London Mayor Josh Morgan is set to provide an update on the budget at the upcoming Tuesday budget committee meeting, aiming to keep the property tax increase under five percent for the next two years. The proposed spending plan for 2026 and 2027 suggests property tax hikes of 3.6 percent and 4.7 percent, respectively, marking an average increase of 6.1 percent over the four-year 2024-2027 budget period.
This initiative signifies a notable improvement from the 8.7 percent increase in 2024 and a 7.3 percent increase in the previous year. Mayor Morgan, who is seeking 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 includes $20 million in savings from various city departments, a $17 million budget surplus, and an additional $1.5 million in savings from the police service drawing funds from reserve accounts over the next two years. Furthermore, the city will benefit from a provincial decision relieving it of the responsibility to cover exemptions granted to developers, resulting in a savings of $6.4 million annually.
Efforts to manage the city’s debt have led to projected savings of $18 million for the upcoming year, with Mayor Morgan likening the strategy to making a lump-sum payment on a mortgage. Additionally, the city will save approximately $900,000 by discontinuing green bin services to multi-unit buildings, as provincial regulations no longer mandate this service.
The mayor’s budget proposes spending increases, including $1.4 million allocated over two years to assist London & Middlesex Community Housing in coping with budgetary challenges. Moreover, a $2.4 million contribution is suggested for the Middlesex-London Health Unit to address a portion of its $2.8 million debt incurred during an office relocation to Citi Plaza, with the County of Middlesex expected to share the burden.
Although recent provincial legislation grants mayors primary authority in budget setting, City Council retains the ability to modify Mayor Morgan’s budget proposal, subject to his veto power. However, Morgan expressed confidence that potential budget adjustments by the council are unlikely to escalate to a veto situation, emphasizing his support for the presented budget plan.