Tax Facts-Hamilton’s Budget Increases: How the Last Four Elections Compare And What It Means for Taxpayers

Every four years, Hamilton voters elect a new city council. Less visible, but far more impactful on household finances, is what happens to the city budget during each of those terms.

Looking back over the last four municipal election cycles — roughly the past 16 years — Hamilton’s budgets have grown steadily. When adjusted for inflation, the picture becomes clearer and easier to compare both over time and against similar Ontario cities.

First, how Hamilton compares to itself.
Hamilton’s operating budget — the money that pays for day-to-day services like transit, garbage collection, fire, police, parks, and administration — has generally grown at or slightly above inflation over most of the last four terms.

In the late 2000s and early 2010s, operating budget growth was modest. Some years barely kept up with inflation, meaning services expanded very little in real terms. During the mid-2010s, budgets increased more noticeably as council began responding to aging infrastructure, transit pressures, and service demands.

In the most recent term, operating budgets again roughly tracked inflation. In plain terms: the city is spending more dollars, but those dollars buy about the same level of service as before, because costs have risen everywhere.

Capital budgets tell a different story.

Capital budgets pay for long-term items: roads, bridges, transit vehicles, recreation centres, housing projects, and major repairs. For years, Hamilton under-invested in this area. That created the well-known “infrastructure backlog.”

Over the last two terms especially, capital spending has increased faster than inflation. This is not because Hamilton is being extravagant — it is because the city is catching up. Roads that were not fixed a decade ago still need fixing today, and at a higher cost.

Now, how Hamilton compares to similar cities.

When placed beside London, Windsor, Kitchener, and Mississauga, Hamilton sits squarely in the middle.

Windsor kept budget growth very low for many years, sometimes below inflation. That kept taxes down in the short term, but it also meant deferred repairs and tighter services.

Mississauga followed the opposite path. After years of low taxes, its budgets rose sharply in the 2010s as infrastructure aged and growth slowed. Services were maintained, but costs rose quickly once the bill came due.

London and Kitchener took a more balanced approach. Their budgets generally rose slightly above inflation to support growth and service expansion, while avoiding large spikes.

Hamilton’s approach has been closer to London and Kitchener than to either extreme. Budget increases have not been unusually high by Ontario standards, but they have become more noticeable to residents in recent years.

What this means for everyday taxpayers.

For most households, the issue is not whether spending is “reasonable” in theory — it is whether the tax bill feels manageable in practice.

Even when budgets only keep pace with inflation, property tax bills still rise in dollar terms. When capital investment ramps up, those increases become more visible.

In Hamilton, recent tax increases reflect three realities:

– Higher costs due to inflation

– Long-delayed infrastructure repairs

– Growing demands for transit, housing, and social services

None of these pressures are unique to Hamilton. What is different is how openly and clearly they are explained to residents.

The takeaway.

Over the last four elections, Hamilton’s budgets have grown steadily but not exceptionally compared to similar cities. The real challenge is not runaway spending, but the cumulative effect of years of under-investment now coming due all at once.

For taxpayers, that means higher bills today — not because of sudden extravagance, but because past restraint has limits.

Understanding that context matters. It allows residents to debate priorities honestly, rather than reacting only to the final percentage increase on a tax notices.

Photo by Amol Tyagi on Unsplash