Committee to scour budget for more infrastructure cash

Meeting Tuesday, city councillors are expected to approve the creation of a committee that will focus on ways to save money in the city's budget, and divert those dollars to infrastructure projects.

The ad hoc group came from a suggestion at the May 7 finance committee meeting, at which staff delivered its financial forecast, estimating property tax increases of between 3.1 and 3.4 per cent over the next three years.

Those projections assume inflation will run between 1.9 and two per cent, natural gas costs will rise by six per cent a year and hydro costs by five per cent.

Employee benefit costs, as well as long- and short-term disability premiums, are expected to rise by five per cent.

The three-year forecast also assumes user fees will continue to increase by three per cent a year, and capital budgets will increase by two per cent in 2014, three per cent in 2015 and four per cent in 2016.

The city's finance department is also preparing for a steady decline in grants from the province, with less and less money coming from the Ontario Municipal Partnership Fund. Cuts to the fund will total $1.7 million next year alone, and are forecast to decline by five per cent each year.

Total spending is estimated at $508 million for 2014, $519 million in 2015 and $532 million in 2016.

Other areas where costs are increasing significantly include public housing, where a $560,000 reduction in federal government grants is expected; in social services, where provincial uploading will result in net costs increasing by $650,000; a projected increase in Sudbury Transit net costs of $550,000 required for contractual obligations, including HandiTransit; and, an increase in Environmental Services net costs of $900,000, “a result of contractual obligations for landfill sites, waste collection, processing and diversion.”

Council must also finance about $50 million for the biosolids plant and $20 million for the new transit garage on Lorne Street.

With councillors aiming to keep property tax increases at around the level of inflation, under these forecasts, it would need to find between $2 million and $3.1 million in savings in 2014 alone to get the tax increase between two and 2.5 per cent.

The committee's mandate is to examine spending on all budget items “which are not essential to a municipal function.”

The committee is expected to consist of Ward 11 Coun. Terry Kett, Ward 10 Coun. Frances Caldarelli, Ward 7 Coun. Dave Kilgour and Ward 2 Coun. Jacques Barbeau.

Formal nominations and appointments will take place Tuesday.