Big increases proposed for some city fees and charges
More than a quarter of Hamilton City’s fees and charges are set to rise by more than 7% next year, reflecting higher costs and a move to user pays at market rates for the cash-strapped council.
Some percentage increases, up for endorsement at today’s council meeting, are in the double and even triple digits.
That compares to a consumer price index rise of 4.7% in the year to December.
A number of the higher increases aren’t big in dollar terms but they all come on top of proposed hefty double-digit rates rises for existing ratepayers.
As reported earlier by the Waikato Times, a rise of 19.9% is proposed for next year and 15.5% annually for the four years after that as Hamilton City Council struggles to deal with extra costs and manage debt.
On Tuesday, mayor Paula Southgate said of the proposed 20% increases in planning fees that “it’s got to do with the cost of developments”.
“That’s an area where we’ve got some of the highest cost increases.”
On other big rises, she said it was about “are we charging the right amount as we can’t impose [all costs] on the ratepayer”. “It’s a move towards more user pays.” A report to the meeting has proposed 7% of fees and charges are unchanged. Just under 40% were due to increase by an average rate of 6.3% for “inflation”. Another 27% were due to increase by more than 7%.
These include planning guidance-related increases of 17% to 20% for planning application deposits and fees to better reflect costs and “market rates”.
A deposit required for council work related to “complex” district plan change requests was set to jump more than 220% to $40,000, although this reflected a merging of existing first and second deposits into one fee.
Other triple-digit suggestions included a 370% rise in inspections of high-risk stormwater facilities to $587 to better reflect actual costs, as well as a 150% increase to $500 for responding to unpermitted water hydrant standpipe use.
A council spokesperson said of the proposed 20% increases in planning deposits that this reflected the extra complexity of applications.
“The increase in overall charge reflects the significant costs incurred by council to process plan changes and designations.”
Proposed building consent-related fee increases, however, are generally at 6%.
Councillors are also due to sign off on a public consultation document for the draft 2024/34 Long-Term Plan covering the big rates rises. It says the city’s operating expenditure is set to be $6.3 billion over the next 10 years, with investment of $5b in its largest capital programme to date.
Rate rises need to reflect the true cost of running the city, the document says.
In her draft foreword to the consultation document, Southgate says the council has worked hard to deliver a budget “focused just on the essentials”, with a range of costs cut or deferred.