The Hamilton Spectator

Council split on two per cent ‘guideline’ for tax increase

TEVIAH MORO Teviah Moro is a Hamilton-based reporter at The Spectator. Reach him via email: tmoro@thespec.com

City council aims to keep the 2022 budget hike to two per cent despite staff’s forecast of 4.1 per cent to cover expenses next year.

Heading into budget talks, it’s “very typical” to set a guideline, Coun. Lloyd Ferguson said Wednesday.

“It will put a bit of microscope on anyone that comes in over two per cent to provide the explanation that everyone’s looking for.”

During budget deliberations, city departments, as well as boards and agencies that rely on tax dollars make their cases to council for hikes.

In March, city council settled on a 2.1 per cent tax increase for 2021. The hike worked out to about $89 for a household assessed at $380,000.

For 2022, staff are forecasting a levy increase of $48.7 million, which makes for an overall average residential tax hike of 4.1 per cent.

Some expected increases are $4.1 million for the 10-year transit strategy; $1.8 million for enhanced sidewalk snow clearing; $1 million for a child-care agreement with the province; $2.7 million for insurance; $1.3 million for social housing; $6.7 million for boards and agencies; $4.8 million in capital expenditures.

“I would just caution that two per cent is going to be an ambitious target,” finance boss Mike Zegarac told councillors last week.

But a majority backed Ferguson’s call for a two per cent guideline, a motion that received final approval at council Wednesday.

“We need to give guidelines in order to have a baseline for all our boards and agencies and our departments to work toward,” Coun. Judi Partridge said.

But Coun. Nrinder Nann said the impact of the COVID-19 pandemic makes it especially crucial to consider information from staff and residents.

“It’s an arbitrary number too early in the process, and we really need to make informed decisions that are backed with data.”

Coun. Tom Jackson said he “had no idea what the ramifications of two per cent might be” before delving into deliberations, which are expected to wrap up in late March.

For 2022 budget deliberations, council has approved another day to hear from the public about the city’s spending plan.

The additional day for delegations is scheduled for Nov. 8, while another is planned for sometime in February.

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