Hamilton Finalizes 2026 City Budget

The finalized 2026 budget arrives in the wake of a critical KPMG audit of the city's procurement processes. Commissioned in 2024, the audit uncovered that from 2021 to 2023, the city awarded $239.1 million in contracts without a competitive bidding process. The report identified "significant areas of concern," including a failure to comply with existing policies and a lack of proper oversight. In response to the audit's findings, the city council is now tasked with implementing 35 recommended reforms proposed by KPMG to strengthen governance and improve project management. These reforms aim to introduce more robust oversight and modernize the city's procurement systems, which the audit described as "messy and poorly understood." The 2026 budget includes a property tax increase of 3.87%, which amounts to an average of $209 more per household. This is less than the 4.25% cap Mayor Horwath had initially set using her "strong mayor" powers. The final figure was reached after amendments from city councillors, none of which were vetoed by the mayor. Key investments in the budget include $106 million for the maintenance of roads, sidewalks, and bridges, and $209 million for affordable housing and homelessness supports. The city will also hire 10 new paramedics and invest $1.25 million in food security programs. The budget also protects the $22-a-day childcare program, saving families an estimated $10,640 per child annually. The budget also reflects a focus on finding internal savings, with $42.6 million in operational efficiencies identified across various departments. This move toward "disciplined management" is intended to help fund the city's priorities while being mindful of the financial pressures on residents.