The draft budget tabled Monday at city hall shows just how difficult the road ahead will be for the new council if it wants to keep taxes in check.
Staff unveiled a draft tax increase of 2.9 per cent for 2015.
That represents a budget gap of $14.5 million.
Filling that gap would require taxes to increase by $72 on the average London home, with an assessed value of $214,000.
But those numbers fail to take into account several big-ticket items, including upgrades to the downtown library, more cash for infrastructure and property management costs.
There is also the anticipated wage increase for police officers and firefighters this coming year.
All of this could raise taxes by as much as 3.9 per cent.
And looking ahead to the next four years, the city treasurer’s office is conservatively predicting tax increases of 2.9 per cent, 4.2 per cent, 2.9 per cent and 2.7 per cent during council’s term.
There was more news of increases at city hall Monday. Administation also presented its water and wastewater treatment budgets for 2014.
The average homeowner is looking at an increase of $53, which is a seven per cent increase.
Council will work towards final approval of the water and wastewater budgets at its meeting on Feb. 9 and the property tax budget at its meeting on Feb. 26.
