Mayor Morgan strikes defiant tone in State of the City Address and pledges 5% cap on 2026 property taxes

Mayor Josh Morgan delivers the 2025 State of the City Address on Jan. 23, 2025.(Daryl Newcombe/CTV News London)

Mayor Josh Morgan included some tough talk and blunt realities about the challenges facing London in his 2025 State of the City Address.

In front of more than 1,000 business leaders at the annual Chamber of Commerce event, Morgan highlighted local accomplishments and set priorities half way through the four-year council term.

“It’s not just the midpoint, It’s also an inflection point,” he stated. “This is the moment where resolve is tested, where ambitious, bold visions collide with real world complexities.”

Two years after announcing the $25-million anonymous donation to combat homelessness that jumpstarted the Fund for Change, Morgan said the total has now exceeded $37 million.

In the first of many defiant statements during the speech he responded to questions about when the money will be deployed on homelessness projects, “Let me tell you, that money is being used, it is changing lives, and it is saving lives.”

He cited investments in two municipal homeless hubs and capital funding for 100 supportive housing units.

Morgan also expressed optimism that funding for a provincial Homelessness and Addiction Recovery Treatment (HART) Hub might be imminent, “I am fully confident we’ll be successful in landing one of these facilities.”

HART Hubs are slated to open in the spring.

The mayor also responded to concerns about back-to-back property tax hikes in London.

“While we’re struggling to provide basics, clean drinking water, public safety, garbage collection, parks and rec services, the federal government is giving tax breaks on things like PlayStations, Christmas decorations, and alcohol,” Morgan snapped. “They enjoy the [tax] holiday, while property taxpayers deal with the hangover.”

He argued that municipalities need a new funding framework with the senior levels of government.

In the meantime he made a property tax pledge for 2026 budget deliberations.

“In the coming days, I will be issuing a Strong Mayor Direction to staff to begin work on crafting a series of recommendations that, if approved, will produce a tax increase under five per cent,” promised Morgan.

However, after annual property tax rate increases of 8.7 per cent (2024) and 7.3 per cent (2025), applause from the crowd was tempered.

According to Morgan, capping the tax rate increase at five per cent would require finding about $13-million in savings and/or new revenue.

“We must decide together how much, where, and whether we are willing to make potentially painful sacrifices to ensure affordability,” he added.

Morgan also spoke firmly about cracking down on public drug use in London.

“Blatant public drug use and violent behaviours cannot and must not be tolerated.”

He confirmed a new Open Air Public Space Drug Strategy will soon be implemented by the London Police Service.

Morgan emphasized that the strategy will not be about criminalizing homelessness and that Chief Thai Truong will provide more details in the coming weeks.

Morgan concluded his annual address by saying, ”Let’s face the future with courage, shape it with determination, and celebrate it with pride!”

Other announcements made during the 2025 State of the City Address

• Partnership between City of London, St. Joseph’s Health Care, and Homes for Heroes to establish a village of 20 tiny homes for homeless veterans at Parkwood Institute
• Financial assistance (grants) for startup and renovation costs for eligible businesses locating in key geographic areas
• York Developments expects to break ground on what will be London’s tallest building, a 53 storey and 43 storey twin-tower at 50 King St.
• RFP will be launched in February to find developers to build on municipal parking lots at 84 Horton and 199 Ridout
• Canada’s first Hard Rock Hotel will open at 100 Kellogg this spring
• Ronald McDonald House of Southwestern Ontario will expand to double its capacity