Londoners are looking at the likelihood of annual property tax increases that average 7.4 per cent over the next four years.
Mayor Josh Morgan took the wraps off the multi-year budget on Wednesday. It calls for property tax increases of 8.8 per cent in 2024, 8.6 per cent in 2025, 5.7 per cent in 2026, and 6.5 per cent in 2027.
"Above all else, this budget prioritizes investments in three critical areas: public safety, housing affordability and homelessness, and transportation. It contains the single largest public safety investment in London’s history, representing more than half of the entire 2024 budget increase, or 5.0 per cent of the 8.8 per cent tax increase," Morgan said in a statement released Wednesday. "The cost is significant, but the cost of doing nothing – as we’ve all seen – is far greater."
According to Morgan, the budget includes "tens of millions" of dollars to address the housing crisis, including the creation of more affordable housing and speeding up processing times for planning and development approvals. It also includes "substantial" increases in funding for paratransit service.
"Aside from focusing heavily on public safety, housing affordability and homelessness, and transportation, this Multi-Year Budget also contains $46-million in cumulative savings, $3.2-million in one-time reductions, and $10.7-million in permanent ongoing savings," Morgan said. "Further, it includes an additional $15.5-million in tax relief in 2024 by returning unused contingencies earmarked for COVID-19."
While the tax increases in each year of the budget may be startling to some, Morgan says he's "cautiously optimistic" that the figures will be reduced by annual budget updates, service reviews, and lower interest rates in the future.
"I have spent nine years on Council, serving as budget chair for two previous multi-year budgets, and have never had to say ‘no’ to as many requests for expansion as I have during this process," he said. "Had every business case been approved, the property tax increase for 2024 would’ve been approximately 14 per cent. I have worked diligently to reduce the strain placed on taxpayers, while at the same time, maintaining levels of service expected by Londoners, and making strategic investments where demand is overwhelming."
Councillors will be able to propose amendments beginning on Thursday.
The full budget can be read here.