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In-depth financial report identifies 10-Year Plan challenges
Wednesday 12 July 2017
A proposed approach to measure Hamilton City Council’s financial performance as part of discussions for the city’s 10-Year Plan was presented to councillors in a public briefing session today.
The … View moreIn-depth financial report identifies 10-Year Plan challenges
Wednesday 12 July 2017
A proposed approach to measure Hamilton City Council’s financial performance as part of discussions for the city’s 10-Year Plan was presented to councillors in a public briefing session today.
The Financial Strategy Assessment by PwC identified the key financial challenges for Hamilton in coming years. The report took the 2015-25 10-Year Plan as a starting point and looked at the current and future economic landscape and whether the existing financial approach is the best for the city in the new economic environment.
A revised approach was recommended to ensure the annual costs to run the city are met by the annual operating revenue. The new measure excludes vested assets, all capital subsidies (new roads) and 65% of development contribution revenue (DC revenue).
Under this approach, to maintain day to day operations and the community expectations from the last annual plan, the city would have needed to increase base revenue this financial year by 11.7 per cent, or find cost savings of $12.1M, or a combination of both. This adjustment does not take into account inflationary cost increases, new funding requirements in the coming 10-Year Plan, or growth challenges.
Hamilton City Council Chief Executive Richard Briggs says he will be recommending the PwC approach to the Council’s Revenue Task Force.
“The report is consistent with the financial data supplied to councillors in March of this year which identified the Council needs to address a gap between its base revenue sources and the day-to-day costs to run the city.
“In simple terms, the costs of running the city in the future will not be covered by the rates income and user fees and charges we have budgeted,” Mr Briggs says.
“The report also confirms there are significant growth pressures and a number of unfunded plans and strategies which Council and the community will need to consider as Hamilton sets its priorities during the 10-Year Plan process,” he says.
“Hamilton is experiencing growth increases far beyond what was expected in 2012, when we last set the financial strategy. That strategy was appropriate at the time but six years later we have a totally different economic landscape.
“Base costs to provide services to the city have increased and new legislative requirements have resulted in increased maintenance and capital expenditure costs for our existing assets.
“The Housing Infrastructure Fund proposals are a separate issue and are part of the growth picture – today’s PwC report is about base operating costs and revenues,” Mr Briggs says.
“How this funding gap is addressed is one of the challenges facing the Council – no decisions have yet been made – and today is part of a series of briefings to provide councillors with the best information as we develop our long term plan,” Mr Briggs says.
Earlier this year the Council voted to keep rates increases at an average of 3.8% for 2017/18, as originally proposed. How the city funds its activities in the future will be determined through the 2018-2028 10-Year Plan.
The 10-Year Plan is the blueprint for how Hamilton will build a stronger economy and a more attractive city for families. The Plan is about how the city balances three areas: growth, levels of service and the financial strategy, and will go out for public consultation in early 2018.
Hi neighbours! Hamilton City Council have urged residents to improve their roundabout respect. It's almost every day I witness an almost-accident at a roundabout! Have you seen near-misses at a roundabout in Hamilton? Is there one that is particularly bad for dodgy drivers? Comment below! If … View moreHi neighbours! Hamilton City Council have urged residents to improve their roundabout respect. It's almost every day I witness an almost-accident at a roundabout! Have you seen near-misses at a roundabout in Hamilton? Is there one that is particularly bad for dodgy drivers? Comment below! If you want to test your roundabout skills, follow the link and be in to win!
*Please write NFP if you do not want your comments published*
To all Neighbourly Redlid Garden Bins & Bags customers don't forget to enter our $100 credit draw due this Friday. All you need to do is start following us or recommend us. Thanks to all.
Come along to one of our FREE info sessions to have your all questions answered.
Building a new home is an exciting adventure and Jennian Homes has been building the homes New Zealanders want for over 34 years.
Come and learn from the experts about the hidden costs of building and how to avoid… View moreCome along to one of our FREE info sessions to have your all questions answered.
Building a new home is an exciting adventure and Jennian Homes has been building the homes New Zealanders want for over 34 years.
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Hi neighbours! I'm looking to have a chat with someone who took part in one of Hamilton's early Round the Bridges events. Did you, or someone you know, participate in 1997-2007? If so drop me a line at kelley.tantau@fairfaxmedia.co.nz!
Hello neighbours,
Last year, this amazing lady from your neighbourhood was named the GARDENA Gardener of the Year. Vera Farrant had raised $100,000 for Habitat for Humanity by selling plants.
Nominations for the 2017 GARDENA Gardener of the Year is now open! Can Hamilton make it 2 years in … View moreHello neighbours,
Last year, this amazing lady from your neighbourhood was named the GARDENA Gardener of the Year. Vera Farrant had raised $100,000 for Habitat for Humanity by selling plants.
Nominations for the 2017 GARDENA Gardener of the Year is now open! Can Hamilton make it 2 years in a row? Surely there are other superheroes like Vera doing terrific work in your community. Send your nominations to NZ Gardener, PO Box 6341, Wellesley St, Auckland. You can also enter on our website, nzgardener.co.nz.
We invited a member of the Neighbourly team to give an electric car a go for a couple of weeks. Find out what Sarah learnt about city living with an 'EV' and what our plans are for our staff fleet over the next few months!
When it comes to preventing crime, a nosy neighbour is considered a good neighbour. With 11,200 hou…
Hi neighbours! If you haven't received your enrolment update pack, you may not be enrolled to vote in the General Election. Make sure you're ready to vote! Enrol, check, or update your details now.
Hello neighbours,
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So much has been said about this series but when all said and done it comes down to a good end for the future. I enjoyed the days when Warren Gatland was the Waikato hooker and I also flatted with him and Trudi. congratulations on him doing so well and giving us a very good challenge.
Looking for any recommendations from an electrician and advice on second light burning light bulbs into sockets - unable to get fitting out and I will need another light fitted .... this only happens in the kitchen ... light flickers for awhile before breaking or burning into the socket - thanks … View moreLooking for any recommendations from an electrician and advice on second light burning light bulbs into sockets - unable to get fitting out and I will need another light fitted .... this only happens in the kitchen ... light flickers for awhile before breaking or burning into the socket - thanks all for your help
Hey everyone, it's World Chocolate Day this Friday 7th July. Please comment below with your favourite type of chocolate. Mine is Lindt Lindor :)
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