Councillors aim for 2 per cent or lower tax increase next year

How low can Hamilton councillors go with next year’s tax increase?

After passing the lowest post-amalgamation tax increase this year, politicians have approved a goal of a two per cent or lower tax hike for the city’s 2010 budget.

“Zero per cent will be extremely difficult and painful,” said Mayor Fred Eisenberger. “It sounds great on paper, but it is next to impossible.”

Councillors in April approved a 2009 budget that included a 1.9 per cent average tax increase, the lowest increase among the surrounding municipalities. The next lowest tax hike was Windsor’s 2.5 per cent. Ottawa had a 4.9 per cent average tax increase.

Most of councillors, though, disagreed that a zero per cent tax hike next year – in a municipal election year - will be difficult.

They argued residents, including seniors on fixed incomes, and those people who have been laid off from U.S. Steel, are already enduring crushing financial burdens and are not prepared for any more increases from their city government.

“We should be going for zero per cent,” said Mountain councillor Scott Duvall. “This city has had a downturn. It has been extremely painful and difficult for our taxpayers.”