10-Year Plan 2018-2028

The Council sets out its priorities, plans and budget for the next decade in its 10-Year Plan. This plan is reviewed every three years and the current one 2015-25 10-Year Plan is now due for review.  In March 2018 the Council prepared a 2018-2028 10-Year Plan Consultation Document which outlined the four big challenges we face as a city, how the Council planned to address them and some alternative options.

The four challenges were:

Challenge 1: We are borrowing to pay for everyday costs. 
The Council put forward a preferred option of two years of 9.5% rate increases, moving immediately to a capital value rating system and introducing a $500 Uniform Annual General Charge (UAGC). There were another five options presenting different combinations of the above.

Challenge 2: Deciding where Hamilton’s next big housing area will be.
The Council put forward two options, Peacocke in the south of the city or Rotokauri in the northwest of the city.

Challenge 3: Improving Hamilton’s transport system.
The Council proposed an investment of $251 million in transport improvement across safety improvements, transport choices and managing congestion.  Two alternative options were proposed being invest at a lower level of 10% less or invest at a higher level of 10% more.

Challenge 4: Investing in community infrastructure.
The Council proposed nine projects at a cost of $70.7 million.  An additional six project that the Council considered but did not include were also provided.

Consultation was open from 29 March to 30 April 2018.  Submissions could be made through the online form, completing a paper form, or provided free text in email or letter.

We received 2189 submissions from the community on the 2018-28 10-Year Plan Consultation Document.  1756 of these were from individuals and 223 from organisations or business.  244 submitters presented verbal submissions over the week of 11-17 May 2018.

The feedback provided by comments and by the selection of options was summarised and provided to the elected members along with all the submissions. The full detail can be found here in the submission analysis report.

A summary of feedback to each challenge is outlined below:

Challenge 1: We are borrowing to pay for everyday costs. 
48% of those who answered the question supported keeping the rating system the same as it is now.  The key message from the commentary was that the amount of rate increase was too high and the Council should look for efficiencies to reduce costs.  Many businesses have budgeted to move to capital value rating over the remaining 7 years of the transition and would find an immediate move financially challenging.

Challenge 2: Deciding where Hamilton’s next big housing area will be.
Peacocke was the preferred choice selected by 73% of those who answered this question. The feedback commentary encouraged the Council to plan for the impact of more housing on transport congestion and to ensure community parks and hubs are provided as the new areas are developed.

Challenge 3: Improving Hamilton’s transport system.
The option to invest at a lower rate of 10% less was the most selected option by 50% of those who answered the question, followed by 40% who selected to do the full programme of $251 million.  The commentary feedback highlighted the community’s concern about safety on our roads, the need for improved public transport, the connection of cycleways for schools and improved safety for cyclists by separating cyclist from roads.

Challenge 4: Investing in community infrastructure.
Over 84% of those who answered the question did not think the 9 projects proposed by the Council were the right mix. The commentary feedback encouraged the Council to invest in community facilities, parks, sport parks, playgrounds and libraries. Many of the community thought having attractions were important for residents and for bringing visitors to the city. There was a strong message that ‘new’ projects should be delayed until the rates are at a more affordable level.

After two days of deliberations on the city's 10-Year Plan finishing on Friday 1 June, the Council has set the projects and budget for the decade ahead, subject to formal adoption on 28 June. The decisions on each challenge are outlined below.

Challenge 1:  We are borrowing to pay for everyday costs.
After considering verbal and written submissions through public consultation, and making changes to the draft Plan, average rates changes have been set at a 9.7% increase for 2018/19 and 3.8% annually after that. This is a reduction from the rates proposed in the draft 10-Year Plan of two years of 9.5% increases and an immediate transition to UAGC and capital value rating.

Over the next three years, the Council will complete the transition to full capital value rating, a process begun in 2015.

There will also be a three-year transition to a UAGC of $500. The transition amount for 2018/19 has been set at $165. The UAGC is a fixed portion of rates and not an additional charge. 

The Council has also required the Chief Executive to deliver an $83M reduction in operating expenses over the 10 years of the Plan.

Challenge 2: Deciding where Hamilton’s next big housing area will be.
The Peacocke growth cell is the Council’s preferred growth option, ahead of Rotokauri. Opening Peacocke for development is supported by a 10-year interest-free loan from the Government plus significant NZ Transport Agency subsidies and will include a new bridge across the Waikato River.

Challenge 3: Improving Hamilton’s transport system.
The full transport improvement programme of $251M has been endorsed, funding three investment areas – managing congestion, improving safety, and supporting transport choices such as walking, cycling and public transport. The Council has decided this programme provides the best option for meeting the transport needs of the city over the next 10 years and responds to the issues raised through submissions. More than half of the $251M programme is expected to be funded by subsidies from NZ Transport Agency.

Challenge 4: Investing in community infrastructure.
The Central City Park - River Plan proposal, a vision to purchase and demolish buildings to create a new park area and open Victoria St to the river, has been amended. The Council resolved to remove all funding in the proposed plan other than $7M to purchase property.

The Council resolved to support the proposed Waikato Regional Theatre, committing $25M to the $73M project. Philanthropic group Momentum Waikato is raising the remaining $48M from across the region, including a proposed $5M from the Waikato Regional Council. Hamilton City Council would not own or operate the new theatre but would support it with a $1.1M annual operating grant.

A $19.6M project for a community hub in Rototuna has been endorsed. The hub will include a library, public square, part of the development of a town centre in the suburb, and space for a swimming facility to be developed separately with a commercial operator.

A proposal for an entrance charge at Hamilton Gardens this year was not supported, the Council instead opting for a multi-faceted approach to funding the Gardens. This includes a targeted rate on all city ratepayers of $10 in the first year of the 2018-28 10-Year Plan, increasing by $1 per year for the following nine years. The Council also resolved to seek a proposal from the Hamilton Gardens Development Trust to complete the Gardens development and identify funding options which could include a future entrance fee for international visitors and enhanced donations.

Hamilton’s Playgrounds of the Future Plan has been supported with a resolution that one third of the funding to implement the plan is to be sought from external funders, and approving $5.5M in capital expenditure across the next 10 years.

The Council has also endorsed a $4M grant towards the construction of a new indoor recreation facility in partnership with the University of Waikato. This facility will be available for community use.

The Council has not supported the draft Plan’s proposal for an upgrade of Garden Place, but has requested staff seek expressions of interest from the private sector to fully fund improvements and has allocated $100,000 in Years 1-3 of the 10-Year Plan to support the Hamilton Central Business Association’s plans to activate the central city.

The city’s sports parks received a boost as the Council resolved to allocate $3M in capital expenditure in Years 2-4 of the 10-Year Plan for a programme of drainage and irrigation improvements, plus a further $711,000 in operating expenditure in Years 2-10.

Funding has been confirmed for a new fenced dog exercise area at a cost of $177,000, with the location to be decided following community consultation.