City councillors have approved a residential tax increase for Hamilton that will see the rate go up just over 5.8 per cent equating to $262 for the average residential property.
The increase is lower than the 6.9 per cent tossed about in talks last year to achieve a $1.07 billion budget, maintaining current service levels with enhancements in affordable housing and emergency services.
Mike Zegarac, general manager of finance and corporate services, said the adjustment shaves about $9 million off the final number.
Segments that will see a bump in funding include housing which will see a 30 per cent increase to just over $70.1 million; the HSR will get an 8.0 per cent increase translating to 49,000 additional hours of service; and safety-related programs, including Hamilton paramedics, will get a 16 per cent increase.
Prior to a final vote, Mayor Andrea Horwath revealed new adjustments tied to new funding streams announced in last week’s provincial budget, as well as extra funds from other revenue sources.
Hamilton’s inclusion in a $202-million homelessness prevention program from the province, as well as larger-than-expected revenues from Ontario Lottery and Gaming Corporation, were part of the changes that helped lower the levy.
Additionally, provincial funding offsetting tax revenue losses related to changes in the taxation of nonprofit long-term care facilities, and an alteration in a recruitment and retention strategy budget also reduced the burden on taxpayers.
Horwath said despite “a great desire for enhancements and changes” in the budget, she had “real concern” about increasing the financial burden on community members.
“I realize it was a long and arduous process and I realize it’s tough out at this moment in time to just suddenly approve an amendment,” Horwath said.
“But I wanted to assure the members of council that this amendment, it comes after a great conversation, a great deal of conversation with the staff.”
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Zegarac added that some $16.6 million in reserve money initially earmarked for “COVID-related pressures” will not be needed as it will be absorbed through departmental surpluses from 2022.
Most of the funding sources in the budget are from sustainable locations with the exception of the long-term care money, $1.5 million, which Zegaric said could be supported by the COVID reserve.
Stoney Creek Counc. Brad Clark cited concerns about overall affordability, particularly constituents with fixed incomes who he says told him “to hold the line.”
“These increased costs without the support from the province, means we are quite literally pushing people into the streets as opposed to ensuring they can stay in their home,” Clark said prior to deciding not to support the final levy.
Ward 6 Counc. Tom Jackson said one of his primary worries surrounds a delayed market value assessment that’s been held off by the province for close to seven years which he believes will put the average house assessment in the $600,000 range instead of the current $383,000.
He added he was hoping to keep the starting number for the next budget at or around 4.5 or 5.0 per cent.
“I’m just worried that this 5.8 may just be exactly the average, if not possibly increase over the next three years based on the foundation if … approved,” said Jackson.
Ward 2 Counc. Cameron Kroetsch and Ward 8’s John-Paul Danko questioned a drop in an initial commitment of $2.6 million for the YWCA, now down to just $2 million.
Kroetsch, who says the YWCA’s harm reduction service improvements are “astounding,” characterized the move as “nickel and diming them” over an amount he considered “not significant.”
“That’s what this is to me, because this $600,000 does not represent a significant amount on our levy,” Kroetsch insisted. “It represents a couple of dollars a year for the … the average taxpayer … and (the YWCA) desperately need this money.”
However, Ward 10’s Craig Cassar suggested the budget, as it is, makes “wise investments to prevent things from getting worse.”
“If you do not spend money in this budget the way we have proposed, I think things will get a lot more expensive in the future.”
Hamilton’s levy is generally middle of the pack compared to a number neighbouring Ontario municipalities.
Burlington will see a 7.5 per cent tax increase in 2023, Toronto is at 7.0 per cent, while Mississauga and Guelph will come in at 5.3 per cent and 4.5 per cent, respectively.
A majority of councillors opted to OK the numbers in a close vote, 10 for and six against.
In favour included: Horwath, councillors Maureen Wilson (Ward 1), Cameron Kroetsch (Ward 2), Nrinder Nann (Ward 3), Tammy Hwang (Ward 4), Esther Pauls (Ward 7), John-Paul Danko (Ward 8), Craig Cassar (Ward 12), A. Wilson (Ward 13) and Ted McMeekin (Ward 15).
Naysayers were Matt Francis (Ward 5), Tom Jackson (Ward 6), Brad Clark (Ward 9), Jeff Beattie (Ward 10), Mark Tadeson (Ward 11) and Mike Spadafora (Ward 14).
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