Rates Increase

Geoff from Rototuna North

A Ratepayers Perspective on Rates Rises
All the rhetoric, statements and documents portray that the proposed 15.5% (or 2x 9.5%) rates rise in the budget of the 10 Year Plan is needed to stem the bleeding of borrowing $10 million per year to fund the shortfall in the day to day running of the city. However that has not been communicated well, most people and all of the candidates' bar one in the recent by-election believed that the proposed rates rise is to fund growth, particularly Peacockes.

Current Rate take $153.747 million + 9.5% rate Rise = $168.353 million ($14.6 million rise)

New Rate take $168.353 million + 9.5% rate rise = $184.346 million (another $15.994 million) without the property valuation, effectively the figure will be more (a lot more).

At a bare minimum, the 2 x 9.5% rates rise council will gain a nett increase of $30.599 million over 2 years. That exceeds any of the figures over the numbers of years that the borrowing occurred.

The 10 Year Plan must have been written by extra-terrestrials for the dyslectic it is confusing particularly because it is contradictory rather than complimentary.

The issue is the projected $30.599 million gain in revenue vs the $4 million pa shortfall in the day to day running of the city, particularly in view that Hamilton’s economy only grew by 2.8% for the year considerably below the any of the proposed rates increases.

The attached tables clearly indicate that it appears illogical to increase rates by 107.98% when the revenue base only increases by 27.45%.

Ratepayer Growth (Increase) over 10 Year Plan 16, 056 $27.45%

Rates Increase over 10 Year Plan $165.283 million 107.98%

A Ratepayers Perspective on Rates Rises (Table).docx Download View