Hamilton City Council has confirmed its 2026/27 Draft Annual Plan, which will see the average rates increase reduced from 10.4% to 6.9%.
Council has achieved the rates increase reduction without any impact on the services residents currently receive.
Costs have been cut by reducing the use of consultants, managing vacancies more tightly and lower interest expenses due to decreased debt levels.
Council is also taking an innovative approach to how it funds depreciation for recently completed infrastructure for future growth as well as for stormwater assets.
For a residential property with a median capital value of $720,000, the 6.9% increase equates to an additional $196 for existing ratepayers, compared with $295 under a 10.4% increase. As outlined in The Mayor’s Plan 2025-2028, financial responsibility is a core focus for Council.
Mayor Tim Macindoe said reducing rates pressure has been a priority since the day of his election.
“I am committed to reducing the rates burden on Hamiltonians, without compromising the services, infrastructure, and attractions that our growing city needs and values. This is what the public have asked for loud and clear, and we are listening.
“We are focused on finding the right balance between immediate relief for rate payers, and prudent financial management for Hamilton, now and in the future.
“A 6.9% increase is still significant, particularly with cost-of-living pressures, including rising fuel prices rises linked to the Middle East conflict.
“However, it is a meaningful reduction from what was previously signalled, and a step in the right direction towards meeting both community and central government expectations.
“The Long-Term Plan will give us the opportunity to step back and take a broader, more disciplined view of our finances — to position Hamilton well for the future and respond to what lies ahead in a sustainable and responsible way.”
Across all of Council’s main metrics, the financial position presented in the Draft Annual Plan budget is improved compared to what was anticipated for Year 3 of the Long-Term Plan.
Chief Financial Officer Gary Connolly said: “That means we are not proposing to draw down any new debt to fund any everyday operating activities. That’s a strong position and an important signal of financial discipline, signaling consistent improvement year on year across the last three years.”