Rates figures recently sent to home owners will soon be irrelevant as a scheduled city-wide revaluation of Hamilton properties begins on September 1.

Some ratepayers could be hit with even larger rates bills than indicated in letters they received two weeks ago.

The letters were sent as public consultation for Hamilton's 10-Year Plan is under way, which includes the discussion over the 9.5 per cent rates increase for year one and two of of the plan.

Letters to property owners two weeks ago outline how much their rates would increase or decrease under the council's preferred option, which includes an immediate transition to capital value and the inclusion of a UAGC charge of $500.


However, a city-wide revaluation begins on September 1 and will make the previous letters irrelevant for the second financial year.

The council said new letters will be sent out to home owners in November 2018 with the new valuation which will be applied for that second year.

General Manager Corporate for Hamilton City Council David Bryant said the revaluation process makes no change to the total rates collected by the council.

"There's a belief that if your home increases in value, your rates will rise accordingly. This isn't the case," Mr Bryant said.

"The total rates revenue doesn't change as a result of the revaluation, however the ratio of what each property pays may change depending on if their property increases in value more or less than the average.

"Based on the rates projected in last week's letter, If your property's CV was to increase at a higher percentage than Hamilton's average revaluation increase then your share of rates would go up and if a property's CV increases at a lower percentage than Hamilton's average then your share of rates would go down."

The city council finance team provided further explanation.

"The impact of revaluation is to redistribute who pays how much of the total rates pie based on the new capital valuations. Shifts / larger valuation increases in some parts of Hamilton compared to others mean these home owners will pay a higher percentage of the overall rates total."

In December last year, Mayor Andrew King originally proposed a 15.5 per cent rates increase, but after several projects were added to the 10-Year plan a new calculation was done and a 19.5 per cent rates increase overall was needed to balance the city's books under the new financial measure implemented by council last year.

Hamilton News asked its readers on social media how the potential rates increase would affect them, with the reaction so far being overwhelmingly negative.

Melissa Robinson said that her rates would be $4000, an increase of $2500 from when she bought her house five years ago.

Cary Viljoen replied saying her rates would also go up to $4000.

"Yep ours will go up to $4000 too then continue increasing. I don't know why they bother asking us to have our say as not a single ratepayer will agree to it yet that wont stop them from doing it," Ms Viljoen said.