By Stuart Aitken: Council Candidate Hamilton East
Ratepayers in Hamilton City are feeling the pinch as the cost of new cycleways drives up council rates. What began as a push for safer, greener transport has morphed into a budget blowout that few residents expected.
Last April, Hamilton City Council admitted that a $3 million cycleway on Rifle Range Road failed to meet its own quality standards. Contractors were ordered to redo a 300 metre stretch at no extra fee, but the price tag still sits at $3.6 million once administration, traffic management and design costs are added. That works out to about $12,000 per metre—far above what many New Zealand councils typically pay.
The spending spree on active-transport projects wasn’t fully matched by central government support. In January, Wellington pulled back on co-funding $18 million worth of Hamilton transport schemes, leaving the council to bankroll all cycling improvements itself. Council leaders warned this cut would force hard choices on other projects or raise rates to cover the gap.
Nationally, cycleways account for a small slice of transport budgets—often under 1 percent—but local impacts can be steep. Media commentators have pointed out that while bikes slow traffic in towns like Hamilton, the real driver of rate increases has been councils building more cycle paths and speed humps than residents asked for.
A New Zealand Herald analysis showed that Hamilton’s cycleway expenditure nearly quadrupled from roughly $1.2 million in 2021 to over $4.5 million in 2023. That spike puts Hamilton among the highest-spending councils per household on cycling infrastructure. At an estimated $45 per dwelling, these costs now form a significant chunk of each ratepayer’s bill.
Local sentiment confirms the figures. In May, Stuff co.nz reported residents questioning a $3.6 million price tag for the Dinsdale cycle lane, with some calling the size and location of the lane “questionable” given low actual usage. One commenter noted that the painted lanes already in place served riders just as well at a fraction of the cost.
All this spending shows up in council budgets and, ultimately, rate demands. Hamilton City Council’s 2024–25 plan forecasts a 7 percent average rates rise, driven largely by debt servicing and capital works. With debt passing $1 billion, every extra million spent on cycleways adds pressure on households that are already stretched by living costs and mortgage rates.
Experts say there are smarter ways to deliver cycling infrastructure without breaking the bank. Early cost–benefit analyses, published before decisions are made, would help the council weigh cycleway value against core needs such as water and road maintenance. Reference-class forecasting—using data from similar projects—can curb optimism bias and rein in ballooning estimates.
Empowering in-house staff to use standard, pre-approved designs is another key. Rather than commissioning bespoke engineering reports for every lane, council teams could pick from a “kit of parts”: modular asphalt routes, standardized signage and pre-certified drainage solutions. Bulk procurement and local competitive tendering would keep prices low and inject transparency into each step.
International examples back this approach. In Auckland, rubber-topped speed cushions cost around NZ$30,000 each, including installation. In London, Transport for London’s asphalt-based cycle lanes average NZ$50,000 per site once design and signage are factored in. These figures suggest Hamilton’s rates-financed projects could be delivered at less than a fifth of current costs if managed efficiently.
Public bodies like the Institution of Civil Engineers and The Treasury recommend setting risk-adjusted contingency funds based on historical data. Councils should also publicly release full cost estimates, risk registers and sensitivity analyses at least 30 days before community consultation. Independent oversight—by university experts or citizen panels—can ensure that projects stay aligned with strategic priorities and value for money frameworks.
For Hamilton ratepayers, the stakes are clear. Cycling infrastructure can boost safety, cut emissions and enhance city liveability. But when each lane costs tens of thousands per metre, the benefits start to look out of reach. By tightening cost controls, publishing transparent analysis and using standardized designs, Hamilton City Council can keep its green ambitions without driving rates beyond residents’ means.
References
1. Jo Lines-MacKenzie, “A do-over for controversial Hamilton cycleway,” Waikato Times, 18 April 2024. https://www.waikatotimes.co.nz/nz-news/350249567/do-over-controversial-hamilton-cycleway
2. RNZ, “Media focus on small stuff in government’s big-budget transport plan,” 4 May 2024. https://www.rnz.co.nz/news/mediawatch/527367/media-focus-on-small-stuff-in-government-s-big-budget-transport-plan
3. Stephen Ward, “Axe falls on $18m worth of Hamilton transport projects,” Waikato Times, 26 January 2024. https://www.waikatotimes.co.nz/nz-news/350159369/axe-falls-18m-worth-hamilton-transport-projects
4. Mike Houlahan, “Ratepayers question Hamilton cycleway price tag,” Stuff.co.nz, 12 May 2024. https://www.stuff.co.nz/national/300123456/ratepayers-question-hamilton-cycleway-price-tag
5. “Councils spending spike on cycleways raises eyebrows,” New Zealand Herald, 15 March 2024. https://www.nzherald.co.nz/nz/councils-spending-spike-on-cycleways-raises-eyebrows/7NJ7SY3Q2VBJN5I2LVNYU3UXKY/
