Niagara Falls city council passed its 2019 budget Tuesday night, but not without reservation from some councillors.

At $141 million, the operating budget represents a zero per cent net levy increase over last year. But that good news scenario had Coun. Wayne Campbell feeling cautious.

"My experience over the years I've been here is, when we go for zero per cent increase, there's a reduction in services," he said.

Campbell was especially concerned about the fate of the city's quarterly payments from Ontario Lottery and Gaming (OLG) should the region be amalgamated by the province. The city receives more than $20 million a year from OLG for hosting two casinos.

When he asked how much Niagara Falls taxes would go up without those payments, Campbell was told about nine per cent.

Possible amalgamation was a concern throughout budget talks Tuesday, as councillors discussed spending now lest funds not be available later. Key to the conversation was the demolition of two long-standing buildings in Niagara Falls - the old courthouse in front of city hall on Queen Street and the former recreation building on Lundy's Lane - at a combined cost of $515,000.

Coun. Carolynn Ioannoni said spending money to tear two buildings down is a "waste," pointing to more pressing concerns.

"I can find sewer separation projects on eight different streets," she said.

"Municipal works is not sexy, but municipal works needs more money than anything."

But Mayor Jim Diodati said leaving the unsightly courthouse standing sets a bad example for the city. It hasn't been used since 1969, and during a recent inspection he found it a "disaster" full of mould and water leaks.

Tearing it down is also prudent after the city recently spent more than $4 million renovating the city hall building behind it.

"If we're going to participate with the downtown redevelopment, we should start with our own front yard," he said. "We spent millions of dollars fixing (city hall) up - you can't even see it.

"If we're going to leave our derelict buildings here, then we can't point the finger at the other landlords."

Coun. Vince Kerrio agreed with Ioannoni that the old courthouse isn't a priority for 2019.

"I'm not suggesting we don't tear it down, I'm just suggesting we defer it for one season," he said. "We've spent millions and millions - more than anyone else has spent - down in this area."

Council voted to approve the capital budget at $40,240,920 with some items pending further discussion, including a $300,000 rail fund study. The budget is formally approved following the next OLG payment at the end of April.

Diodati stressed the urge to tear the old courthouse down before a possible amalgamation takes the option away.

"Amalgamation's coming . we just don't know to what degree," he said. "If we aren't making the decision here, I guarantee a politician out in west Niagara isn't going to be too worried about our courthouse."

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