2014 City Budget

[thistleclub]

Zero per cent tax hike comes into focus
(Flamborough Review, Kevin Werner, Sept 27 2013)

Hamilton politicians can see their zero per cent tax target more clearly this year.

Financial staff says if the 2014 budget were approved today, residents would pay on average about 2.8 per cent more than last year – one of the lowest budget beginnings in years.

“This is a favourable starting point not only from last year, but from previous years,” said Mike Zegarac, acting corporate finance general manager.

Last year, councillors began the 2013 budget negotiations with a 5.5 per cent average tax increase. They managed to whittle it down to about 1.9 per cent, or an extra $65 per household. In the past, councillors have started their budget deliberations at around 12 or 13 per cent. In 2011, the average tax increase was 0.8 per cent, the lowest in the city’s post-amalgamation history.

“This is a reasonable start,” said Ancaster councillor Lloyd Ferguson.

Councillors have already established a zero per cent tax increase goal in 2014, which is a municipal election year.

If politicians can get to zero, it will mean either cutting $20 million from the budget, or finding comparable revenues.

The city, though, is facing a rising debt load beginning in 2014, when it jumps to $809 million from $294 million. It balloons to just over $1 billion in 2015 and 2016. In 2017 the debt is projected to drop slightly to $985 million.

The credit agency Standard and Poor’s has identified Hamilton as having limited flexibility to relieve that debt.

Hamilton is in a difficult position because the city has a lower average income to raise revenue, S&P’s report stated.

Councillors will also have to deal with the Hamilton Police Service’s budget request, which reflects in preliminary stages a 3.65 per cent or $5.1-million increase.

Last year, council and the Police Chief Glenn De Caire became embroiled in a war of words as politicians tried to get the board to cut the police budget from its initial 5.45 per cent bump. It was later reduced to about 3.71 per cent.

The police chief this year is asking for about $1 million to purchase Tasers for officers.

“(The police budget) is a very fluid process,” said Zegarac.

Other obstacles to reaching a zero per cent increase include a rising number of Ontario Works applicants, the McMaster lease, funding for social services’ discretionary benefits and implementing the Accessibilities for Ontarians with Disabilities Act.



The 2014 Tax Budget Preliminary Outlook was presented at the Sept 18, 2013 General Issues Committee meeting.

[ScreamingViking]

Originally Posted by thistleclub

The city, though, is facing a rising debt load beginning in 2014, when it jumps to $809 million from $294 million. It balloons to just over $1 billion in 2015 and 2016. In 2017 the debt is projected to drop slightly to $985 million.

What is responsible for that $515 million increase in debt next year? (and the $200M the following year) Expenditures for the sewage treatment plant upgrades?

(maybe it's mentioned in the livestream of the council meeting but I'm not about to skim through all that just now)

[thistleclub]

Did anyone make it out to the second and final Capital Budget Workshop yesterday? (Shame that it ran parallel to the Renew Hamilton Learning Forum event.)

[thistleclub]

Mean to post this earlier: Presentation and Backgrounder for the October 18 Capital Budget 2014 GIC Workshop #2.

The Participatory Budgeting fans should take note of the forecast on page 10 of the Presentation:

Area Rating Capital available for use in 2014 after existing commitments, annual $100k projects and 2014 Budgeted projects are removed:

Ward 01: $1,876,454
Ward 02: $250,573
Ward 03: $3,274,592
Ward 04: $1,728,085
Ward 05: $2,284,575
Ward 06: $2,478,037
Ward 07: $2,506,097
Ward 08: $745,805

[drpgq]

Originally Posted by thistleclub

Mean to post this earlier: Presentation and Backgrounder for the October 18 Capital Budget 2014 GIC Workshop #2.

The Participatory Budgeting fans should take note of the forecast on page 10 of the Presentation:

Area Rating Capital available for use in 2014 after existing commitments, annual $100k projects and 2014 Budgeted projects are removed:

Ward 01: $1,876,454
Ward 02: $250,573
Ward 03: $3,274,592
Ward 04: $1,728,085
Ward 05: $2,284,575
Ward 06: $2,478,037
Ward 07: $2,506,097
Ward 08: $745,805

Whoa what's up with Ward 3? Is that because Morelli was ill and never got around to doing anything?

[SteelTown]

Think he's trying to save for a new Senior Centre.

[drpgq]

Originally Posted by SteelTown

Think he's trying to save for a new Senior Centre.

Ah that makes sense.

[thistleclub]

Hamilton's 2014-2015 budget cycle gears up this week.

The 2014 Draft Tax Operating Budget is in the spotlight at today's GIC. Among the presentations:

- 2014 Planning & Economic Developemnt Draft Operating Budget
- 2014 Public Health Services Draft Operating Budget
- 2014 Community Services Draft Operating Budget
- 2014 Public Works Draft Operating Budget
- 2014 Corporate Services Draft Operating Budget
- 2014 City Manager Draft Operating Budget

Joey Coleman has live video.

The 2014 Tax Supported Capital Budget (FCS13096) will dominate Thursday's GIC.

[thistleclub]

Via @JoeyColeman:

Council now looking to move some 2014 capital projects to the 2015 budget. This will help them get 0% increase in election year.

[thistleclub]

Councillor's detective work to save Hamilton $3 million
(CBC Hamilton, Cory Ruf, Dec 6 2013)

His colleagues on council called him a “forensic accountant,” whose keen eye and “detective-like work” have resulted in $3 million in savings for taxpayers.

On Friday, Ward 5 Councillor Chad Collins presented a laundry list of 19 line items from the city’s capital budget that could be scratched in favour of reducing the expected tax increase for 2014.

The city’s general issues committee approved 12 of those suggestions — representing an estimated $3.32 million — and voted to use the savings against any property tax increase ratepayers may face next year.

The bulk of the savings come not from permanently axing or paring back programs. Rather Collins argued against pouring more dollars into projects that still have large sums of money left over from previous budget cycles.

“There’s 137 projects representing $15 million worth of work where, we, as an organization, haven’t pulled a dollar out of those accounts,” said Collins of what he discovered while scouring the city’s books.

“The fact that we have this money sitting around… speaks volumes to how we need to improve the budget process.”

The savings include, for example, $500,000 for building assessments for social housing. Upon contacting city staff, Collins said, he found that the program receives funding from a reserve dedicated to public housing projects.

[thistleclub]

Councillors in dark over ‘recycled’ project funding
(Hamilton Spectator, Matthew Van Dongen, Dec 6 2013)

City bureaucrats are redirecting millions of dollars approved for certain projects and spending them elsewhere with little oversight, say councillors.

Next year's proposed $285-million capital budget includes $20 million in funds "reallocated" from completed, delayed or abandoned capital projects approved by council in the past.

Too often, councillors don't know where that "recycled" cash comes from — or what previously approved projects died to make it available, said Councillor Chad Collins at Friday's budget meeting.

He pointed to $1.2-million staff-proposed spending on traffic signal upgrades in 2014 — money that was originally approved by council for road repaving in 2012.

"When these sort of transfers are happening — and we're not aware of it — it's particularly frustrating given what we're constantly being told about the lack of resources for roads," Collins said, noting the city roads and bridges repair deficit of close to $200 million.

"If we think we're funding one thing, and you move that money around and we're not aware of it, I think we need to see some policies around that," said Councillor Terry Whitehead.

Acting finance general manager Mike Zegarac said in an interview about $4 million of the reallocated funding is bonus cash leftover from cheaper-than-expected projects. In other some cases, like $500,000 worth of delayed sidewalk work, the money will just be spent on the same work next year.
Millions more in recycled cash, however, come from reprioritized, delayed or abandoned project budgets.

Zegarac said project reallocations of $250,000 or more come back to council for approval through periodic "capital closing" reports or the budget process.
But he conceded the details of the transfers — where the money started, which reserve it was parked in, and where it ends up — are not always clearly shown.

After Friday's meeting, Zegarac said staff will come back with a specific reallocations policy designed to keep councillors in the loop on recycled project cash.

[thistleclub]

Want to help spend $1.3 billion? You should – it’s your money
(Hamilton Spectator, Matthew Van Dongen, Feb 22 2014)

Hey, taxpayer: The city is about to reach into your wallet for thousands of dollars.

You should drop by City Hall Tuesday to tell councillors how to spend it.
No, really. Demand they spend more on buses for Rymal Road, especially on weekends — or suggest that cash is better spent filling a nasty winter crop of potholes.

Scold them — or thank them — for putting off budget-busting rehab for the weed-ridden sports fields your kids play on. Suggest they collect fewer tax dollars from you next year, rather than more.

Sure, you can complain about taxes any old day.

But Tuesday is special because it offers residents the chance to talk dollars and cents with a captive audience of councillors — the folks poised to approve a $1.3-billion operating budget that includes a property tax levy of close to $748 million this year.

Those are dollars that add salt to icy roads, fuel buses, open or close extra shelter beds and replace storm-mangled trees on your street. If council sticks with its 1.8 per cent draft budget increase, the average city resident will pay an extra $65 in city and education taxes in 2014, or $3,634.

Thanks to property reassessment and area rating, the bill varies depending on where you live — for example, Flamborough is braced for an average 3.5 per cent bump.

That budget would still rank among the stingiest in Ontario this year — but it would also mean another year of infrequent buses on the Mountain and no relief from ambulance shortages.

We've included a bite-sized budget primer below. Chew on it, then come out to City Hall Tuesday between 3 and 7 p.m. and tell councillors what you think.


OPERATING BUDGET NUTSHELL
Gross spending: including fees, subsidies, etc.: $1.28 billion
Levy spending: what you are taxed for: $748 million
Change over last year: $21 million
Average tax impact: 1.8 per cent, or an extra $65 for the owner of a property worth $267,500
Cuts needed for zero tax increase: $15 million

NEW SPENDING
Council will consider up to $3.4 million in service improvements before setting the budget in March. The big battles include:

Transit: Council could spend between $500,000 and $2.6 million on more frequent bus service on the Mountain, particularly on Rymal Road, Stone Church Road and the north-south A Line. Either fares or taxes are destined to rise to make it happen.
Stadium: Staff want an extra $830,000 and seven workers to help run the new Pan Am stadium. New revenue should cover the cost, but councillors are leery about adding new staff before the $145-million facility even opens.
Drains: Staff say we need to clean out clogged catch basins and stormwater ponds more frequently or risk flooding. About $300,000 is on the table.
Ambulance: Paramedic Chief Mike Sanderson has asked for a new 24-7 ambulance to help cut overtime and the risk of increasingly frequent ambulance shortages. It would cost taxpayers about $260,000.

TAX INCREASES: A RECENT HISTORY
2011: 0.8 per cent
2012: 0.9 per cent
2013: 1.9 per cent
2014: 1.8 per cent (proposed)

YOUR BUDGET: HOW TO SPEAK UP
Option 1: Make a public delegation in council chambers between 3 and 7 p.m. on Tuesday. Tips: Try to register by the end of Monday if you can with carolyn.biggs@hamilton.ca, but walk-on delegations will also be accepted. You have five minutes to share your thoughts.
Option 2: Submit a written letter, by email at the address above, or by mail to the clerk's office at 71 Main Street West. Call 905-546-CITY for more information.

[SteelTown]

Seriously? Is this the kind of stuff our money is going towards the Police department?


http://www.cbc.ca/news/canada/hamilt...icle-1.2649978

Last I checked we aren't in Afghanistan.

[thistleclub]

Heavy. Used by Mexico’s Fuerza Civil and Grupo de Reacción Operativa de Saltillo as well as UAE Ground Force.

[Dr Awesomesauce]

^Is it too late to take their guns away?

That ship's probably sailed...

[HillStreetBlues]

Hope that we never have to...

That vehicle has a certain vibe to it I don't like. Also, I could think of a handful of better ways to spend $279,000.