Change to capital value faces backlash from Hamilton residents

Hamilton City councilors propose to make an immediate switch to capital value in the 10-Year Plan. Photo / Tom Rowland

Public consultation for Hamilton's 10 year plan has begun, and a number of key decisions are now in the hands of the public.

Ratepayers should soon receive letters showing how a 9.5 per cent rates increase for the next two financial years will affect them.

The council also voted to immediately move to capital value, where rates are calculated on the value of the land and what is built on it instead of just the land.

Council is in the third year of a 10-year transition period to capital value.

To combat the extreme rates rise for some properties, councillors approved a $500 Uniform Annual General Charge per property. The UAGC becomes part of the rates bill and is not additional.

With a UAGC if you have a higher value property your rates would be less than if council just moved to a capital value rating system.

If you have a lower value property, your rates would be more.

Hamilton News asked readers on its Facebook page to say how the rates increase would affect them and the responses have been overwhelmingly against the proposed move. Ryan Cox said that his rates would nearly double in Peacockes from $1700 to $3300

Phil Evans commented that his rates would increase by 21 per cent in the first year, and 37 per cent by the third year.

"Sorry Council, nope, not happening," Mr Evans said.

Terina Jones commented that owners will be forced to sell with such a large rates increase while rental prices will also be affected.

A major concern is for those on fixed incomes. Doris Jones said that she would be unable to pay for the increase on her fixed income and was not happy.

At the December meeting, councillors voted seven to five in favour of Mayor King's proposal to immediately switch to capital value.

Those opposed were councillors James Casson, Siggi Henry, Garry Mallett, Angela O'Leary and Paula Southgate

Those in favour were Mayor Andrew King, Deputy Mayor Martin Gallagher and councillors Leo Tooman, Dave Macpherson, Rob Pascoe, Mark Bunting and Geoff Taylor.