
2022 Tax and Rate Budgets
From plowing the snow in the winter to opening the public pools in the summer, to transit and infrastructure, fire and paramedic services you rely on every day - your taxes go towards running City services. Every day, as a City of Hamilton tax payer, you place your trust in our employees to provide you with high quality, efficient services and programs that matter most to you. We do this by managing the budget today and planning for tomorrow. Review the City of Hamilton Service Profiles.
A municipal budget is a policy and planning document that outlines our City’s priorities. Balancing those priorities is a challenging undertaking because we need to identify what we need to do now to keep providing essential municipal services to our residents and plan on what we need to do in the future while balancing affordability and tax competitiveness.

Description: 2022 Distribution of Tax Dollars
Provincially Shared $484
- Social Services $370
- Public Health $75
- EMS $39
Area Rated Services $859
- Fire Services $379
- Transit (HSR) $236
- Recreation $162
- Sidewalk & Streetlighting $33
- Special Capital Re-Investment $50
City Services $1,877
- Roads Program $296
- Waste Management Services $206
- Administrative Services $269
- Parks, Forestry, Cemeteries $124
- Library $133
- Boards/Agencies/City Enrichment Fund $92
- Planning/Economic Development $131
- Accessible Transportation Services (ATS) $107
- Other City Services $518
Police $684
Education $584
2022 Tax Impact $3,904
Average Residential Assessment $382,000
Based on Council approved budget March 30, 2022.
2022 Budget Reports and Presentations
Media Releases
- March 30, 2022: Hamilton City Council adopts 2022 tax supported operating budget
- February 4, 2022: City Manager’s Office presents preliminary 2022 operating budget
- January 27, 2022: Healthy and Safe Communities Department presents 2022 operating budget
- January 26, 2022: Public Works Department presents 2022 operating budget
- January 25, 2022 - Planning and Economic Development Department presents 2022 operating budget
- January 25, 2022 - 2022 Corporate Services budget highlights fiscal prudence
- January 21, 2022 - Proposed 2022 Transit Operating Budget Highlights
- December 23, 2021 - 2022 budget prioritizes alternative energy for City vehicles
- December 22, 2021 - City of Hamilton’s 2022 budget highlights commitment to improve and advance public transit
- December 15, 2021 - Hamilton City Council approves 2022 Tax Supported Capital Budget
- November 24, 2021 - Hamilton City Council Approves 2022 Rate Budget
- October 14, 2021 - Hamilton City Council approves additional budget delegation day in November as part of 2022 budget process
Budget 101 Q&A
What is a Municipal Budget?
A Municipal Budget is a plan for how dollars are used, invested or earned over a given time period. It is also a policy and planning document that outlines the City’s priorities. Decisions made as part of budget development help determine funding for the programs and services that maintain resident’s quality of life.
How does the City pay for services they provide?
For every dollar the City spends:
- 50% comes from property taxes
- 22% comes from Grant & Subsidies
- 12% comes for Rate Revenue (water, wastewater and stormwater)
- 12% comes from User Fees
- 4% comes from Reserves
What are the components that make up the City’s annual budget?
There are three main components to the City’s annual budget:
- The Tax Supported Operating budget: The tax supported operating budget is a plan for the day-to-day operations at the City of Hamilton, including employee salaries, materials and supplies, contractual services and financing of capital projects.
The tax supported operating budget is largely funded by property tax dollars and user fees, which include charges for recreation programs, transit, infractions, permits and licensing.
- The Tax Supported Capital budget: The tax supported capital budget is the long-term plan for the construction or purchase and financing of the City’s capital assets. Examples of capital assets include infrastructure, land, buildings, machinery and equipment.
Forms of funding include grants, development charges, gas tax, reserves debt and contributions from the operating budget.
- Rate Supported Operating and Capital Budget: The rate supported operating budget is the annual plan for the day-to-day operations of the City’s services and financing of capital projects supported from water, wastewater and stormwater user rates.
The Rate Supported Capital Budget is a long-term plan for the purchase or construction and financing of water, waste water and stormwater capital assets.
Forms of funding include grants, development charges, debt, reserves and contributions from the operating budget.
Is a Municipality allowed to go into debt?
Ontario legislation states that municipalities must have a balanced budget. Under legislation, municipalities cannot finance operations with debt.
What are reserves and reserve funds?
Reserves and reserve funds are similar to a savings account where funds are set aside for future capital needs.
The City’s reserves can be broken down into two categories:
Non-Obligatory (Discretionary): Non-Obligatory reserves are based on Council direction and are used to finance future expenditures designated by Council. They are comprised of the tax supported and rate supported reserves and the Hamilton Future Fund.
Obligatory: Obligatory reserves are funds that are required by the province to be segregated for a specific purpose. They are comprised of development charge reserves, federal & provincial gas reserves, parkland dedication reserves and building permit reserves.
What is the difference between federal gas tax reserves and provincial gas tax reserves?
Federal gas tax reserves are available to support local infrastructure priorities in specific project categories.
Provincial gas tax reserves are used to fund public transit infrastructure and operations.
What is the City’s current credit rating?
The City’s current credit rating from Standard and Poors Global Ratings in October 2020 is AA+ with stable outlook. The rating agency expects that during the COVID-19 pandemic and recovery, the City of Hamilton’s creditworthiness is supported by higher levels of government and prudent financial management. Hamilton’s recovery is aided by our economic diversification. Fiscal performance is expected to be resilient due to pandemic-related restrictions and mitigation measures. S&P Global Ratings mention the City’s strong management, strong fiscal performance, low debt and high liquidity as key rating strengths supporting its ‘AA+’ rating.
What does the City do with excess funds?
Governed by the Municipal Act, the City of Hamilton has the ability to invest surplus funds not immediately required for its purposes in Short & Long-Term Investments. For example, the City invests money in the reserves fund until it is required for future obligations.
The primary objectives for all City investment activities are to ensure the safety of principal, maintain adequate liquidity to meet the City’s cash needs, and to earn investment income.
How does the budget process work?
Each year, Council determines what levels of funding for services should come from the various sources of revenue.
Budget meetings are held between October and April each year. Typically, the tax supported capital budget and rate budgets are presented first, followed by the tax supported operating budget later in the cycle.
Each Department presents their own tax operating budget and business plans.
During this process, Councillors have an opportunity to ask questions and seek clarification from staff. Public delegations appear before Council as well.
Meetings are also held to focus on budgets submitted from related boards, agencies and committees requiring Council approval. This includes Hamilton Police Services, Hamilton Public Library, various conservation authorities and volunteer sub-committees.
How does the City maintain accountability and transparency throughout the budget process?
City council meetings are accessible to the public. Budget documents and presentations are available on the City’s website. During the year, the City submits reports to Council on variances in expenditures and revenues from budget.
Independent auditors will audit the annual financial statements prepared by management. Additionally, an annual financial information return (FIR) is submitted to the Ministry of Municipal Affairs. The FIR is a legislatively required data collection tool to collect financial and statistical information to compare across municipalities.
The City of Hamilton’s budgets work in conjunction with multi-year business planning. Staff closely monitor and report key metrics on visual dashboards, allowing Council to keep a pulse on performance through the Trust and Confidence Report. All of these pieces come together to support the City’s strategic plan.
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