Praneeta Mahajan
Hamilton, May 27, 2024
Hamilton, a city known for its picturesque landscapes and thriving community spirit, is currently grappling with an escalating cost of living, exacerbated by an exponential rates hike proposed by the Council as part of its long term plan. As inflation continues to strain household budgets, many residents are voicing their concerns and calling for action from local authorities.
A Growing Burden
The rising cost of living is a nationwide issue, but Hamiltonians feel the pinch acutely due to substantial council rates that seem to climb year after year.
Emily Thompson, a single mother of two who has lived in Hamilton for over a decade, describes the impact these rising costs have had on her family. “It is becoming harder to make ends meet,” she said. “Every year, it feels like more of my pay check is going towards bills and less towards essentials like groceries and school supplies for my children. The high council rates will definitely have a huge impact and add to that burden.”
Struggling to Keep Up
Many residents echo Emily’s concerns. John Harris, a retiree living on a fixed income, finds the yearly increase in council rates particularly challenging. “I am on a pension, and there is not much room to manoeuvre financially,” he explains. “When the council rates go up, I have to cut back on other things, like heating in the winter or trips to see my grandchildren. It is a tough situation at my age.”
The sentiment is widespread, and as many as 3000 Hamiltonians gave feedback to the Council about how they feel the proposed council rates hike are unreasonable, and many also raised the issue of overspending by council on certain projects. Many have actively taken to various social media platforms to question the justification behind these rates, especially in the face of economic challenges posed by global inflationary pressures.
The Council’s Perspective
Hamilton City Council maintains that the rate increases are necessary to fund essential services and infrastructure projects that benefit the community.
Mayor Paula Southgate 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.
“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.”
Calls for Greater Transparency
Despite these assurances, many residents are calling for greater transparency in how council funds are allocated. Mark Johnson (Name changed), a local business owner, emphasises the need for clearer communication from the council. “We want to see exactly where our money is going,” he asserts. “There needs to be more accountability and a detailed breakdown of how these rates are being used to benefit the community. Right now, it feels like we are paying more but not necessarily seeing the improvements promised.”
Community groups have also been vocal, organising forums and meetings to discuss the issue.
Mr Johnson further criticised the Council’s approach, drawing a parallel to business practices. “As a business owner, if I was to run my business in the same manner that Council is running its business, and then charge my customers unfairly, would it be justified? Of course, it would not. Then how does the Council think that implementing unrealistic plans and expenses, while passing the bill of these projects to households who are already struggling is acceptable.”
Builders Facing Hardships
The construction industry, a vital part of Hamilton’s economy, is also feeling the strain of rising costs.
Leon Da Silva, represented Da Silva Builders, known for quality construction and prominent projects in the city. Mr Da Silva was one of the prominent voices the Council’s verbal submission has described the compounded challenges his business faces. “The drastic increase in development contributions, along with rising inflation and building costs, is making it extremely difficult to keep projects affordable,” Parker explains. “We are being squeezed from all sides. Materials are more expensive, labour costs are up, and now with higher development fees, it is harder to keep our prices competitive. This, in turn, affects homebuyers, pushing property prices even higher. It is a vicious cycle.”
Mr Da Silva further said, “Charging development contributions from when a project gets consent instead of at the end when the Code Compliance Certificate (CCC) is issued will be an added burden for construction businesses. This approach ties up capital earlier in the process, making cash flow management more difficult and increasing financial risk during the lengthy construction period.”
Looking Ahead
The rising cost of living and high council rates are issues that require immediate and thoughtful attention. As Hamilton grows and develops, finding a balance between necessary funding for public services and the financial well-being of its residents is crucial.
For now, Hamiltonians continue to navigate the challenges posed by the rising cost of living and council rates, hoping that their voices will lead to meaningful change and a more sustainable future for all.
Personal experiences
Sarah Williams, a healthcare worker, sums up the community’s sentiment, “We love Hamilton, and we want to see it thrive. But we need the Council to understand our struggles and to work with us, not against us. We are all in this together.”
Adding to the chorus of concern, David Carter, a high school teacher, shares his perspective. “As an educator, I see first-hand how financial stress affects families and, consequently, students’ performance and well-being. High council rates are not just a burden on parents but have a ripple effect on children. When families are worried about making ends meet, it impacts the entire household. We need the council to consider the broader implications of their financial decisions.”
As Hamilton’s residents await concrete actions and solutions from their Council, the conversation about the cost of living and high rates remains a critical one. Their collective voices reflect the resilience and determination of a community striving for a fair and balanced approach to civic responsibility and economic sustainability.
Public Opinion
Public sentiment strongly reflects the belief that the council neglected to initiate a necessary conversation about cost-cutting or reducing expenses. Instead of engaging with the community to explore potential savings and more efficient budget management, residents feel that the council adopted a high-handed approach. This perception was further cemented by the council’s hasty announcement of the rate increases, which many see as being made without due consideration of the existing financial strains that households are already facing. The lack of dialogue and apparent disregard for the economic realities of residents has led to widespread frustration and a call for greater transparency and accountability from the council.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
