Mayor Joe Fontana is already within striking distance of his vowed 2011 tax freeze, amid surprise belt-tightening at city hall.
But that wasn’t the battle that lit up the new council’s first meeting Tuesday night.
While council was told civic departments had cut $4.4 million from next year’s budget, and that projected tax-base growth is jumping considerably, politicians instead sparred over a pressure-packed push to freeze water and sewer charges next year.
“It’s not just a matter of how many dollars (we save),” Coun. Nancy Branscombe protested about the call to cut the hefty increases, which she argued would cause greater future costs. “It’s the long-term implications.”
Holding the line on water sewer rates would cut up to $10 million from the city’s planned 2011 revenues, saving the average homeowner about $37 next year.
Fontana, who’s promised to freeze taxes for four years and the charges for at least 2011, pushed his plan despite assurances it would delay scheduled renewal work on underground pipes and other public works.
“I worry more about the sustainability of the taxpayer because if the taxpayer isn’t sustainable, then the city isn’t sustainable — not the other way around,” he said.
Some councillors, notably Judy Bryant, warned the freeze on water and sewer rates could lead to another “sinkhole” like the one at King and Wellington streets that brought the city embarrassing national attention in 2007.
City engineer Pat McNally also said delaying a project from 2011 until 2012 or beyond will increase its price and end up costing taxpayers more.
Even still, councillors voted to recommend the freeze — it has to be put in place in time for Jan. 1, when planned hikes would kick in — by an 9-6 vote. That goes to a final vote Dec. 20.
Joining Fontana in supporting the freeze were Stephen Orser, Bud Polhill, Joe Swan, Matt Brown, Dale Henderson, Paul Van Meerbergen, Denise Brown and Sandy White.
The earlier-than-expected water-sewer debate popped up Tuesday night amid another surprise: the city hall spending cuts.
With civic departments — environmental services, for example — already set to freeze their budgets for the second straight year, $4.4 million in extra savings were announced by city manager Jeff Fielding.
Those savings come from workforce and program review work ($1.8 million) and wages and benefits reductions ($2.6 million).
Fielding will unveil the details Dec. 15.
The cuts won’t affect service levels, he said.
They bring the projected 2011 tax hike down to 1.7% from 2.7%.
With financial staff saying tax-base growth should double projections to about 1%, that leaves the tax increase at about 0.6%.
Councillors will ask outside boards and commissions, such as London Transit and the police, to help find that much in savings.
The savings Fielding detailed have been found much more quickly than expected, suggesting the work started in anticipation of the arrival of Fontana, who was elected Oct. 25 but only took power last week.
Fontana was nimble in handling his first city hall meeting in more than 20 years, but there were more than a few tense moments between he and his new colleagues.
Most notable came after what appeared to be a rather calm discussion over whether freezing water and sewer rates was irresponsible and could end up costing taxpayers more.
Fontana lashed out, saying that using words such as “irresponsible” will “impugn” the credibility of fellow politicians.
Polhill chairs planning
Joni Baechler was voted out Tuesday as chair of council’s new planning committee, an unexpected twist as politicians decided each other’s assignments.
Baechler, who had chaired planning, asked to lead the new built and natural environment committee — but council instead voted 8-7 to hand the reins to Bud Polhill.
Those who voted for Polhill, considered much more developer-friendly than Baechler, who’s pushed to have city staff control growth, were Mayor Joe Fontana, Stephen Orser, Matt Brown, Dale Henderson, Paul Van Meerbergen, Denise Brown, Sandy White and Polhill himself.
Joining Polhill on the committee are Baechler, Joe Swan, White and Denise Brown.
The other two standing committees are finance and community and neighbourhoods.
Finance, considered the most influential, will be chaired by the mayor. He’ll be joined by Nancy Branscombe, Paul Hubert, Judy Bryant and Henderson.
Community-neighbourhoods will be chaired by Harold Usher. Its other members are Van Meerbergen, Orser, Matt Brown and Bill Armstrong.
The committees, which do early legwork and make recommendations to full council, will meet for the first time next week.
patrick.maloney@sunmedia.ca
twitter.com/patatLFPress
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