On January 23, the Budget Committee held its final meeting of the 2026 budget season—called the wrap-up meeting—to provide advice to the Mayor. After three days of reviewing divisional and agency budgets, receiving staff-initiated and Council-requested briefing notes, and hearing from the public over two days of deputations, the Budget Committee moved a layered motion offering recommendations to the Mayor on the 2026 City Budget. The Mayor will consider this advice as she prepares to present her proposed budget by February 1st.
The Budget Committee and visiting Councillors expressed their deep appreciation to everyone who made a deputation at one of the subcommittee meetings and who shared their thoughts and critiques in writing. The public’s comments were heard—during the wrap-up meeting many Councillors asked questions that were sparked from the concerns that residents raised during public deputations.
At its meeting, the Budget Committee passed a multi-part motion which received unanimous support from all members. The Committee recommended that the Mayor look for ways to increase funding for safety in communities, for example through the Downtown East Action Plan and opportunities for youth, and continue advocating to the Federal and Provincial government for increased funding for youth violence prevention. The motion also offered direction for the 2027 and future budgets.
Notably, the Budget Committee requested a briefing note on, and expressed its support for, increasing the municipal rate reduction for the Small Business Property Tax Subclass from 15% to 20%. While this issue will be debated and decided on at the Special Council Meeting on February 10, this change would affect the amount of revenue the City would receive via the Small Business Property Tax Subclass. The motion suggests that Councillors may be looking to offset this through property taxes on commercial properties.
Another theme brought forward in the questions asked and speeches made by Budget Committee members was the unsustainability of City finances. While the City has taken important steps in implementing a multi-year approach to budgeting, advancing new and expanded revenue options, and negotiating funding deals with higher orders of government, there continues to be a structural mismatch between its responsibilities and its ability to generate revenue.
Budget Committee Motion
The Budget Committee unanimously approved the following Motion [links added by SPT]:
The Budget Committee:
- Recommended that the Mayor:
- Explore opportunities to increase investments in safety in our communities, for example enhancements to the Downtown East Action Plan and opportunities for youth.
- Continue to advocate to the other levels of government for increased investments by both the Federal and Provincial governments in youth violence prevention initiatives, including TOWards Peace .
- As part of the preparation of the 2027 and future budgets, work with the City Manager to:
- Ensure the capital project pipeline is released in draft alongside the staff-recommended budget;
- Continue the Rolling Program Review to realize further in-year savings, and savings to mitigate any 2027 property tax increase;
- Work with the Toronto Transit Commission to develop a multi-year operating budget that increases ridership;
- Identify funding pathways to restore access to civic centres as vital public space for community and civic engagement;
- Identify funding for a refresh of Mel Lastman Square; and
- Establish a standalone Intimate Partnership Violence Secretariat.
- Requested the Chief Financial Officer and Treasurer to prepare a briefing note for the Special Council Meeting on February 10, 2026 on increasing the municipal rate reduction for the Small Business Property Tax Subclass from 15 percent to 20 percent for the 2026 taxation year, including the corresponding municipal tax rate adjustment required to offset the impact within the remainder of the commercial property tax class, without affecting the total municipal levy identified in the Mayor's Proposed Budget.
- Expressed its support for increasing the municipal rate reduction for the Small Business Property Tax Subclass from 15 percent to 20 percent.
- Acknowledged and thanked the tens of thousands of Torontonians who participated in pre-budget consultations, telephone town halls, Budget Committee deputations, and provided written submissions sharing their priorities for our City.
What Happens Next
Work on the 2026 budget continues! The Mayor will release her budget by February 1st. On February 10, Toronto City Council will have a special meeting to put forward and vote on amendments to the Mayor’s proposed budget.
While the staff-prepared budget includes much to celebrate—including $28.445 million in new and enhanced services—there is still a clear need for greater investment in key areas: the Multi-Residential Acquisition (MURA) program; the Toronto Tenant Support Program and Eviction Prevention in the Community (EPIC); climate action and equity; community safety; and accessible shelters and affordable housing. We must keep pushing for enhancements to the community programs and supports that residents rely on everyday and that keep our city vibrant.
Join Us On February 10 For Our City Budget Rally
On February 10 from 12pm to 2pm, Social Planning Toronto and our City Budget Coalition partners will host Fund Our City, our annual City Budget at City Hall. Come out and stand with us for a stronger, more inclusive Toronto. Learn more and RSVP.