Budget Day 1: Council holds the line on 7.4% tax rate increase but funds shelter beds and more park maintenance

The first day of 2025 Budget deliberations at city hall on Thursday saw a pair of high-priced programs supported by council – but only after finding ways to keep the cost off property tax bills.

Park maintenance

Staring down a 7.4 per cent tax rate increase in the mayor’s draft budget, the committee began its deliberations with a debate about hiring more staff to improve maintenance of parks and public washrooms in the winter months.

“We're under-resourced in the portfolio. I get complaints about garbage in the parks, overflowing garbage cans, public washrooms that are not maintained, broken equipment that doesn't get fixed,” explained Councillor Skylar Franke who seconded the $1.12 million motion by Councillor Elizabeth Peloza.

However, Deputy Mayor Shawn Lewis balked at adding to cost to the property tax base.

“You are never going to be able to staff this up to the volume that is going to satisfy everyone,” Lewis told colleagues. “And when we are looking at a 7.4 per cent property tax increase, I'm not going to add another $1.12 million to that.”

The deputy mayor proposed offsetting the cost by reducing the annual contribution to the Climate Emergency Action Plan (CEAP) Reserve Fund by an equal amount, thereby keeping the enhancement of park maintenance off tax bills.

“I don't see how cleaning up parks is related to climate change,” countered Franke.

Councillor Sam Trosow adding, “as I see it, because I haven't heard a more fulsome rationale, it just sends out a signal that we're going to start putting things on onto the climate change account.”

“I do believe that parks are a jewel in the city and definitely need more funding and care,” said Councillor Elizabeth Peloza who also serves as Budget Chair. “I'm willing to pay for more climate action things out of different funds.”

After a divisive two-hour debate, a majority of council approved hiring 7 full-time staff – thereby slashing the annual contribution to the CEAP Reserve Fund from a million dollars – down to $173,000.

Ark Aid Street Mission

The budget committee also found a way to fund an extension of shelter services being offered by Ark Aid Street Mission without increasing the tax rate.

Last month, the mayor gambled by not including Ark Aid Street Mission’s $4.2 million funding request to continue operating 90 shelter spaces in his draft budget.

His bet paid off last week when the federal government announced funding from two programs to address homelessness.

It will be combined with money from a municipal reserve fund to keep the beds open and the cost off tax bills.

“What we have here is some funds cobbled together,” Morgan told colleagues. “I will tell you that my work, the [lobbying] work of FCM (Federation of Canadian Municipalities), the work of the Ontario Big City Mayors does not stop just because we may have been able to solve this temporarily in the City of London.”

“Our provincial partners are still M.I.A. (Missing in Action),” added Lewis. “I thank M.P. Fragiskatos for the money he was able to deliver from the federal government, but we still need the provincial government to step up.”

The Ark will continue to operate 60 shelter beds on William Street, and in accordance with a recent council decision, 30 overnight resting spaces will be relocated from The Ark’s building (696 Dundas Street) because it is located on the main street of a BIA.

“The 90 people that we have been serving each night will continue to have a warm bed after January 1, so we're grateful for that,” said The Ark’s Executive Director Sarah Campbell after the decision. “We will be able to meet people where they're at and work with partners to find locations off the BIA [main street] for those 30 beds.”

Housing

Also approved, but not requiring additional property taxes, a Hoarding and Extreme Clean Program that strives to keep people in their homes will be funded through the Life Stabilization Operating Budget.

Meanwhile, the committee dug in its heels about cutting the amount of money available to nonprofit agencies through Community Grants Program.

The amount of dollars available in the grant program with be reduced by either half, or all of its $496,000 value depending on the balance remaining in the Community Investment Reserve Fund.

A proposal to add $700,000 to the Housing Stability Bank in 2025 to help people struggling to pay their rent was defeated.

London Police Service

A motion by Councillor Franke to remove $1.6 million from the police budget failed after a lengthy debate.

The amount would have represented just 10 per cent of the increase to the police budget in 2025.

The budget committee was told that because more than 95 per cent of the London Police Service’s operating budget pays for salaries, the decision might prevent the hiring of 10 new officers.

Tax rate hike

The first day of budget deliberations ended without changing the proposed 7.4 per cent tax rate in the mayor’s draft budget, equal to a $265 increase on the average residential property tax bill.

After council completes its deliberations, the mayor will have an opportunity to veto any of the amendments approved by council.

Only a two-thirds majority of council can overrule a veto.

Deliberations resume on Friday.