GENERAL INFORMATION
Area rating is used to assign specific program costs to different areas within the City for the purposes of taxation. For example, if you live in an area where there is no bus (Hamilton Street Railway) service, you will not be charged a fee to support the service. The result of area rating is that tax rates for certain services vary depending on where you live and the level of service offered by the City. All areas within the City have area rated costs. Depending on the levels of service, those costs vary.
City of Hamilton residents in all communities pay the same rate for general city services (for example; Social Services, Public Health, Roads, Waste Management, Library, Parks, Planning, Economic Development, Ambulance, Police, City Administration). In addition to this, there are area-specific rates.
In August of 2008, Council directed staff to review the current area rating model and report back on options. This process included significant citizen engagement, a study of area rated tax rates in other municipalities and a number of staff reports. The process was finalized with the approval of the 2011 tax budget.
2011 TAX BUDGET & AREA RATING POLICIES
The City of Hamilton 2011 budget has been approved and included in the process this year were some significant changes to how some services are taxed (called “area rating”). Tax rates for some services including Transit, Fire and Recreation have differed by former municipality since amalgamation and reflected different service levels and costs. Tax rates were higher in the former City of Hamilton and lower in the suburban municipalities reflecting, in part, different service levels.
However, in the 10 years since amalgamation service delivery has changed. Most urban areas in the City of Hamilton now receive similar service levels. This led to a situation where some areas paid less in taxes, but received the same services. Over a number of years, Council led an intensive review and consultation process to look at area rating options. In April of 2011, Council approved the transition to an urban/rural model of taxation for the area rated services. Now services like Fire, Recreation, Sidewalks and Street lighting will be taxed consistently throughout the urban areas, with a reduced rate being charged to the rural areas.
This will result in a tax shift between some areas of the City. Taxes in some areas are increasing, while in some rural areas, taxes are decreasing. To help mitigate the increase in taxes, Council has approved a four year phase-in plan. For 2011, average tax changes, including the approved 0.8% budget tax impact, are summarized by urban/rural areas in the chart below:
2011 Average Residential Tax Change Including Budget, Reassessment, Area Rating Changes and Education Impact:
|
Urban/
Transit
Area |
Rural/No
Transit
Area |
| Stoney Creek |
2.4% |
0.6% |
| Glanbrook |
3.0% |
1.2% |
| Ancaster |
1.2% |
-0.6% |
| Hamilton |
0.9% |
N/A |
| Dundas |
2.9% |
1.1% |
| Flamborough |
2.4% |
0.5% |
Additional Information information related to final Council approvals:
Final Approved Recommendations
Updated Area Rating Maps:
Transit / Recreation / Sidewalk & Streetlight Service Area
Fire Urban/Rural
Total Urban/Rural
Area Rating presentation - General Issues Committee (April 14, 2011)
For further background information and links to various staff reports, the Citizen’s Forum report and public submissions related to the review of area rating, click here.
To find out more about the 2011 budget process click here.
For more information on 2011 tax rates, your taxes and assessment, click here.
For more information, contact:
Email: AskCity@hamilton.ca
Phone: 905-546-CITY (2489)