Water (Rate) Budget- The Hamiltonian's View

The City of Hamilton’s adoption of its 2026 Water (Rate) Budget reflects a familiar municipal balancing act: the tension between long-term infrastructure stewardship and near-term affordability for residents. On paper, the budget is coherent and defensible. It acknowledges the city’s aging water, wastewater, and stormwater systems and commits to sustained capital reinvestment in assets valued at more than $14.6 billion. From an asset-management perspective, continued rate increases were inevitable.

That said, the final outcome exposes the limits of Council’s ability—or willingness—to fundamentally rethink how these costs are distributed. The approved 7.32 per cent rate increase, higher than the mayor’s proposed 5.82 per cent but lower than the initial 10 per cent forecast, lands in a politically convenient middle ground. While the City emphasizes monthly savings compared to the original forecast, for many households this framing obscures the cumulative impact of repeated annual increases that are now projected to average roughly seven per cent well into the next decade.

The deferral of the Stormwater Management Fee to January 2027 is arguably the most consequential policy decision in this budget. While it offers short-term relief, it also postpones a more structural conversation about fairness—particularly whether stormwater costs should continue to be embedded in water rates rather than allocated based on impervious surface area or land use. Mayor Andrea Horwath’s public dissent underscores this unresolved issue and highlights the absence of a city-wide, progressive funding model that better aligns cost with impact.

Administratively, the budget aligns with established asset-management plans and reflects continuity in approach rather than innovation. As City Manager Marnie Cluckie notes, the plan is “responsible” and “forward-looking,” but it is also incremental. For residents, the key question is not whether Hamilton must invest in its water systems—it must—but whether Council has exhausted all options to do so more equitably. 

The Hamiltonian

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

The House of Horwath- FAQ

It seems that Mayor Andrea Horwath’s West Avenue North rental property continues to garner interest on social media as well as main stream media. As such, here are answers to common questions that have arisen:

Q: What is the issue involving Mayor Andrea Horwath’s rental property?

A: The issue concerns a residential property on West Avenue North in Hamilton that is personally owned by Andrea Horwath and occupied by her former common-law partner. The property has been the subject of emergency orders issued by the City of Hamilton due to concerns about its structural condition and safety.

Q: Is this a personal dispute or a municipal enforcement matter?

A: It is both, but through separate processes. There is an ongoing civil dispute between the property owner and the occupant. Separately, the City has taken enforcement action under the Building Code Act based on safety concerns. The court has emphasized that these processes are legally distinct.

Q: Why did the City issue an emergency demolition order in early December?

A: The City issued an emergency order citing serious structural deficiencies that it believed posed an immediate risk to occupants and the public. The initial order required the property to be vacated and demolished.

Q: Why did a judge overturn the first emergency order?

A: The Ontario Superior Court invalidated the first order because the City relied on a private engineering report rather than an inspection conducted by a municipal building official, which the judge found did not meet the procedural requirements of the Building Code Act. The ruling focused on process, not on whether the building was safe.

Q: Did the court say the house was safe to live in?

A: No. The court did not rule on the safety or habitability of the property. It ruled only that the City had not followed the correct statutory process when issuing the first emergency order.

Q: Why did the City issue a second emergency order so quickly?

A: Following the court decision, the City issued a new emergency order requiring the occupant to vacate the property. Unlike the first order, the second one does not mandate demolition and allows for repairs or demolition at the owner’s discretion.

Q: Is the second emergency order legally valid?

A: As of publication, the second order remains in effect. Whether it meets all statutory requirements has not yet been tested in court. The City has not publicly detailed the inspections or assessments supporting the new order.

Q: Has Mayor Horwath used her position to influence the City’s actions?

A: There is no public evidence establishing that the Mayor directed or influenced City staff in their enforcement actions. The Mayor’s office has stated that she is acting as a private property owner in this matter. However, the overlap between personal ownership and municipal authority has raised public questions about transparency and process. The Hamiltonian frowns on those who are casting judgment without evidence. 

Q: Why is this matter drawing so much public attention?

A: The case has attracted attention because it involves a sitting mayor, municipal enforcement powers, and housing safety issues. For some residents, it raises broader questions about how rules are applied when elected officials are personally involved in enforcement matters.

Q: Has the Mayor commented publicly on the situation?

A: Mayor Horwath has declined to comment publicly on the specifics, citing ongoing legal proceedings. Media inquiries to the City Manager and building officials have also received limited response.

Q: What happens next?

A: The occupant is required to comply with the second emergency order or challenge it legally. Separately, the civil dispute between the property owner and occupant continues. Additional court proceedings or further municipal action remain possible.

Q: What are the key unresolved questions?

A: Outstanding questions include what inspections underpin the second emergency order, how compliance will be enforced if resisted, and whether clearer public disclosure will be provided by the City regarding process and safeguards when elected officials are involved as private property owners.

Q: What are the key unresolved questions?

A: Outstanding questions include what inspections underpin the second emergency order, how compliance will be enforced if resisted, and whether clearer public disclosure will be provided by the City regarding process and safeguards when elected officials are involved as private property owners.