Mayor Southgate: City rates freeze a maybe

Councils around the country are scrambling to mitigate the impact of Covid-19 on their finances – and, subsequently, on the pockets of their ratepayers.

In Hamilton, mayor Paula Southgate said she was unable to rule in or out a possible rates freeze.

If the Hamilton City Council sticks to the plan it established in its long term plan, ratepayers will be looking at a rates increase of 3.8 per cent in this year’s annual plan.

While there was potential for this to be knocked down to zero, this was something Southgate was unable to say would or could happen. ‘‘I don’t think [the 3.8 per cent increase] is set in stone.’’

Likewise, she would not say whether she would be advocating for council chief executive Richard Briggs to make a ‘‘salary sacrifice’’.

‘‘That’s not an area I can get involved in. I couldn’t speculate.’’

Briggs was recently awarded a $16,000 increase to his salary, taking his overall pay package, including KiwiSaver, to $469,040. Briggs was not available yesterday to answer questions about whether he or other senior management would consider taking pay cuts.

‘‘This is really going to hurt people and there are going to be some far-reaching consequences,’’

Southgate said. ‘‘I will be asking Richard and his team to look at any areas where cost saving could be made.’’

Southgate said she needed to talk to councillors and have more talks with Briggs before making any decision on the council’s response.

‘‘Every council in New Zealand will be thinking about the impact on their communities. I really feel for those running small businesses and those holding events in particular. Some of those events have taken a year or more to put together.’’

Venues such as FMG Stadium Waikato and the Claudelands Events Centre made a big contribution to council income streams but, given the indefinite suspension of the Super Rugby season and the cancellation or partial cancellation of events like the Waikato Show, that source of revenue was quickly drying up.

However the council’s venues, tourism and major events general manager Sean Murray was not able to quantify how big the hit would be. ‘‘At this stage we are still ascertaining what the impact will be – it is too early to tell although we do know that a number of Hamilton businesses who provide service and support to our events and venues will see a noticeable impact on their business levels. Our priority is supporting our partners, hosts and venue users and ensuring staff and the public remain safe during this evolving situation.

‘‘Every council in New Zealand will be thinking about the impact on their communities.’’ Paula Southgate

Hamilton mayor