Infrastructure and Corporate Services Committee Meeting

The Infrastructure and Corporate Services Committee reviewed the city's finances, capital projects and traffic measures. London's AAA credit rating was renewed for the 50th consecutive year, while officials reported a $245 million cumulative development-charge revenue shortfall since 2021. The committee also approved an all-way stop at Heard Creek Trail and reviewed cost and scheduling changes for road and wastewater projects.

Topics Discussed

CREDIT RATING, DEBT AND RESERVES

Moody's renewed London's AAA credit rating for the 50th consecutive year. Staff said the rating allows the city to borrow at lower interest rates, reducing financing costs for infrastructure projects.

Mayor Josh Morgan cited Moody's warning that "a sustained loss of fiscal discipline leading to a material increase in debt or a substantial reduction of available financial reserves could place downward pressure on the city's credit rating."

Morgan said the rating helps the city keep borrowing costs and pressure on property taxes lower, allowing it to fund infrastructure. He described the benefit as "getting them good rates in their debt," which "keeps their cost down," keeps pressure off property taxes and allows the city to build needed projects.

DEVELOPMENT-CHARGE REVENUE SHORTFALL

The city reported collecting $45.9 million in development charges in 2025, or about 25.9% of the amount projected. Staff estimated a cumulative development-charge revenue shortfall of $245 million since 2021.

Provincial statutory exemptions accounted for nearly $55 million in foregone charges in 2025, while more than $40 million in payments were deferred. Staff said the city is prioritizing infrastructure that enables housing, but prolonged shortfalls could require delays to projects such as community centres and parks.

SOCIAL SERVICES AND HOUSING VARIANCES

Social and Community Support Services reported a $1.4 million overspend on Ontario Works employment-related expenses. Staff said the spending is intended to "improve clients' pathways to employment."

The variance was partly offset by child-care savings resulting from additional provincial revenue. London and Middlesex Community Housing projected a surplus of about $500,000, attributed mainly to higher rent revenue and lower insurance costs. Maintenance spending was slightly above budget.

CAPITAL PROJECTS AND ROAD WORK

The Pottersburg-Vauxhall Pumping Station project received an additional $4.1 million in provincial funding, added to $8.1 million already held in reserves across five capital projects.

Work at Sunningdale Road and Richmond Street was described as mostly complete, and the intersection has reopened. The project is expected to require an additional $700,000 to close out in 2026. Staff attributed the overrun to dewatering and replacement of a malfunctioning water valve.

The final valve work will require a minor water shutdown and temporary traffic impacts. Staff said the city will announce the timing once it is confirmed.

Road improvements on Sarnia Road, Western Road and Philip Aziz Avenue were reduced by $8 million as the city prepares for future rapid-transit work in the corridor. Councillor Corrine Rahman asked about the reduction, noting that "a number of the approaches will be looked at through the EA and with bus rapid transit potentially in the corridor."

Staff said the change will not delay planned pedestrian and cycling improvements, which are scheduled for next year.

TRAFFIC AND TRANSIT

The committee approved an all-way stop at the Heard Creek Trail intersection. The decision followed a warrant study, resident safety concerns and input from the London Police Service.

Staff also clarified that "Rapid Transit" and "BRT" refer to projects funded from the same account. "Rapid Transit" is the terminology used in the city's service-based budget.

Motions

• Consent agenda — Items 2.1 through 2.10: Passed unanimously, 6-0. The items included the Moody's credit-rating report, financial and capital monitoring reports, and other committee business. Moved by Councillor Frank and seconded by Councillor Pelosa.
• Amendments to the Traffic and Parking By-law — Heard Creek Trail intersection control: Approved, establishing an all-way stop.
• In-camera session: Held. Councillor Frank reported that "progress has been made for the items for which we went in camera." No further details were provided in the material supplied.

Attendees

The material identifies the following participants:

• Mayor Josh Morgan
• Councillor Frank
• Councillor Pelosa
• Councillor Corrine Rahman

The committee vote indicates that six members were present, but the names of the other attendees were not provided.