The average London taxpayer could potentially be shelling out an extra $77 in property taxes next year.
The city tabled the 2017 draft budget update for the 2016-2019 multi-year budget at city hall on Monday. If councillors accept all 20 amendments proposed in the fiscal blueprint, the annual tax increase would go up a notch to 2.9% for 2017, 2018, and 2019. That works out to an increase of $77 a year, on homes assessed at $221,000.
Mayor Matt Brown was quick to caution his council colleagues about bumping the increase up by a tenth of a percentage point from the expected annual tax hike of 2.8%.
"My main concern here is the effect of what I might describe as a budget creep," said Brown. "A little bit this year, a little bit more next year, and all of the sudden we are back to annual budgets."
City staff recommends only three of the seven operating amendments get the green light from council, a move that would hold the line at 2.8%. Amendments not getting the thumbs up from city staff include operating budget increases for the Upper Thames River Conservation Authority and London and Middlesex Housing Corporation.
Council approved the city's first multi-year budget in March following two and a half months of intense debate. It set the stage for a much quicker budget process this time around.
"Typically, when we embark on tabling of the budget in early December final decisions aren't made until the middle of March," said Brown. "Residents can expect that we will have a very energized, focused discussion between now and early December. But they should also expect this will be wrapped up well in time for the December holiday."
Councillor Josh Morgan, who acted as the mayor’s special budget advisor last year, believes politicians could work towards lowering the expected tax increase.
"Without any significant surprises in this budget, I think it gives this council an opportunity to really dig into areas where we can find savings over the next couple of years," said Morgan. "In an ideal situation, we would spend our time trying to bring our expected tax increases in the multi-year budget down over time. That's what I would like to work towards."
City staff also propose a 3% increase to the Water and Wastewater & Treatment budgets. That translates to an approximately $11 increase per year for Water and a $14 increase per year for Wastewater & Treatment for the average residential ratepayer.
Londoners will have a chance to weigh in on the multi-year budget update at a public participation meeting scheduled for November 21.
Final approval from council is expected on December 6.
