LONDON ONT -- A surprise budget increase from the Middlesex London Health Unit will leave municipal councils scrambling to cover rising costs at the public health agency.

The board of health’s Finance and Facilities Committee has recommended a 2021 budget that includes an additional $762,000 dollars to cover inflationary costs at the Middlesex-London Health Unit (MLHU).

London’s share would total $640,000 and Middlesex County would owe $122,000 under the current cost sharing model.

Board of Health Chair (and City Councillor) Maureen Cassidy suggested the increase can be handled within London’s $1 billion annual municipal budget.

"While this is a substantial amount of money, I wouldn’t call it the one thing that is going to break the city," Cassidy told the committee.

If approved by the Board of Health, the city and county are required to cover the budget increase.

The financial gap is not directly related to the COVID-19 pandemic, instead it’s primarily rent increases, negotiated salary increases, and overtime.

The timing of the budget increase is potentially problematic, coming after both city council and county council approved their 2021 budgets.

Neither municipal government included a placeholder in their financial plans for the unanticipated funding boost for the MLHU.

In November 2020, CTV News asked Cassidy about a $762,000 budget gap being discussed by the board of health.

Cassidy now says the news coverage alerted city hall to the potential budget increase.

"The story on CTV (News) about the budget update was really the trigger for the city to reach out to the health unit," she explains.

But no indication of an increase was provided during budget deliberations.

Instead on January 12, city council (including Cassidy) approved a $610,000 decrease to the Health Unit’s budget based on one-time funding from the province.

Cassidy disputes that she should have warned council of the potential budget hike.

"It (budgeting) is an ongoing process, like it is at the city. I don’t see the budget until it comes to me as a councillor, and its the same in my role on the board of health."

A recommendation to approve the 2021 MLHU budget will be considered by the Middlesex-London Board of Health at its February 21 meeting.