A higher minimum wage in Ontario will most likely mean a bigger tax increase for Londoners in 2018.
City staff has tabled its annual budget update for London's 2016-2019 multi-year budget, which includes an increase in the average annual tax levy from 2.8% to 3%. During the Strategic Priorities and Policy Committee meeting on Monday, administration said the average rate payer, with a home assessed at $221,000 in 2015, will see an increase in their tax bill of $82.
London's City Treasurer and Chief Financial Officer Anna Lisa Barbon said the biggest factor contributing to the rise in the budget is the increase in the provincial minimum wage.
"As part of the four year budget, we knew that there were modest increases proposed to the minimum wage legislation. We had included those increases as part of our four year budget. The recent amendments that are proposed are far in excess of what was anticipated," Barbon told BlackburnNews.com
The province announced plans back in May to raise the general minimum wage to $14/hr on January 1, 2018. The wage will then be increased to $15/hr on January 1, 2019.
Barbon said staff began working to update the existing budget once the increase was announced. She said administration had to incorporate an additional $1-million as part of budget to cover costs associated with an increasing minimum wage.
"Every $5-million [in the budget] is approximately 1%. So that's a very significant pressure on the tax rate," she said.
The annual update of the the multi-year budget was required by the Municipal Act 2001 to allow council to review and readopt the budget.
"With any multi-year budget process there are changes that could occur through that period of time. That's why we have an annual update, to allow the flexibility to accommodate those changes," said Barbon. "Obviously something like proposed legislation is something that's outside of the municipality's control."
The budget update will need to be approved by London Council, and includes a total of 19 budget amendments that were tabled by staff. Capital amendments to the water, wastewater and treatment budgets were also presented by Administration. Those amendments in the update will maintain the average annual impact of 3%, which is outlined in the initial multi-year budget.
Londoners looking to learn more or comment on the 2018 budget update or the multi-year budget process, are able to attend public sessions this November.
"The intent of the public participation sessions is for the public to weigh in and provide their comments to city council," said Barbon. "Depending on how city council wishes to take that public input into consideration, that could certainly have an impact."
The information sessions and public participation meetings will take place on the following dates:
-Information session November 7, from 6pm-8pm Byron Library 1295 Commissioners Rd. W
-Information session November 9, from 6pm-8pm East London Library 2016 Dundas St.
-Public participation meeting November 22, at 4pm Council Chambers 300 Dufferin Ave.
