London City Council has finalized its 2026 municipal budget, confirming a 3.4% increase in property taxes, along with modest rises in water and wastewater rates. The changes mean the average household will pay approximately $160 more next year, sparking discussions about affordability and city priorities ahead of the upcoming municipal election.

The budget update also included a last-minute contribution to the Rent Bank, aimed at assisting residents struggling to pay rent and utilities. Council deliberations reflected a balance between fiscal responsibility and community support, with Mayor Josh Morgan expressing confidence in the multi-year budget plan.

2026 Municipal Budget: Key Decisions and Tax Implications

Property Tax and Utility Rate Adjustments

The 2026 budget introduces a 3.4% property tax increase, translating to roughly $130 more per household. In addition, water rates will rise 2.2% ($12 on the average bill) and wastewater rates will increase 2.4% ($18 on the average bill). Combined, these adjustments mean the typical London homeowner will see a total increase of $160 in 2026.

These changes are part of a multi-year strategy by Mayor Morgan to maintain city services while funding critical investments in infrastructure, public safety, transit, and social programs.

Mayor Morgan Defends Multi-Year Budget Approach

Mayor Josh Morgan emphasized that the budget reflects significant investments in essential municipal services while maintaining a reasonable tax trajectory.

“The first three years of this multi-year budget saw property tax increases of 8.7% in 2024, 7.3% in 2025, and 3.4% in 2026,” Morgan noted. “Looking ahead to 2027, deliberations are projected to begin at 4.7%. We are heading in a direction that gradually brings tax rates down, even as other municipalities continue to raise theirs.”

He highlighted investments in public safety, transit, housing, and libraries as key outcomes of the increased revenue, suggesting that residents will ultimately see tangible value for the funds collected.

Last-Minute Adjustments: Supporting Vulnerable Residents

Rent Bank Receives Additional Funding

A notable last-minute change to the budget was a $250,000 contribution to the Rent Bank in 2026. Proposed by Councillor Hadleigh McAlister, the funding aims to support Londoners struggling to pay rent and utilities.

“This is one area where we can make a difference,” McAlister said. “It’s a proactive program keeping people housed.”

Previously, the Budget Committee had voted against additional funding, but a subsequent letter from the Salvation Army emphasized that rising demand for financial assistance far exceeds the current resources.

Councillor Sam Trosow, who spearheaded the push for increased funding, described the contribution as a compromise.

“This is a compassionate program. I would have preferred to see the funding at a higher level, but I’m very happy we were able to work something out,” Trosow said.

Political Debate Over Rent Bank Funding

Deputy Mayor Shawn Lewis acknowledged the letter from the Salvation Army but expressed caution about using property taxes to fund the Rent Bank.

“I don’t think it’s good to take from one household to support rental for another household,” Lewis explained. Despite his reservations, he supported the one-year contribution, noting it would not impact property tax rates.

Ultimately, council unanimously approved the additional Rent Bank funding (14-0), marking the only last-minute adjustment following the Budget Committee’s deliberations.

Other Key Budget Amendments

Beyond the Rent Bank contribution, several amendments were incorporated into the 2026 municipal budget:

• Redirecting $4.8 million previously collected for development charge exemptions toward tax relief in 2026 and 2027.

• Extending free street parking in downtown London, Midtown, and Old East Village from one hour to two hours, costing $784,000 annually.

• Maintaining funding for road network improvements at the current level ($114,000 per year).

• Continuing annual resident satisfaction surveys without reducing frequency to every other year ($28,000 per year).

• Using $310,000 over two years from the automated traffic enforcement reserve to install traffic calming measures near school zones and construction sites.

These measures reflect council’s aim to balance affordability, infrastructure improvements, and community needs without overburdening taxpayers.

Balancing Fiscal Responsibility and Social Support

The 2026 budget demonstrates London City Council’s efforts to strike a balance between maintaining essential city services, managing tax rates, and addressing social challenges. The Rent Bank contribution illustrates the council’s commitment to helping vulnerable residents while keeping the financial burden equitable for homeowners.

Mayor Morgan reinforced that investments in critical services are central to the city’s long-term strategy. “We had to make some significant investments in public safety, transit, housing, and homelessness. And we actually invested a historic amount in libraries as well,” he told CTV News.

Looking Ahead: Implications for 2027

The municipal election, scheduled before the next budget season, is likely to shape discussions around taxes, spending, and service delivery. The council anticipates beginning deliberations for 2027 with a projected 4.7% property tax increase, signaling continued investment in municipal priorities while gradually moderating rate hikes.

Mayor Morgan stressed that taxpayers should consider the value of their investment, noting that the multi-year budget provides consistent funding for public safety, infrastructure, and social programs, while keeping London competitive compared to other municipalities.

“You’ll see us going in a direction that is bringing tax rates down over time while other municipalities are going up,” Morgan said. “But we are seeing the results from those critical investments, and I think that’s what Londoners can weigh – do they feel they got value for that money?”

Conclusion: Fiscal Prudence and Community Investment

London’s 2026 municipal budget reflects a careful balance between responsible fiscal management and social responsibility. While the 3.4% property tax increase and modest utility rate hikes will impact the average household by around $160, council decisions aim to provide long-term benefits for all residents.

Key highlights include the Rent Bank contribution, continued investment in infrastructure and libraries, and measures to improve downtown amenities and street accessibility. These initiatives, combined with Mayor Morgan’s multi-year strategy, underscore a commitment to building a livable, sustainable, and inclusive city.

As the city moves toward the 2027 budget season and the upcoming municipal election, Londoners will have the opportunity to evaluate the impact of these financial decisions and the value delivered through targeted investments.

Disclaimer: The information presented reflects details available at the time of publication. Changes to taxes, utility rates, or municipal programs may occur.