Ferguson wants equal transit service to suburbs if costs rise
Ancaster Coun. Lloyd Ferguson is demanding city finance staff provide an updated report on eliminating area rating for transit and the cost suburban taxpayers will have to pay for any improved services.
An agitated Ferguson urged staff to provide a transit report that would reveal the true cost of providing the same service to suburban areas that the current wards one to eight already enjoy.
“I need that refreshed,” he said during Friday’s budget meeting.
Ferguson called the information a “nuclear bomb” that could explode the current budget negotiations for this year and 2020.
When Mike Zegarac, acting city manager, told him staff was providing a report later this month that contained information on two options to fund transit either through the general levy and or in an urban-rural model, Ferguson rejected the idea.
“That is not enough. That is not fair,” he said. “I damn well want to know if you are going to shove it up our backsides with this. We need the same level of service.”
Ferguson said “this side” of the council table, indicating councillors Brad Clark, Maria Pearson, Brenda Johnson and Arlene VanderBeek “would want to know what the cost is. It’s critical what the cost is to bring (transit) service” up to the service levels that the old city of Hamilton has.”
It was revealed last month that Hamilton’s transit service is about two million riders, or 10 per cent, below the city’s projections according to the 10-year transit plan that was established in 2015.
Transit officials are requesting a 14 per cent funding increase, or over $9.2 million for 2019 in an effort to improve service.
Ward 5 Coun. Chad Collins, chair of the committee who attempted to calm the veteran councillor down, asked why Ferguson was essentially debating a report that has yet to be presented to councillors. Ferguson replied: “Because I’m terrified of it.”
A few urban councillors have in the past indicated they are prepared to eliminate area rating for transit so that the entire city pays for the underfunded service.
Currently, residents pay only for the transit service that is provided in their areas. If area rating is removed, homeowners would see their taxes increased.
Collins said he already asked transit staff to provide further information about the city’s transit service, including the impact of eliminating area rating. The report is due to be presented to councillors on Feb. 28.
Mayor Fred Eisenberger is proposing staff examine the growth projections for Binbrook, Ancaster, Dundas and Stoney Creek and how to provide the necessary transit service to those areas.
Ferguson’s outburst interrupted a relatively benign meeting where councillors sliced $1.7 million from the 2019 operating budget, reducing the proposed tax increase from 2.9 per cent to about 2.7 per cent. The tax increase had been 3.2 per cent last week.
Councillors did approve the budgets for various committees, such as seniors, veterans, arts advisory, cycling and homelessness.
If the budget is approved now, the average tax increase would vary across the city. For instance, Ward 3 would have the highest hike at 4.5 per cent, followed by Ward 1 at 4.4 per cent and Ward 3 at 4.3 per cent. They would be followed by 3.3 per cent for Ward 4, 3.1 per cent for wards 7 and 8, with Ward 6 at 2.7 per cent and Ward 5 at 2.5 per cent. Ward 14 on the Mountain would come in at 2.9 per cent, while in Stoney Creek Ward 10 would be 2.2 per cent and Ward 9 at 2.1 per cent. Ancaster would have a 1.8 per cent tax increase, with Dundas at 1.6 per cent. Flamborough would see a 2.2 per tax hike.
Zegarac said the different tax increases are because of changes to market value assessments and area rating impacts.