Toronto City Council approves 2022 tax-supported operating and capital budgets

Today, Toronto City Council approved a 2022 operating budget of $14.99 billion and a 10-year capital budget and plan of $46.61 billion. The budgets continue to address the ongoing COVID-19 pandemic and the financial challenges that it has created, preserve existing services consistent with public health guidelines, prioritize initiatives to support economic recovery and make environmentally and socially responsible investments.

• The 2022 budgets ensure the City of Toronto will:
• Continue to deliver essential and responsive City services during the pandemic
• Invest in public health, including the largest and most successful vaccination campaign in the country
• Add 62 frontline paramedics as part of the Council-approved Toronto Paramedic Services Multi-Year Staffing and Systems Plan
• Invest in shelters including provision for physical distancing
• Accelerate transformational work to deliver affordable and supportive housing
• Invest in transit to keep Toronto moving and equitable – including a TTC fare freeze and a plan to restore TTC service to pre-pandemic levels.
• Support Toronto’s economic recovery with an emphasis on small businesses
• Expand digital services for residents and business
• Implement long-term care reform initiatives and expand the Seniors Services Unit to continue providing the highest quality care
• Manage the City’s long-term financial sustainability.

During today’s meeting, City Council approved several initiatives to finalize the budget including:

• Expediting the delivery of 300 additional housing opportunities for people experiencing homelessness who are currently in the shelter system
• Supporting hospital-based violence intervention programs, like the BRAVE program at Sunnybrook Hospital
• Hiring more by-law officers to support the expansion of RentSafeTO, multi-tenant housing, and noise by-law enforcement
• Speeding up the elimination date of late fines for adults and teens for the Toronto Public Library, so that elimination of those fines can be effective immediately
• Funding to ensure the continuation of the Oakwood Vaughan Youth Space
• Providing more funding support for the Strong Neighbourhood Strategy and Community Partnership and Investment Program grants
• Providing support to the 519 community centre
• Providing additional funding for hygiene products for users of shelters, respite sites, and drop-ins
• Supporting existing programs for cultural organizations outside the city’s core.

Council approved a 2.9 per cent property tax increase for residential properties – an additional $93 for the average Toronto household, a 1.45 per cent increase for commercial properties and a 0.97 per cent increase for industrial properties. There will be no increase for multi-residential or apartment buildings, as per provincial legislation. The budget also includes a 15 per cent property tax rate reduction for small businesses. This reduction will help approximately 25,000 small businesses across Toronto.

In addition, the budget includes an incremental 1.5 per cent increase to the City Building Levy consistent with the City’s planned and approved capital funding strategy – an additional $48 for the average Toronto household. This dedicated levy, approved by Council in 2017, funds major transit and housing investments.

The City has implemented a range of spending restraints and measures to offset the significant financial impacts of the pandemic and sustain critical operations. For the third consecutive year, City-led mitigation strategies will result in significant offsets of $494 million in 2022.

To address the continuing financial impacts of the COVID-19 pandemic – both added costs and revenue losses – the 2022 operating budget contains $1.4 billion in required funding from the Ontario Government and the Government of Canada.

The 2022 operating budget of $14.99 billion includes the $1.96 billion rate-supported operating budgets approved by City Council at its December 15 to 17, 2021 meeting.

The 10-year capital plan of $46.61 billion will fund strategic areas such as mobility, housing, modernization and climate action and it includes the $16.05 billion rate-supported capital budgets approved by City Council at its December 15 to 17, 2021 meeting.

More information is available on the City’s budget webpage.

Quotes:

“This is a responsible budget that responds to the ongoing COVID-19 pandemic, protects the City services people rely on, and invests in key capital projects such as housing, climate action and mobility while continuing to keep property taxes affordable. Toronto’s strong economic recovery is critical to the region, province and country and requires continued funding from our partners in other orders of government to ensure our response to the ongoing COVID-19 pandemic, especially its impact on transit ridership. I will be working non-stop, just as I successfully did in 2020 and 2021, to confirm our federal and provincial partnerships.”
– Mayor John Tory

“I want to thank residents for their feedback throughout this year’s budget process. As the pandemic continues to shape our budget, this is a fiscally responsible budget that has taken the necessary measures to ensure that Toronto will make it through the pandemic stronger than ever by protecting services and prioritizing investments where they are needed the most to build a more equitable and prosperous Toronto for all residents.”
– Councillor Gary Crawford (Scarborough-Southwest), Budget Committee Chair

 

Toronto is home to more than 2.9 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.