Mayor Josh Morgan is now expressing confidence he can get the 2026 property tax increase below 5 per cent, and that doesn’t include an additional $8.45 million available from last year’s massive surplus. On Wednesday, members of the Budget Committee wrangled over a number of proposals intended to reduce next year’s tax increase that currently stands at 7.4 per cent in the multi-year budget. Coun. Susan Stevenson’s request for a business case about reducing the size of the Heritage Planning Department sparked a lengthy debate about Civic Administration’s internal service review process. “When it comes to the service review, council doesn’t play a role,” argued Stevenson. “When do we get to look (at department budgets) line by line? When do we get to hear about the departments? What they’re doing, what they’re focused on, and why the numbers are up?” A number of councillors emphasized that staffing levels are part of Civic Administrations ongoing service review process. “When they’ve done the review and when they do it again next year, if they identify that there are some changes needed in the Heritage Department that’s the appropriate time for that to come forward,” explained Coun. Skylar Franke. “I have full confidence and trust in staff to be able to do that in a transparent and regular manner.” But Stevenson suggested the tax relief being demanded by many Londoners will require a deeper dive into municipal spending, “We are going to have to find areas to cut costs. That is just for sure. What [cuts] are we going to look at if we don’t want to look anywhere?” During 2024-2027 Municipal Budget deliberations, Civic Administration’s internal service reviews have provided savings of $14 million in 2024, $6.8 million this year, and $6 million (so far) for 2026. The mayor defends the internal process that includes right-sizing municipal departments and services, “In 2016, council developed the robust service review process that has returned well over $250 million to Londoners and avoided tax increases. This is the department by department review [and] zero based budgeting.” The Budget Committee meeting also included a presentation by the mayor about mandatory Development Charge (DC) exemptions for affordable housing and other qualifying developments. A letter from Ontario’s Ministry of Municipal Affairs and Housing confirms that the City of London is not required to continue setting aside millions of dollars each year to offset the exemptions. Savings to the property tax supported budget, water budget, and wastewater budget will total $10 million in 2026—and avoid a $32 million projected shortfall in 2027. “This is very positive! I really appreciate the lobbying work that you (the mayor), the folks at AMO (Association of Municipalities of Ontario), and our staff have done,” said Coun. Sam Trosow. However, Stevenson said provincial policies have not changed since budget deliberations a few years ago when she tried to convince colleagues that offsetting the DC exemptions was unnecessary. “The fact that this was available to us, the fact that clarity is coming so late, I think is a little bit concerning,” she asserted. “You can say this is fact, but those aren’t facts,” responded Morgan, who added that the province’s clarification was necessary for London and other municipalities to discontinue backfilling the exemptions. “The only people who can interpret the [Development Charges] Act with the authority that gives us the courage to take these sorts of actions are the people who pass that legislation, which is the provincial government,” he told Stevenson. Achieving the mayor’s tax target of below 5 per cent will require about $13 million in new revenue and/or savings. Morgan said his target is now within striking distance, “We’ve got boards and commissions who have said they’re looking for savings, so with their help, the continued work of our staff, [and] the continued work of this council through the budget process, I’m confident that we can get under five [per cent] now.” In addition, council set aside $16.9 million from last year’s massive budget surplus for tax relief purposes in 2026 and 2027. Utilizing $8.45 million each of those years would further reduce the 2026 tax increase by about another 1 per cent. Morgan will release his draft budget Oct. 27. The public will then be asked to provide input prior to budget deliberations by council in late November.
