Hamilton Mayor Andrea Horwath has instructed city staff to limit this year’s property tax increase to 4.25 percent, citing it as a reasonable municipal inflation rate without compromising service levels. This marks a decrease from last year’s 5.6 percent increase and the previous year’s 5.8 percent rise. Horwath emphasized the importance of affordability, community safety, well-being, and infrastructure upkeep following feedback from September’s budget engagement sessions.
An online survey is available for residents to provide input until October 10. The mayor expressed dissatisfaction with the current staff culture and aims for a more specific budgeting process to enhance efficiency. She stressed the need for all staff levels to align with the directive for meaningful progress.
Horwath highlighted the necessity to maintain infrastructure investments, community safety, and service levels while seeking savings through operational enhancements and cost-saving strategies. She emphasized the importance of preventing any regression in infrastructure investments and proposed exploring new revenue sources for the city.
Under the mayor’s enhanced authority granted by the “strong mayor” powers in 2023, she has significant control over the budgeting process. Political science experts noted the directive’s specific outcomes while allowing room for council input within defined parameters. The directive may face challenges in meeting the 4.25 percent tax increase target without service cuts, potentially impacting the mayor’s approval.
The directive also calls for integrating operating, capital, and rate budgets to enhance transparency and accountability. Experts urge clearer budget information accessible to all residents to better understand the city’s financial status. Efforts are needed to improve Hamilton’s budget transparency and align accounting standards for effective financial reporting.