Mayor Morgan proposes 2026 property tax hike of 3.6 per cent

London Mayor Josh Morgan is getting set to table his final city budget before running for re-election next year. CTV’s Bryan Bicknell reports.

London Mayor Josh Morgan is getting set to table his final city budget before running for re-election next year.

At 3.6 per cent, the increase is down more than 40 per cent from the previously approved tax hike of 6.4 per cent.

It represents an average increase of $137 on the residential property tax bill.

“I can’t speak for what other members of council will do for the budget. They have the right to amend the budget in any way that they like. The budget I’ve tabled is the budget that I support. And that is a budget tabled at 3.6 per cent,” Morgan said to reporters at a media briefing Monday.

Among the big-ticket items for the mayor’s business cases for funding increases: the Middlesex London Health Unit would receive one time funding from tax-payers of $2.3 million to retire debt, in addition to $709,000 for its operating funding request.

London Middlesex Community Housing would receive an increase of $641,000 to offset budget pressures.

“Community Housing is a critical asset, and something that we’re the sole shareholder for. So, under-investing in those assets only catches up with us in the future. The health unit, again, this is an entity that can essentially send us a bill, but we work with them to give them some additional operating dollars, help them pay down some of their debt to free up some of their operational capacity,” explained Morgan.

There are also a number of big ticket items in which the savings add up, including $450,000 for stopping the Green Bin Cart multi-residential pilot program, as this service if the responsibility of building owners.

A savings of $6.4 million dollars will be realized by getting out of funding exemptions for development charges - under new provincial guidelines.

The London Police Service budget has been reduced by $1.5 million.

Increasing user fees for recreational and sport programs would bring in an additional $760,000.

Council would take $8.4 million from the 2024 surplus and apply it toward tax mitigation.

And civic administration managed to find $9.6 million through budget right-sizing.

“One of the things we did was take some of the surplus and apply it towards debt relief for the next couple of years. And then there’s a plan to kind of backfill that with some of the savings on principle and interest on debt repayments that we’re making,” said Morgan.

The mayor tables the budget on Tuesday, then council will have opportunity to deliberate and make any changes.

Of course, the mayor can veto those changes if he chooses. Any further amendments to the budget would require two-thirds of council support.

“I know a few councillors behind the scenes are already working on amendments or cases they want to bring forward for consideration, so we’re waiting to see what those are going to be,” said Budget Chair, Councillor Elizabeth Peloza.

In the meantime, the mayor has set the 2027 proposed budget increase at 4.7 per cent. The mayor calls it a framework to be decided on by the next council.