Here’s how city hall will spend $20M from property tax assessment growth

London has big plans for millions in proceeds from new development in the city.

Expanding municipal services will gobble-up most of the $20 million of property tax assessment growth at London city hall this year, but there will still be a few million dollars left for long-term needs including debt avoidance and reducing the infrastructure gap.

Assessment growth is the additional property tax collected on new construction each year (new/expanded homes and businesses).

According to a new staff report, weighted assessment growth in 2026 is 1.60 per cent, amounting to $14,155,203.

There is also a carryover from the previous year of $6,067,162.

In total, $20,222,365 is available to fund the cost of expanding municipal services related to growth.

Business Cases approved for funding through assessment growth total $14,818,115.

The largest expenditures are:

• Corporate Services: Asset Management funding for major lifecycle repairs ($4.8 million)
• Police Services including 14 officers and 5 civilian positions ($3.7 million)
• London Transit Commission including 13,400 new service hours ($2.1 million)
• Land Ambulance funding to reflect higher operational demand ($978,529)

A municipal policy recommends that the assessment growth not spent on the approved Business Cases ($5,404,250) be divided evenly between reducing authorized debt and to the Capital Infrastructure Gap Reserve Fund.

The staff report will be considered by the Strategic Priorities and Policy Committee on Feb. 24.