London council gets first glance at draft 2019 budget update

London’s newly minted city council got its first glance at the draft 2019 update for the city’s multi-year budget on Monday.

The draft update and its 12 budget amendments would see the city take on a 2.7-per-cent municipal tax hike in the upcoming year, down from the 2.8-per-cent increase carried out in 2018.

This tax increase means the average homeowner with a house assessed at $221,000 would pay an extra $74 in 2019.

Prior to Monday’s unveiling, the tax increase for 2019 was projected to be 3.2-per cent.

In their draft update, city staff say they were able to mitigate budget pressures by drawing $2 million from an operating budget contingency reserve fund. Staff also found a little more than $1 million in savings after adjusting the city’s revenue streams, and a “confidential matter” handed down a $2-million budget cut.

Out of the control of city staff was the Ontario PC government’s cancellation of the previous Liberal regime’s $15 minimum wage, set to arrive in 2019.

City treasurer Anna Lisa Barbon said that decision gave the budget a “quite significant” reduction of more than $500,000.

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If approved, the draft update will become the final update of the city’s multi-year budget.

Barbon told 980 CFPL that the multi-year approach, which drew up a budget from 2016 to 2019, was a success for city staff.

“It gave us time to spend more time on budgeting monitoring,” said Barbon.

“We were able to look for savings, look at our efficiencies and do much better analysis.”

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Only three of the recommended 12 amendments would add to the city’s budget. The three operating budget amendments include a $408,000 request for bike lane maintenance, $590,000 for additional land ambulance resources and $161,000 for London police’s safeguard program, which is dedicated to providing greater mental support services for officers.

However, these increases are negated by the previously mentioned savings.

The draft update also proposed a 3-per-cent rate increase be readopted for the 2019 wastewater and treatment budget.

Londoners will have their first chance to weigh in on the draft update on Jan. 9. Those looking to attend the open house to be held at the BMO Centre on Rectory Street can register online.

City hall will host a public participation meeting the following week on Jan. 17.

Following a review in late January, city council will make its final decision on the budget recommendations on Feb. 12.