KEY POINTS:
A lower-than-expected rates rise is on the cards for Hamilton residents - but not everyone's pleased.
City councillors are proposing an average rates rise for existing ratepayers of 5.09 per cent following a meeting last week to consider the 2008-09 Annual Plan.
The suggested increase, which is lower than the 6.56 per cent set out in the council's long-term council community plan, was proposed after changes to criteria for the rates remission for financial hardship relief policy.
The policy provides for a maximum rates remission of up to $325, which is adjusted yearly for inflationary changes.
Councillor Glenda Saunders hoped the threshold increase from $12,450 to $16,000 would encourage more ratepayers to apply for rebates.
Just 400 residents currently qualify for rates remissions but Ms Saunders said under the new threshold that number could possibly double.
"When we first started the threshold was something like $9000 and a few years ago we put it up to about $12,450 which is still a very low threshold," said Ms Saunders. "So I'm absolutely thrilled we're able to increase the threshold but still keep our rates lower than most places in the country."
Councillor Roger Hennebry, who unsuccessfully stood for mayor last year and wanted the threshold increased to $17,000, said it was something he had lobbied for years for.
"It is not a bad deal now but I couldn't get any buy-in from my colleagues and they baulked at the extra few bob although we've just passed $2.5 million for events," he said. "We believe this goes a little way to easing the pain for the ratepayers who are seeing huge amounts of money spent on events and it seems they're getting nothing for their rates."
However, John Gibson of Grey Power said despite the threshold and the proposed rates increase which would be the council's lowest in three years, the hikes were still greater than the rate of inflation and another hurdle for those on fixed and low incomes.
Mr Gibson said he was concerned about the council's way of collecting rates by way of capital valuations.
"It's unfair, particularly in the urban areas where values rise steeply at each valuation and most of the elderly here have lived in their homes for decades."
Mr Gibson said the council's rates were also likely to be compounded by possible hikes in the yet-to-be announced Environment Waikato rates. "They get that rate on top and their rate rises are pretty stiff too."
Moira Johnson of the Hamilton Citizens and Ratepayers Association said the threshold was a start but still not enough to keep pace with the increases.
The rates activist also blasted the council's "culture of spending" which included an $11 million overhaul of Hood St and the upcomingV8 supercars series.
Public submissions on the Annual Plan can be made between March 20 and April 22.
