A fine-tooth comb has been put through Hamilton City Council’s draft 2023-24 Annual Plan budget multiple times, and now it’s the community’s turn to have their say.
Community feedback will be sought on Council’s approach to managing its finances, including a proposed increase for non-Hamiltonians to access the enclosed areas at Hamilton Gardens to an average of $20 per person from the end of 2023 or early 2024.
In its draft budget, Council has committed to keeping with the proposed 4.9% average rate increase set in the 2021-31 Long-Term Plan.
With a mixture of operational savings, additional revenue and $14.6 million government funding through the Better Off fund, Council’s projected balancing the books deficit had already reduced from $35 million to $17 million.
On top of this, yesterday (23 March) Councillors approved a further $3 million of cost savings or revenue increases – including the Hamilton Gardens charge for out-of-towners.
This brings the balancing books deficit to $14 million.
Following a lengthy debate, Councillors dismissed other savings options that they feared would have a detrimental impact on the delivery of programmes and services, and landed on the $3 million.
Council also approved the reduction of $34 million in the capital programme, resulting in a total capital programme of $340 million for the 2023-24 Annual Plan year.
While the financial future remains uncertain, Council staff really dug deep to reduce spend where they could said Mayor Paula Southgate.
"It’s been a very thorough and intensive exercise to get to this point. It’s important we now get the community’s feedback to ensure we’re on the right track.”
Public consultation is being developed for the draft budget and will open for feedback from early April here.
How Council got to this decision
Balancing our books means that everyday costs are paid for by everyday revenue.
When the 2021-31 Long-Term Plan was set, a balancing the books deficit of $2 million was forecast for 2023-24. In last year’s Annual Plan (2022-23) this increased to a $12 million deficit, mainly driven by increased inflation and depreciation.
Since then, significant external cost headwinds, largely from further increases in inflation and interest rates, have impacted Council’s 2023/24 balancing the books measure.