‘We’re in politics’: Final consideration of 2.2% Toronto tax increase underway

Toronto councillors will have their last chance to make changes to the city’s budget on Tuesday, as they vote on adopting a lean financial blueprint ahead of a tense election year.

In early January, city staff revealed Toronto’s proposed 2026 budget, with a tax increase of 2.2 per cent — drastically lower than the 9.5 and 6.9 per cent increases approved in the past two years.

Mayor Olivia Chow, who has enhanced powers to dictate the budget process, proposed a similar version of the city’s document at the beginning of February, maintaining the low tax increase.

City staff, allies of the mayor and Chow herself all said the budget was designed with affordability in mind, limiting tax increases in a difficult year as the country’s economic picture continues to worsen.

“Families are feeling the squeeze from the high cost of living. My budget is about making life more affordable for Torontonians,” Chow said when she tabled her budget.

While the mayor has significant powers to ensure the budget is passed in her image — and can overrule up to two-thirds of council — Tuesday is likely to provide a substantial test.

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It will be the first opportunity for the whole of council to make suggestions on how the blueprint could be changed.

Ahead of the municipal and mayoral election in October, in particular, it will be an opportunity for Chow’s political opponents to lay out how they would govern differently and pick holes in her approach.

Chow herself is yet to officially announce any plans to run for a second term, but Coun. Brad Bradford unveiled his bid last year. He’s already criticized the budget and claimed the lower-than-usual tax increase is a short-term election play by the mayor.

“You’re effectively trying to buy Torontonians’ votes with your budget,” Bradford told Chow during an exchange on Tuesday morning, claiming the plan was “financial malpractice.”

Later, he added: “That is not sustainable. While the mayor is celebrating an inflationary tax increase during an election year, what she is really doing is delaying the pain for Torontonians.”

The mayor’s allies, however, are defending the budget’s low increase as a reward for difficult decisions in previous years.

“Let’s not kid ourselves, this is a good budget, it’s for affordability, it’s for caring, and it’s for safety in the city,” Coun. Paula Fletcher told reporters. “The investments have been made, the money has been saved.”

October’s municipal elections — and the maneuvering taking place ahead of them — also appear to be part of the equation.

“We’re in politics, I think everyone’s always constantly thinking about those prospects,” Coun. Amber Morley said.