City of Hamilton Adopts 2026 Water (Rate) Budget

HAMILTON, ON – The City of Hamilton has adopted the 2026 Water (Rate) Budget, a measured and responsible plan that protects the city’s essential water, wastewater and stormwater systems while keeping affordability at the forefront for residents and businesses.

The adopted budget ensures that as Hamilton grows, its water systems grow and modernize in a reliable, sustainable and financially responsible way. It supports major generational infrastructure projects, climate resilience and the needs of new housing and development, while maintaining safe, high-quality services for Hamiltonians today and in the future.

Mayor Horwath’s proposed Water (Rate) Budget was amended and adopted at the December 10 General Issues Committee, which deferred the launch of the Stormwater Management Fee from July 1, 2026 to January 1, 2027. The Water (Rate) increase has been confirmed at 7.32 per cent as adopted.

The 7.32 per cent overall rate increase keeps the City on track with long-term infrastructure renewal while recognizing the economic pressures residents are facing. For an average household using 200 m³ per year, this represents an estimated additional $6.47 per month ($77.65 annually).

The water rate increase was adjusted from the proposed 5.82 per cent to 7.32 per cent. While this is higher than initially proposed, it has been reduced from an initial forecast of 10 per cent, reflecting efforts to balance affordability with the need for ongoing infrastructure investment. This represents savings of approximately $2.41 per month ($28.90 per year) compared to the initial forecast.

"Although I disagree with the decision taken by the majority of Council to increase the 2026 water rate from 5.82 per cent to 7.32 per cent, and am disappointed by the absence of a fairer, more progressive, and whole-of-Hamilton approach to funding our critical water, wastewater and stormwater infrastructure - the lifeblood of our community - their decision will stand," said Mayor Andrea Horwath. "My priority remains clear: protecting our water systems and keeping the needs of Hamiltonians’ front and center."

Supporting major, generational capital projects

Consistent with Council’s priorities and asset management plans, the 2026 Water (Rate) Budget advances major multi-year infrastructure projects critical to Hamilton’s future, including the Woodward Water Treatment Plant, Woodward Wastewater Treatment Plant, Dundas Water Treatment Plant, significant renewal of water and wastewater networks across the city and ongoing upgrades that enhance climate resilience and support new housing supply.

These investments align with the City’s Mission to provide high-quality, cost-conscious public services in a healthy, safe and prosperous community, while renewing and modernizing water, wastewater and stormwater systems in a financially sustainable manner.

Key updates for 2026

The adopted budget includes several important changes that support affordability, fairness and long-term sustainability:

Updated fixed and consumption charges: Effective January 1, 2026, adjusted daily water and wastewater fixed rates and updated tiered consumption rates will ensure continued investment in system reliability and service quality.

$4.59 billion capital investment plan: The 2026 Water (Rate) Budget supports approximately $252 million in infrastructure investments in 2026 and outlines $4.59 billion in investments over the next decade for critical infrastructure renewal and system upgrades.

Responsible long-term financing: The 2026 Water (Rate) Budget balances affordability for current ratepayers with the responsible use of reserves and debt financing to support multi-generational infrastructure investments, keeping more money in residents’ hands.

“This budget reflects extensive work to maintain high-quality water services while being mindful of the financial pressures facing residents and businesses,” said City Manager Marnie Cluckie. “It advances critical long-term infrastructure projects, supports growth and modernizes our water, wastewater and stormwater systems, all while reducing the originally forecast rate increase. It is a responsible, forward-looking plan for Hamilton’s future.”

Visit Hamilton.ca/2026Budget for the full schedule, helpful resources and details on how to register for delegations or listen to presentations.

Quick facts:

The proposed 2026 Water (Rate) Budget was prepared and submitted under Mayoral Directive MDI 2025-01 and was amended and adopted at the December 10, 2025 General Issues Committee. The Mayoral Directive guides staff to develop responsible, sustainable budgets aligned with the City’s long-term plans, financial strategies and asset management requirements.

Hamilton manages $14.6 billion in water, wastewater and stormwater assets which provide the community with safe drinking water and safely manages the treatment and disposal of wastewater and stormwater back into the local environment. This includes the Woodward Water and Wastewater Treatment plants as well as stormwater ponds and channels throughout the city.

The City maintains 5,266 km of pipe networks and more than 250 facilities.

The 2026–2035 capital forecast totals $4.6 billion in planned investments.

Annual rate increases forecast at approximately 7 per cent from 2027–2033, then moderating to about 5 per cent in 2034–2035.

Long-term financing relies on balanced use of debt, reserve contributions and staged rate adjustments.

Additional Resources:

Web page: Water (Rate) Budget

Web page: 2026 Tax & Water (Rate) Budget

Web page: Budget 101