$2.2m Budget savings to reduce Rates increase

$2.2m Budget savings to reduce annual Rates increase

Recent tough economic times have prompted Hamilton City Council to consider a reduction in its proposed annual rates increase, to relieve financial pressure on ratepayers.

The annual average rates increase for existing ratepayers is proposed at 3.85%, made possible by reviewing costs and operating budgets, resulting in $2.2m of gross savings.

That is a reduction from the 4.66% proposed rates increase forecast for 2010/11 in the LTCCP, adopted last year.

Last year, Hamilton Mayor Bob Simcock asked staff to review the proposed rates increase and look for savings.

“There has been very close scrutiny of spending across all areas of Council, to achieve these savings to pass on to ratepayers,” Mr Simcock said.

“These savings reflect a goal of achieving operational efficiency, while ensuring the community continues to receive the expected high levels of service from Council."

The proposed rate reduction is in the 2010/11 Annual Plan, which details Council’s total annual operating expenditure of $189m.

There are savings across Council’s activities, including reduced labour costs, reprioritisation of some operating expenditure, efficiencies through improved business processes, and favourable contract negotiations.

In addition, there have been specific project savings, including a $100,000 reduction in the events sponsorship budget and reprioritisation of some capital renewal projects.

These savings have been partially offset by increased costs including ACC levies, and finance charges.

Significant projects to be progressed over the next 12 months include the construction of the Claudelands events centre, continuation of the CityHeart upgrade, review of the District Plan, further development of Wairere Drive, and upgrades of both the Water Treatment Station in Peacocke and the Wastewater Treatment plant in Pukete.

This draft Annual Plan anticipates that Council will retain its favourable AA- credit rating. This will help to ensure that Council continues to receive favourable borrowing terms for debt funding accessed from lenders.

The draft Annual Plan will be debated and considered by Council at an extraordinary meeting on Wednesday, 10 February.

ENDS