City releases Draft Staff-Proposed 2026 Tax Budget focused on supporting affordability and delivering critical services

HAMILTON, ON – The City of Hamilton has released the Draft Staff-Proposed 2026 Tax Budget, building on the information provided in the Fall 2025 Budget Outlook. The staff-proposed budget outlines a responsible and transparent financial plan that protects essential municipal services, supports critical infrastructure, and advances community affordability. 

The draft staff-proposed budget reflects the Mayor’s October 7 budget directive, targeting a 4.25 per cent tax increase. This approach helps ensure the City can continue delivering services and maintaining infrastructure, while balancing rising service costs with the commitment to keep programs and essential supports affordable and accessible. The draft staff-proposed budget reflects a further 1.2 per cent tax increase to address funding requests from external boards and agencies. 

"Hamiltonians have been clear that affordability, reliable services, and safe neighbourhoods matter,” said Mayor Andrea Horwath. “Where the budget begins is not where it ends - and this staff preliminary plan is the starting point for a thoughtful, collaborative process with Council. Together, we’ll shape a balanced and responsible 2026 budget that protects what residents depend on, reflects our shared priorities, and builds a city that works for everyone."

The draft budget outlines how tax dollars are invested in priorities and essential services, ensuring residents understand how every dollar supports the community’s needs and long-term sustainability. 

Key proposed investments for 2026 include

• $626 million for infrastructure to maintain state-of-good-repair and support growth
• Transportation upgrades, including roads, bridges, and sidewalks
• Transit improvements, including the maintenance and storage facility, in addition to new and replacement buses
• Public safety, emergency services and long-term care projects, such as Macassa Lodge Redevelopment and new Fire, Police, and Paramedic facilities.
• Housing and homelessness supports
• Cyber recovery and resiliency upgrades
• Economic development initiatives, including commercial district revitalization

Protecting essential services while supporting affordability

The draft staff-proposed budget recognizes the financial pressures facing many households, while prioritizing infrastructure renewal, emergency services, transportation and urgent community supports. It also incorporates feedback received through public engagement, held earlier this fall. 

Commitment to transparency and responsible financial management

The City has taken a rigorous and transparent approach to developing the draft staff-proposed 2026 budget. Key cost factors, such as inflation, increased service demand and infrastructure needs, are clearly outlined to help residents understand where investments are needed. At the same time, staff have worked across departments to identify efficiencies, manage expenditures, and streamline operations to ensure value for money. 

"Our goal is to provide a transparent and accessible budget process that reflects both the realities our community is facing and the long-term needs of the city," said City Manager Marnie Cluckie. "City staff have worked diligently to develop a preliminary budget that balances affordability with the investments required to maintain and improve essential services. This draft supports informed decision-making by clearly outlining pressures, trade-offs and options for Council and the public."

Next steps in the budget process and how to get involved

The release of the draft proposed staff budget is an important step in the City’s annual budget process. Using this budget as a foundation, the Mayor will propose the Mayor’s Report and Proposed Tax Supported Budget in January 2026 and City Council will then have 30 days to review, propose amendments, deliberate and vote before final adoption. Staff will provide a detailed presentation and overview of the Mayor’s proposed budget starting on January 23, 2026. Residents are encouraged to participate through:

• Public delegations on January 19, 2026. Delegation requests can be submitted through Submit Request to Speak form available on the City’s website.
• Listening to City department presentations and discussions at the General Issues Committee from January 27-30, 2026.

Budget schedule

• January 2026 – Mayor’s Report and Proposed Tax Budget (General Issues Committee)
• January 19, 2026 – Public Delegations
• January 23, 2026 – Staff Overview of Mayor’s Proposed Tax Budget (General Issues Committee)
• January 27-30, 2026 – Staff Departmental Budget Presentations (General Issues Committee)
• February or March 2026 – Final Tax Budget Adoption

Residents can visit www.hamilton.ca/2026Budget for the full schedule, access to budget materials, helpful resources and details on how to register for delegations or listen to presentations.