Hamilton avoids inflation costs to bring in an average tax increase of 2.8 per cent

Thestar.com
April 1, 2022

Hamilton councillors managed to avoid a larger tax hike in 2022 by using a few accounting moves and agreeing to eliminate area rating on several services.

At their March 30 meeting, councillors approved a 2.8 per cent average tax increase that will mean households with a home assessed at $382,000 will pay about $120 more. But several councillors, including Stoney Creek’s Brad Clark and outgoing Flamborough Coun. Judi Partridge, pointed out that it has been years since any house has been sold at that price in their areas.

Even though the approved average tax increase is 2.8 per cent, it doesn’t necessarily mean homeowners will pay that hike. Each ward will see a different tax increase, and rates will vary between rural, suburban and downtown areas, with increases also determined by the level of area-rated services provided, said Mike Zegarac, corporate services general manager.

For instance, in Flamborough, which has minimal transit service, the average tax increase is projected to be 1.9 per cent.

Zegarac said the city is using the Jan. 1, 2016 market assessment for tax purposes. He said the province paused and suspended updating the market value assessment process during the pandemic. He said the province is expected to conduct a reassessment on properties in 2024 that could conceivable mean higher taxes.

“We came forward with a wise, prudent and affordable budget,” said Mayor Fred Eisenberger. “It is generally well below other municipalities.”

Councillors began their budget deliberations with a proposed average tax increase of over four per cent. They had also approved a target of two per cent, but Eisenberger later dismissed that goal as nothing more than the usual politicking.

Mountain Coun. Tom Jackson said the 2022 budget addresses all the needs of residents, including within his ward.

“This is a prudent and responsible budget increase,” said Jackson.

He said the city is spending $27 million to redevelop Macassa Lodge, while also funding commercial and industrial development, investing in transportation corridors, emergency services and maintaining libraries, recreation centres and parks.

“There are no facilities closing,” he said.

Ancaster Coun. Lloyd Ferguson, who criticized council’s spending over the budget talks, especially on adding another ambulance and more paramedic staff, ultimately approved the extra expense because “I didn’t want to leave people on the street.”

But he did vote against the wage increases for summer students, arguing council was essentially “bargaining for the union.”

The tax hike is almost one per cent higher than last year’ 1.9 per cent increase, but almost the same as 2020’s 2.9 per cent, which was approved just as the COVID-19 pandemic hit the community.

“This is a frugal budget,” said Stoney Creek Coun. Maria Pearson. “It just goes to show how difficult it gets every year.”

The budget included implementing year six of the 10-year transit master plan; investing nearly $600,000 in funding the city’s bike share program; just over $634,000 to boost the living wage for about 114 full-time staff at the city, summer student wage rate and the Hamilton Public Library; and $541,000 for a new ambulance with an additional staff member. The city is cost-sharing the $1-million price tag for the new ambulance with the province.

The city’s gross tax operating budget is about $1.6 billion.

Clark applauded staff for crafting a “good” budget that “didn’t take off like a rocket” because of the inflationary pressures that the country is feeling.

“Next year may be different,” he said. “It is a reasonable rate increase this year.”