Mayor and Chief Executive Overview 2006-16

From Mayor Michael Redman and Chief Executive Tony Marryatt

Hamilton is in the midst of a substantial growth phase in which it is emerging as a sophisticated metropolitan city. Council's 2006–16 Long-Term Plan provides a blueprint for the exciting development of Hamilton over the next 10 years. The plan is based on predicted growth of 11,000 new homes and a population increase of around 28,000 people over the next 10 years. This plan is distinct from its predecessors in that it both responds to and drives city growth with greater balance and flexibility.

Financial comment

Another first in this budget is the inclusion of an inflation adjustment in the financial estimates, which results in a cumulative impact of $108m (a 24 per cent increase) in costs over the 10-year period.

To address the issue of the cost of funding growth, the Development and Financial Contributions Levy introduced in July 2005 will generate $232.417m income over the next 10 years. Council has also agreed on a further debt repayment programme that will eliminate an additional $1.8m per year of debt above the existing debt repayment levels, beginning in the 2009/10 financial year.

The plan outlines various changes to Council's rating system. An adjustment to the rates rebate scheme will enable greater eligibility for those experiencing financial hardship to claim a rates rebate. Council has also fixed anomalies in the rating system. Over a number of years, some commercial properties sitting as vacant land have been under-rated. Council will now charge these properties at the full commercial/industrial rate. Council is also removing rates discounts to several rating categories to ensure there are no inconsistencies in the Rating Policy from the 2007/08 rating year.

Rate increases over the 10-year period to existing ratepayers average just over 2 per cent above the CPI (Consumer Price Index), including additional Access Hamilton targeted rates in 2008/09, 2010/11 and 2011/12.

Major developments

Some of the major developments planned for Hamilton over the next 10 years include the City Design Strategy – implementation of CityScope, the CBD Upgrade ($25.845m) and the Access Hamilton transport strategy ($195.299m). Access Hamilton projects include the E1 east Hamilton arterial route ($48.066m – including land purchase), Wairere Drive ($71.973m), River Road commuter car park ($11.77m), bus infrastructure ($806,100) and the development of city walkway and cycleway systems ($15.92m).

Other key projects include major roading projects for the growth cells in Rotokauri ($103.538m) and Rototuna ($83.020m), redevelopment of Claudelands Events Centre which includes the new conference centre ($17.324m) and a proposed 5000-seat indoor stadium ($26.437m), land purchases for reserves ($48.661m), a new library ($17.756m) and pool complex ($15.616m) in the northeast sector, wastewater treatment plant upgrade ($15.101m) and water treatment station upgrade ($21.641m).

Provision has also been made in the Long-Term Plan to progress the Rotokauri, Rototuna and Peacocke growth cells. Council is providing for the initial development of around 500 sections in the Peacocke area commencing in 2008, four years ahead of the previously programmed start date. Council will be revisiting future growth in the Peacocke area at the review of the next Long-Term Plan in three years time.

With a focus on growing the events dimension of the City Council has increased the Events Sponsorship Fund and secured, subject to resource consent, the Australian V8 Supercars Streetrace event as well as the World Rally Championships and is host city for the World Rowing Championships in 2010.

Submission process

The 2006–16 Long-Term Plan was finalised on 13 June 2006 following a consultation and submission period which drew a strong response. Council received 202 written submissions to its Proposed 2006–16 Long-Term Plan of which 94 submitters made a verbal presentation in support of their submission. Council adopted its Long-Term Plan on 30 June 2006 with a clear opinion from Audit New Zealand.

Council extends its thanks to those who made a submission to its Proposed 2006–16 Long-Term Plan. The key changes made to the Long-Term Plan as a result of the submission process are outlined elsewhere (Changes made to Plan as a result of submission process). These include provision for upgrading The Meteor theatre, additional funding for ongoing development of Hamilton Gardens, a contribution towards the construction of an indoor tennis facility at Lugton Park and the design and conditional part-funding for construction of a hydrotherapy pool at Waterworld. Council has also made funding provision for a five hectare residential subdivision at Waiwhakareke Lake that showcases environmentally sustainable design and initiatives.