Mayor on money

I wish to set the record straight on my financial leadership. As mayor, it is my role to lead the Long-Term Plan, including presenting the budget to councillors for consideration and debate, based on expert advice and community input.

I made tough calls and significant cuts to spending, given the financial pressures. What I presented was the minimum budget needed to maintain our fast-growing city and the services we provide.

Cuts included:

- Removing or deferring $130 million of capital projects over the first three years, and $100 million over 10 years (removing 14 % of the capital programme in total). - Cutting or deferring more than 40% from non-urgent transport upgrades in the first three years – and making significant reductions (more than $53 million over 10 years) to non-urgent transport upgrades. - Supporting the chief executive to rightsize the organisation, saving an additional $7 million in 2024/25, and $8 million per year after that.

- Reducing funding for external partners saving $488,000 per year.

- Stopping funding for cat-desexing programmes – saving $100,000 per year. - Reducing funding for community grants – saving $106,000 per year.

- Reducing funding for event sponsorship – saving $100,000 per year.

It is clear that double digit rates rises are not sustainable or affordable for large parts of our community. I initially proposed an 18.6% rates rise, alongside these cuts, to spread the burden.

After much debate, council voted for 25.5% to fund the budget. This was a huge change after many years of many councillors keeping rates artificially low, and not keeping up with the true cost to run our city. More recently, council agreed to 19.9%, close to my initial proposal.

Council also decided to reduce additional staff costs by 7% and consultancy costs by 10% starting in year 2 of the draft LongTerm Plan budget. I am open to exploring all options to reduce costs, but I did not vote for further staff cuts, due to limited information about the impact on council’s services. I strongly support the chief executive’s existing work to right-size the organisation. We need to consider all the facts, so our community feel empowered to make an informed decision. I personally don’t support closing libraries, pools, parks - or not fixing potholes in roads. These services are an integral part of council’s work - and what Hamiltonians value. These are the types of impacts that further cuts will likely have on our city.

My role as mayor is not about exercising authority but about fostering dialogue and consensus-building to ensure decisions are made in the residents’ best interest. While I bring expertise and vision to the table, I am only one voice. I can propose and advocate for certain measures but final decisions are made collectively.

The public are the final piece of the democracy puzzle and I strongly encourage their active participation and feedback during the Long Term Plan consultation period from 19 March – 21 April.

Paula Southgate, Hamilton mayor (abridged)