Hamilton mayor Paula Southgate says more needs to be done to “ease the burden” of a proposed 19.9 per cent rates hikes on the city’s residents.
The news comes after Hamilton City Council heard 200 verbal submissions from locals in response to the proposed Long Term Plan (LTP) last week.
The council received close to 3000 submissions from residents between March 19 and April 21. As the council’s elected members met to hear submissions, about 100 protesters were gathered outside the council building.
“I’m immensely grateful to the public for their invaluable ideas, and passion to make our city the best it can be,” Southgate said in a statement on Friday.
“Times are very hard right now, with rising cost of living pressures for households, businesses, developers, community groups and even Councils. We are facing tough financial pressures and there is no easy solution. I wish there was.
“But we have heard from the city, we simply must do more to ease the burden.”
Southgate said she had asked the council’s staff to find savings from its capital programme and to consult with community groups and property developers.
“Today more than ever, we must ensure every dollar is invested wisely. That is my focus.”
In its current form, the LTP proposes a budget of $6.3 billion to keep the city running for the next 10 years funded by an average rates increase of 19.9 per cent - $11 per week - in the next financial year.
This would be followed by an average 15.5 per cent in rates rises each financial year to 2029, a 9 per cent increase in 2029/30 and 5 per cent rates rises each year after that to 2034.
The plan also included 50 per cent reduction in funding for Hamilton and Waikato Tourism, 20 per cent less funding for community grants and increases to developers contributions.
According to the draft plan the council’s net debt would increase to a peak of $2.4 billion in 2023-34.
According to the council’s 2024-2034 LTP Submissions Insights report, out of 2992 submissions received, 1111 said the proposed rates hikes were “too high or unaffordable”.
Of these, 407 submitters expressed concerns for the personal and social impacts of the rates increases.
In her verbal submission on Friday, homeowner Jenny Nand told the council the proposed increase was neither affordable nor sustainable for the community.
“We are already grappling with severe impacts of a cost of living crisis,” Nand said.
“Such a drastic increase is simply not feasible. We already hold two jobs to survive. We are not a financially privileged people.”
Nand said if the rates rises were implemented some families would need to cut food items from their shopping lists. Others would need to ask themselves if they could afford to live in Hamilton.
“A 19.9 per cent spike falls squarely on the shoulders of those who can least afford it.”
Nand said the council needed to keep the community’s most vulnerable members in mind when they made their decisions.
Stark Property director Matt Stark said the council’s process in seeking feedback on its LTP was “poor” and “pretty disappointing”.
“Do you actually care about these submissions?”
Stark said there was not enough information provided to ratepayers to be able to make suggestions on what services could be kept or cut.
If the council’s plan went ahead, Stark said, the rates for MADE were going to go up by 68 per cent in the next financial year amid a “challenging” retail environment.
“We need radical change for the vulnerable, for the poor, for the people these decisions are going to affect and for the operators.
“We want to participate and help make this city vibrant for all people. But there’s going to be challenges going ahead.”
Grafraell Enterprises Ltd director Grayson Bell’s written submission said the council had made poor financial decisions for decades.
“Now we’re being asked to cough up.”
In his verbal submission, Bell said the council needed to “sort yourselves out fast” and many developers disagreed with the council’s proposed increases to development contributions.
“Hamilton City Council fees and charges are already contributing to roughly 15 per cent of the average house cost,” Bell said.
“There simply isn’t the money to pay for these development contributions increases. [This] will mean less houses are built, house prices will go up or developers will leave the city or a combination of all of the above.
“Costs like this are simply going to put pressure on house prices to lift and if they can’t lift because of the market, we’ll develop elsewhere.”
Bell said if proposed increases for development contributions went through the council needed to help developers pay them.
“Save us time. Time is money.”
Bell said a development could cost his company $50,000 a month in interest while going through the council’s consents process.
“I’ve got a consent at the moment that has been sitting with the council since October last year. That’s how slow you guys work and it’s unbelievable.”
While 48 per cent of submitters were supported reducing costs through a reduction in the council’s services, 33 per cent said they wanted to see services maintained at current levels.
Of these, 375 respondents wanted to retain community services.
Jahvaya Wheki attended Friday’s LTP hearing with 10 members of the community organisation Seed Waikato, calling on the council to collaborate on a youth strategy for the city.
“Let’s not forget the invaluable input from community organisations,” Wheki said in her verbal submission on the group’s behalf.
“Let’s equip them with the resources they need to thrive in their mission of supporting our youth.”
Wheki’s submission was supported by Seed Waikato and other community groups such as YWCA, Te Aka Matua Collective, Rainbow Hub Waikato, Go Eco and Te Ahurei A Rangatahi.
“We do not accept the proposal to reduce community funding grants by $106,680,” Wheki said.
“Let’s ensure that financial support is not just an afterthought but a cornerstone of our commitment to empowering these community champions.”
Other submitters continued to express concerns about reduced arts funding in the city, after Hamilton City Council recently denied Meteor and Clarence St theatres’ applications for continued funding through the multi-year Community Partnerships Agreement.
Riverlea Theatre and Arts Centre co-chairs Jenni Murphy-Scanlon and Lee Owens expressed concern that the council was looking to decrease its funding and support of the arts.
“We believe it should be maintaining or increasing its funding and support of arts venues and activities in the city,” Lee and Murphy-Scanlon’s joint submission said.
“Research conducted by Huber Social in October 2022 found that Waikato residents who believe they have greater access to arts, culture and creativity are more likely to have higher overall wellbeing.
“It’s difficult to think residents will believe they have greater access if funding to these activities is reduced and the impact is less on offer. The city cannot afford to reduce the mental wellbeing of its people.”
Maryana Garcia is a Hamilton-based multimedia reporter covering breaking news in Waikato. She previously wrote for the Rotorua Daily Post and Bay of Plenty Times.
Emergency services were called to the scene about 8.30pm.