Will it be sticker shock again this year for Toronto homeowners?
Torontonians will soon get an idea of how much property taxes will rise, as city staff prepare to unveil a proposed budget on Monday, which the mayor's office says will be based on his priorities and direction.
The proposed budget will change in the coming weeks, as it is reviewed by the budget committee and the city holds consultation sessions. The mayor will present his revised budget in early February, with the final spending package to be approved at a council meeting on February 11.
We already know Toronto police and the TTC are increasing funding, and Mayor Olivia Chow has indicated housing as one of her other top priorities.
Last year's budget included a 9.5 percent property tax hike, the largest in more than two decades. Signs point to another increase this year, though probably not as big.
“That extraordinary move last year has really benefited the city and the people who pay for the city, the everyday Torontonian,” said Coun. Shelly Carroll, the city's budget chief.
Economic situation improves, budget pressure remains
The city enters the year under budget pressure with $1.2 billion, compared to last year's opening deficit of $1.8 billion.
The budget process is always the most difficult time of the year for mayors and councils, says Joe Mihevac, a former city councilor and current adjunct professor at York University.
While he expects this year's budget process to be somewhat smoother than last year's, he said the city is still facing “huge” demands.
“No mayor, no councilor wants to add more financial burden to residents. And at the same time, there are bigger needs that we need to wrap our heads around and support,” said Mihevc.
“So, that's a juggling act.”
Pressures on the city this year include new contracts negotiated by the city with unionized employees. This includes an agreement reached with TTC employees 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 a union representing about 4,200 civic employees, including garbage collectors, parks and recreation workers and others. While the city would not confirm how much the new contract will cost the municipality, those details will be outlined in the budget.
The city needs to negotiate new contracts with paramedics as well as CUPE Local 79, which represents about 30,000 city employees.
Mayor's spending priorities
Chow has already signaled support for giving Toronto police an additional $46.2 million, representing a 3.9 per cent budget increase.
On Friday, the TTC board approved the 2025 operating budget, requesting a 6.5 percent budget increase. An additional $85.1 million from the city will help improve service and increase maintenance. The agency will freeze fares for the second year in a row.
In an announcement earlier in the week, Chow called it a “meaningful investment.”
“I know how important reliable service is to Torontonians,” she said.
Olivia Chow says tackling the city's housing crisis remains her top priority. CBC's Shawn Jeffords spoke one-on-one with Chow to reflect on his time in office this year and the city's ongoing economic challenges.
In a pre-budget announcement Thursday about hiring more traffic agents to combat congestion, Chow said the police, TTC and housing are “three big buckets” that will be prioritized in the budget.
Chow's staff say that the proposed budget to be presented on Monday was prepared based on the mayor's instructions and priorities.
Mihevc says the mayor will now have a job selling her vision — and anything related to tax increases.
“He has to convince people that the product he's pitching, which is to make Toronto a better, safer, healthier place, is worth the price,” Mihevc said.
