Hamilton prepares to guard itself from impact of a recession

Giving homeowners more leeway when they fall behind on their taxes.

Piling on the infrastructure projects just to create jobs.

Both of these are measures the city pulls out when Canadafalls into a deep recession. And while officials hope they don't need them, they're preparing them just in case.

The city's head of finance, Mike Zegarac, is putting together a list of potential measures just in case the countryfalls deeper into a recession this year.

While the country is already technically in a recession, some see it as merely a market correction related to oil prices, Zegarac said. Or it could be a ripple effect from China's economic troubles.

Time to prepare

Either way, the city needs to prepare by early next year, when the cityproduces its operating budget, Zegarac said. It will have a better idea this fall when June and July economic growth numbers are released how bad Hamilton's hit could be.

So far, the recession has barely breezed over Hamilton.

"We've been tracking economic indicators unemployment, transit and water/sewer revenues, child care wait lists," Zegarac said. His office is keeping close watch on Ontario Works and disability caseload numbers. It's watching the unemployment rate and housing growth numbers.

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So far, Zegarac said, Hamilton is doing fine.

"We don't see the same effect locally as has been reported nationally," he said

Coun. Sam Merulla of Ward 4 brought up the notion on Wednesday of how to handle a deepeningrecession.

Merulla is the one who asked for a report on potential "risk mitigation" in case there's a recession during the 2016 budget process. He asked to see ways the city could deal with it.

Those earlier measures ramping up capital projects to create jobs, lowering development charges so more people will build, and others happened during the 2008 global recession, Zegarac said. He'll report back on how they might work again.

Also at council

Also at Wednesday's council meeting, Matthew Green of Ward 3 successfully passed a motion for Hamilton to ask the province for the ability to license payday loan and cheque-cashing businesses.

Such places prey on Hamilton's most vulnerable, Green said, and put people in a spiral of debt that some never escape.

Green's motion passed unanimously.