Debate simmers as 4.9% rates rise signed off
An average rates rise of 4.9% for Hamilton ratepayers has been confirmed by city councillors, despite one saying it’s inadequate and another claiming a ‘‘spending addiction’’.
Coming ahead of local government elections later this year, the rate of increase in the 2022-23 annual plan is well below inflation, which hit a 30-year high of 6.9% in the March quarter. It will lead to a $14 million deficit that will need to be covered by borrowing.
Mayor Paula Southgate said of the increase that she felt for the public at a time of high inflation ‘‘but we can’t run our city into the ground’’. The plan represented ‘‘a pretty good result overall’’.
But finance committee chairperson Rob Pascoe, one of three who voted against the plan, said the increase was ‘‘inadequate’’. On average, other New Zealand councils were looking at higher increases and ‘‘even our little brother down the road’’, Waikato Regional Council, had gone for a 7.7% rise.
A 4.9% rise meant Hamilton city would have to borrow too much, he said. ‘‘I’m still concerned that decision . . . creates a debt of $14 million.’’
Pascoe felt the council couldn’t keep growing the city with low levels of surplus.
He wanted councillors to put off adopting the plan and look at a higher rate of increase or reduced spending.
Another plan opponent, councillor Ewan Wilson, continued to lash out at some fellow members’ alleged overspending. ‘‘We haven’t stopped our spending addiction.’’
Payroll costs had topped $100 million ‘‘and we see no signs of spending discipline’’.
Deputy mayor Geoff Taylor, who also voted against, said the right balance hadn’t been struck, adding he felt like he was being a ‘‘tough parent’’. He said the $14 million debt was part of ‘‘a terrible legacy’’ for future ratepayers.
However, other councillors lined up to back the plan and the rates rise.
Councillor Dave Macpherson worried there could be a backlash if the council went with Pascoe’s suggestion.
‘‘If we can do steady, reasonably slow increases we can meet our needs in future.’’
Councillor Sarah Thomson said it was wrong to suggest some councillors were addicted to spending, noting that extra operational spending was limited and further cuts in this area would see service reductions in basic areas.
Councillor Angela O’Leary said ‘‘we know that times are tough’’ but added the council consulted the public on the annual plan. People had asked that debt was used so there weren’t service reductions. ‘‘We’re here to represent the people of Hamilton and they’re eyes wide open,’’ O’Leary said.
Councillor Mark Donovan believed that tough times would pass and it was important to create a good base for the future. ‘‘You don’t build a house from the roof down, you build it from the foundation upwards.’’
Councillor Martin Gallagher said he didn’t want a future generation to say the council had lacked vision. The right balance was needed between extra rates and more debt to ensure Hamilton was well set up. ‘‘We are a city in a very high growth trajectory.’’