Olivia Chow promises her version of Toronto budget by February, won’t comment on tax rate

Toronto Mayor Olivia Chow says the potential 10.5 per cent tax hike unveiled on Wednesday represents a budget written by city staff.

Speaking to reporters, she promised she would reveal her own version of the budget on Feb. 1,, but will not say if she is going to put forward a lower property tax increase.

The city’s budget was revealed Wednesday morning, with a double-digit hit for homeowners in Toronto.

Budget chief Shelley Carroll warned the increase could grow to 16.5 per cent if the Trudeau government doesn’t cough up an extra $250 million to help the city with housing, homelessness and refugees by Jan. 26.

Speaking on Wednesday afternoon, however, Chow promised the consultation process was far from finished. She said telephone town halls and other consultations will influence the final budget.

“This is the staff budget,” Chow said. “You will see my budget on Feb. 1, I think it’s important to listen to the people of Toronto and I look forward to them participating.”

Strong mayor powers handed to Toronto by the Ford government enables Chow to plan and write Toronto’s budget.

The new rules say the head of council has until Feb. 1 to propose their own budget, which will then be shared with council. The legislation allows council to suggest changes, which the mayor can veto.

“I do not want to predict what I will be hearing,” Chow said, refusing to be drawn out as to whether her version of the budget will include a lower tax hike. “I do know that I did not create this financial mess, but it needs to be fixed. We need to get this city back on track.”

Discussing the budget she spearheaded with staff, Carroll said she had received a clear message during consultations before the budget: keep our services intact. The staff budget — and 10.5 per cent increase — is a reflection of that demand, she said.

In a press release, the city said it is facing a $1.8-billion shortfall in its operating budget “due to years of chronic underinvestment in city services.” City financial staff were able to find over $600 million in cost savings for the 2024 budget.

Carroll said some “strategic investments” were included in the budget, pointing out that clarity did not emerge during consultations, so far, regarding where people want cuts.

Chow said she was hopeful federal funding will still come and that the final budget passed would be manageable for residents.

“This is early January. January is the time to be hopeful — it’s the new year, “she said. “I like to stay optimistic.”

— with files from Global News’ Gabby Rodrigues and Matthew Bingley