Toronto city council approves 9.5% property tax hike, along with $20M police budget increase

'80 cents extra a day, folks can afford it,' Chow told reporters Wednesday

Cbc.ca
Feb. 15, 2024

Toronto city council approved the city's largest property tax hike in more than 25 years on Wednesday, along with a $20-million increase to the police budget.

At a special budget meeting on Wednesday, council voted in favour of a 9.5 per cent residential property tax hike, a rate proposed by Toronto Mayor Olivia Chow.

"Eighty cents extra a day, folks can afford it," Chow told reporters at a scrum at city hall after the meeting.  "Those that cannot will have a tax cancellation and tax deferral program to assist them."

The tax increase breaks down into an eight per cent property tax increase and a 1.5 per cent city building fund levy increase for residential properties. Chow said at least half of people who are tenants will not face a rent increase because of the budget that passed.

"It's also historic in a way. We are finally having Toronto back on track, even though we inherited a huge $1.8-billion financial mess," she said.

"It's the beginning of a journey. Can we do it in one year? No. It is a journey. At least we are starting. We are halting the decline of services. We are changing direction. That's my promise and I know it will happen."

Not all in favour of increase
Chow added that she will not use powers granted to her under the "strong mayor" legislation introduced by Premier Doug Ford's government, a law that gives her a veto over any changes to her budget made by city council.

She said she has shortened the 10-day period for the mayor to veto any amendments, and that means the 2024 budget has passed.

In a news release on Wednesday, the city said the 2024 budget includes an operating budget of $17.1 billion and a 2024-2033 capital budget and plan of $49.8 billion.

"It is the first budget in a new multi-year approach that sets the city up to achieve financial stability and sustainability," the city said.

Not all councillors support the budget as passed, however.

Coun. Brad Bradford, who spoke to reporters after the budget vote, says: 'At a time when people are paying more at the grocery store, more at the pump, more in rent, more in interest rates, this council and the mayor just passed the largest tax increase that will not make life more affordable. It will make it more expensive to live here in Toronto.'
Coun. Brad Bradford expressed opposition to the budget during and after the meeting. He said the budget decision is disappointing and he's not convinced that the property tax increase will mean improvements to services.

"This is a record-breaking tax increase," he said.

"At a time when people are paying more at the grocery store, more at the pump, more in rent, more in interest rates, this council and the mayor just passed the largest tax increase that will not make life more affordable. It will make it more expensive to live here in Toronto."

Council approves full police funding request
The budget vote, which was in two parts, came after a day of motions where councillors voted to pump additional funds into city services previously on the chopping block.

Earlier, Chow reversed course on the contentious debate over the Toronto police budget. After weeks of pushing against it, Chow had said she would back a bid to increase the nearly $1.2-billion net budget by $20 million, instead of the $7.4 million in her draft spending plan. The money would come from a reserve fund.

City staff recommended the police get a $7.4-million increase, while the police service wanted $20 million. On Wednesday, council voted to add $12.6 million to the police budget, giving the police the $20 million it had requested.

"I found extra dollars in the last week and a half," Chow said.

"I am very thankful for the federal and provincial governments to step up and say, 'Hey, Toronto has unique policing costs' and they are willing to share some of the burden of paying to support the police. I'm grateful for that. And what I don't want to see is cutting other services and we have not done that."

Chow said she had conversations with the police on Monday night and they spoke about a multi-year staffing plan, lowering response time, getting more officers on the front line, and getting more community officers.

"He's going to set a target, a goal, a timetable so that we can see the results," she said of the police chief. "Accountability is very important."

Chow and Coun. Amber Morley, who moved a motion on police funding, expect the city's reserve fund to be replenished by the provincial and federal governments, in particular from the $121-million Ottawa committed to the province last week to help police forces combat auto theft.

"That gives me confidence that we don't have to go and cut other services to provide extra support to police because that's not what I want to do," Chow said Tuesday.

In response to questions from councillors, Toronto police Chief Myron Demkiw said staffing supervisory roles will be key to improving response times. He said there are currently 140 unfilled sergeant positions and 40 unfilled staff sergeant positions in the service.

Council funds snow windrow cleaning
Council unanimously approved Coun. Paul Ainslie's motion for $4.1 million for snow windrow clearing. The money will benefit 262,000 suburban homes.

"Keeping our streets and sidewalks clear of snow and ice is a priority for the City of Toronto and its residents. The Winter Windrow Clearing Program is an essential service that helps make our city more livable, safe, and accessible for everyone," Ainslie said in a news release on Wednesday.

Council also approved a second motion from Ainslie for $200,000 in additional funding for the Toronto and Region Conservation Authority to run programming at Black Creek Pioneer Village in North York.

Ahead of city council’s final meeting to debate Mayor Olivia Chow’s 2024 budget on Wednesday, CBC’s Shawn Jeffords sat down with Chow to discuss her priorities for rebuilding Toronto.

In an interview on the eve of the final debate, Chow said she was comfortable with the 9.5 per cent property tax hike and said it will help the city shore up fraying services like transit and the city's state of good repair.

"I think the rate is just right," she said. "I'm hearing that people understand that we need to get the city back on track and invest in services -- basic services."

The budget process officially kicked off in January when city staff presented their draft budget, which included a proposed 10.5 per cent property tax hike.

Chow brought that number down by a full percentage point after weeks of public consultations and recommendations from council's budget committee to keep a focus on affordability for residents.

The city says the 2024 budget includes base property tax increases of 2.95 per cent for multi-residential properties, four per cent for commercial properties and eight per cent for industrial properties.