‘They want to see that lower rate’: Mayor Josh Morgan determined to pass proposed tax hike of 3.6 per cent

City council has begun debating the proposed 2026 budget, including a 3.6 per tax cent increase that would make it the lowest increase in years. Bryan Bicknell

The rising cost of living and the potential impact of tariffs were among the many concerns raised Tuesday as London’s mayor and city finance staff fielded city councillors’ questions on the budget.

“We’re all kind of sitting back watching on this daily soap opera that’s going on south of the border, and how it’s affecting us on a daily basis. And it’s beyond predictability,” commented ward 10 Coun. Paul Van Meerbergen.

“The impact of tariffs is still to be seen,” explained Director of Financial Planning, Kyle Murray.

“I don’t think we’ve seen that flow through our economy, and by extension flow through the impacts on our budget. So that is something that we will have to keep an eye on,” he said.

City councillors got their first look at Mayor Josh Morgan’s proposed budgets for 2026 and 2027.

The third and fourth budgets of the four-year budget cycle call for a 3.6 per cent property tax increase in 2026, or an average of $137 more for residential tax-payers, and a 4.7 per cent increase in 2027.

The latter budget is to be decided by the next term of council.

If passed, the proposed 2026 budget would have the lowest property tax increase since 2023, when the tax hike was 3.1 per cent.

“We’ve done the hard work in making significant investments in public safety, transit and housing, past couple years. Bringing the tax rate down is the responsible thing to do,” said Mayor Morgan.

The mayor presented a series of business cases that would either find savings in some departments, or simply defund services, such as the green bin pilot program for apartment buildings - a proposal that doesn’t sit well with Ward 11 Coun. Skylar Franke.

“I think as many residential buildings as possible should be doing the green bin program, so I think that’s something that will come up for debate,” she told CTV News.

The proposed budget also makes cases for additional support for some agencies struggling under financial pressures, such as London Middlesex Community Housing.

Ward 1 Coun. Hadleigh McAlister, who sits on the LMCH board, said he’s pleased to see the inclusion of support for LMCH.

“Recognizing the pressures we are under, in terms of all the properties we have, and trying to provide subsidized housing. So, really appreciate it,” he commented.

Other councillors pointed to items that were not included in the budget.

“I do see some things that my ward needs, especially with parks, the TVP, with Harris Park. Downtown core area parking,” said ward 13 Coun. David Ferreira.

Councillor amendments to the budget must be submitted by November 10.

Mayor Morgan says he’s determined to keep the tax-hike in check.

“What I’ve heard from tax-payers is they want to see that lower rate. So, if colleagues are bringing forward amendments that are actually going to increase that over time, I think they’re going to have a rough go in the debate process,” he warned.

Public engagement sessions on the 2026 budget begin next month. Final approval is set for mid-December.