Toronto Mayor Olivia Chow unveiled her proposed 2025 budget, which includes a 6.9% property tax increase aimed at improving public services and addressing the city’s financial challenges. The increase comprises a 5.4% property tax hike and a 1.5% city-building fund levy, translating to an additional $5.50 per week for the average homeowner.
Funding Priorities for 2025
Chow emphasized that the proposed budget prioritizes public transit, emergency services, affordable housing, and enhanced community amenities. Key improvements include:
- Public Transit: More reliable and frequent TTC service.
- Libraries and Pools: Extended hours for libraries and public pools, particularly during summer months.
- Housing and Tenant Protections: Increased spending on affordable housing programs and measures to protect tenants.
- Emergency Services: Expanded funding for policing and emergency response.
“This proposed budget will mean change in Torontonians’ lives today,” Chow said, acknowledging the financial pressures faced by residents amid rising living costs.
Recent Tax Hikes and Financial Challenges
The 2025 tax hike follows a historic 9.5% increase last year and a 7% rise in 2023, resulting in a cumulative 24% increase for municipal taxpayers over three years. Despite the previous hikes, the city continues to face significant fiscal pressures, including a $1.2 billion “opening pressure” to maintain current service levels.
Toronto is legally required by Ontario law to present a balanced budget by February, meaning it cannot run a deficit.
Budget Breakdown and Long-Term Plans
The proposed budget includes $18.8 billion in operating expenses and outlines a record-breaking 10-year capital plan with nearly $60 billion in planned spending, much of it directed toward addressing the city’s significant state-of-good-repair backlog.
Highlights of the budget include:
- Toronto Police Services: A $46.2 million increase in funding, recently approved by the Toronto Police Services Board.
- Toronto Transit Commission: Continued fare freezes and funding for new LRT lines on Eglinton and Finch, set to open later this year.
- Traffic Management: A $3 million allocation for hiring additional traffic agents to manage congestion at busy intersections.
Public Consultations and Next Steps
The city conducted public consultations and surveys last October to gather feedback on budget priorities. The initial proposal released Monday is expected to undergo revisions before council votes on the finalized budget in mid-February. Last year, for example, an initially higher proposed tax increase was scaled back during council deliberations.
Chow’s ambitious budget seeks to address Toronto’s pressing financial needs while delivering tangible improvements to services, but it comes at a significant cost to taxpayers who have already experienced substantial increases in recent years.