Prioritizing affordability and long-term sustainability in proposed 2026 Water (Rate) Budget

HAMILTON, ON – The City of Hamilton has released its proposed 2026 Water (Rate) Budget, outlining planned investments in infrastructure and programs to ensure clean, safe and reliable drinking water, wastewater and stormwater services for residents, businesses and institutions across the city.

The proposed water (rate) budget reflects Hamilton’s commitment to affordability, long-term sustainability and infrastructure renewal. It provides the resources necessary to operate, maintain and modernize Hamilton’s essential water systems that support public health, protect the environment and strengthen the city’s growing economy.

“Clean, safe and reliable water is one of the most essential services we provide to Hamiltonians,” said Mayor Andrea Horwath. “This proposed Water (Rate) Budget reflects our commitment to affordability, sustainability and responsibility. It ensures we can maintain and modernize the systems that protect our environment, support public health and keep this essential service reliable and affordable for residents - today and for generations to come.”

The proposed 2026 Water (Rate) Budget, prepared in accordance with Mayoral Directive MDI 2025-01, outlines the investments required to maintain, renew and expand critical infrastructure through a multi-year plan. It includes funding for maintenance, renewal and growth-related projects across water, wastewater and stormwater systems in Hamilton.

The proposed increase has been reduced from an initial forecast of 10 per cent to 5.82 per cent, reflecting efforts to balance affordability with the need for ongoing infrastructure investment. If adopted, the average residential household consuming 200 cubic metres annually would see an overall increase in 2026 of approximately $5.15 per month ($61.83 per year). This represents savings of approximately $3.73 per month ($44.73 per year) compared to the initial forecast. The 2026 increase ensures the City can continue to make long-term investments in water infrastructure, environmental protection and climate resilience, while responding to community feedback and maintaining affordability for residents.

New in 2026

The proposed 2026 Water (Rate) Budget introduces several updates that reflect responsible financial planning, long-term sustainability and fairness:

• Updated fixed and consumption charges: Effective January 1, 2026, new daily water and wastewater fixed rates and updated tiered consumption rates will ensure continued investment in system reliability and service quality.
• Revised wastewater rate: Effective July 1, 2026, a reduced wastewater rate, will reflect the transition to funding stormwater management from a new stormwater fee.
• New stormwater fee: Effective July 1, 2026, a daily stormwater fee of $0.55 per single-family unit per day ($200.75 annually), prorated to $100.38 for 2026, will be introduced to provide a fair and dedicated funding model for stormwater management.
• $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.

“Hamilton’s 2026 Water (Rate) Budget focuses on delivering dependable, high-quality water services that residents can count on every day,” said City Manager Marnie Cluckie. “Staff have worked hard to reduce the proposed rate increase down while maintaining the City’s commitment to long-term sustainability and service excellence.” 

The proposed 2026 Water (Rate) Budget will be presented to the General Issues Committee (GIC) for consideration on November 24, 2025. 

Visit Hamilton.ca/2026Budget for the full schedule, helpful resources and details on how to register for delegations or listen to presentations.