Hamilton city council struggles to fund growth

Hamilton’s deputy mayor admits the council is still trying to figure out how to keep up with growth in the city, after the council voted against a 12% rates increase. 

Deputy Mayor Martin Gallagher said that Hamilton needs more funds to keep up with year to year costs as the population grows.

Gallagher believes voting no to the higher rate is “putting off the day of reckoning” with the council facing an unexpected $12 million shortfall in funds.

He acknowledged the current rates increase of 3.8% were still  “in excess of consumer price inflation.”

He thinks the council needs to get a better funding mix to fund facilities in the city of Hamilton.

One option involves an interest-free loan from the government for housing.  

“We’re currently negotiating with government around a housing infrastructure interest-free loan, we want to develop further parts of the city.”

He wants young people to be able to realise the Kiwi dream, allowing them a reasonable chance of getting a job and owning their first home.

“Part of that equation is the supply and demand of housing sections at an affordable price,” said Gallagher.

Hamilton is part of the “golden triangle”, a trio of cities including Auckland and Tauranga, he said.

Gallagher views Tauranga as a potential competitor city, as it has the advantages of the port, harbour, and beaches.

Hamilton’s advantage is the proximity to Auckland, education infrastructure, and high level of industry and research.

“We have significant population increase, and we will certainly see the impact of a super city and people looking to live, work and invest in the Hamilton-Tauranga areas,” said Gallagher.

“The big challenge is how we fund that growth.”