Council signs-off on lower rates rise and balanced budget

Thursday, 25 June 2026

Hamilton’s city leaders have served-up an expected 6.9% general rates rise and an unexpected $20 million debt drop.

On Thursday, Hamilton City Council officially adopted its 2026 Annual Plan, and rates strike. Mayor Tim Macindoe and councillors were unanimous in hailing the dual achievements of a rate rise 33% lower than forecast by the previous council and the city’s “first balanced books in 24 years’’ as ”just the first step’’ - signalling a clear intent to keep costs for ratepayers down further.

Mayor Macindoe said Thursday’s adoption was a “significant achievement’’ but noted the 6.9% rise was “still high’’.

He said there were more “tough choices’’ ahead in the Long Term Plan, due to be put together in August.

The mayor was clear he would be pushing to ensure Hamilton becomes “one of the best cities in the Southern Hemisphere’’ during that process.

Deputy Mayor Geoff Taylor said the annual plan was “just a warm up’’ for the LTP discussions.

“The rates rise is still a huge imposition for ratepayers, and that's why this is just the start.’’

In the 2024-34 Long-Term Plan, net debt in 2026-27 was expected to be $1.066 billion.

HCC chief financial officer Gary Connolly says due to debt from water services transferring away from council and a focus on debt reduction, forecast debt has fallen to $0.844 billion.

Council finance staff put it down to ‘favourable 2025/26 outturn expectations, disciplined cost control, and targeted efficiency measures.’

There were also lower-than-expected costs in insurance premiums, which Connolly said was down to improved and focussed procurement efforts.

Further balancing-the-books efforts resulted in a positive operating cash-flow of $11.1 million, including $9.7 million of Development Contributions, which can be ring-fenced and applied toward the repayment of historic debt.

“After funding day-to-day operations and the net cost of renewal expenditure, the underlying position is effectively balanced.’’

Councillor Andrew Bydder pointed out the importance of that statement.

“This, in my view, is our greatest achievement. It means we are running the city while spending within our means for the first time since the Local Government Act came into force in 2002. Why is this important? Because the Local Government Act, section 100 states that a local authority must ensure that operating revenue covers operating expenses.

“For the first time in 24 years, the council has met this legal requirement.’’

The Annual Plan also reintroduces two-hours free parking in the city centre from July 1, and introduces a new charge of $27 for non-Hamilton residents to enter the Hamilton Gardens.

Councillor Angela O’Leary said the mayor’s plan had been specifically narrow in focus and provided a “very clear’’ framework, direction and vision for years to come.

Councillor Rachel Karalus noted many in the community are still “crying out for relief’’ and further help was “yet to come’’.