City of Hamilton introduces Proposed 2025 Tax Budget

HAMILTON, ON – At the January 23 meeting of the General Issues Committee, the City of Hamilton introduced its Proposed 2025 Tax Budget, with an overview provided by the General Manager, Finance and Corporate Services. The proposed budget aims to address the City’s growing service needs and demands while managing affordability for residents, aligning with the Mayor’s directives under the “Strong Mayor” legislation.

This year’s budget reflects the City’s commitment to responsible stewardship of resources, balancing the need to maintain City services, invest in key priorities, and plan for long-term success. With strategic investments in crucial areas such as housing and homelessness, critical infrastructure like roads and transit, cyber recovery and resiliency, and public safety, emergency services, and long-term care, the 2025 budget focuses on addressing Hamilton’s immediate needs while ensuring long-term financial sustainability and managing resources responsibly.

"The 2025 budget is grounded in the principles of building back better and stronger - with a focus on responsible decision-making to address our most pressing challenges,” said Mayor Andrea Horwath. “It is critical we balance the economic challenges our entire community is facing, particularly with the rising cost of living and the ongoing affordability crisis, but the fact is the cost of neglecting investments in infrastructure can no longer be ignored. We are committed to making responsible and necessary investments, and providing services Hamiltonians rely on every day - ensuring a secure future for generations to come.”

“The proposed 2025 budget reflects our commitment to responsible decision making while ensuring the services Hamiltonians rely on are preserved and enhanced,” said Marnie Cluckie, City Manager. “Staff have worked diligently to balance affordability with increasing demands, all while adapting to changing provincial legislation and levels of funding. This budget is designed to support our residents today while preparing for the challenges and opportunities of tomorrow.”

Balanced approach to funding and affordability

In the face of challenges such as inflation and rising service demands, the City has taken a balanced approach - prioritizing spending where it is needed most, identifying efficiencies, and seeking to deliver value to Hamiltonians. To reduce the financial impact on homeowners, the budget proposed strategic use of reserves and explored revenue streams.

Through a careful review and strategic adjustments, City staff have identified operational efficiencies, resulting in cost reductions without compromising quality of services for residents. These efforts have resulted in additional adjustments, bringing the revised proposed residential tax increase to 5.7%, a reduction from the earlier proposed 6.3% increase and the initial forecast of 8.2%.

Investing in housing, homelessness, and infrastructure

The City remains committed to addressing housing and homelessness challenges through targeted investments, including:

• Expanding temporary shelter beds and managing encampments
• Advancing the Housing Sustainability and Investment Roadmap to increase affordable housing options

The 2025 budget helps the City remain on track to deliver 2,675 new housing units through the Housing Accelerator Fund, supporting the province’s target of building 1.5 million homes over the next decade.

Long-term financial planning and infrastructure investments

The City’s proposed 2025 budget includes $655 million in capital investments, focusing on maintaining and enhancing the City’s infrastructure to ensure economic and environmental sustainability in the future. Key projects focus on:

• Investing in critical transportation infrastructure projects (roads, bridges, active transportation) to provide state-of-good-repair and support Hamilton’s growth and development
• Investing in transit (such as the Transit and Maintenance Storage Facility and the replacement of 18 HSR buses and 16 buses for expanded transit services)
• Supporting public safety, emergency services, and long-term care needs (such as a Paramedic Central Reporting Station, Fire and Police Waterdown Station, and Macassa Lodge Redevelopment)
• Strengthening cyber recovery and resiliency
• Investing in economic development initiatives
• Advancing climate change initiatives

Navigating Provincial legislative changes

Legislative changes continue to pose financial pressures for municipalities that are being passed on to local residents and businesses. The City is actively engaging with senior levels of government to mitigate these impacts and secure the necessary funding to support services and infrastructure needs while minimizing the impact on taxpayers.

Looking ahead

The 2025 budget invests in service and infrastructure that enhance the quality of life for Hamiltonians. It is guided by principles of affordability, sustainability, and long-term prosperity. The revised residential property tax increase for 2025 is currently 5.7% or $288 for the average resident with a home valued at $387,000.

Residents are encouraged to stay informed about ongoing budget discussions. The proposed budget will be subject to further review, and Council will have the opportunity to move amendments before final adoption. 

For more information about the proposed 2025 budget, visit the City of Hamilton 2025 Budget webpage, or the Budget Overview Presentation.