Finance staff propose property tax increase just under 8% for Hamilton in 2024

City councillors in Hamilton, Ont., will begin a process to mull over a potential property tax increase of 7.9 per cent next week after finance staff paired down an initial September projection that was almost double.

The proposed 2024 Budget will seek a 4.3 per cent residential property tax increase tied to city services in addition with funding of $19.2 million for housing and homelessness initiatives.

Finance and corporate services say some 2.6 per cent of the overall increase will cover what it characterizes as “impacts of new provincial legislation,” specifically from Bill 23, shifting new development costs in construction onto taxpayers.

Close to one per cent of taxes are earmarked for the city’s portion of a hospital redevelopment plan.

Staff say the average increase would equate to an annual bump of about $382 per household, including $175 per household to cover what staff say are impacts from the Ford government.

In December, Mayor Andrea Horwath said the “downloading and provincial pressures” on the tax bills will be “spelled out” as a matter of “transparency” to separate the city’s needs compared with impacts that are coming from provincial decisions.

“Many municipalities, and ours included, are going to be indicating what it is that pressure looks like on our tax bills so that people know … what the Hamilton city council bill looks like,” Horwath told Global News in December.

Council were given an initial recommendation of a 14.2 per cent residential tax increase from the city’s finance department in mid-September.

The outlook called for increased funding needs for the city’s healthy and safe communities division, capital financing, corporate financials and public works, accounting for $149 million of a $166 million increase needed from the levy.

One of the increased expenditures included $33 million toward the city’s affordable housing and homelessness crisis which is expected to address the estimated 1,700 currently unhoused in the municipality.

Meanwhile, city finance said some $63.6 million would be needed for the capital financing portfolio to absorb an anticipated $40.5 million in development charge exemptions created via the implementation of the province’s Bill 23 the More Homes Built Faster Act.

The deadline for residents’ opportunity to weigh in on the proposed budget is early next week.

A delegation day, scheduled for Tuesday, will allow the public to voice thoughts on how tax dollars will be spent.

Thoughts can be written in, given virtually or in person before a Monday deadline.

Other significant dates in the budget process include presentations with a general issues committee between Jan. 22 and 26 with deliberations on Jan. 30.

Council is expected to get it for a final vote on Feb. 15.