Hamilton tax increase whittled down to less than 4% after councillors’ amendments

After working through motions from Hamilton councillors looking to add and subtract items from the city’s proposal 2026 budget, homeowners are now looking at a 3.87 per cent tax increase.

Mayor Andrea Horwath has just over a week to veto any of the budget amendments, and if she doesn’t, the budget will be adopted as is.

Council concluded its final budget meeting on Thursday, approving the results of two previous meetings where councillors made their cases for changes to the version of the budget initially proposed by the mayor. That budget would have meant a 4.25 per cent residential tax increase — about $228 for the average home assessed at $387,100. 

The budget as amended would see homeowners pay $209 on a house of the same value.

“Council’s review and amendments reflect a shared commitment to affordability, essential services, and making strategic investments that strengthen our community today and for the future,” said Howarth, who voted in favour of many of the amendments proposed by her colleagues. 

“With many Hamiltonians feeling the real pressure of rising costs, this budget process has been about getting the balance right — protecting the services people rely on while being responsible with every tax dollar,” she said in a news release issued on Thursday.

Under the “strong mayor” powers granted by the province, Horwath has 10 days to veto amendments. If she does exercise her veto, there will be a 15-day period during which councillors can attempt to override the veto, for which they require a two-thirds majority. 

Among the biggest reductions proposed by councillors was a deferral of $3 million to next year's budget to pay for previously approved development charge exemptions.

The exemptions have added to the city’s infrastructure spending shortfall of $5.2 billion, says a motion from Ward 12 Coun. Craig Cassar and Ward 10 Coun. Jeff Beattie.

The city has adopted a 10-year plan to close this infrastructure spending gap for core assets and 25 years for “non-core” assets. Deferring $3 billion “would reduce the burden on the 2026 tax levy without affecting services or capital investment plans,” says their motion, which passed 12 to 4. 

This was one of the motions on which Horwath voted no, potentially earmarking it for her veto. However, with a 12-4 vote, councillors appear to have more than the two-thirds majority required to override her veto if they all voted the same way at that time.

The motions proposed by councillors included two that trim money allocated for contingency funds for capital projects, such as two proposed by Mark Tadeson and Beattie that will reduce contingency funds for two city departments’ projects by 3 per cent.

For the Planning and Economic Development department, that amounts to a trim of $182,490, and for Public Works, that would be $593,000.

Councillors also approved a deferral to 2027 of $706,580 to build a bike bridge across the Red Hill expressway, saying the project timelines would not have it start in 2026 in any case.