Everything you need to know about London’s 2025 city budget plans

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London’s 2025 budget update has now been released, promising a smaller than anticipated tax hike through cutting community grants and not funding new year-round shelter beds in the core. LFP’s Jack Moulton chats with several city politicians about what they like, what’s missing, and what will be talked about.

WHAT’S ON THE TABLE

Before budget talks are due to begin, London property taxes will increase by 7.4 per cent in 2025, down from the previously projected 8.7 per cent. Expected tax hikes are slightly bigger in 2026 and 2027, increasing to 6.4 per cent from 5.7 per cent and to 6.8 per cent from 6.7 per cent respectively.

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Mayor Josh Morgan chalked up the changes to budget reductions by city hall and the London Transit Commission, the London Public Library delaying some of its capital projects, London police drawing from its reserves, but also slashing certain community grants and pausing the neighbourhood decision-making program through 2027.

Most notably, the budget update includes new funding for the city’s new “renoviction bylaw”, and so far excludes the $4.3 million request from Ark Aid to maintain its 90 overnight beds from the winter response for London’s homeless year-round.

WHAT DOES CITY COUNCIL LIKE?

Politicians are liking the reduced tax hike for the coming year. Deputy mayor Shawn Lewis said he’s happy to see the difference, but is unsure about if any more savings can be found.

“Obviously, I would like the number to be lower, but I’m much happier with a 7.4 than an 8.7,” he said. “I genuinely don’t know how we get lower without cutting services that people don’t want cut.”

Budget chair Elizabeth Peloza also commended the city-funded boards, agencies and commissions for looking at their own books and in some cases returning surpluses or reorganizing their projects.

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WHAT IS MISSING

While Morgan expressed optimism this week that Ark Aid’s shelter ask could be funded by the federal government, Ward 6 Coun. Sam Trosow believes it would be a “disaster” to let the beds close after Dec. 31.

“What’s going to be the implication of that agency closing just when it’s getting cold? What kind of hardship and disruption is that going to cause for people on the street?” he said. Trosow also referred to a recent request from Life Spin to revisit the extreme clean program cut from budget during talks this year.

Peloza shares similar concerns about the uncommitted funding, and the lack of a winter response for the city’s homeless in its place.

WILL OLD FIGHTS COME UP?

If politicians wish to resurrect old arguments, they’re going to have to put in a little effort, Peloza said. Councillors won’t be able to table the exact same motion from last winter, when the four-year 2024-27 budget was debated, especially if it was not a close vote.

“That’s where (we look) for anything that’s materially different or new information has come,” Peloza said, adding items on which council has taken a new direction or funded differently since the drafting of the four-year budget also could be looked at.

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Overall, she strongly encouraged her colleagues to workshop any possible motions revisiting old issues with city staff to ensure efficiency. It’s unclear if there will be the ability or appetite to tweak already-set budgets.

“The multi-year budget process that we went through last year had 80-plus business cases, the annual updates are not an opportunity to revisit all of those,” Lewis said.

WHAT’S THE SCHEDULE?

City staff will host six different pop-up information sessions on the budget across the city between Nov. 2 and Nov. 13, along with any ward councillor meetings.

There will be just one public participation meeting at city hall, on Nov. 19 at 4 p.m., where residents can write in or voice their opinions on the public record to council.

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.

jmoulton@postmedia.com

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