Following consultations, the final version of the City of Toronto’s 2025 proposed budget presented by Mayor Olivia Chow is similar to what was unveiled earlier this month, including a robust increase to the property tax.
One change includes expanded relief for seniors and people with disabilities.
The City will hold a special city council meeting on Feb. 11 to review details in the proposed budget.
Below are some budget highlights:
Property tax increase
The City says it is seeking to hike the property tax for residential properties by 5.4 per cent, which would be in addition to a 1.5 per cent City Building Fund levy increase, totalling 6.9 per cent.
“This results in an increase of $210 annually for the average assessed value of a Toronto home ($692,031) or approximately $17.50 per month,” a City release from January stated.
Chow said Thursday the proposed property tax hike is necessary because the city is in a big financial hole and they need to find a way out.
“Tough choices have to be made as we continue to climb out a decade of neglect and with the affordability crisis in our city we cannot balance a budget on the backs of cuts to the city services people relied on,” she said.
The building fund levy would add $58.37 per year for the average assessed value of a Toronto home, the City said.
The budget also includes 3.75 per cent increases to water and garbage fees.
“While this is less than last year, I understand that it is challenging for many across the city. That’s why with this increase, we are expanding property tax relief programs,” Chow stated in her budget letter.
The City said after hearing feedback through the budget consultation process, the final proposal includes increasing the property tax deferral and cancellation income threshold for seniors and persons with disabilities by five per cent to $60,000.
“This will mean thousands more qualify for support. The home value threshold for the property tax cancellation program is $975,000. More people will also qualify for water rebate and solid waste rebate programs,” Chow said.
TTC service
Last month, the TTC board approved a fare freeze for the second straight year and announced a slew of planned service improvements.
Some of the improvements include new subway cars on Line 2 with five-minute service or better, six-minute streetcar service on Dundas, St. Clair and Bathurst routes, and a bus bunching pilot project to improve service on 10 high-ridership routes.
Traffic congestion
The City plans to add 100 Traffic Agents by the end of this year, to address blocked intersections, improve travel times in key corridors and decrease collision.
Housing affordability
The proposed budget plans to provide more support for tenants in rental units, including protecting renters with a new renoviction bylaw, $1 million for Rent Bank to provide assistance for 2,700 households, $800,000 for Eviction Prevention Program to help tenants stay in their home, building more affordable homes, among other initiatives.
Feeding more kids
The budget calls for an increase investment in meal programs for kids, including feeding 21,500 more kids at 48 schools by September 1 with school food programs and feeding 31,000 youth through CampTO food programs.
Community services
The budget calls for extended Sunday hours at 67 Toronto Public Libraries, funding local arts, festivals and events, enhance cleaning at recreational facilities, expand hours for outdoor pools by two hours daily.
Full details on the budget can be found here.
With files from Michael Talbot
