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Londoners will face a slightly smaller property tax hike in 2025 than initially expected.
Mayor Josh Morgan is set to present a proposed budget update on Tuesday that will reduce the property tax increase for next year to 7.4 per cent from the expected 8.7 per cent, which was approved in the 2024-27 four-year budget approved last winter.
The reduction was possible after city staff found $6.7 million in savings and a pair of city-funded outside agencies, London Public Library and London police, both trimmed costs, Morgan said in a Monday interview.
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An 8.7 per cent tax hike would have added $286 to the property tax bill of the owner of an “average” London home – “average” being one assessed at $252,000. The mayor said he wasn’t certain how much money a 7.4 per cent increase would mean in real dollars.
“There are a number of things that got us to the reduced amount and this is the start of the process. We will continue to go through it,” said Morgan.
After Morgan presents the update at a meeting Tuesday, there will be a series of pop-up information sessions and ward councillor meetings from Oct. 30 to Nov. 18, before an official public participation session at city hall on Nov. 19.
Morgan credits the cuts to city departments doing a line-by-line review of costs and coming up with savings as part of a “service review program” staff undertook.
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In addition, London police took $850,000 from its reserve fund to reduce costs. The London Transit Commission found $1.5 million in savings and London Public Library spread renovation work needed at branches over a longer period of time, reducing $20 million in costs over 10 years to $13.6 million, Morgan said.
City politicians will have their say on any changes during a meeting on Nov. 21, and an extra meeting on Nov. 22 if needed. A meeting will be held Nov. 27 to finalize any changes, and Morgan will have to signal his intention to veto changes with his so-called strong mayor powers by Dec. 2.
The city will also reduce spending in 2026 by $4.6 million and $4 million in 2027, Morgan said. The city’s annual budget is roughly $1.3 billion
Likely to come up again during discussions is the four-year, fully approved London police budget that’s worth a total of $672 million, or an average of $168 million annually. Politicians are also looking to crack down after the police board spent $104,000 on a public relations firm campaign to help sell the record budget ask.
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