London, Ont. city politicians got their first look Tuesday at the last annual update of the 2020-23 multi-year budget.
A draft of the proposed update was tabled during a meeting of the strategic priorities and policy committee, which includes all members of London city council.
A total of 18 budget amendments, made up of 15 operating budget amendments and three capital budget amendments, are on the table, with nine recommended by city staff and nine submitted for consideration by council.
Should councillors approve the nine amendments recommended by staff, the 2023 tax increase for homeowners would stand around 3.2 per cent, down from the 3.9 per cent hike previously approved during the last budget update a year ago.
That figure could decrease further to 2.9 per cent if all 18 budget amendments are rubber-stamped by councillors, meaning a roughly $101 property tax increase for residential properties with an assessed value of $241,000 in 2019.
“It could be anywhere from 2.9 and upwards. I’m going to assume we’ll probably finish around 3.1-ish somewhere in there,” said Elizabeth Peloza, councillor for Ward 12 and the city’s budget chief.
“Staff have done a wonderful job, as always, of marking out the budget as staff recommended items for us to consider, and then ones for consideration that we’d given direction to go find things that we could consider cutting.”
According to the draft update, only five of the 18 budget amendments would result in a tax levy increase, with six seeing no impact and seven resulting in a tax levy reduction.
The amendments recommended by city staff include $1.8 million to support the city’s Roadmap to 3,000 Affordable Units Action Plan, $200,000 to fund Y.O.U.’s Project Clean Slate for another year, and just over $1 million to improve the city’s IT systems to protect against cybersecurity threats.
“We’ve seen other municipalities locally have their information taken and then sold back to them, at which point they would still have the same issue that they paid to get the information back, but they still need to do all the investment to upgrade it,” Peloza said.
“There’s multiple attacks every second at the city,” Peloza said. “At this point, it’s whaling, not phishing, because of the financial gain the cyberattacks would have on the people perpetuating these things. Keeping the city of London safe and operating is a key priority.”
City staff also recommend the city reduce its 2023 funding in Ontario Works, noting the program has seen a “drop in caseload and employment-related expenses” due to the pandemic and recovery benefits. Council previously approved more funding for the program in the wake of funding changes by the province. The change would see a tax levy reduction of just over $1 million.
The largest tax levy reduction, just under $6.6 million, would come from implementing permanent budget reductions and “budget right-sizing” as identified by city staff via regular budgetary reviews. The reductions would see no service level impacts, the update says.
Among the nine amendments, city politicians can consider: doing away with the printed council and committee agendas handed out in chambers, an $8,000 per year savings, and reducing the city’s Neighbourhood Playground Program from 22 full-day sites to 10 full-day sites, a saving of $250,000.
City councillors will also consider proposed amendments to reduce horticulture displays in the city, including cutting back or scrapping the hanging basket program, a saving of $200,000, and reducing previously approved funding for streetlight improvements, annual summer walkway maintenance, and funding in winter sidewalk maintenance, saving $936,000.
In reference to sidewalk clearing and pathway clearing in the winter, Peloza said: “I always hear conversations (that) it’s hard to use active mobility and use some of those neighbourhood connections when they’re not cleared to the standards residents would like.”
“And as we talk about street lighting, just really looking at what kind of street lighting we might scale back on, realizing if you’re walking, you prefer a well-lit area that you feel safe in.”
The full draft budget update can be found on the city’s website. Council is expected to finalize the update in February.
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