Hamilton mayor, councillors struggle to reconcile high taxes in 2026 Budget Outlook

The City of Hamilton held its 2026 Budget Outlook report meeting Thursday, and it looks like property taxes are going up.

The highest figure has a forecasted increase of 8.9 per cent, but staff say with a few cuts they may be able to whittle it down to 6.6 per cent, which would still be the highest increase the city has seen in this council’s term.

The report says this would cover costs to maintain service, keep up with inflation and invest in council priorities.

One of the highest driving factors for the forecasted number is employee-related costs, which is estimated to be $44.6 million.

The meeting began with a clarification from Hamilton Mayor Andrew Horwath.

“This is not a meeting about the mayor’s budget, this is not the mayor’s budget,” said Horwath. “We’re talking about an outlook of the budget, and we’re talking about variance reports, etcetera.”

“I would also appreciate it if people did their best to not obfuscate the facts and provide disinformation to the public about this process.”

Mayor Andrea Horwath released a statement yesterday ahead of the process stressing that the budget is in its early stages.

#HamOnt Please see the following Statement regarding the City of Hamilton 2026 Budget Process

On September 11th, City of Hamilton staff will present the 2026 Budget Outlook report, which is simply the starting point of budget discussions. Where the budget begins is not where it… pic.twitter.com/PEmLdA8ytb

— Andrea Horwath (@AndreaHorwath) September 10, 2025

During the meeting, the tension was palpable following an off-camera exchange between the mayor and Matt Francis, the Councillor for Ward 5.

“I was being chirped by the mayor, I know you heard it,” said Francis, “and I asked for an apology, that I did not receive,” said Francis.

Tammy Hwang, the Councillor for Ward 4, had suggested a pause on increasing infrastructure funding, including replacements for pipes installed as far back as 1859 and 1888.

But Michael Spadafora, the Councillor for Ward 14, took to the floor to wonder why, of all things, city staff continued to call for the hiring of more employees, despite a motion passed earlier this year, which asked the mayor for a pause.

“It passed with a majority,” said Spadafora. “No more FTEs (Full-Time Employees) for 2026. I get a report: we got 49 new FTEs coming in 2026 that staff are asking for.”

“Housing values appear to be in a period of decline,” said Ted McMeekin, the Councillor for Ward 15. “Tariff challenges are here, or pending… you suggested we may be on the brink of a recession.”

Last year’s budget saw a tax hike of 5.6 per cent and 2024 saw a bump of nearly 5.8 per cent.

Both the mayor and the city councillors say they are determined to keep the tax increase as low as possible.

“It’s not just a possibility, it’s absolutely a requirement,” said Horwath. “There’s no way that outlook is going to be the budget number.”

“My residents cannot afford an 8.9 per cent increase,” said Francis. “This would be four in a row, very large tax increases.”

“We are in a crisis right now, we don’t know where we’re going to be in a year or two, but right now we need to bring that number down,” said Spadafora. “Because people can’t afford their taxes and people wanna know what they’re getting for their taxes.”

The City of Hamilton is inviting residents to share their priorities starting on Monday until Oct. 10, with several budget consultation meetings to be held around the city later this year.

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