Parking across the city is to rise by 14 to 40 percent in the New Year.

Property taxes for those owning buildings in the City of Hamilton are also due to rise, by 2.5 percent.

Yesterday, Mayor Charles Gosling said the decrease in wharfage fees a result of less goods being imported to the Island meant the City has had to look to raise revenues elsewhere.

While he acknowledged the moves would be unpopular, he said the City had already reduced its budget but was still in a “vulnerable” position.

The City did not say what date the new fees would start but did outline the new prices:

l The hourly rate of parking on the street will increase from $1.75 to $2.

l The hourly rate for a spot in the City Hall or Par-la-Ville car parks will increase from $1.25 to $1.75.

l The hourly rate for a spot in Number 8 parking lot will increase from $1 to $1.5 an hour.

l A full day of parking at Bull’s Head will increase from $5 to $7.

The city will also be moving away from the parking voucher system now in place.

The electronic EasyPark system will be the only method of payment accepted, although a date has not been set. The City added they would have a large campaign to alert people of the changes.

The 2011 budget for the City will be $23 million, an 11 percent drop from the 2010 budget of $26 million.

The smaller budget leaves very little room for manoeuvering, with only $53,000 left over in surplus once all expenses are paid.

The recessionary budget means events across the city have been cut. A spokeswoman said none of the marquee events, such as Harbour Nights, the City Market and Summer Sundays in the Park would be affected.

Looking forward, Mr Gosling said he did not expect wharfage fees to increase.

“The GDP has declined, and I don’t think it is going to get better in 2011,” he said. “That is a pretty bold statement, but we have budgeted for that.

“This year we collected $1 million less than previous years and we expect next year will be the same. Wharfage is a third of our revenue so when that falls it is challenging.”

Next year could be the last year the City is allowed to collect wharfage. Earlier this year Parliament passed the Municipalities Act putting wharfage fees under Government and not the municipality, which has been the way for centuries.

“The City was told they are allowed collect wharfage in 2011 as an interim solution until details are sorted out.