Beefed up capital budget gets approval
The $143 million figure represents a $9.3-million increase from 2022; operating budget next up
In a financially difficult 2023, Hamilton residents will still see an activistic city that will be funding infrastructure repairs, continuing the complicated waterfront redevelopment project, purchasing new buses and fighting climate change.
“I think we have a good budget,” said Coun. Brad Clark.
The 2023 capital budget of $143 million, a $9.3-million increase from the 2022 budget, will see residents with a household assessed at $382,000 paying an extra $41.29.
With the capital budget finalized, councillors have turned their attention to the operating budget this week, which currently has a projected average tax increase of 5.4 per cent.
Hamilton in 2023 will be spending about $5 million — or 0.5 per cent — to address the city’s infrastructure deficit, a program that has been underway for at least a decade. But since the levy was introduced, said Clark, it has barely made a dent to reduce the city’s roads and sidewalk repair problems. In response, staff proposed to double the levy to 1.1 per cent starting in 2024 to raise about $11 million.
“We are addressing that infrastructure deficit that has befuddled this council for as long as I have been on council,” said Clark.
The city is expected to spend about $110 million in growth projects and infrastructure in 2023, including $12 million in Waterdown Burlington Road upgrades, and $8 million on the Waterdown bypass project.
For the Hamilton waterfront, which is undergoing a $140-million redevelopment, the budget allocates an additional $8.2 million for Pier 8. General manager for economic development Jason Thorne said the massive project is “moving forward” and it is proposed that building permits for the first phase of the 5.24-hectare residential development, which will include 1,292 condominium units across 20 buildings and at-grade townhouses on eight residential blocks, will be issued late in 2023.
“Nothing has changed the image of our city than what we have done on the waterfront,” said Coun. Tom Jackson. “It is really transformative stuff.”
The budget includes $2.5 million in annual funding for the implementation of the climate-change action strategy, and $1.7 million to fund debt servicing costs for transit investments, the West Harbour Waterfront initiatives, and the paramedic and central stores facility.
The total cost for transit projects in 2023 will be about $28.9 million, with the city’s share about $8.8 million.
Corporate services general manager Mike Zegarac confirmed that $3 million will be used for poverty reduction plans, including repairing affordable-housing units. The funding is part of the $50 million poverty reduction plan championed by former mayor Fred Eisenberger starting in 2017. The plan is expected to end in 2027 and the fund has about $12 million left, said Zegarac.
Mayor Andrea Horwath said it may be time to review how the money is spent during the next four years on poverty reduction items.
“We need a fresh look at this plan,” said Horwath.
The budget is also providing $6.8 million for council priorities and climate change, $9.5 million to fund development charge exemptions and $15.5 million to cover increases in all city services.
Coun. Cameron Kroetsch wanted to defer approving the capital budget to February to provide residents a chance to study and make comments on it, allow a gender-based analysis on the document and to provide councillors with additional time to review the projects.
“I am unable to understand it,” said Kroetsch.
But his colleagues disagreed, and wanted to approve it so that needed projects could move forward.
Coun. John-Paul Danko said the budget has been available for two months and it has already been deferred once before.
Even though Danko has a “fundamental difference” with how the budget process has operated, including making it more transparent and allowing further public engagement, deferring the document until February will not change the essence of the capital budget.