Now, staff have identified $136 million of deferrals to the council’s capital programme in the first five years of the LTP which would bring down the rates increase slightly, to 19.2 per cent in 2024/25, and 14.5 per cent in the following four years.
However, staff also identified further options to reduce the rates rise, including the cancellation of the School Link project.
Hamilton Mayor Paula Southgate says she will be strongly advocating for the reinstatement of existing funding to the community sector, while finding savings elsewhere. Photo / Mike Walen, KeyImagery
Additionally, staff suggested adopting a “maintenance-only” approach to transport projects for the next three years, removing $10m of funding for strategic land acquisition, and deferring nearly $75m that would go towards a new wastewater treatment plant.
The options would be deliberated at an upcoming council meeting next week.
Southgate said the council understood people across the community were hurting.
“There is no magic solution, but we must do everything in our power to reduce the burden on residents without undermining our core services or vital investment in our city.”
Other areas of cost reductions were personnel and consultancy savings.
In February, elected members identified savings in this area would total $104m over the next 10 years.
Now, council staff have identified $12.5m of annual savings across both community-facing and enabling (back-office) functions.
Nearly $8m of the savings would come from council’s staff and consultancy budgets, but the council said this meant there would be reductions in the services they could deliver to the community.
These savings include the removal of the council’s City Safe and road education teams, the closure of one library and the Auaha Makerspace, and reductions to opening hours across the branches.
Also included were reductions to city events, and less frequent maintenance of garden areas, road landscapes and public areas.
The reductions would be scheduled to take effect from year three of the 2024-34 LTP and account for 0.4 per cent lower rates increases from 2025/26 to 2028/29.
There would be no impact on the rates rise for 2024/25 if the council wishes to introduce service reductions earlier.
The number of staff affected by the cost savings will be determined at the upcoming LTP meeting. However, in this financial year, HCC has already reduced headcount by 98 fulltime employees through a series of restructures.
If the reductions proposed in February of $10.5m annually are supported by elected members, it would see a reduction to the council’s personnel costs of around 15 per cent.
The adjusted proposal would still see the council balancing its books in 2026/27.
Meanwhile, in its draft LTP, the council originally had proposed significant cuts to funding for community groups.
Now, following submissions, elected members would debate about reinstating the funding for some projects and groups, including Hamilton and Waikato Tourism, community services grants, event sponsorship, and cat desexing.
“It hugely bothers me to take funding away from the community,” said Southgate.
“Times are tough, and we have heard overwhelmingly that community support and wellbeing [are] more crucial than ever. These groups support those most in need.
“I will be strongly advocating for the reinstatement of existing funding to the community sector, while finding savings elsewhere,” she said.
HCC’s LTP deliberations are to take place from June 4-6.
