A surprising number is circulating in Toronto city hall: 2.2%. Mayor Olivia Chow’s office announced this proposed property tax increase, a figure significantly lower than the substantial hikes experienced in the past two years. The announcement arrived on the eve of a crucial budget meeting, promising a potentially lighter burden for homeowners.
The proposed 2.2% increase breaks down into a 0.7% rise for residential property taxes and a 1.5% increase dedicated to the city building fund. The Mayor framed the budget as a commitment to affordability for Toronto families, highlighting initiatives designed to ease financial strain.
Chow’s office pointed to specific savings for residents, including free healthy meals for all public school children, a continued freeze on TTC fares for a third consecutive year, and expanded library hours with free programming. Additional support for renters and grants for homeowners facing basement flooding or furnace upgrades were also emphasized.
However, not everyone shares the optimistic outlook. Councillor Brad Bradford voiced concerns that the seemingly lower increase may be achieved by depleting the city’s reserve funds. He warned against what he described as “burning the furniture to heat the house,” suggesting a short-sighted approach to financial management.
Bradford argued that a more sustainable solution lies in improving efficiencies and conducting a comprehensive review of city services – a practice last undertaken during Rob Ford’s term in 2012. He pointed to a history of significant tax increases under both Chow and her predecessor, John Tory, leaving Toronto taxpayers feeling the pinch.
The cumulative effect of these increases, Bradford contends, represents the most substantial tax burden Toronto residents have faced since the city’s amalgamation. He believes citizens are acutely aware of the rising costs and the impact on their household budgets.
The upcoming budget debate unfolds against the backdrop of an October election, where Mayor Chow is expected to defend her position, with Councillor Bradford already a declared challenger. This political context adds another layer of scrutiny to the proposed financial plan.
Bradford anticipates a relatively straightforward budget process, suggesting the Mayor’s office has already solidified its plans. He doesn’t foresee a dramatic departure from the staff-prepared draft, indicating a pre-determined course of action.
Despite the proposed 2.2% increase, Bradford highlights a significant overall rise in city spending – potentially exceeding $1 billion year-over-year. He points to growing staffing levels and costly collective bargaining agreements with city unions as key drivers of this escalating expense.
The budget presented on Thursday represents a draft prepared by city staff, guided by the Mayor’s direction and informed by earlier committee discussions and public consultations. The Mayor is scheduled to formally introduce her version of the spending plan in February, leading to a final council vote later that month.
