On January 30, Mayor Chow released the Mayor’s 2025 City Budget. The Mayor’s Budget maintains the program and service enhancements included in the Staff-Prepared Budget and increases support for tenants facing renovictions. It also holds firm on the proposed residential property tax increase (5.4% residential property tax increase + 1.5% increase for the City Building Fund, for a total increase of 6.9%), ensuring more funding for critical services, while also expanding the City’s property tax relief and water and solid waste rebate programs. The Mayor’s Budget also includes $3 million in unallocated funding that Council will decide how to use at its February 11 meeting.
Read our earlier post for details on the program and service enhancements included in the Staff-Prepared 2025 City Budget (and supported in the Mayor’s Budget). These include a TTC fare freeze, investment in student and camp food programs, expansion of Toronto Public Library open hours, and much more.
Toronto Tenant Support Program
As described in a City staff report, “[t]he Toronto Tenant Support Program (TTSP) provides funding to three non-profit service organizations that provide tenants with supports to preserve affordable rental housing in the private market through legal services, information services, and organizing and capacity building for tenant groups. The services are delivered by the Canadian Centre for Housing Rights, the Federation of Metro Tenants' Association, and the Centre for Immigrant and Community Services.”
The Staff-Prepared 2025 City Budget included an increase of $350,000 to expand TTSP services. But this increase was less than half of what City Council had requested. At its November 2024 meeting, City Council supported an increase of $712,800 for TTSP in 2025. The Mayor’s Budget allocates an additional $363,000 for TTSP, for a total increase of $713,000 in 2025—in line with City Council’s request. That’s good news!
But there’s more. At its November 2024 meeting, City Council directed staff to provide these additional resources to TTSP beginning in November 2024.
Why was there such an urgency to immediately expand these tenant supports? At its November 2024 meeting, City Council passed the Rental Renovation License By-law to protect tenants against renovictions. But the by-law does not take effect until July 31, 2025. Advocates and City Councillors recognized that tenants were especially vulnerable to renovictions in the period before the by-law takes effect. Council’s motion recognized the immediate need to provide additional legal, outreach and capacity building supports to vulnerable tenants.
Was City Council’s direction followed to provide those additional resources to TTSP beginning in November 2024? City budget briefing note #29 provides details on TTSP, the 2024 budget actuals, and the 2025 proposed budget. There is no mention of any additional funds flowing to TTSP in 2024 or the November 2024 Council motion. This raises concerns for tenants vulnerable to renoviction during this transitional period. We are seeking further clarification.
It is excellent to see that the Mayor’s Budget has responded to community calls to address the underfunding of TTSP and to fulfill the intention of Council with regard to the 2025 City Budget, particularly during this risky period for tenants.
Many thanks to housing researcher and advocate Melissa Goldstein for her thorough analysis and advocacy on this issue.
Expanding Property Tax Relief, and Water and Solid Waste Rebate Programs
The Mayor’s Budget maintains a 5.4% residential property tax increase and a 1.5% increase to the City Building Fund, for a total increase of 6.9% as proposed in the Staff-Prepared 2025 City Budget. That’s down from the 9.5% increase in the 2024 City Budget.
The proposed property tax increase will raise an additional $251 million to pay for vital programs and services. The increase to the City Building Fund will generate an additional $69 million for housing and transit infrastructure. That’s good news for building a better city and continuing to make a comeback after years of austerity budgets that have contributed to Toronto as a city in decline.
The 6.9% increase amounts to an additional $22.36 per month for a homeowner with an average home (valued at $692,031, based on the most recent assessed value conducted in 2016).
For more information on property taxes, read guest contributor David Hains’ excellent piece, How Property Taxes Work – And How They Don’t, in Matt Elliott’s City Hall Watcher (and consider subscribing!).
The Mayor’s Budget expands the City’s property tax relief and water and solid waste rebate programs to protect low- and modest-income seniors and people with disabilities who own their own homes and can’t afford the increases.
According to a press release from Mayor Chow:
“After hearing feedback through the budget consultation process, the Mayor’s Budget has proposed the following change from the January 13th staff-prepared budget:
-
Increasing the property tax deferral and cancellation income threshold for seniors and persons with disabilities by 5% to $60,000.
-
This will support an additional 2,300 households.
-
Eligibility for property tax relief is based on an assessed home value of less than $975,000.
-
Those eligible will also qualify for water rebate and solid waste rebate programs.”
Learn more about how to apply for property tax relief and rate-based rebate programs on the City of Toronto website.
The expansion of tax relief and rebate programs allows the City to increase revenues to pay for important programs and services and properly fund rate-based services, while also protecting low- and modest-income seniors and people with disabilities who own their own homes and can’t afford the increase. It’s a balanced and equitable approach that builds a better city.
City Council Needs to Support the Important Investments in the Budget
Toronto City Council meets on Tuesday, February 11 for the final meeting of the 2025 City Budget process. Council will review the Mayor’s Budget, have an opportunity to change the budget by moving and voting on amendments, and will decide how $3 million in unallocated funds will be used.
The Mayor’s Budget invests in and expands critical programs and services. But those investments are at risk. At the February 11 Council meeting, Councillors can decide to reverse these important measures–the TTC fare freeze, the expansion of the student food program to feed over 21,500 more students, the introduction of the camp food program to feed up to 31,085 children and youth, the expansion of winter hours in drop-in centres, the construction of new emergency shelters, the addition of open library hours across the City, investments in youth and family programs and services, and more.
While there’s far more to do, this budget does a lot to make life better for Toronto residents, especially those living in poverty and grappling with deepening food insecurity, affordability, and housing emergencies. We need City Council to support this budget and work hard to do more for communities in crisis.
Take Action
Ask your City Councillor to support the budget! Join us at City Hall on Tuesday, February 11 at noon for the FUND OUR CITY Rally, and take part in Progress Toronto’s City Hall Watch Party, taking place all day on February 11 at City Hall.