The rates increase will reduce by about one percentage point annually over the following four years (15.5%, 14.6%, 13.5%, 12.5%).
Hamilton Mayor Paula Southgate said the council went through a “hard process” to achieve a “fair and reasonable budget, in extraordinarily difficult times”.
“We all acknowledge that it’s not perfect, but I firmly believe it strikes the right balance with regards to the community’s concerns around rates and doing the core work we need to do, to keep our city in good shape today and over the next 10 years,” she said.
“This plan prioritises the city’s upkeep now and in the future, and looks after our community, all while ensuring that the council balances its books by year three.”
Hamilton Mayor Paula Southgate. Photo / Mike Walen
Southgate said she understood the rates increases were not easy or comfortable.
“Rates are going up across the country, at a time people and businesses are really struggling. There is no magic solution - the funding system, that relies mainly on today’s ratepayer, is broken.
“We need to work with Government and do things differently if we are to succeed. Meanwhile, we cannot run the city down while solutions are found. We need new water services, homes and to look after our city. That can’t wait.”
A phased investment in critical infrastructure will total $4.4 billion over the next 10 years.
“The phasing of [this investment] ensures the council remains below the debt limit set by the Local Government Funding Agency, which requires debt to be no more than 285% of our revenue in 2024/25, and no more than 280% in all subsequent years,” Southgate said.
To keep rates down, elected members agreed to reductions of around $282 million in years 1-5 to the capital programme. This includes deferral of around $172m worth of projects to later years.
Subject to a ministerial decision, $31.5m of Crown funding for a walking and cycling bridge in the central city are set to be reprioritised towards critical water infrastructure.
Savings of $33m over the 10 years would be achieved through personnel reductions to the council’s back-office functions and cuts to consultant budgets. This is in addition to savings of $94m over the 10 years made through the chief executive’s Future Fit programme.
The council said its final version of the Long-Term Plan would see continued delivery of all current services, including retaining the current library and pool opening hours, keeping gardens maintained and the city tidy, and maintaining the kerbside residential rubbish and recycling collection schedule.
The council said it understood the significant financial challenges ratepayers were facing.
“Those challenges are being faced by households and businesses across New Zealand, with interest and inflation rates heavily impacting local government, especially high-growth cities like Hamilton,” a council statement said.
