2024-34 Long-Term Plan 

Page 1 of 9

Closes 21 Apr 2024

How we plan to manage the city's finances

What we're asking:

We’re proposing average rates increases of 19.9% ($11 per week for a median-value residential property) in 2024/25, and 15.5% for the following four years (2025/26 to 2028/29). 

This will fund what is in our draft Long-Term Plan, and have the city’s everyday costs met by everyday revenue from 2026/27. 

Year 2024/ 25 2025/ 26 2026/ 27 2027/ 28 2028/ 29 2029/ 30 2030/ 31 2031/ 32 2032/ 33 2033/ 34
Average rates increase 19.9% 15.5% 15.5% 15.5% 15.5% 9% 5% 5% 5% 5%
Balancing the books (millions) -$38 -$10 $27 $72 $121 $154 $169 $183 $196 $224
Debt-to-revenue ratio 281% 273% 268% 268% 275% 274% 267% 257% 246% 234%
Net debt (millions) $1238 $1404 $1638 $1847 $2027 $2164 $2288 $2337 $2325 $2356

 

Why we're asking this: (click to open)

Given the unprecedented pressure on our budgets, a key focus of the draft Long-Term Plan is to make the rates rises as low as we possibly can next year. However, there is a strict debt cap that Council must not go over, which means we cannot balance the books any later than 2026/27, as we would be breaching our debt-to-revenue limit.  

We have ensured that the budget is focusing on the essentials, and deferred projects wherever possible. So in the short term, only the rates rises we’re proposing would enable us to stay within our financial limits. 

Our debt-to-revenue limit, as set by the Local Government Funding Agency, is 285% (i.e. $285 of debt for every $100 of income) in 2024-25, and 280% in all other years. To protect the city against unexpected cost rises or revenue falls, the debt-to-revenue ratio in our proposed budget is at least four percentage points below the limit in every year. The significant operating surpluses from 2026/27 are necessary to ensure we remain within the debt-to-revenue limit. 

Rates figures are included to provide an indicative impact to a median-value residential property. Individual property changes will vary dependent upon property value and rating category.

To find out more about our financial plans, or see what the rates would be for your property under this proposal, go to hamilton.govt.nz/futurehamilton

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