Police, TTC and housing to be top priorities in Chow's 2025 Toronto budget
City budget process launches Monday, property tax hike expected
Will it be sticker shock for Toronto homeowners again this year?
Torontonians will soon get an idea of how much property taxes may be going up, as city staff are set to unveil a proposed budget on Monday, which the mayor's office says will be in line with her priorities and direction.
The proposed budget will undergo changes in the weeks to come, as it is reviewed by the budget committee and the city holds consultation sessions. The mayor will present her revised budget by the start of February, with the final spending package to be approved at a council meeting on Feb. 11.
We already know Toronto police and the TTC will be getting funding boosts, and Mayor Olivia Chow has signalled housing as one of her other key priorities.
Last year's budget saw a 9.5 per cent property tax increase — the largest in more than two decades. Signs point to another increase this year, though likely not as large.
"Making that extraordinary move last year has really benefited the city and benefited the people who pay for the city, that everyday Torontonian," said Coun. Shelley Carroll, the city's budget chief.
Financial position improved, budget pressures remain
The city enters the year with $1.2 billion in budget pressure, compared with last year's opening deficit of $1.8 billion.
The budget process is always the most difficult time of year for the mayor and council, says Joe Mihevc, former city councillor and current York University adjunct professor
While he expects this year's budget process to be somewhat easier than last year, he said the city is still facing "huge" demands.
"No mayor, no councillor wants to add additional financial burden on residents. And at the same time, there are big needs out there that we need to get our heads around and to support," Mihevc said.
"So, that's the juggling act."
Pressures on the city this year include new contracts the city has negotiated with unionized employees. That includes the deal struck with TTC workers last June, narrowly averting a TTC strike. That deal will cost the city $176 million over three years.
In December, the city reached an agreement with the union representing about 4,200 civic employees, including garbage collectors, parks and recreation staff and others. The city won't confirm how much the new deal will cost the municipality, saying those details will be outlined in the budget.
The city also needs to negotiate new agreements with paramedics, as well as with CUPE Local 79, which represents some 30,000 city employees.
Mayor's spending priorities
Chow has already signalled support for giving $46.2 million more to Toronto police, representing a 3.9 per cent budget increase.
On Friday, the TTC board approved its 2025 operating budget, requesting a 6.5 per cent budget increase. The additional $85.1 million from the city will help improve service and increase maintenance. The agency will also freeze fares for the second year in a row.
At an announcement earlier in the week, Chow called it "a worthwhile investment."
"I know how important reliable service is for Torontonians," she said.
At a pre-budget announcement on Thursday about hiring more traffic agents to fight congestion, Chow said police, TTC and housing "are the three big buckets" that will be prioritized in the budget.
Chow's staff say the proposed budget to be presented on Monday has been developed in line with the mayor's directives and priorities.
Mihevc says the mayor will now have the job of selling her vision — and whatever tax increase is associated.
"She will have to convince people that the product that she is pitching, i.e., making Toronto a better, safer, healthier place is worth the price," Mihevc said.
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