Deputy mayor open to possible rates increase

Deputy Mayor Martin Gallagher says the failed suggestion for a 12 per cent rates increase was  necessary to kick-start decisions on how to fund Hamilton’s growth.

Gallagher was the only councillor to support Mayor Andrew King’s proposal which was denied after a 14-hour council meeting earlier this month.

“I voted with the mayor mainly because I think it’s important that we get the debate going. It’s a proposal,” Gallagher said.

Council voted for the standard 3.8 per cent increase this year.

“Which is still in excess of consumer price inflation, I acknowledge that,” Gallagher said.

The council are now faced with the challenge of how to fund population growth, alongside long-term projects such as the river plan.

“What people like me are saying respectfully to our colleagues is you are probably putting off the day of reckoning.”

Negotiations for an interest-free loan from the government are still under way despite the city’s $12 million shortfall over unplanned costs. 

Gallagher said this is not their most pressing concern.

“The major issue is not the $12 million, the main issue it is how we fund growth,” he said.

The $12 million hole in finances blindsided Hamilton councillors at the meeting. 

Councillor Paula Southgate posted on her LinkedIn page: “Like most of you, I am still processing relevant information and seeking clarity…when the Long Term Plan is proposed I want a warts and all, no surprises conversation with you the community.”

Gallagher thinks part of the solution could be a targeted rates approach. Targeted rates mean the amounts residents pay would be based on specific services that they receive.

Councillor Geoff Taylor agreed that targeted rates are a possibility. 

Taylor wrote on his Facebook page: “Hard decisions ahead, possibly more use of targeted rates so residents can decide in transparent fashion whether they really want to pay for certain projects.”

“If they don’t want to pay for a specific project we won’t do it,” Taylor said.

Gallagher acknowledged that there are Hamilton ratepayers who would struggle to pay more than they already are.

“We have to be incredibly mindful of people’s ability to pay and trust me that is not an easy answer to give,” he said.