London Mayor Josh Morgan is set to provide an updated budget proposal at the upcoming budget committee meeting on Tuesday. The focus of the proposed changes is to keep the property tax increase below five percent for each of the next two years. In the final two years of the 2024-2027 budget, Mayor Morgan is suggesting property tax hikes of 3.6 percent and 4.7 percent, respectively.
If approved, these adjustments would result in an average property tax increase of 6.1 percent over the four-year period, a significant improvement compared to the 8.7 percent increase in 2024 and the 7.3 percent increase last year.
Mayor Morgan, who is gearing up for re-election next fall, attributed the savings to cost-cutting measures within city departments and strategic decisions made over the past three years to reduce the city’s debt.
The reduced property tax increase stems from various sources, including $20 million in savings identified by city departments, a $17 million budget surplus, and $1.5 million in savings from the police service over the next two years by utilizing reserve funds. Additionally, the city will benefit from a provincial decision relieving it from covering exemptions related to developer fees, resulting in savings of $6.4 million annually.
A review of the city’s debt management strategy is expected to yield $18 million in savings next year, thanks to aggressive contributions to a fund aimed at reducing borrowing needs and cutting debt servicing costs.
Furthermore, the city will save approximately $900,000 by discontinuing green bin services for multi-unit buildings, a move aligned with provincial regulations. The budget allocates $50,000 to assist building owners during this transition, with the possibility of offering green bin collection as a fee-based service in the future.
Among the spending increases proposed in the budget are $1.4 million over two years to support London & Middlesex Community Housing in addressing budget challenges and a $2.4 million contribution to the Middlesex-London Health Unit to alleviate a portion of its $2.8 million debt incurred during an office relocation to Citi Plaza, with the County of Middlesex expected to contribute as well.
Mayor Morgan expressed confidence in the proposed budget and downplayed the likelihood of a veto scenario, given recent changes in provincial legislation granting mayors significant authority in budget-setting. While council retains the ability to amend the budget, Mayor Morgan anticipates a collaborative approach to finalizing the budget without the need for a veto.
Overall, the budget update reflects Mayor Morgan’s commitment to fiscal responsibility and prudent financial management practices, aimed at ensuring sustainable growth and efficient use of taxpayer funds.