Incumbent Mayor Josh Morgan has challenged Susan Stevenson’s proposal to limit future property tax increases to one per cent or less by urging her to specify the exact areas where she would make cuts. Stevenson remains confident that within London’s $1.47 billion operating budget, funds can be identified if the incoming mayor is diligent in seeking them out. On the other hand, Kirsten Krose, another candidate, believes achieving “inflation or less” in tax increases is an attainable target.
During a debate on CBC’s London Morning, the candidates’ stances on city budgets were under scrutiny. The issue of affordability has gained prominence in the mayoral campaign leading up to the October 26 election, as costs for essentials such as mortgage rates, fuel, and groceries continue to rise.
Property taxes experienced an average increase of six per cent in the last council term, with an initial sharp rise of 8.7 per cent in the first year. Stevenson, a current Ward 4 councillor, pledges to restrict property tax hikes to one per cent within the initial two years of the budget cycle, aiming for zero per cent overall. In the subsequent two years, she plans to cap tax levy increases at “inflation or less.”
Morgan, on the other hand, advocates for maintaining annual tax increases around the three per cent mark, balancing affordability for taxpayers with the need to uphold essential city services. He pointed out that achieving a tax increase of one per cent or lower would necessitate service cutbacks, emphasizing the importance of specificity in Stevenson’s proposed cuts.
Each one per cent increase in the property tax levy corresponds to approximately $9.2 million in London’s operating budget. Stevenson highlighted the discovery of $10 million within the budget for Enwave capital projects as evidence of available funds that have not been transparently shared with the council.
Morgan estimated that Stevenson’s tax levy target would require a $70 million reduction in the first two years of the next council term. While Stevenson is confident in finding resources in surpluses and contingency funds, Morgan cautioned against depleting contingency funds as a viable tax planning strategy.
The debate on managing city finances and tax planning among the mayoral candidates will continue, with upcoming appearances by Tariq Khan, Bronagh Joyce Morgan, and Mustafa Zeboon on London Morning.