Londoners could be in line for a four per cent property tax hike next year.
A new budget document heading to a special meeting of city council’s strategic priorities and policy committee next week shows provincial downloading and higher than expected budget asks from local agencies are behind the surprising increase.
Council had been aiming for an average annual increase of 2.7 per cent or $82 over the four-year budget period, which ends in 2023. However, the figure now being projected by staff has the annual tax hike sitting at 3.2 per cent or $96 for the average homeowner with a house valued at $241,000.
The Ford government's decision to download provincially funded items onto municipalities is expected to add $6.6-million to London's budget pressures by 2022. The staff report shows 1.4 per cent of next year's projected 4 per cent tax hike is a direct result of provincial downloading.
The bulk of the city's boards, commissions, and agencies also failed to stick to the 1.5 per cent annual budget increase council had requested them to. Middlesex-London EMS has made the biggest ask of the 14 agencies, boards, and commissions to submit budget requests. The paramedic service is seeking a 32.4 per cent increase in 2020 and an average annual increase of 17.3 per cent per year over the multi-year budget. EMS officials have told city staff the jump in costs is due to a "number of key challenges"
"It is believed that additional ambulances are being requested to address continued growth in service demands as well as increased investment to support future capital requirements," the staff report states.
The London Transit Commission is seeking a 15.3 per cent increase in 2020, averaging 5.9 per cent over the 2020 - 2023 budget period. Its increase is being primarily driven by the cancellation of the doubling of provincial gas tax funding, according to the report. The London Police Service's budget submission includes a 2.5 per cent average annual increase to cover the cost of hiring additional officers and yearly pay bumps in the union's collective agreement.
"In light of the budget challenges currently faced by the city, it is evident that it will not be possible to achieve council’s budget target without significant reductions," staff wrote in the report.
They go onto recommend that boards and commissions submit a list of possible service cuts to bring their budgets inline with the 2.5 per cent target and that Middlesex-London EMS officials attend a future meeting to provide an overview of their anticipated budget pressures.
Only Eldon House, RBC Place, and Tourism London managed to meet the budget target set by council with all three coming in under budget.
