In his six-month budget monitoring report to city council this past Monday (Sept. 18), the city’s director of financing, David Aristone, is projecting an operating deficit of $25,000 this year.
Aristone cautions, however, there are three areas in which “the city may have some exposure for over expenditures but the magnitude is not known.”
In other words, that operating deficit could balloon rather significantly.
The three areas of concern?
Let’s start with 2017 salary negotiations which would include bargaining with city firefighters. They are seeking a 24-hour shift structure and unless an amicable agreement can be reached, this one will end up in arbitration. Continue reading
While ground is not expected to be broken until June, city council Monday tidied up some of the financial details associated with construction of the St. Thomas Outdoor Recreation Complex, to be located on Burwell Road.
In a unanimous move, council authorized staff to release a tender to pre-qualified contractors based on an estimated construction cost of just over $10 million for the multi-use recreation complex to be housed on a 65-acre, city-owned parcel of land.
Included in the report from finance director David Aristone was a recommendation authorizing him to submit an application to Infrastructure Ontario for a $10 million debenture.
The city this week locked in place two more pieces of the Talbot Street West redevelopment puzzle with announcement of the purchase of two properties from London developer Shmuel Farhi.
The acquisitions are the Mickleborough Building at 423 Talbot Street – the home of Ontario Works since 2000 – and a parcel of land on the south side of Talbot St., between William and Queen streets, and stretching south to Centre Street.
While a conditional offer was announced last April the delay, according to city manager Wendell Graves, revolved around environmental issues.
“We have done due diligence over and above so we know exactly what we are facing,” stressed Graves. “In our approved city budget this year we have funds allocated there to begin some cleanup. Because we are looking to use pieces of that site for residential, under the Ministry of the Environment regs, that is the highest order of cleanup that will be required.”
A combination of financial pruning and an uptick in residential assessment will hold the 2017 municipal tax levy increase in St. Thomas to 2.31%.
City council Monday approved both the operating and capital budgets for this year following a series of three working sessions held last month at city hall.
At the time of those meetings, the draft budget required a municipal tax levy increase of 3.44 per cent. However an additional $550,000 in levy will be raised this year on residential assessment growth over 2016, resulting in a tax levy of $50.4 million, an increase of 2.31 per cent. Continue reading
The first of three 2017 budget meetings was held Monday at city hall with the second in the series on tap this coming Monday at 4 p.m. where the focus will shift to proposed capital projects and grants.
The 2017 draft budget requires a municipal tax levy increase of 3.44 per cent. However when you factor in an additional $41 million in residential assessment, that reduces the proposed levy to a 2.32 per cent increase.
Proposed capital projects this year total $36.3 million in expenditures. Continue reading