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Council Slashes Budgets ; Proposes 8 Per Cent Rates Increase

Council Slashes Budgets ; Proposes 8 Per Cent Rates Increase

18 FEBRUARY 2011

Hamilton City Council has cut budgets; and proposed an 8 per cent rates increase for existing ratepayers.

The decisions were made during the Council’s draft Annual Plan process over the last three days.

Mayor Julie Hardaker said all savings made during the budget deliberations and additional rates revenue would go straight into paying debt and addressing the long term need to provide more funds for asset replacement. For this reason she gained Councillor support for the 8 per cent rates rise.

“This is the time to stand up and do the financially prudent thing in applying money to reducing debt. We are putting the money in the right place,” Ms Hardaker said.

“Due to the financial situation we find ourselves in, doing nothing about addressing the City Council’s long term financial outlook is simply not an option. We have to cut Council expenditure, and increase rates, and just have to accept that.”

As a result of savings found and deferrals to Council spending, the city’s forecast debt has reduced from $463 million at June 2012, to $448 million.

Councillors were focused on how best to spend ratepayer money, and decided on $18 million in capital works deferrals. The budget also contained $400,000 of yet to be identified staff efficiencies.

Savings of $1.2m have been made across Council’s operating, maintenance and capital budgets, covering all areas of Council expenditure.

One of the more substantial cuts, was $400,000 to the road renewal budgets following a priorisation of expenditure. The schedule for cleaning Council owned buildings is to be cut back saving $64,500, and street light hours are to be managed more closely at the start and end of the day resulting in savings of $55,000.

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Funding for the Kowhai planting scheme is to cease ($21,000), as well as for the Economic Development projects fund ($130,000). Funding for the Council ratepayer magazine City News has been cut back ($100,000). Councillors have also undertaken to find savings in their own budget.

Councillors opted to continue $400,000 in funding for the Special Events Sponsorship fund.

An additional $225,000 was approved to fund a Regional Tourism Organisation. The proposed 8 per cent rates increase accounts for years of relatively low rates increases in Hamilton and is in line with rates rises predicted in Tauranga and other cities, Ms Hardaker said.

Ms Hardaker said this was the first step in an important journey to reviewing the range of services the Council provides to the city. These issues will be addressed in the development of the Council’s Long Term Plan, which would be the next priority for Council. ENDS

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