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Hamilton taxpayers face the prospect of an average 4.9 percent increase in general rates next year.
But the Hamilton City Council’s aspirations to use the fees to help improve community services and facilities, as part of a $ 2.5 billion spending, could be blown away in a torrent of water reforms ordered by the central government.
For two days next week, councilors will discuss a recommendation to take a starting point from the 4.9 percent increase, as well as four specific rates to fund specific projects, as the council begins the process of deciding what to include in your new Long-Term Plan.
The four planned rates will cover: on foot, by bicycle and public transport; community attractions like the Hamilton Zoo, Waikato Museum, and Hamilton Gardens; restoring the city’s ravines and responding to climate change; and projects in the city center, such as those aimed at opening Hamilton to the river.
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The council announced the proposals Thursday, along with – at this stage, at least – $ 2.5 billion in capital spending over the next 10 years.
The plan in its current form will also result in the council’s net debt increasing from $ 619 million in 2020-21 to $ 1,129 billion by 2030-31.
If, after public consultation, the council ends up going ahead with the target rates, applied to all appraised properties, they would amount to an additional average annual increase of about $ 200 per household.
The council’s last Long-Term Plan, in 2018, set a 3.8 percent increase template. It had deviated from that template this year by reducing the annual increase to 2.8 percent in response to the Covid-19 crisis.
The existing Hamilton Gardens Specific Rate would be incorporated into the Community Attractions Specific Rate.
The council itself cannot be entirely blamed for the proposed increase.
Mayor Paula Southgate said the council faced “gigantic” costs driven by the central government, particularly in relation to water and compliance.
The “Three Waters” reforms will cost a whopping $ 600 million over 10 years, in order to meet new drinking water, sewer and stormwater requirements.
This means that Hamilton will have to invest heavily in water infrastructure over the next decade, a cost that will account for about a third of all rate bills.
Christel Yardley / Stuff
Hamilton Mayor Paula Southgate: “Let’s face it, it paints a very challenging picture for the city.”
Legislative requirements were also placed on the city to allow growth and increase government requirements related to climate change and transportation.
The council was asking the government for help in the form of some kind of co-financing arrangement, Southgate said.
“All councils, particularly high-growth councils, have a huge funding gap when it comes to the infrastructure needed for growth,” Southgate said. “We are not alone in this and, in fact, we may be a little better than other councils due to good planning. But that doesn’t make it any easier for Hamilton taxpayers. “
Southgate estimated that councilors would have “a lot to say” during the two-day meeting, but actual decisions were still a long way off.
“Let’s be frank: it presents a very challenging landscape for the city. I will not endorse everything in the report, but there are some very important proposals that I am 100% in favor of. “
Those proposals included increased investment in community facilities and more proactively addressing issues of biodiversity and climate change.
The proposed budget would cause the council to balance its books (with daily income paying daily costs) in plan year five, in fiscal year 2025-26.
The net debt-to-income ratio (how much the city borrows for every dollar of revenue) drops from 229% to 216% in year 10 after reaching a peak of 280% in year five, while remaining within local government. Funding agency limit in each year.
The council’s executive director, Richard Briggs, stated that he had been “relentless in my direction to the staff that our purpose is to improve the well-being of Hamiltonians.”
“What the staff and I recommend accomplishes this, but we are also well aware of the need to consider affordability for taxpayers.”
If the focus of recent council plans could be generally described as “growth”, then the focus of the Long Term Plan 2021-31 could be loosely expressed as “community.”
Staff proposals are based on five priorities developed in the wake of a public consultation program that sought to identify what the city’s residents value most and what would improve the city.
Those priorities, as perceived by residents, were “a city that is easy to live in”, “a city where our people thrive”, “a central city where people love to be”, “a fun city with a lot to do” , and “a green city”.
Public consultation on the draft plan will take place from the beginning of March to the beginning of April, and the final plan will be adopted in June.
