Ward spending demands oversight

By any measure, the idea that Hamilton councillors in wards 1 through 8 can spend up to $100,000 without any oversight should be a non-starter. And yet, that’s the reality. It’s little wonder that some skeptical citizens refer to that as a “slush fund”.

Like it or not, it fits the definition. That money gets used for whatever purpose councillors think appropriate. That doesn’t mean the current uses, some of which include sponsorships and support to community groups, are not valid. But the status quo has to change in the name of transparency and accountability, those overused buzzwords which are too often absent on political decision-making at all levels.

After a Spectator investigation shone a light on the question of how area rating infrastructure cash is used, city hall staff have come up with a recommendation that would see these decisions require council approval. While that’s not a perfect solution, it’s an improvement.

The entire subject of area-rating funds is murky. The system was created in 2011 as part of a council compromise intended to level the playing field between postamalgamation tax rates in old city wards and suburban wards added when the province mandated amalgamation. Suburban ratepayers paid more and their counterparts in wards 1-8 received dedicated infrastructure money rather than a tax break.

It seemed like a good idea, but the execution has been complicated. Each ward gets $1.7 million annually, which includes $100,000 discretionary money.

The entire system needs reform and more transparency because the money is being used, in some cases, for purposes not originally envisioned. But for now, let’s at least close the discretionary spending loophole, at minimum. It’s a step in the right direction.