There’s a tough road ahead for the 16 people who are elected to Hamilton’s next city council this fall.
Mike Zegarac, Hamilton’s general manager of corporate services, presented his three-year budget outlook during a meeting of the general issues committee.
Zegarac is forecasting a 6.9 per cent tax increase in 2023 to achieve a billion-dollar budget that would maintain current service levels with enhancements in affordable housing and emergency services.
Zegarac said insufficient funding to address recovery from the COVID-19 pandemic and inflation tops the city’s list of financial pressures.
“Fuel prices have increased approximately 50 per cent,” Zegarac said, “which have also impacted contracted services secured by the city.”
In addition to a 6.9 per cent tax hike next year, the outlook projects a 4.3 per cent tax increase in 2024 and a 2.9 per cent bump in 2025.
After receiving about $160 million in COVID-19 funding in 2020 and 2021, and about $44 million in 2022 from the provincial and federal governments, Zegarac said the city is faced with covering about $23 million in expenses going forward, without further monies.
Zegarac said insufficient funding to address pandemic recovery is principally related to the “homeless serving system, public health, long term care, decreases in revenues in transit, recreation, parking and OLG shared revenues.”
In 2022, Hamilton City Council approved a 2.8 per cent tax increase.
Comments