‘Freeloaders’ on radar at city council

Non-rate-paying ‘‘freeloaders’’ should stump up for the cost of running the city as council searches for more money to pay for our growing needs.

Hamilton City councillors Martin Gallagher and Dave Macpherson said residents from outside the city boundary who cross into the city to regularly use libraries, parks and infrastructure add pressure to already stressed resources. And they should pay.

‘‘A lot of the stuff we do is enjoyed by a lot of people who don’t pay a dime in terms of any property rate. It’s pressure on us. It is a critical issue for our city moving ahead,’’ Gallagher said.

The discussion came about as council adopted, 11 votes to 1, its 10-year plan consultation document as part of a

600-page agenda. The plan will be put to the public today and closes on April 30.

Macpherson, who declared during the election that he is not a Hamilton City resident, said people outside the city freeload on city facilities.

"That is a big issue for us and it’s the thing that’s driving us to seek outside funding,’’ Macpherson said.

In the past five years, the city has borrowed, on average, $10 million per annum to pay the cost of providing drinking water, park maintenance, rubbish collection and repairing roads.

The 10-year plan document says the current financial strategy is no longer sustainable in a high-growth environment. Residential rates don’t cover the cost of paying for city expenses.

The burden of that expense will fall to ratepayers with an average 9.5 per cent rates rise over the first two years of the

10-year plan and a $500 uniform annual general charge proposed.

Macpherson called the UAGC a ‘‘reverse Robin Hood’’ move.

The city will move to rates charges based 100 per cent on the capital value rating of a property so that the value of the land and buildings will determine what rates you pay. A cheap section with an expensive home or office on it could attract a big difference on the rates bill in the 2018/19 financial year, should the proposal go ahead.

Four key areas are putting pressure on council: Hamilton’s transport system needs improving; community infrastructure needs investment; where the next big housing development will take place needs to be decided upon and; borrowing for everyday costs is unsustainable.

Property developers are facing a number of changes, too, as council also accepted the proposed development contribution policy for 2018/19.

Changes include the removal of the CBD remission, removal of capped charges and charging development contributions by the number of bedrooms per house.

Macpherson said existing ratepayers are subsiding developers. Cr Garry Mallett said it was growth paying for growth rather than ratepayers being lumbered with the burden. ‘‘It’s a step in the right direction,’’ Mallett said.

Cr Angela O’Leary was the only councillor who voted against sending the 10-year plan out for public consultation.

Parts of the plan don’t present a fair representation of the public, she said, and some aspects of the budget and consultation document are based on priorities she doesn’t share.

Cr Paula Southgate said members of the public she had spoken to feel there is a dearth of ‘‘the people and the community’’ in the plan.

Cr Geoff Taylor said not everyone will agree with proposals in the plan.

Peacockes is core business, he said. It provides housing and is planning for the future.

‘‘My main bone of contention is the rate at which we try and claw back this deficit,’’ Taylor said.

Cr Rob Pascoe said the plan has significant detail and complexity.

‘‘There will be confusion. There is factual misunderstanding. I think that the letter that’s being sent out to ratepayers in the next few days will be a timely reminder of what’s in the long term plan because it will put a dollar value on the cost of funding the city,’’ Pascoe said.

‘‘We can expect there to be significant changes to this plan when it finally lands.’’

Mayor Andrew King said the detail in the plan is a major turnaround in how council reports to the public. ‘‘Balancing our books, looking after what we’ve got and having a future is exactly what leadership is about,’’ he said.

Verbal submissions will be heard in May and a final plan will be delivered by June.