Council Deliberations and Budget Adjustments
London City Council’s Budget Committee concluded a marathon session on November 20, 2025, with a series of amendments that will see the city’s proposed property tax increase for 2026 reduced from 3.6% to 3.4%. This adjustment, which translates to an average increase of $130 on a typical London home, marks a significant shift from earlier projections and reflects both council’s fiscal discipline and mounting community pressure over affordability. The final recommendations will be presented to full council for approval on November 26, with Mayor Josh Morgan retaining the authority to veto any changes—a power he has not exercised in recent years.
The reduction was made possible by reallocating a $4.8 million surplus originally earmarked for development charge exemptions. A provincial clarification earlier this year indicated these funds would no longer be required, prompting Councillor Susan Stevenson to propose using the surplus for immediate tax relief. While Stevenson advocated for the full amount to be returned to taxpayers this year, the committee opted to spread the relief over 2026 and 2027, aiming to smooth out the financial impact in future budgets. The amendment passed by a vote of 12 in favor and three opposed, with Councillors Anna Hopkins, Sam Trosow, and David Ferreira dissenting.
Key Budget Amendments and Service Priorities
Beyond the headline tax reduction, the committee endorsed several smaller but impactful changes to Mayor Morgan’s draft budget. These included restoring $114,000 for road network improvements, maintaining annual resident satisfaction surveys (at a cost of $28,000), and extending the popular free core parking program for another year—an initiative that will cost taxpayers $784,000 annually. The committee also recommended using funds from the Automated Traffic Enforcement Reserve to implement traffic calming measures in school zones and neighborhoods affected by ongoing road construction, following the province’s decision to eliminate photo radar.
The most contentious debate centered on the city’s plan to repay a $2.4 million loan to the Middlesex-London Health Unit, which was incurred during the health unit’s 2020 relocation to Citi Plaza. Councillors Stevenson and Franke argued that the province should bear the majority of the cost, given its 75% share of the loan, and advocated for a more cost-effective, long-term solution. Ultimately, the committee reluctantly endorsed the mayor’s business case, with Councillor Elizabeth Peloza acknowledging the frustration: “Nobody enjoys covering someone else’s expenses. The province has not been a good partner.” The decision to repay the loan immediately was seen as necessary to free up operating funds for public health initiatives, but it left lingering questions about intergovernmental fiscal responsibility.
Impact on Core Services and Infrastructure
The 2026 budget maintains funding for essential services, including police, fire, and emergency response, while also investing in infrastructure upgrades. The city’s road network improvements will focus on high-traffic corridors and areas with aging infrastructure, with particular attention to neighborhoods such as Byron, Oakridge, and East London. The extension of free core parking is expected to benefit downtown businesses and residents, many of whom have voiced concerns about the economic impact of parking fees on local commerce.
The committee also addressed concerns about transit and green bin services, with Councillor Elizabeth Peloza emphasizing the importance of maintaining reliable public transportation and waste management. “We recognize that these services are critical to the quality of life in London, especially for our most vulnerable residents,” Peloza said. The budget includes provisions for continued investment in the London Transit Commission and the expansion of green bin collection to more apartment buildings, though some community advocates argue that more needs to be done to address affordability and accessibility.
Public Input and Resident Testimony
Ahead of the budget committee’s deliberations, 21 Londoners attended a public participation meeting at city hall to voice their concerns. The gathering was notable for its diverse demographic, including many young adults and representatives from local non-profits. Affordability emerged as the dominant theme, with residents expressing frustration over the cumulative impact of recent tax increases and the rising cost of living.
Maureen Cassidy, former city councillor and chief executive of Pillar Nonprofit Network, highlighted the need for year-round planning to address homelessness. “As a sector we’ve also learned that seasonal responses are not solutions on their own, to make these investments meaningful, non-profits must be included not just as emergency support, but in year-round planning,” Cassidy said. The city’s micro-shelter plan and warming centre initiatives were acknowledged, but many speakers argued that these measures fall short of addressing the root causes of homelessness.
Mike Wallace, executive director of the London Development Institute, echoed these concerns, noting that property tax increases are often passed on to tenants. “If you can do your part on making the city more affordable through the property tax base, we would appreciate it,” Wallace said. The committee also heard from young adults, who criticized the city’s engagement efforts and called for greater investment in transit and green bin services for apartments.
Political Response and Future Engagement
Mayor Josh Morgan acknowledged the challenges of balancing service demands with fiscal responsibility. “We don’t have unlimited resources, so it’s a balance between where do we continue to invest and how do we try to keep taxes low, and I think you heard that struggle tonight in the audience, where people wanted some more services, but also wanted to keep taxes down,” Morgan said. He also expressed optimism about the increased participation of young people, noting that the city must do better to reach out to underrepresented groups.
The mayor committed to exploring new ways to engage residents in the budget process, including more interactive sessions and opportunities for direct dialogue. “I appreciate all of the Londoners who came out today, particularly those who shared at city hall for the first time,” Morgan said. “I’m going to turn my mind to how we might be able to do that better in the future.”
What Happens Next
The recommendations from the Budget Committee will be presented to full council on November 26 for final approval. Mayor Morgan will have until December 1 to signal any intentions to veto council’s amendments, a move that would require a two-thirds majority from council to override. If the budget is approved as recommended, Londoners can expect a 3.4% property tax increase in 2026, with additional investments in core services, infrastructure, and community programs.
The city’s fiscal discipline has been praised by some, but many residents remain concerned about the long-term impact of repeated tax hikes and the need for more comprehensive solutions to affordability and homelessness. As London continues to grow and evolve, the budget process will remain a critical forum for balancing competing priorities and ensuring that the city remains a vibrant, inclusive, and affordable place to live.