Rates increase of 8 per cent reconfirmed

Hamilton City Council has confirmed an 8 per cent rates increase following its meeting yesterday to set the budget for the year beginning 1 July 2011.

Council considered 1605 public submissions last month, the most for more than ten years, before settling on the final rates increase. There was no additional financial expenditure approved following the submission process.

Hamilton Mayor Julie Hardaker says the reality is the city is facing significant financial challenges with falling income through a reduction in building and land development.

“We also need to continue to pay for city infrastructure that has already been built, in many cases to meet the requirements for a growing city. We’ve approved the rate increase but Council realises the rates increases of this size are not sustainable for the community in the longer term” says Mayor Hardaker.

Mayor Hardaker says it was a difficult decision for Councillors to approve a rate increase in the current wider financial environment.

“We understand the financial issues facing the community and the hardship that is being experienced in many sectors. It was with a great deal of thought, consideration and concern for the community’s ability to pay that the increase was approved.”

In getting the proposed Annual Plan ready for public submission Council made $18 million worth of capital works deferrals and took $1.2 million from the city’s operational budgets across all areas. In spite of these savings, a rate increase was still necessary to meet debt repayments and provide for assets renewals as legally required.

Hamilton City Council has committed to a complete review of its business, the services it provides and the cost to ratepayers, as part of the Long Term Plan. Work has already begun on this ten year plan which will become effective from 1 July 2012. A comprehensive public consultation process will be undertaken as part of this plan.

“I would like to thank all the people who took the time to make submissions this year. It’s an important part of the democratic process for the Council to hear from people and there were many submissions that were very well thought through."