Hamilton City Council to cut services for cost savings of $104 million over 10 years

Hamilton City Council could see major cuts soon. Photo / Hamilton City Council

Services and staff positions at Hamilton City Council are on the chopping block as part of efforts to balance the books.

At this week’s council meeting, elected members voted to include reducing community and back-office services and cuts to staff and consultancy budgets in the next Long-Term Plan.

The council said the cuts would save $10.4 million in 2026/27, and $104 million over the 10 years.

However, the cuts would also mean reductions to community services and changes to the council’s internal operations.

Which activities and positions could be removed or reduced were still to be decided.

Hamiltonians can have their say on the cuts as part of the Long-Term-Plan consultation which is scheduled for March or April this year.

Any reductions would start to be made midway through the 2025/26 financial year.

The council said savings in that first year would be $2.1 million after redundancy costs are met.

The reductions are in addition to the $7 million in savings delivered in 2024/25 by previous and current staff restructures which have seen 68 roles removed so far, with more to come before July 1.

Hamilton City Council chief executive Lance Vervoort said the cuts will impact what the community recieved from the council.

Hamilton mayor Paula Southgate.

“Based on what we hear through the consultation, elected members will face some difficult calls about what those service reductions could be.

“It’s too early to say in what areas there could be cutbacks. We want to get this right, so if the cuts make it into the final Long-Term Plan, we’ll be looking to go back to the community through our 2025/26 Annual Plan early next year.”

At Tuesday’s council meeting, Hamilton councillors also adopted an updated draft Long-Term Plan with waters services included in all 10 years.

The council is proposing rates increases of 19.9 per cent ($10.90 per week or $567 a year for a median value property) in the first five years of the Long-Term Plan, followed by four years of 15.7 per cent increases.

Hamilton Mayor Paula Southgate said she agreed that “double-digit rates rises” were not sustainable or affordable for large parts of the community.

“That’s why I initially proposed a smaller rates increase. I am open to exploring all options to reduce costs for council and consumers.

“However, it is important to recognise that further staff reductions will lead to the reduction of significant council services, which make our city a great place to live. We need to consider all the facts, so our community feel empowered to make an informed decision.”

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