London community groups push back at proposed city grant reductions
Non-profits say move to cut costs would remove crucial funding
A handful of non-profit organizations plan to push back at a London city council working groups call to reduce grants that provide one-time funding to local organizations.
The working group is recommending reductions to two types of community grants: an infrastructure and innovation grant and the neighbourhood decision-making program. It was tasked with finding ways to reduce costs after council passed a budget that will mean an average of 7.4 per cent property tax increase for Londoners over the next four years.
Urban Roots London, which provides low-cost access to fresh produce, is one of eight groups that have either filed a submission opposing grant reductions or plan to speak against them at today's Strategic Priorities and Policy Committee (SPPC) meeting.
Anna Badillo, Urban Roots' executive director, has submitted a letter to the city opposing any move to reduce the grants. She said her organization received a huge boost when it secured a $34,600 city infrastructure grant in 2022 to upgrade electrical service at its urban farm in the city's east end.
"It was fundamental for us," said Badillo. "Having power on the farm allowed us to upgrade our irrigation system, our refrigeration and produce more food."
In addition to the direct benefits on the farm, Badillo said, the grant made it easier to secure other funding sources, including grants from the Ontario government and the United Way Elgin Middlesex.
"A lot of organizations rely on these grants to leverage other grants for larger projects," she said.
Leah Derikx of London Environmental Network said the grants, which taken together amount to 0.1 per cent of the city's taxpayer supported budget, are crucial funding sources for the organizations.
"It's a very small percentage of the city's budget in comparison to the hundreds of thousands of Londoners that these groups provide services for," said Derikx. "They're cost-effective and they're a great way for council and non-profits to work together."
The council working group is looking at ways to reduce costs coming out of a fraught budget process that led to a steep property tax increase. The working group originally recommended staff create a business case for pausing the grants while looking at steps for "rightsizing the scope of these programs."
Move to reduce city costs
A letter signed by Deputy Mayor Shawn Lewis and Coun. Corrine Rahman gets more specific. It suggests funding the capital grants program to a maximum level of $250,000 over the next three years.
The letter also suggests a model for a public decision-making project for parks improvements with a maximum of $25,000 each up to a maximum of $125,000 over the next three years.
Also, the letter suggests the projects be funded out of an existing community investment reserve fund, instead of directly pushing up the property tax levy.
Councillors will consider changes to the grant program at today's afternoon meeting of SPPC.
Badillo hopes councillors who support paring back the grants will re-consider.
"I see it as a really big loss for the community," she said. "The city can't be running all these programs, and that's where the non-profits come in."
Update
On Thursday July 18, the day after this story was published, London city council voted to direct city staff to come back with a report outlining the potential funding reduction to the grants, which would save $250,000 annually.
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