Rates increase of 9.7 per cent for Hamilton ratepayers

Hamilton City Council has settled on a 9.7 per cent rates increase in year one of the 10-year plan. Photo / Tom Rowland

Hamilton ratepayers will be hit by a 9.7 per cent rates increase in year one of the 10-year plan, along with a three-year transition to a full capital value rating and UAGC of $500.
From year two there will be a 3.8 per cent annual rates increase.

The council is now updating its online rates information so ratepayers can see what the changes mean to their properties.

The search tool on the council's website will be offline until this update takes place — planned for the end of this week.

Under capital value rates are calculated on what is built on the land rather than just the land itself, while the UAGC is a flat fee to reflect base costs which apply to all residents and ratepayers. It would form part of a property's rates bill and is not additional.

It draws an end to a saga that started early last year when the mayor proposed a 12.5 per cent rates increase to balance the city's books.

That suggestion was knocked back by councillors at the time. Before the final rates discussion took place last Friday, Mayor Andrew King declared a conflict of interest and withdrew from the council chambers.

"To clarify in respect of the decision to move to capital value or not, I do not believe I have a closed mind on this topic, however what is clear is that due to the portfolio of properties I own or influence, or I have interest in I have a pecuniary interest to relation to any decision in respect of the move to capital value," Mayor King said.

"This interest is greater than the public's in general. Due to this conflict of interest I am going to vacate the chair now and leave the meeting."

Deputy Mayor Martin Gallagher took over the meeting.

After a series of amendments, heated debate and a bit of confusion, the council settled on the 9.7 per cent rise in one year, however some councillors were still unhappy.

After Mayor King returned to the meeting , councillor Angela O'Leary took aim at him.

"I made a plan with our residents in 2015 and that plan was agreed with them — that they could rely on us to keep rates at 3.8 per cent for the next 10 years and that meant something to me," Cr O'Leary said.

Councillor James Casson said he preferred the 3.8 per cent option and that the new rates rise is not perfect, but that they may as well get it done quickly.

Councillor Rob Pascoe said he favoured a short and sharp rise.

"I think the 9.7 is a compromise of sorts. I think delaying the increase over two years is fraught with a number of risks."

He said the property revaluation due at the end of 2018 would be one of those problems.

Councillors Paula Southgate, Siggi Henry and O'Leary voted against the rates increase.

Mayor King, Deputy Mayor Gallagher and councillors Ryan Hamilton, Leo Tooman, Dave Macpherson, Garry Mallett, Geoff Taylor, Mark Bunting, Pascoe and Casson voted in favour.