Hamilton, the unstoppable city.

The city on a roll.

The third fastest growing city in Canada.

Downtown development proposals are rising like construction cranes.

More than $1 billion in building permits have been issued for seven years in a row.

We're now an advanced manufacturing supercluster.

We're now one of the top intelligent communities in the world for digital age development.

We're a bright renaissance coin spinning in the revitalizing warmth of the sun.

But — there's always a but — every coin has a flip side. Paradoxically, Hamilton's revival has more than one.

This, however, is not a reality check about our hyped but static war against ill health and poverty in needy neighbourhoods.

Or our towering wait list for affordable housing.

Or even our cratered Third World roads.

No, I'm talking about the cracks in the city's finances which councillors poked at during a recent general issues meeting.

The information flowed thick and colourless — an annual tax competitiveness study, an update on tax arrears, a report on assessment appeals, the 2019 tax impact charts.

Pretty eye-glazing stuff.

But by the time it was over, the inescapable impression was Hamilton is struggling with some key money issues, all of which is bad news for property taxpayers.

Consider: Hamilton's residential property taxes are six per cent higher than the averages in 15 comparator municipalities such as Burlington, London, Ottawa, Kitchener, and Cambridge etc.

On the upside, we've closed the gap. Back in 2011, we were 11 per cent above the average.

According to city staff, the difference might be explained by higher service levels, tax exemptions, and incentives in Hamilton.

Still, Hamilton's average household income is about 14 per cent lower in relation to our comparators, suggesting residential property owners here have a harder time absorbing increases.

And one thing is certain, there's always another increase.

Loading... Loading... Loading... Loading... Loading... Loading...

The average Hamilton homeowner is looking at a 2.2 per cent tax hike this year, about an extra $90. Granted, that doesn't sound too bad. Until you look at some individual urban wards.

For example, the average impact in Ward 1 in west Hamilton will be $184, the highest in the city. Downtown Ward 2 clocks in at $122.

Bear in mind, these aren't one-time escalations. Over the last five years, average increases total $818 in Ward 1 and $616 in Ward 2. And that doesn't include annual water rate hikes of about $30.

It adds up. And there's no sign of it letting up. That's because the city's attempt to grow the commercial and industrial tax base to take the pressure off homeowners is trending the wrong way.

Residential properties now account for 88 per cent of the tax assessment base. That's up from 86.7 per cent five years ago, despite all those ballyhooed building permits.

The fact is, permits do not automatically equate to assessed value. On top of that, new growth is consistently undermined by big box stores and shopping plazas successfully appealing their tax assessments.

On average, those appeals cost Hamilton $8 million a year in lost revenue. That's $40 million over five years.

Wait, there's more.

For some reason, Hamilton seems to have more trouble collecting unpaid taxes compared to other municipalities. Total tax arrears now stand at almost $74 million, an increase of more than $4 million over last year.

A frustrated-sounding Mayor Fred Eisenberger asked staff to report back on what other municipalities are doing to get their mitts on unpaid tax dollars that Hamilton isn't.

"Or maybe this is just our lot and … this is just the way it is in Hamilton," he added gloomily.

Maybe that's it. Maybe this is just the way it is in Hamilton. Maybe it's another tarnished flip side to all that momentum we love to brag about.

Andrew Dreschel's commentary appears Monday, Wednesday and Friday. adreschel@thespec.com @AndrewDreschel

905-526-3495