4 Dec 2017

Hamilton ratepayers braced for double-digit hike

11:32 am on 4 December 2017

Hamilton residents are bracing themselves for a massive rates rise that could hit double digits.

A view of houses from Hamilton Lake Domain.

A view of houses from Hamilton Lake Domain. Photo: nataliacatalina/123RF

Hamilton Mayor Andrew King has recommended 15.5 percent, but a final figure won't be decided until after councillors go through the ten-year plan line by line looking for cuts, which starts next week.

He said a big rise was eeded to balance the books. In recent years the annual increase has been 3.8 percent but rising costs and more demands on council to provide more services meant increasing debt.

New Hamilton mayor Andrew King

Mayor Andrew King Photo: Supplied

Mr King said since 2012 the debt level has increased by between $50-$60 million, which costs $3m a year to service.

He said this has to stop.

"The revenue needs to increase or what we are doing is continuing to go further into debt for everyday costs to run the city."

He proposed a 12 percent rates rise nine months ago, but this was shot down by council at the time. A big increase was back on the table and can not now be ignored.

Hamilton has some of the lowest rates in the country and the 6.5 percent figure would equate for the average ratepayer of an extra $1 a day.

"Hamilton is a growing city and putting in infrastructure is very expensive and the city's old infrastructure needs upgrading."

Hard decisions

The council's finance chair Garry Mallett did not believe a rates increase in double digits was necessary, but to avoid it would require councillors making some hard decisions.

"You can increase you revenue and/or reduce your expenditure.

"We have to look at more efficiencies, things we shouldn't be doing, things that someone else should be paying for, a whole lot of other stuff that we should be doing that unfortunately I don't think we have spent enough time on."

Councillor Paula Southgate, who missed out on becoming the Mayor by just six votes at the last election, heads the community and services committee.

She said transparency was necessary to help people understand that services wanted by residents have to be paid for.

"It's about value for money and if people understand where their rates are going and the value derived from those rates, it is usually easier to talk to them about it.

"All the way down the line you need to talk to them (ratepayers) about what the various aspects of council business cost and test with them that they are happy to pay for it."

The Hamilton Residents and Ratepayers Association is far from happy and said a hefty rates rise was unfair and the council needed to look at alternatives.

President Mischelle Rhodes said councillors need to realise that most people only have a limited income to spend on rates.

Councillors start work on reviewing the 10-year plan next week, a recommended rates rise goes out for public consultation and a final figure will take effect in the 2018/19 financial year.