London councillors are pushing back at the province's suggestion that city hall tighten its belt.
Infrastructure Minister Monte McNaughton was outside Victoria Hospital to emphasize the provincial government's spending priorities as it tries to reduce Ontario’s $347 billion debt.
McNaughton is at the same time directing London city hall and local school boards to find four per cent reductions in annual spending.
He challenges city council saying, “They are spending nearly a billion dollars a year, and to find one, two, three, four per cent savings is achievable.”
The province has created a $7.35 million audit and accountability fund to help cities and school boards hire auditors to review their spending.
But London is already facing an estimated $4 million hole in its 2019 budget stemming from provincial funding changes, and $6.6 million a year starting in 2020.
Josh Morgan, council's budget chair, points to city hall's use of zero-based budgeting, service reviews and internal audits to find $4 million in savings since 2015.
He adds that recent reductions in provincial funding to police, the health unit and conservation authorities have forced council to consider service cuts.
“It doesn't help when other costs are layered onto the municipality in addition to the regular cost pressures that we have. That is why service reductions and service reviews are something council has decided to consider.”
McNaughton suggests London start by looking at $700,000 in uncollected parking fines and the cost to send councillors to conferences.
He believes savings can be achieved without cutting services or hiking taxes - by making processes more efficient.
“It’s those administrative savings, to redirect those into what matters most to the people, that's what we are doing.”
But Councillor Stephen Turner points to provincial downloading, saying, “Being saddled with downloading from the province...savings that they have found really are just transferring them onto municipalities rather than actually saving the money themselves.”
Turner warns provincial downloads could add about one per cent to London’s property tax rate and challenges McNaughton's claim that city hall needs to follow the province's fiscal lead.
“Municipalities are not allowed to run deficits - that's not the case for the provincial government, and I would urge them to take a look in their books a little closer.”
