Fontana set on Wage Freeze

Mayor Joe Fontana is shifting gears as he speeds along what he calls "the path to zero" -- the 2011 property tax freeze he'd promised Londoners.
Fontana, who's also city council's budget chief, says he's now recommending putting all the new cash generated through tax-base growth, about $6.3 million, toward freezing taxes as council heads into Wednesday's crucial operating budget talks.
"We can get to zero . . . the road to zero is there," he said Tuesday.
But this is a stark change from earlier in the budget season, when Fontana said he opposed putting all the so-called assessment growth cash toward a tax freeze.
At first, staff recommended putting about one-third of that money against taxes. The rest was to go to cut debt and fund services.
That recommendation was adjusted Jan. 6, with more money from the assessment- growth pot going to freezing taxes.
Now, Fontana says he'll recommend to council that all the $6.3 million in assessment- growth cash go to freezing taxes -- suggesting his tax-freeze promise couldn't otherwise happen without service cuts.
Council heads into Wednesday's deliberations needing to find $2.8 million in savings to deliver a tax freeze.
The mayor acknowledged that if the assessment growth cash isn't put toward the tax freeze, one can only be achieved by cutting services -- which he vowed on last fall's campaign trail not to do.
"There's about $2.8 million from a possible cut list . . . that council (would have) to make a decision on certain things that it can cut to get to (zero).
"You can take $2.8 million (from) the cut list, and it has some very serious -- not serious, it has some minor service cuts -- or you can essentially take the assessment growth (money) and apply it."
Fontana's recommendation would leave council only $500,000 in cuts from a 2011 property tax freeze, he said.
When budget season opened, city brass tabled a proposed budget that would have hiked property taxes by 2.7%. Getting that to zero required finding $12.7 million in cuts.
The mayor lauded city managers for finding savings within city hall that largely got council to this point.
London's outside boards and commissions -- such as the police and London Transit -- found savings totalling $1.1 million, which Fontana said must improve in 2012.
Fontana campaigned last year on a key vow to freeze property taxes for four years, which resonated with tax-fatigued voters and propelled him to victory.
He also promised to freeze water and sewer charges for 2011 only, which has already been accomplished.
Final approval of London's 2011 budget is slated for Feb. 28.