Praneeta Mahajan
Hamilton, May 21, 2024
Hamiltonians have been actively involved in discussions on various platforms regarding the Hamilton City Council’s recent announcement of a proposed rate hike.
Hamilton Mayor Paula Southgate has expressed her gratitude for the robust feedback provided by residents and organisations on the Council’s draft Long Term Plan.
Between March 19 and April 21, 2024 nearly 3000 Hamiltonians took the opportunity to share their views, and these submissions were recently presented to the Elected Members in an information session. This was then followed by a number of residents who provided verbal feedback during last week’s public hearings.
Invaluable feedback
The Council sought community input on various issues, including city financial management and potential cost reductions that could impact community services. Mayor Southgate highlighted that the feedback has been invaluable, particularly noting the public’s focus on transport projects and cost management.
“Transport projects, such as cycle lanes and speed bumps, have received significant attention. We have addressed many concerns by halting or scaling back new projects. Deputy Mayor Angela and I have introduced a new framework for transport project approval, emphasising greater community input,” said Ms Southgate.
Additionally, Ms Southgate acknowledged the innovative suggestions for user pays systems, suggesting these ideas warrant further exploration.
(File Image supplied for publication)
Proposed Rates Increase
One of the most contentious topics has been the proposed rates increase. The Council has proposed an average rates increase of 19.9% for the 2024/25 fiscal year, equating to approximately $11 per week for a median value residential property, followed by 15.5% annual increases for the next four years. This plan aims to balance the Council’s books within three years and adhere to its debt to revenue cap.
Unsurprisingly, many submissions opposed the proposed rates hikes. Of the 2992 written/ online submissions, 1111 commented on the rate increases, with 420 suggesting spending cuts. However, 378 submissions supported the Council’s financial management approach, including the proposed rates increase.
“I hear loud and clear that the proposed rate rises are unaffordable for many, especially those on fixed incomes,” Ms Southgate noted. “The impact on ratepayers is crucial. I have directed staff to identify further savings and reassess our capital programme to defer additional projects, particularly in the first five years.”
Cost of Living Crisis
The proposed rate hike comes at a time when many Hamiltonians are already feeling the strain of a cost of living crisis. With rising prices for essentials such as food, housing, and utilities, residents are under extra pressure to make ends meet. The announcement of the rate increase has added to this burden, leading to heightened concerns about affordability and financial stability for many households.
Community Cost Reductions
Respondents also weighed in on whether the Council should reduce costs, which would likely affect services. Almost half of the respondents (48%) supported reducing costs even if it impacted services, while 33% preferred maintaining current service levels.
Transport was the most cited area for potential reductions, with 782 comments suggesting cuts. Other services residents were hesitant to see reduced included rubbish and recycling (590 comments), water services (444 comments), parks and recreation (423 comments), and community services, notably libraries (296 comments).
Walking and Cycling Bridge
The Council also sought feedback on its plans to build a walking and cycling bridge over the Waikato River in the central city. Out of 2580 respondents, 1538 opposed the bridge, 682 supported it, and 452 were neutral.
Targeted Rates for Additional Services
The idea of funding additional services through targeted rates was met with mixed reactions. 47% of respondents opposed additional community infrastructure projects being funded this way, while 38% were in favour. For community resilience and extreme weather projects, 47% opposed funding through targeted rates, while 41% supported it.
Next Steps
Ms Southgate has expressed her sincere appreciation to the residents for their feedback.
She said, “I am immensely grateful to the public for their invaluable ideas and passion to make our city the best it can be.”
She acknowledged the difficult times faced by many in the community, noting the rising cost of living pressures affecting households, businesses, developers, community groups, and even the Council itself. “We are facing tough financial pressures and there is no easy solution. I wish there was,” she said.
In developing the draft plan, Ms Southgate had already made significant budget cuts in an effort to reduce rates. However, the feedback from the public made it clear that further measures are needed to ease the financial burden on residents. “We have heard from the city, we simply must do more to ease the burden,” she stated.
Ms Southgate has tasked staff with finding additional savings in the capital programme while ensuring that core infrastructure is maintained efficiently and cost effectively. “I am clear that I want the city to thrive. We cannot run our city into the ground,” she emphasised.
A key focus for Ms Southgate is ensuring that Hamilton’s central business district (CBD) remains vibrant and accessible. She expressed a willingness to revisit parking strategies to better support the CBD’s vitality.
“I believe our CBD must be vibrant and accessible. I am open to relooking at how we make parking work better for our CBD,” she said.
She also highlighted the importance of listening to community groups, recognising their role in enriching the city and supporting those most in need. “We must ensure we are listening to our community groups, taking into consideration the important role they play in enriching our city and supporting those most in need,” she said.
Development Contributions Policy
In response to concerns from developers about the affordability of development under the proposed Development Contributions (DC) policy, wherein more than 150 individuals and organisations were scheduled to deliver verbal submissions on the draft long term plan (LTP), a majority of developers raised their concerns and said that they will be forced to quit Hamilton if the Hamilton City Council made them pay development contributions at the start of a project.
Ms Southgate has asked staff to explore ways to reduce bureaucratic obstacles and make it easier for developers to build essential homes, commercial, and industrial spaces.
“We must reduce the red tape and make it easier for developers to build much needed homes, commercial, and industrial space that our city so desperately needs. I have consistently said we need affordable homes and new businesses,” she noted.
Ms Southgate concluded by stressing the importance of prudent financial management, particularly in today’s challenging economic climate. “Today, more than ever, we must ensure every dollar is invested wisely. That is my focus,” she said.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
