Hamilton rates rise 16.5% after council deliberate Long-Term Plan feedback

After much debate, Hamilton City Council has landed on a 16.5 per cent rates increase in 2024/25.

Originally, the council proposed a 19.9 per cent increase in 2024/25, sparking a flood of nearly 3000 submissions from the community on its draft Long-Term Plan.

The council concluded its Long-Term Plan deliberations this week which also comprised decisions on funding for tourism and theatres.

Hamilton Mayor Paula Southgate described it as “the most challenging and complex Long-Term Plan”.

“Together, council has made some of the toughest decisions we’ve ever had to make in our political careers to strike the right balance for our city.

“Community support and wellbeing is more crucial than ever, so a little investment on our behalf goes a long way, to ensure these groups continue to support those most in need.

“These groups also bring strong economic benefits to our city, and make our city a better and more vibrant place, through cultural, art and sporting events.”

In response to the strong community feedback, proposed cuts to funding for community services grants, Hamilton and Waikato Tourism, and event sponsorship have been reversed.

In addition, the Meteor and Clarence Street theatres have been given certainty of $50,000 of funding each over the next three years, from existing budgets.

Shoppers in the central city will get free on-street parking for another two years, as opposed to another six months in the proposed plan.

The two-hour free parking trial was proposed to end in January. Instead, the two hours of free on-street parking will be reduced to one hour in October, until July 2026.

The cuts to reduce rates also include deferring nearly $75 million that would go towards a new wastewater treatment plant, reducing the renewals budget by $27.5m in the first three years, and removing $10m of funding for strategic land acquisition.

To fund critical water infrastructure, the council has sought to reprioritise $31.5m of funding for a walking and cycling bridge across the Waikato River.

The council has also decided not to go ahead with the proposed $104m in savings on personnel that would have likely meant cuts to community services.

Instead, savings of $33m over the 10 years will be found through personnel reductions to the council’s back-office functions and cuts to consultant budgets.

These reductions will be brought forward, and implemented over the next year, with full savings from 2025/26.

Targeted rates for community infrastructure or extreme weather and community resilience won’t be introduced. This was not supported by the community in the consultation.

Payment for three-yearly pool safety inspections will be made via an annual targeted rate, applied to properties with a private swimming pool, which was supported by submitters.

Southgate said the council had listened to the community.

“Residents asked us to bring the rates down now. Every little bit helps but I acknowledge this is still far from ideal. There are unfortunately no magic solutions to the financial pressures that we are facing, along with households, businesses and councils nationwide.

“But we have done our very best to turn over every stone for savings, without taking our city backwards.”

The new plan will still see the council balance its books (meet everyday costs from everyday revenue) annually from 2026/27 and maintain a 5 per cent buffer within its debt-to-revenue limit every year.

The Long-Term Plan will come back to the council for formal adoption on July 4.