Councillor Cameron Kroetsch’s motion, which was passed unanimously, will see city staff report back on the feasibility of giving Council the ability to receive and approve any police service or library board recommendations related to transfer funds to and from reserves relating to year-end surpluses and deficits. Pictured: Ward 2 Councillor Cameron Kroetsch. Photo Credit: Cameron Kroetsch/X.
A recent report from the city’s Corporate Services Department highlighted that the City of Hamilton has an estimated operating budget surplus of about $10.5 million for 2023.
The $10.5 million includes a $5.8 million surplus for City Departments, a surplus of $200,000 for Boards and Agencies and a $16.1 million surplus for Capital Financing.
Despite the expected surplus, a number of divisions are projecting deficits.
The city’s Healthy and Safe Communities division forecasted a deficit of $4.5 million.
Housing Services projected an unfavourable variance of $5.9 million in 2023, including $4.8 million as a result of “unfunded COVID-19 costs to support Dorothy Day program (Arkledun) operating costs and the women’s emergency shelter transition plan” and $4.4 million “in the family system and related emergency hotel costs,” states the report.
Those numbers were offset significantly by $3.4 million in savings related to social housing provider annual reconciliation recoveries.
The Hamilton Fire Department is projecting an unfavourable variance of $546,000 as a result of unfunded COVID-19 overtime costs, higher than budgeted vehicle expenses due to price increases, and other operating costs that were higher than budgeted.
The Public Works Department forecasted a deficit of $7.2 million with transit forecasting a net revenue deficit of $4.7 million including a $3 million reduction in fare revenues due to lower ridership numbers.
However, some departments are seeing projected surpluses including Hamilton Paramedic Service and the Hamilton Public Library.
Hamilton Paramedic Service projected a surplus of $105,000 as a result of provincial funding received, savings in vehicle expenses, and higher than expected user fee revenue.
Hamilton Public Library is seeing a projected surplus of $200,000 simply due to gapping (budgetary estimates simply different than originally expected).
It is unclear whether or not Hamilton Police Services will have a surplus for 2023, although they had $1 million in unspent funds in 2022.
Meanwhile the Rate Supported Operating Budget, which is funded by residential water bills, was forecasted at a $2.6 million deficit.
After hearing the projections, Councillor Cameron Kroetsch (Ward 2 – Downtown Hamilton), who has long been critical of Hamilton Police and their budget, brought forward a motion to give Council a greater role in determining how future police and library surpluses are used.
Currently, decisions on how to spend surpluses are determined by the Hamilton Police Service Board and Hamilton Public Library Board of Directors respectively.
Kroetsch’s motion, which was passed unanimously, will see city staff report back on the feasibility of giving Council the ability to receive and approve any police service or library board recommendations related to transfer funds to and from reserves relating to year-end surpluses and deficits.
Staff will be reporting back at a future General Issues Committee meeting with recommendations as well as legal advice on how the provincial Police Services Act and Public Libraries Act apply to the recommendations.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
