Hamilton City Council’s final rate rise pitch to city - 19.9%

Thursday, 22 February 2024

Public consultation is still to come on Hamilton City Council proposed rates rises (Waikato Times image).

In the wake of a potential 25.5% rates shock, Hamilton city councillors have settled on their final pitch to the public: 19.9%.

On average, Hamiltonians would have to pay about $10.90 more towards rates every week. But the rate rises would keep coming, with the city projecting rises of 15.5% for the four years following.

Councillors were not happy about the “unfortunate” decision they had to make to keep the city running during Tuesday evening’s debate on the 2024-34 Long Term Plan, and some say the final number may change after public consultation in March-April.

Mayor Paula Southgate said she’s not happy with the number, and hopes the public can help the council out by making submissions.

Earlier in the meeting they backed a move to slash staff and contractor numbers over the next decade to keep rate increases down.

The main driver that brought the figure down from the previously proposed 25.5% was the council abandoning the Government’s measure to balance its books by year one. Instead, they adopted the council’s measure to balance its books by year three, said finance director Tracy Musty.

This option was mooted in November alongside Cr Ewan Wilson’s proposal to look into the possibility of a 25.5% hike.

Deputy mayor Angela O'Leary said the real issue for the council’s books is revenue instead of cost-cutting.

The change meant council would face higher debt-to-revenue in the first year at 281% instead of 269%.

Mayor Paula Southgate hoped the public could help shine light on other rate cutting opportunities during consultation.

“I don't think [ratepayers] like this,” she told the meeting. “This hasn't made it a whole lot better, but it's made it a little better.”

Wilson said if consultation failed to identify further saving opportunities, he hoped the 19.9% would show the council was trying to change its behaviour, rather than relying on borrowing and kicking debt down the road.

Public consultation may bring up some fresh ideas, but deputy mayor Angela O’Leary said the real issue lay with revenue.

Councillor Anna Casey-cox is worried that public consultation will bring more cuts to important community services.

She said although there had been times when the council had a spending problem, this was different.

“[In the budget] I see us mowing lawns, fixing potholes, widening footpaths, building playgrounds, mowing lawns, looking after sports fields. I see us building swimming pools, libraries, putting in lights, managing roads - show me where any of that needs to cut because I can't see it.”

Cr Anna Casey-Cox said she was “nervous about asking ratepayers what they will cut” as cutting services can sacrifice the community’s wellbeing.

“Some people can afford to buy books, some people need libraries,” she said.

Cr Sarah Thompson was also less hopeful about what public consultation would bring. She said rates can’t go any lower as the council makes up for not hiking rates in the last two years to meet rising costs of new services and renewal.

The proposed hike meant the city would be able to balance its books by the third year.

With consultation beginning in March, Cr Emma Pike said the hike and its impact is based on assumptions such as future service cuts which are still in the air and will also be out for consultation.

That should be made clear to the public, she said.

As part of the proposal for the 2024-2034 Long-Term Plan, Hamiltonians can expect to pay 15.5% more than the year before from year two to year five, 9% more in year six, and 5% more from years seven to 10.