The tightening of the belt eases the London property tax bill for 2022


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London, Ontario. –

The starting point for the budget deliberations in London City Hall in 2022 is a proposed tax rate increase by one percentage point lower than previously forecast.

On Tuesday, the budget update for the next year of $ 1.06 billion will be presented at City Hall, including a draft 2.8 percent increase in the property tax rate.

A year ago, the city administration estimated an increase of 3.8 percent as a starting point.

To cut the tax hike next year, the city council suggests:

  • $ 3.7 million in savings from city government zero-based budget reviews
  • $ 2.7 million pandemic delay in expanding Child Care & Ontario Works
  • $ 650,000 reduction to invest in infrastructure gaps and community building
  • $ 258,000 off park / roadside grass and pruning
  • $ 235,000 discount for neighborhood decision making, small events, sports travel grants
  • $ 100,000 in revenue by increasing private lot parking fees from $ 45 to $ 60

Meanwhile, new tax rate charges include an unrelated pandemic hike to the Middlesex London Health Unit by $ 640,000.

There are several major expenses that will not affect the proposed tax rate, including:

  • $ 26 million to start electrifying the LTC bus fleet (10 buses, seven charging stations)
  • $ 4.1 million higher transportation infrastructure project costs
  • $ 1.7 million to expand the W12A landfill
  • $ 850,000 pandemic rescue package for the RBC Place Convention Center
  • $ 375,000 to continue removing invasive plants

If the 2.8 percent tax hike is approved for the third year, the average annual tax hike in the multiannual London budget 2020-2023 would be 3.6 percent, about $ 109 more per year for an average home with an MPAC estimate of $ 241,000 in 2019.

The documents forecast a 3.9 percent increase in 2023, the last year of the current multi-year budget.

The city government continues to monitor the financial impact of the COVID-19 pandemic, including the estimated community impact in 2022, estimated at $ 17 million, including:

  • $ 2.8 million to $ 5.6 million from lower rider traffic in London transit
  • $ 3.5 million less parking revenue
  • $ 2.8 million less interest on investments and reduced taxes from London Airport
  • $ 2.4 million reduced income from recreational programs
  • $ 2.1 million off events at the RBC Place Convention Center

(Source: City of London)

To compensate for this pressure, a contribution of € 12.3 million is available.

The council will start debating the budget in early December, which could increase or decrease the tax hike, which will be completed on December 21st.

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