Average Hamilton homeowner is facing a $145 tax increase for 2020 - so far

Hamilton city councillors will sharpen their pencils over the next month to try to trim down a 3.8 per cent budget increase on city taxpayers.

The city's 2020 preliminary operating budget currently means a tax increase of $145 per year on the average household assessed at $358,600. That means the city would collect $42,247,460 to run services such as transit, policing, public works and social services.

City finance head Mike Zegarac said that 3.8 per cent likely won't stick. Council isn't due to approve the budget until April 1, and historically, cuts are made in the final weeks.

"Past practice has been that not all council-referred business cases make it through to being approved," he said. "We'll continue to work with council if there's further amendments."

Numbers show Hamiltonians can use all the breaks they can get.

When compared with other municipalities of similar size, Zegarac said, Hamilton's property taxes are somewhere in the middle. But Hamilton lags behind the others in the ability of its residents to pay because its households, on average, bring in less money.

"Our average household income is 12 to 13 per cent below comparator average," Zegarac said.

The city also approves rate-supported and capital budgets every year. The latter has increased by 0.87 per cent, or about $31 per year on the average household.

Here are some budget highlights so far:

• The budget includes major projects to rehabilitate Rymal Road and Regional Road 56. Some neighbourhood streets will be resurfaced in Westdale, Homeside and Kentley.
• This is year eight of the emerald ash borer program. This involves the city chopping down all its ash trees, which have been ravaged by the invasive borer. New trees are being planted in their place.
• The budget includes $7 million more for transit this year, much of it improvements as the city enters year five of its 10-year strategy to improve HSR. This includes more service on the Mountain.
• The public works budget as a whole has increased 5.4 per cent, or $13 million.
• The city manager's office has an increased budget of 2.7 per cent, or $319,700. This budget funds a 24/7 waste/fraud hotline, and 66 reports were assessed last year. 
• The corporate services department budget has increased 1.4 per cent, or $439,110. Corporate services includes finance and IT.
• The planning and economic development budget is a proposed 1.1 per cent increase, while healthy and safe communities has a proposed 2.7 per cent increase. The latter includes fire, ambulance and social services.