Ratepayers: ‘We feel betrayed’

The first day of hearings into Hamilton City Council’s 2018-2028 10-Year Plan opened in chambers on Friday with businessman Glen Wallace saying the changes would mean a

125 per cent rates increase for him. That would stretch his ability to pay his lease, he said; ‘‘We do not get a choice as to what rates we pay as part of that.’’

‘‘We signed up for a seven-year lease on an understanding of decisions made by previous councils and we feel betrayed.’’

In 2015, council started a decadelong move to capital value rating, and carried on the rates certainty policy of 3.8 per cent annual rates rises.

In the latest three-year review, it’s proposing to increase rates by

9.5 per cent for two years running, move immediately to full capital value rating, and introduce a $500 Uniform Annual General Charge.

Wallace and his wife Fleur Wallace own Hot Gossip Bra Shop at Te Awa, The Base, employing eight staff.

The business runs on a financial knife edge, Wallace’s written submission said, and council’s preferred option would have a ‘‘significant and highly detrimental’’ effect on the business.

If council’s proposal goes ahead, his rates bill will increase by an ‘unsustainable and unacceptable’

$2800 in the 2019/20 year, the chartered accountant said.

‘‘We feel let down that council would even consider moving from it when businesses such as ours have no chance whatsoever to control our rates cost and we will bear the full burden, not our landlord, because that is what is written in the lease.’’

Waikato River Explorer owner and skipper Darren Mills launched into some scathing criticism of his own, but it wasn’t directed at council. He’d taken a few knocks over his support for the new city jetty, and took aim at city naysayers opposed to spending on development. People still think Hamilton is a ‘‘cow town and the river is something you look at while you travel across the bridge,’’ he said.

‘‘Sadly, these little rays of sunshine are probably the most vocal in their desire to promote Hamilton as somewhere to live and nothing much else. As a convert from Auckland, I see huge potential being realised here and a council passionate about creating a city worth living in.’’ Hamilton has some of the lowest rates in the country, he said.

‘‘I used to live in Auckland. I know that for a fact and I say a little more is required of us to fund growth and to continue to develop an amazing place to live and do business.’’

In Adam White’s written submission, he said rates increases are ‘‘manifestly unfair’’ and a ‘‘complete U-turn’’ of the previous position to phase in the rates change to capital value over 10-years.

Waikato Innovation Park chief executive officer Stuart Gordon said immediately moving rates to capital value would result in a 63 per cent increase at the park – $22 per square metre of floor space for tenants.

‘‘We think it’s an element of trust given that four years ago we sat around here talking about getting capital value over the line. Effectively, it’s an element of trust with council once you entered into that agreement.’’

City property developer Matt Stark said his tenants don’t want rates rises but if it happens, they want to see value for money.

‘‘If money is being spent it is worthwhile being spent on the river. That’s the view of our tenants,’’ Stark said. Hearings will be heard from May 11 to May 17.