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Campbell proposes freeze on municipal spending

City's upcoming economic crisis is a major concern for the Ward 3 Councillor
Joe Campbell Sept 26
Ward 3 Councillor Joe Campbell. Andrew Autio for TimminsToday

At Tuesday night's meeting at city hall, Councillor Joe Campbell will be asking his colleagues to support a resolution for the city to put a freeze on new spending.

The resolution states that it is 'the responsibility of city council to maintain the financial integrity of the municipality', and that spending should stay at 2017 levels, for the city's 2018 budget, which is currently being discussed. 

If approved by council, it essentially suggests that no departments should be asking for budget increases for next year.

However, on Sept. 26 council voted to target a two per cent net increase for the city's total expenditure budget for 2018. They unanimously voted down a two per cent decrease from all departments suggestion, and only Councillor Veronica Farrell voted in favour of a one per cent decrease from all departments.

"The two percent increase is the most realistic to start. There's nothing to say that we can't try to go underneath that, but I think that is the most realistic start. We know expenses are going to be up a minimum of one percent, so I think with a two percent, we can cut from two percent if we can," said Councillor Noella Rinaldo.

Mayor Steve Black stated that in the last 16 years, there has only been one budget coming in at less than a two per cent net expenditure increase.

The last five years of net expenditure increases are as follows:

  • 2017 - 2.41 per cent
  • 2016 - 5.13 per cent
  • 2015 - 4.26 per cent
  • 2014 - 5.19 per cent
  • 2013 - 3.29 per cent
Jim Howie Sept 13 17Campbell's resolution also requests a detailed report from the city's treasurer Jim Howie on how the municipality aims to avoid large tax increases. Andrew Autio for TimminsToday

Regarding Tuesday's meeting, Campbell paints a concerning portrait of the city's economy in the near future. He lists the closure of Goldcorp's underground operations in South Porcupine, Goldcorp's wind down of the Hollinger Pit Project, the imminent closure of Kidd operations, the wind down of DeBeers operations, and a huge loss of tax revenues due to assessment appeals from major industrial sites. 

He says there is a major funding shortfall regarding the city's aging core infrastructure, which includes the connecting link. He adds that the city's current debt load is approximately $66 million, not including interest.

Campbell is also requesting that a 'complete detailed public report' is submitted to council by the city's treasurer (Jim Howie) that recognizes the city's economic challenges going forward. 

"Indicating in detail where these future financial shortfalls will be made up as to protect city taxpayers from major taxation increases," says Campbell's resolution.

Tuesday's meeting begins at 6 p.m.