It's a budget presentation that almost always causes tension at city hall.

But it was a very different story as London police Chief Brad Duncan went before the Budget Committee Thursday.

Duncan says in his 14 years coming to council for budget approval this is the lowest request ever, 0.74 per cent.

But the elephant in the room, identified by Councillor Phil Squire, is the missing estimate for increased labour costs.

Normally a figure is built in to the police budget request, often around 3 per cent, but it appears this is an attempt to put any further increase squarely on the shoulders of the London Police Association.

"It is strategic in some respect, but again I emphasize that I think going forward it's not clear what that average is going to be," says Duncan.

Duncan insists that there is a sense the cost of settlements will be coming down and that's why no number was set.

But that's not the way the association sees it.

"It's been kind of thrown at the feet of the membership," says Dan Axford, London Police Association spokesperson.

Axford was on hand for the debate and says it simply ties the hand of the city.

"Just the fact that the budget's been approved now at 0.74 per cent, and not taking any kind of wage settlement into account, I think, is a relatively unfair way of moving forward," says Axford.

There are some indications a reserve is in place to deal with any wage settlement.

Councillor Paul Hubert is emphatic it won't be on the backs of the taxpayers.

"We're going to be working closely with the Police Services Board but it will not be increasing residents' costs. The budget is what the budget is, we will not re-open the budget," says Hubert.

The rest of the budget process seemed to move along smoothly Thursday, even with a council that features 11 new members.

The new council also managed to save some money, trimming about $1.8 million from the Land Acquisition Fund that is designed to buy and develop industrial land.

The feeling is the fund strong enough that the cut won't hurt the city's ability to attract new business.

Budget deliberations continue with the proposed tax hike currently sitting at 2.5 per cent.

It will be finalized Feb. 26.