The City of Toronto is proposing a 2.2 per cent property tax increase ahead of the launch of its official budget process, with the majority of the money earmarked for the city’s building fund.
The city will table its draft budget on Thursday, laying out the initial increase and spending constraints for councillors to debate.
Under strong mayor powers introduced by the Ford government in 2022, Mayor Olivia Chow has been given huge powers to shape the budget process, requiring two-thirds of council to overrule her.
Chow must present her budget by Feb. 1 at the latest, and councillors then have a maximum of 30 days to consider and pass the final document.
Among the programs teased by Chow and Coun. Shelley Carroll, chair of the budget committee, includes library access seven days a week and protections for renters. It will mean a 0.7 per cent general property tax increase and a 1.5 per cent bump to the city’s building fund.
“This budget is about being responsible with public dollars while protecting the services people rely on every day,” Carroll said in a statement.
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“At a time when families and businesses are feeling real cost pressures, the City is focused on managing expenses carefully, enhancing community safety, and investing in the basics that support good jobs and a strong local economy.”
Chow had hinted at what could come in the budget with several announcements through the end of 2025.
She unveiled a plan to cap fares for transit riders midway through the year, as well as a higher rate of land transfer tax for the city’s most expensive houses.
The upcoming mayoral election, which will take place in October, is also likely to factor into the budget process.
Coun. Brad Bradford has already announced he plans to run. Chow has repeatedly refused to either confirm she will contest another term or rule it out.
In an interview with Global News, she promised she would prioritize tough budget choices over any re-election bid.
“Absolutely, I will prioritize the budget anytime, because the rest is political consideration. I’m just one person,” she said in December. “Show that the city hall cares about you; that is what is the most important piece.”
Her critics, like Bradford, point to significant tax rises in her first two budgets as evidence that her policies are too expensive for the city.
Chow was first elected mayor in June 2023, passing her first budget at the beginning of 2024.
That financial blueprint came with a 9.5 per cent increase, the highest since Toronto amalgamated into one city in 1998. It included a Toronto police increase, more warming centres and Scarborough transit.
The next year, Chow approved another substantial increase.
The 2025 budget was approved with a 6.9 per cent increase, adding to the budget for police, transit, librararies and affordable housing.
The 2026 budget is scheduled to be passed at a special council meeting on Feb. 10.
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