Though London is tightening its belt today, it does so while stocking its pantry for tomorrow.

Board of Control members received an overview of City Hall’s financial situation as it stands in the present economic climate. The reports stressed the need for departments to reduce costs wherever possible to offset the increased social welfare costs the city expects to acquire this year from deepening unemployment.

“More and more people will be on welfare this year – we’re paying 20 per cent of those costs which is a large portion of the budget,” Tom Gosnell, Deputy Mayor, said.

“At the same time, there is less economic development opportunities [available for the city],” he added. This has led to many departments to report deficits due to decreased revenues.

However, Gosnell noted the social costs will be transferred to the provincial government in 2010 and hoped to see more of an upswing in business and building activity in the near future.

“I’ve been advocating the city has to turn its attention to job creation, working with both private and non-profit sectors,” Gosnell said.

Gosnell stressed focusing the city’s available budget on granting funding for projects that leverage investment, growth and jobs. One such project which will be funded is Goodwill Industry’s new $11.6 million redevelopment site.

“We have 2.5 acres of land at Horton Street and Wellington Street where we currently operate and have a community store, but that’s in a very decrepit building in a very declining neighborhood,” said Michelle Quintyn, president and chief executive officer of Goodwill Industries, Ontario Great Lakes.

According to Quintyn, the new facility will create jobs, help to revitalize a declining area and get significant gains in the return on investment for the city.

The Upper Thames River Conservation Authority will also receive funding from the city’s share of the federal stimulus package which set off these construction projects.

UTRCA has been working for three years to replace its old community administration center that is an inadequate size for its number of staff.

“The building, if everything goes forward, will be very environmentally friendly… we’re looking for a showcase piece in sustainable buildings,” Chris Harrington, co-ordinator of planning and research, said.

According to Gosnell, projects such as these not only create jobs in the short run, but will also bring in new business and building in the area in the future.

“We’ve put a lot of effort on debt reduction, pay as you go financial projects, looking at ways to eliminate overhead expenses [and] generate new sources of revenue,” Gosnell said.

Though some services, such as police and emergency services maintain high costs, Gosnell remained pleased with the city’s handling of tough economic times.

“[Financial downturn] is not an issue – the city has been retiring substantial amounts of debt. We may have to slow it down but we’re good,” he assured.

The optimistic air suggests a full belly for London’s financial stock in the future.

“The city will try to leverage their support for those who are seeking projects… our economy won’t stay like this forever, things will turn around eventually,” Quintyn said.

“[Additionally], the reports came in from June 30 so there’s six months more of reporting to come in,” Gosnell suggested. “Who could forecast the future? We’re in very good shape – one of the highest credit ratings of any municipality in the country.”