Today, City Council considered the 2023 rate and tax-supported operating and capital budgets proposed by Mayor John Tory. The 2023 Budget protects frontline services in the face of a challenging financial year, makes much-needed investments in housing, community safety, transit, emergency services and parks, and manages affordability by keeping property tax increases below the rate of inflation. The Mayor has issued a Mayoral Decision indicating he will not be exercising his veto, making the 2023 Budget final.
Highlights of the City of Toronto 2023 Budget
The 2023 Budget improves, protects and preserves frontline City services:
The 2023 Budget invests more than $2 billion to build and protect vital housing:
The 2023 Budget invests in transit to keep people moving and safe:
The 2023 Budget invests in emergency services and community safety:
During today’s meeting, City Council approved more than $8 million in additional spending to:
Mayor Tory indicated at the end of the meeting that he fully supports these investments which were the result of collaboration with Councillors over the last few weeks. The Mayor will not exercise his veto on these matters and a Mayoral Decision confirming this has been issued on the City’s Mayoral Decision webpage.
For the fourth consecutive year, the City has implemented a range of spending restraints and measures to offset the ongoing financial impact of the pandemic and recent global economic volatility. City-led mitigation strategies will result in significant offsets of $786 million in 2023 for a total of $2.5 billion since the start of the pandemic.
The 2023 operating budget expects $1.08 billion in necessary funding from the Government of Canada and the Province of Ontario to address the ongoing impacts of the COVID-19 pandemic ($933 million), refugee shelter response ($97 million) and supportive housing ($48 million). When combined with the 2022 pandemic-related shortfall of $484 million, the required funding from other orders of government totals $1.56 billion.
In addition to these existing funding requirements are the pressures of rising fuel, food and debt-servicing costs. To meet these significant budget pressures, the 2023 Budget includes a property tax increase of 5.5 per cent for residential properties. The increase amounts to an additional $183 for the average assessed value of a Toronto home; 2.75 per cent for multi-residential properties, 2.75 per cent for commercial properties and 5.5 per cent for industrial properties. The budget continues to include a 15 per cent property tax rate reduction to support more than 29,000 small businesses across Toronto.
The 2023 Budget includes a planned 1.5 per cent increase to the City Building Levy consistent with the City’s approved capital funding strategy, an additional $50 for the average assessed value of a Toronto home. This dedicated levy supports $6.1 billion in transit and housing investments in the 10-Year Capital Plan.
The 2023 operating budget of $16.16 billion includes the $2.04 billion rate-supported operating budgets for Solid Waste Management Services, Toronto Parking Authority and Toronto Water.
The 10-year capital plan of $49.26 billion funds strategic areas such as transit, housing and climate action and includes the $1.05 billion capital plan for Solid Waste Management Services and the $15.34 billion capital plan for Toronto Water.
A recording of today’s meeting is available on the Toronto City Council YouTube channel. The meeting agenda is available on the City website.
A Backgrounder on the City’s 2023 Budget process is available in the City’s Media Room.
More information about Toronto’s Budget is available on the City’s 2023 Budget webpage.
“This budget protects frontline services and invests in housing, transit and keeping our communities safe. Today, we worked together as a City Council to make additional investments in housing and homelessness, in anti-violence initiatives, in young people, in mental health, and in key organizations in the city. I want to thank the members of the Budget Committee, Council and the public for their thoughtful contributions to the budget process this year.”
– Mayor John Tory
“The 2023 Toronto Budget protects frontline services that Toronto residents and businesses rely upon while making investments in housing, transit, parks, emergency services and community safety. Working together with the members of Budget Committee and Council, we have also found additional savings and adjustments to further invest in community initiatives that were approved today.”
– Deputy Mayor Jennifer McKelvie (Scarborough-Rouge Park)
“I want to thank the Mayor for his leadership and the members of the Budget Committee for their work on this budget as well as Toronto residents and organizations who participated in the public consultations that we held across the City, in person and online. Despite the numerous challenges of this budget – the pressures of inflation and interest rates, the significant financial repercussions of the pandemic, and global economic volatility – we have delivered a budget committed to fiscal responsibility and sound financial management.”
– Councillor Gary Crawford (Scarborough Southwest), Chair of the Budget Committee
Toronto is home to more than three million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the world’s most diverse and livable cities. As the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit the City’s website or follow us on Twitter, Instagram or Facebook.