City Council approves 2022 Tax Supported Capital Budget

HAMILTON, ON – Today, Council approved the City of Hamilton’s 2022 Tax Supported Capital Budget. Council’s approval supports $280 million gross in capital infrastructure projects in addition to in-year approved capital projects in 2021, resulting in a gross 2022 capital budget of $386 million. The increase in capital funding from property taxes equates to an increase in the operating budget of 0.65 per cent or $6.2 million. This represents an increase of approximately $28 per year on an average household.

The City of Hamilton’s 2022 Tax Supported Capital Budget and 10-Year Tax Supported Capital Program supports the City’s Strategic Plan and Long-Term Capital Financing Plan.

Strategic objectives of the 2022 Tax Supported Capital Budget include:

• Maintaining existing assets in a state-of-good-repair and a commitment to asset management best practices;
• Resiliency and economic recovery in response to the COVID-19 global pandemic;
• Leveraging funding programs from senior levels of government for transit, culture and recreation, affordable housing, disaster mitigation and adaptation, long-term care and climate change initiatives;
• Continuing year six of the 10-Year Local Transit Strategy, as well as other commitments to support multi-modal transportation options across the municipality;
• Providing additional local funding for social housing repairs and renovations; and,
• Supporting integrated growth and development to ensure long-term sustainability and opportunities for residential and business development in the City.

The $6.2 million increase in the Capital Levy includes $4.8 million for discretionary capital block funding that is primarily for state-of-good-repair, as well as $1.4 million for debt servicing requirements of the municipal share of the Investing in Canada Infrastructure Program (ICIP) – Transit Stream and the West Harbour Waterfront Redevelopment. It is necessary to increase the Capital Levy in direct proportion to the increase in annual capital financing, debt servicing and development charges exemptions requirements in order to maintain the ratio between City-own source revenues as well as annual financial obligations. Doing so will ensure that the City’s AA+ credit rating is maintained and that fiscal flexibility is available to deal with future strategic initiatives and unplanned events.

In its report released on October 27, 2021, S&P Global Ratings affirmed that the City of Hamilton once again achieved a AA+ credit rating and stable outlook, as it has each year since June 2017. The rating agency suggests that Hamilton’s economy is aided by economic diversification and will recover as COVID-19 restrictions are eased.