Coun. Susan Stevenson Challenges LEDC Over
Financial Transparency Amid Property Tax Concerns
Written by Josiane N'tchoreret-MbiamanyOct. 9, 2024
Advocating for Londoners facing rising property tax bills, Coun. Susan Stevenson stressed the need for more openness in public spending, especially given heightened scrutiny of institutions such as London Health Sciences Centre and the Thames Valley District School Board.
At a Strategic Priorities and Policy Committee meeting on Monday, Stevenson questioned the financial transparency of the London Economic Development Corporation (LEDC), which is currently seeking to renew its contract with the city.
The LEDC is primarily funded by the City of London through a purchase of service agreement, which provides $2.3 million annually. Established in 2019, the agreement was signed for a four-year term that concluded in 2023, prompting the current renewal process. However, the lack of publicly accessible records detailing how these funds are being used has raised concerns, particularly as the organization seeks a contract renewal.
The LEDC’s funding supports initiatives in key sectors such as advanced manufacturing, digital media, and health care. In 2024, the organization reported facilitating $228 million in new investments and creating more than 800 jobs, though these numbers represent a significant drop from 2023, when $145 million in investments led to the creation of 1,600 jobs.
The city’s recent 8.7 per cent property tax increase, approved in January, has prompted heightened public scrutiny of spending. Residents have increasingly called for alternative ways to manage the city’s budget and ensure accountability for taxpayer-funded organizations.
After Kapil Lakhotia, LEDC’s president and CEO, presented the corporation’s annual update, Stevenson sought clarification on the organization’s funding sources. Lakhotia confirmed that “the City of London is the vast majority of where our funding comes from,” adding that small contributions occasionally come from the federal government.
While acknowledging LEDC’s achievements, Stevenson reiterated her stance on transparency. “Given the scrutiny and the shock that a lot of London residents are feeling, I think it behooves me to start asking more questions about the financials,” she said.
Ultimately, the motion to receive Lakhotia’s update was passed by a vote of 14-1, with Stevenson casting the sole opposing vote.
Stevenson’s concerns about financial transparency could prompt potential changes to the purchase of service agreement if the city decides to renew its contract with LEDC. As the council reviews the agreement, the ongoing debate over LEDC’s financial practices and budget pressures from residents is likely to remain a central issue.