Hamilton mayor tells Ford to 'stop the surprises' if he wants cities to budget better

Hamilton's mayor says he'll take up the province's offer to try to cut the city's budget by four per cent. But he says Ford has tostop the surprises, and stop cutting public health and ambulance service.

The biggest threat to Hamilton's budget, the mayor says, is the province's cuts

Samantha Craggs CBC News Posted: May 21, 2019 6:37 PM EDT | Last Updated: May 21, 2019

Mayor Fred Eisenberger says the city's budget is already lean. (Samantha Craggs/CBC)

Hamilton's mayor says he has some conditions beforetaking Premier Doug Ford up on his budget-cutting offer stop the "haphazard" surprises, and stop cutting public health and ambulance service.

Fred Eisenberger says the city already scrutinizes its budget "line by line" to pinch pennies. Local property taxes have already been at or below the rate of inflation for the past six years. And the city has struggledwith provincial downloading for years.

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"All this being said, I am willing to work with Premier (Doug) Ford on finding efficiencies but under the following conditions: stop the surprises, stop cutting public health, stop cutting ambulance services, and let's work together," he said in a statement.

Eisenberger's words came after Ford offered up to $7.35 million for municipalities and school boards to havethird party audits. Municipalities, including Hamilton, have warned the comments that Ford's cuts could mean reduced services orhigher property taxes.

"It's time for all governments to get spending under control," Ford said Tuesday."It takes no courage to raise taxes."

"Work with us to find four per cent. Find the savings." This is needed, he said, to tackle a $11.7-billion provincial deficit and a roughly $347-billion debt.

The province "inherited a massive deficit from the previous government," says Donna Skelly, PC MPP from Flamborough-Glanbrook. (Samantha Craggs/CBC)

In Hamilton, the cuts will likely see the local public health unit merge with those in Niagara, Brant and Haldimand-Norfolk. It also means a reduction in government-funded child-care spaces, among other cutbacks. The province has also cancelled municipalities' share of the gas tax.

These changes began mere weeks after the city approved its 2019 budget, which shows "a lack of consideration," EIsenberger said.

Hamilton does multi-year budgeting, he said. "We are spending smarter. We are modernizing services and eliminating duplications and have done so for years."

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"The biggest threat to Hamilton's budget is the in-year cuts being inflicted by Doug Ford's government with no prior consultation."

In Toronto, the city estimates $178 million in cutbacks this year. Mayor John Tory said there's an irony in the provincial minister of finance saying the province hasn't raised taxes. "And yet they knew, I assume, they were going to be sending us letters and e-mails within hours or days, causing us to have to raise taxes."

Eisenberger says he agrees with Tory that cities and the province have to "work together in a collaborative and coordinated way that better serves the people of Ontario than the approach we have seen so far."

Hamilton property taxpayers are "going to have to add a Ford tax to their property tax bills," says Sandy Shaw, NDP MPP for Hamilton West-Ancaster-Dundas.

Donna Skelly, PC MPP for Flamborough-Glanbrook, says the province has gone through the budget "line by line," and "we're expecting municipalities to do the same." She cited those efforts as a reason the province can give $25 million for stem cell beds at Juravinski Cancer Centre.

"We inherited a massive deficit from the previous government."

Eisenberger said the province isn't bankrupt, and portraying it that way could deter investment interest.

Province plans to merge Hamilton public health with Niagara, Brant and Haldimand-Norfolk

And Sandy Shaw, NDP finance critic and Hamilton West-Ancaster-Dundas MPP, lashed out atSkellyin a media release Tuesday. Skelly should fight the cuts, Shawsaid, instead of"backstabbing the city."

"Doug Ford is cutting the services Hamilton families depend on every day, from child care to public health," saidShaw. "It's truly disappointing that local Conservative MPPs are parroting Ford's rhetoric and attacking our city rather than standing with Hamilton and pushing back against these cuts."

"Hamilton families are either going to feel Ford's cuts, or they're going to have to add a Ford tax to their property tax bills."

Full statement from Mayor Fred Eisenberger

Premier Doug Ford's call for municipalities to cut their budgets in-year by four per cent shows a lack of consideration for municipal budgets. Hamilton does multi-year budgeting. We already do line by line scrutiny to find efficiencies, we are spending smarter, we are modernizing services and eliminating duplications and have done so for years. We have had the lowest tax increases in the province, at or below the rate of inflation for the past six years. That means we have found efficiencies to meet the ever-increasing demand for services.

The biggest threat to Hamilton's budget is the in-year cuts being inflicted by Doug Ford's government with no prior consultation.

The Ford government's haphazard approach means local taxpayers face cuts to services or property tax increases or both.

We are provincially mandated to deliver certain services such as police, public health, ambulance services, fire services, roads and funding for conservation authorities. We have complained about provincial downloading to municipalities for years. At the same time, we are committed to our collective agreement with City employees. Our ability to do the kind of cuts Premier Ford is suggesting would mean cuts to services that people rely on or significant tax increases. Every eight million dollars of additional costs results in a one-per-cent property tax increase.

Suggesting that the province is bankrupt is at best inaccurate and at worst hurting Ontario's reputation and therefore bad for our economy.

All this being said, I am willing to work with Premier Ford on finding efficiencies but under the following conditions: Stop the surprises, stop cutting public health, stop cutting ambulance services, and let's work together.

I stand with Toronto Mayor John Tory in his call to work together in a collaborative and coordinated way that better serves the people of Ontario than the approach we have seen so far.

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Hamilton mayor tells Ford to 'stop the surprises' if he wants cities to budget better

The biggest threat to Hamilton's budget, the mayor says, is the province's cuts

Full statement from Mayor Fred Eisenberger

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