The City of Hamilton’s 2025 budget transparency and accountability were ranked the worst in Canada for the second straight year, according to a new report from the C.D. Howe Institute.
The Canadian research think tank gave the City of Hamilton a failing “F” letter grade.
The grade and further analysis were part of the C.D. Howe Institute’s annual report card, which judges the financial transparency of Canada’s largest cities.
While five other Canadian municipalities received a failing “F” grade, including Charlottetown, Gatineau, Montreal, Victoria, and Whitehorse, Hamilton was the only city to receive a zero.
The report is co-written by the Institute’s President Emeritus William Robson and Research Officer Nicholas Dahir.
The C.D. Howe Institute explains that its grades “do not assess whether cities tax or spend too much or too little.”
“Instead, they measure whether city budgets and financial statements provide clear and timely information so that councillors, taxpayers and other non-expert readers can evaluate and hold local governments accountable for their decisions,” continues a press release.
The analysis grades municipalities based on several different criteria, including whether their budgets are consistent with public sector accounting standards (PSAS) and whether they show consolidated revenues, expenses, and bottom-line projections on a single page, accessible in a single document.
The Institute also looks at how early or late municipalities release their budget, if there are clear comparisons between budget plans and year-end results, and if there is timely financial reporting.
Robson commented, “From water to transit to emergency services, municipalities deliver the services Canadians rely on every day.”
“Councillors need clear financial information to do their jobs, and taxpayers need it to understand and evaluate their decisions. When only specialists can decipher budgets, accountability breaks down.”
Hamilton received a zero because the budget “lacked PSAS-consistent numbers,” the budget “did not present city-wide expenses or include a PSAS reconciliation,” and 2024 audited financial statements were not available.
The C.D. Howe Institute notes that even the City of Hamilton’s 2023 financial statements were not available.
City officials have commented that the cyber-attack on the city impacted its ability to produce financial statements.
However, the Institute counters, “While we acknowledge that a cyber-attack can be crippling, all organizations obliged to produce financial statements must produce them, using backup systems and workarounds when needed. The painful fact is that Hamilton’s council and ratepayers do not have crucial documents needed for fiscal accountability.”
The Institute also says that “Councillors should review and vote on their municipality’s budget well before the fiscal year begins.”
“Spending without authorization from elected representatives violates a core principle of democracy,” the report’s writers say.
Hamilton’s 2025 budget was not approved until February 19 – 50 days into the calendar year.
Hamilton’s previous grades were a B-minus in 2021, a D-plus in 2022, an F in 2023, and an F in 2024.
The highest-scoring municipalities, all with an A-minus score, were Markham, Quebec City, Richmond, Saskatoon, and Vancouver.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
