Hamilton City Council will this week consider a reduced rates increase for 2026/27, with a proposal by Mayor Tim Macindoe recommending an average rise of 6.9%, down from the planned 10.4% increase.
In his Chair’s Report for Thursday’s Council meeting, Mayor Macindoe said: “I have worked closely with my Elected Member colleagues and our management team to develop options that provide immediate relief for Hamiltonians in the coming financial year.”
“We have looked closely at our spending and identified straightforward ways to reduce the original rates increase.”
Measures taken to reduce the planned increase without impacting levels of service include:
- Reducing the use of consultants
- Managing vacancies more tightly
- Lower interest costs due to decreased debt levels
- Increases in operating revenue.
Also contributing to reduced rates increase is a change to how depreciation is funded for recently completed infrastructure for future growth as well as for stormwater assets, ensuring today’s ratepayers are not covering the cost of infrastructure that primarily benefits future residents, the Council outlined in a statement.
The 6.9% average increase is a third lower than the 10.4% planned for 2026/27. For a residential property with a median capital value of $720,000, the 6.9% increase equates to an additional $196, compared with $295 under a 10.4% increase.
Mayor Macindoe said the report “sends a clear signal that we are listening and that we remain committed to easing financial pressure where we can”.
When combined with the proposed water charges set by the new water entity IAWAI, the total average increase is 9.8%, which equates to $370 for a median value residential property.
The draft Annual Plan 2026/27 is driven by the direction set in the Mayor’s Plan 2025-2028.
Click here to read the Council report.
Click here to make a submission on IAWAI’s proposed water charges.
