As the possibility of a four per cent tax hike looms, the London Chamber of Commerce is urging city council to keep the levy down to its originally proposed increase in order to curb "unnecessary economic burden" on Londoners.
In a letter headed to the strategic priorities and policy committee next week, Chamber CEO Gerry Macartney recommends keeping the annual average tax increase to 2.8 per cent. The target figure council had set for itself at the start of the four-year budget process.
"The chamber recognizes the financial pressures that the city will be facing given the increased downloading from the province. With the benefit of a full year working together, the city council is well-positioned to exercise fiscal restraint while at the same time positioning our city for further growth and prosperity," the letter states.
It goes on to warn that the current 4.5 per cent draft increase is "incompatible" with the chamber's longstanding formula that takes into account both population growth and inflation. The chamber adds the larger than expected increase places "unnecessary economic burden" on local businesses and homeowners.
The chamber states that if council wants to consider adding currently unbudgeted items to the fiscal blueprint, it should do so by finding savings in other areas.
"Consider the disposal of unused or unproductive properties or holdings or possibly repurposing them to maximize taxpayer value from the city's assets. This could include, for example, golf courses and other recreational holdings," Macartney writes.
The letter also asks for clarification on the $8.2 million cost lowering speed limits through the city would have on the London Transit Commission. A report issued last fall by London Transit estimated the speed limit change would require multi-millions in extra funding to allow for more expansion buses and schedule rewrites.
A public participation meeting on the city's 2020-2023 budget will be held at 300 Dufferin Ave. next Thursday. The budget is expected to be finalized by March 2.
