Hamilton rates: Households face smaller hike after council trims spending

Hamilton City Council has confirmed an average rate increase of 6.9% instead of 10.4% as originally signalled. Photo / Hamilton City Council

A lot of Hamilton households will pay less in rates than initially forecast, after the council had cut back on spending.

Hamilton City Council confirmed its 2026-2027 Draft Annual Plan with an average rate increase of 6.9% for existing ratepayers, down from the 10.4% previously signalled.

For a residential property with a median capital value of $720,000, that means an additional $196 a year, compared with $295 under the earlier forecast.

The council said savings had come from reducing consultant use, improving procurement, tighter vacancy management, lifting efficiency through digital services and delaying projects.

Hamilton Mayor Tim Macindoe said the council had responded to a “clear mandate” from the community to bring costs down, supported by stronger-than-expected financial performance and tighter internal controls.

“We’re increasing revenue from non-rate sources and tightening cost controls, so we spend less than planned,” Macindoe said.

The current level of service would be retained, despite the cuts.

He rejected suggestions the approach pushed costs into the future.

“Staying disciplined will help mitigate the effects of external pressures that can’t always be predicted.”

Macindoe acknowledged infrastructure costs and debt remained ongoing challenges, saying larger decisions about growth and investment priorities would come during the next Long-Term Plan.

“There will be some hard decisions ahead.”

Hamilton City Council’s chief financial officer, Gary Connolly, said the lower increase reflected a stronger financial position built over recent years.

“The draft Annual Plan reflects disciplined budgeting and steadily improved performance over the past three years,” Connolly said.

He said the council was no longer borrowing to fund day-to-day operating costs, which reduced exposure to interest rate changes and strengthened long-term resilience.

“By not using debt for operating expenditure, we’re not passing today’s costs on to future ratepayers.”

Connolly said lower-than-forecast opening debt had helped reduce financing costs, while efficiency gains allowed the council to maintain existing service levels without extra spending.

He also defended changes to depreciation funding for stormwater infrastructure, saying they reflected the long lifespan of those assets rather than any attempt to defer costs.

“Depreciation has been adjusted for stormwater assets with very long lifespans, where there is no cash funding requirement in the foreseeable future.”

Connolly said the issue would be reviewed again through the Long-Term Plan 2027-2037 as the council reassessed how it funds asset renewals.

“Overall, this balances financial sustainability, service continuity and fairness for ratepayers, while protecting future budgets from undue risk.”

Macindoe said early feedback from residents had been positive, particularly around the lower rates increase and the planned return of two hours’ free parking in the CBD.

Looking ahead, he said success would mean keeping rates manageable while maintaining the services expected of a growing metro city.

Tom Eley is a multimedia journalist at the Waikato Herald. Before he joined the Hamilton-based team, he worked for the Weekend Sun and Sunlive. He previously worked as a journalist at Black Press Media in Canada and won a fellowship with the Vancouver Sun.