Hamilton's Audit, Finance and Administration Committee Meeting

Hamilton's Audit, Finance and Administration Committee reviewed the Southcote infrastructure-project audit, delayed procurement reports, development-charge incentives, welfare overpayments, records retention and outstanding fines. The committee adopted 10 audit recommendations and directed staff to scope an external review of procurement and project delivery. The meeting ended after a 15-minute recess because the committee no longer had quorum.

Topics Discussed

INFRASTRUCTURE AUDIT AND PROJECT MANAGEMENT

An audit of the Southcote road and pipe project found that costs increased from $13.3 million to $15.8 million. The increase included approximately $1.5 million in change orders, $605,000 in quantity adjustments and $401,000 related to disputed storm-sewer pricing.

The successful contractor bid $1 per linear metre for 117 metres of storm sewer. Other bidders submitted prices of approximately $316,000 and $343,000 for comparable work. After the contract was awarded, the city approved revised pricing of $401,000.

Auditor General Charles Brown said, "Irrespective of these errors, the winning bidder did bid $1 per linear meter."

Staff accepted all 10 audit recommendations. The reforms include project charters, project classifications, six approval gates, monthly reporting, standardized contingency calculations, decision logs and payment verification. Three recommendations have been completed; the remaining work is targeted for the fourth quarter of 2027.

Councillors also questioned vendor accountability and project delays. Brad Clark asked, "How do we prevent that from happening? How do we hold vendors directly responsible for the contract that they submitted that they signed and now all of a sudden they're asking for more money from the municipality?"

PROCUREMENT OVERHAUL AND CYBER-INCIDENT BACKLOG

The committee reviewed procurement reports delayed by the city's 2024 cyber incident. The reports covered emergency and non-competitive procurements from late 2023 through mid-2025, tenders and proposals from the second half of 2025, and instances of non-compliance with procurement policies.

Councillors asked how employees outside the procurement department are trained to authorize spending under the city's procurement rules. Staff cited mandatory online training, Procurement 101 sessions and follow-up meetings after policy breaches.

The committee directed staff to scope an external review of procurement and project-delivery processes. The review will consider private-sector procurement support, mandatory project milestones and methods for addressing delays in sidewalk work, road resurfacing and major capital projects. The city has $300,000 earmarked for its continuous-improvement program; additional funding may come from the Tax Stabilization Reserve.

DEVELOPMENT-CHARGE INCENTIVES AND HOUSING

The committee considered a three-year residential development-charge reduction program supported by anticipated provincial and federal funding of $572 million. Staff estimate that waived charges will total approximately $562 million, leaving an initial $10 million buffer.

Projected construction was cited at 1,365 single-detached-equivalent units in 2026–27, 1,843 in 2027–28 and 2,488 in 2028–29. Brad Clark questioned whether construction could exceed the funding cap and leave property taxpayers responsible for infrastructure costs.

Clark also warned that development charges could rise by approximately $100,000 per single-family home when the program ends in March 2029. He said, "At the conclusion of this program, if nothing else changes to what we have today, three years in 2029, there will be a $100,000 bump in development charges on a single family home."

Councillors asked whether savings of approximately $100,000 per home would reach buyers and renters. Tammy Hwang asked how the city would verify that developers pass the savings to purchasers, saying, "How do we do that kind of a check and balance? Is that something we can track?"

WELFARE OVERPAYMENTS, FINES AND ELIGIBILITY

Delegate Hafi Hussein questioned the city's handling of $58.3 million in inactive Ontario Works overpayments. Hussein said council approved a request in July for the province to accelerate collections, but the city did not send its letter until Sept. 8. "My issue is that this is $58.3 million on the table," Hussein said. "Why did it take two months to send a letter to the ministry asking them to start accelerating the collection of overpayments?"

Hussein also asked the Auditor General to examine whether the city uses MPAC data and Elections Ontario lists to verify residency, identity and continued eligibility for assistance. He raised questions about Ontario Works eligibility rules and Hamilton's 2014 sanctuary-city policy.

A separate delegation asked the city to seek access to Ontario's Photo Card database to help collect approximately $68 million in outstanding Provincial Offences Act and bylaw fines. The city currently uses the Ministry of Transportation's Authorized Requester program to locate people with driver's licences but does not have equivalent access for non-drivers.

RECORDS RETENTION, PRIVACY AND PUBLIC ACCESS

The committee reviewed Report FCS26075 on the records-retention bylaw. Discussion covered data minimization, staff training and the deletion of digital records containing personal information.

Councillors also discussed public access to archived records. Brad Clark said, "The archive is only helpful if the public has access to the archive," and asked the city to improve the ease of access to records retained for public use.

Staff said the city is working with IT on a corporate-wide electronic document and records-management system. The clerk's office is also identifying commonly requested documents that could be disclosed routinely without formal Freedom of Information applications.

Motions

• AUD26008 — Southcote Infrastructure Project Audit: The committee adopted all 10 audit recommendations, 6–0. Full follow-up is targeted for the fourth quarter of 2027.
• CM260006 / CM26006 / GIC260008 — Corporate Continuous Improvement Program: Staff were directed to scope an external procurement and project-delivery review. The motion carried 5–0.
• FCS26075 — Records Retention Bylaw Review and Update: The update and related direction on electronic records and public access carried 8–0.
• AUD21004F, Item 8.5 — Ontario Works Value for Money Audit: Consideration was deferred until after the closed session.
• FCS26077 — Appointment of Deputy Clerks: Approved unanimously.
• LS26017 — Administrative Penalty System: The transfer of the APS adjudication process was approved unanimously.
• FCS26068 — Ward-Specific Funding Initiatives Update: Received for information.
• FCS26070 — 2025 Development Charges Agreements: Received as an annual update.
• September 3, 2026 meeting minutes, Items 5.1 and 11.1: Public and closed-session minutes were adopted.
• Closed session: The meeting ended after the committee waited 15 minutes and could not restore quorum. No closed-session business was completed.

Attendees

The excerpts identify the following participants:

• Brad Clark
• Alex Wilson
• Maureen Wilson
• Tammy Hwang
• Craig Cassar
• Wang
• Tanway
• Crutch

The excerpts do not provide a complete official attendance list.