Today, Toronto City Council considered the 2024 rate and tax-supported operating and capital budgets proposed by Mayor Olivia Chow. The 2024 Budget protects core services and funds affordable housing, transit and community safety initiatives.
Mayor Chow has issued a Mayoral Decision indicating she will not exercise her veto and has shortened the 10-day period for the Mayor to veto any amendments, and the 2024 Budget is now deemed adopted.
The 2024 Budget comprises a rate and tax-supported 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.
Built on the foundation of the City’s Long Term Financial Plan (LTFP), the Ontario-Toronto New Deal Agreement and recent Government of Canada funding announcements for refugee claimant support, the 2024 Budget reflects the input of more than 50,000 residents who attended virtual, in-person and telephone town halls, participated in consultation meetings, spoke to Budget Committee members and wrote to Members of Council.
The 2024 Budget protects core services and makes investments in affordable housing, transit and community safety.
To address critical infrastructure needs and accelerate much needed capital projects, the budget includes a $50 million Back on Track Fund. Leveraging capital funding from the Ontario-Toronto New Deal, this fund will support urgent state-of-good-repair work, address infrastructure deficiencies and enhance public spaces across the city.
Council made the following enhancements to the budget:
At the end of the meeting, Mayor Chow indicated that she supports the additional investments made by City Council and will not exercise her veto on these matters. A Mayoral Decision confirming this has been issued is posted on the City’s Mayoral Decision webpage.
The City’s opening operating budget pressure was $1.776 billion primarily due to growing demand for refugee claimant support and shelter spaces and decreased transit revenues. To address this shortfall with residential property taxes alone would have required a 42 per cent property tax increase.
To meet these significant budget pressures, the City did its part by finding $620 million in total efficiencies and offsets, implementing LTFP actions and securing intergovernmental funding.
In addition to these actions, the 2024 Budget includes a residential property tax increase of eight per cent. This amounts to an increase of $285 annually for the average assessed value of a Toronto home or the equivalent to a monthly increase of $23.75.
The 2024 Budget also includes a base property tax increases of 2.95 per cent for multi-residential properties – set to protect tenants from above guideline rent increases – four per cent for commercial properties and eight per cent for industrial properties. This also continues to include a 15 per cent property tax rate reduction to support more than 29,600 small businesses.
Consistent with City Council’s endorsement last year, the 2024 Capital Budget includes a 1.5 per cent City Building Fund levy increase for residential properties to fund critical investments in transit and housing. This amounts to an additional $53 for the average assessed value of a Toronto home or the equivalent to a monthly increase of $4.42. The City Building Fund levy will increase 0.55 per cent for multi-residential properties, 0.75 per cent for commercial properties and 1.5 per cent for industrial properties.
The City’s Property Tax, Water & Solid Waste Relief Programs offer financial assistance to eligible low-income residents. Relief includes deferral or cancellation of property tax increases and rebates on water and solid waste utility bills. Applications open Spring 2024. More information is available on the Property Tax, Water & Solid Waste Relief Programs webpage.
A recording of today’s meeting is available on the Toronto City Council YouTube channel.
Today’s meeting agenda is available on the City website.
A Backgrounder on the City’s 2024 Budget process is available on the City’s Media Room webpage.
More information, including Budget Notes, Briefing Notes and presentations, is available on the City’s 2024 Budget webpage.
“This budget protects services from painful cuts, responsibly addresses the almost $1.8 billion shortfall and directs funds to key affordable housing, transit and community safety initiatives. I want to extend my deepest appreciation to the residents of Toronto who actively participated in shaping this year’s budget. I also want to thank the Budget Committee and Members of Council for their collaboration and the Province of Ontario and the Government of Canada for stepping up. Together, we’re getting the City back on track.”
– Mayor Olivia Chow
“Today, we have finalized a 2024 Budget that is a true reflection of the priorities of Torontonians across our City. I’m grateful to the tens of thousands of residents who shared their vision for Toronto through our Pre-Budget consultations, Telephone Town Halls, Budget Committee meetings, and in written submissions. This feedback both shaped and strengthened this Budget, and I look forward to continue working together with Torontonians to build a city that is green, clean, safe and affordable for all.”
– Councillor Shelley Carroll (Don Valley North), Budget Committee Chair
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 climate action, 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.