillor Andrew Bydder says he’s heard “anger and frustration” from ratepayers overthe proposed 25.5% rise.

“Some accept we don’t have a rate problem, we have a spending problem.”

People were asking what potential there was for more spending cuts and questioning the scale of council activities.

Councillor Andrew Bydder said ratepayers were expressing anger and frustration, and wanted a change to the way the city did things.

“A lot of people are hurting.”

Bydder, a landlord, noted renters as well as property owners would be affected as rate rises were passed on to them.

“We need to make cuts on the roading projects and that will help get rates down.”

Councillors Melaina Huaki and Emma Pike said they were seeing commentary on social media, while Pike had got feedback at events she attended.

“It’s mixed,” Pike said. Some understood the need to address the council’s financial problems “and others are a bit taken aback”.

Huaki believed many ratepayers would be concerned about stiff hikes.

“It’s just another impact on every other impact…it’ll be worrying them.”

The city council’s Garden Place HQ - councillors spoken to say they’re getting some negative feedback over a proposed 25.5% rates rise for next year, a move that would add more than $720 to a median residential home’s annual bill.

Councillor Sarah Thomson said she’s also been getting some initial negative comments. “I expect there’ll be a lot of feedback over the coming months.”

At the late November long term plan meeting that came up with 25.5%, Southgate had increased her suggested rise from 16.3% to 18.6% for the first year, followed by two years of 15.2%. That was aimed at balancing the books across three years, according to the council’s stricter in-house measure.

But Wilson countered with an amendment to consult the public on raising the first year increase to 25.5%, with rises of 12.9% and 8.7% in the next two years. That would allow quicker balancing of the books to a government-mandated measure in year one.

The median residential Hamilton property has a capital value of $830,000 and pays rates of $2838 this year.

A rise of 16.3% would add $462 to that, 18.6% would add $528 and 25.5% would add $723.

Ratepayers can expect the fine detail of the different balancing the books measures - and the merits of the best approach given impacts on ratepayers - to feature strongly in next year’s discussions about the best way ahead.