Homelessness crisis in focus as Hamilton council finalizes 6.7 per cent budget hike

A worsening homelessness crisis and limited funds to deal with it are in focus as city council wraps up budget talks.

City politicians expect to give a final nod to a tax hike hovering at 6.7 per cent at the end of the month.

Soaring inflation, the lingering strain of the pandemic, diminishing provincial funding and overwhelmed social services have framed the new council's first budget.

In an effort to steady the sector, council has approved $2.6 million in annual funding for a YWCA Hamilton transitional housing program.

That will offer the 65-unit initiative for women and gender-diverse people struggling with homelessness a significant boost," CEO Medora Uppal said Thursday.

Residents stay in the transitional units at the MacNab Street South for up to a year with the goal of moving into permanent housing.

But inadequate funding has limited staffing and services to help those with complex needs realize that goal, Uppal noted.

So this will really allow us to address some of those systemic problems that undermine our work in terms of responding to those who are unhoused."

During budget talks Wednesday, in a debate over the YWCA request, Mayor Andrea Horwath voiced her support for the organization's work but questioned one-offing" funding absent a process to weigh other applications vying for city dollars.

I'm hopeful that we can find a way to have this conversation and set some priorities and parameters and analysis of where we're going."

Coun. Maureen Wilson said she was not unsympathetic" to questions of process but pointed to the exponential value" of housing for women and children, adding the YWCA is more than capable of delivering."

Senior city staff, meanwhile, pointed out that $22.5-million in provincial pandemic relief for social services has dried up despite the ongoing unprecedented" needs.

The homeless sector is experiencing crisis levels" and, without more funding, is on the verge of collapse," warned Angie Burden, general manager of healthy and safe communities.

Upcoming reports on the ailing emergency shelter system and housing needs will identify up to $20 million in proposed fixes ahead, Burden said.

My nervousness and trepidation has increased," said Coun. Brad Clark, referring to the additional fiscal demands outside of this budget cycle.

But Hamilton is not alone, Clark said, adding municipalities must work together" to hold their provincial and federal partners' feet to the fire."

Staff also told council that a $4-million-a-year city fund to support local affordable-housing projects would fall far short of what's needed.

As it stands, Hamilton has averaged about 50 units per year, well below the city's stretch target" of 350 annually, said Al Fletcher, a manager in the housing division.

Factoring in a rough construction cost of $500,000 per unit, that annual goal would need $175 million.

That kind of funding is not available to us, which means it's not available to the providers, so we have to be working on partnerships," Fletcher said.

Other budget items - from encampments to policing

The YWCA allocation and affordable-housing fund were among a suite of issues city politicians considered as they worked toward finalizing an overall levy of roughly $1 billion.

• It includes a $1.3-million encampment strategy that bolsters outreach efforts alongside increased bylaw and police resources. Additionally, council has tasked staff with meeting with partners to explore another approach.

• Also on homelessness, city politicians rejected parking $100,000 in a reserve to be considered for a grassroots pitch to build a community of small cabins. Councillors said they wanted a staff report on the Hamilton Alliance for Tiny Shelters (HATS) operations plan.

• The budget also includes two additional staffers for the city's budding climate office, as well as $2.5 million annually to build a dedicated reserve.

• Other spending included investments in transit, an accelerated timeline for cycling projects, additional resources for paramedics, and enhanced sidewalk snow clearing.

• Councillors debated the merits of a $600,000 boost, or $40,000 apiece, to their office budgets, a pitch that passed on an 11-4 vote.

• A 6.71 per cent hike to add $12.3 million to the police's combined operating and capital spending plan passed with five councillors opposed.

However, councillors did not debate the controversial line item and planned instead to do that ahead of final budget approval on March 29.

We want to make sure that we have time to have that discussion," Coun. Cameron Kroetsch told The Spectator, noting the police budget came late in the agenda.

The issue came to a boil last month, when protesters converged on the chambers to demand council reject the police budget and redirect funds to housing, health and social services.

During Wednesday's talks, council met in camera for legal advice on grounds for an appeal to the Ontario Civilian Police Commission, which handles budget disputes, but didn't discuss it publicly.

Last year's overall budget hike was 2.8 per cent. This year's roughly 6.7 per cent increase translates into about $300 for an average household assessed at about $382,000.

That's based on the Municipal Property Assessment Corporation (MPAC)'s last take in 2016. The province paused MPAC's update during the pandemic but has signalled it may resume in 2024.

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com