Share Your Feedback Re: Proposed Property Tax Increase

Many Willowdalers have reached out to my office about concerns regarding the City’s budget and proposed property tax increase. Your feedback is invaluable in helping us shape the priorities and decisions that impact our city. What we have heard is the proposed budget submitted by City Staff. Over the next 3 days, divisions and agencies from across the city will each make presentations on their budgets, which you can watch virtually by CLICKING HERE. Next week community members can share their feedback on January 21 and 22 in Scarborough, North York, Etobicoke and at Toronto City Hall. 

The Mayor will then present the Mayor’s budget by February 1 and City Council will consider that Budget on February 11. Through this process, City Council makes decisions about City services, programs and infrastructure that impact you and your community. Due to strong mayor powers granted by the province, City Council does not actually vote to approve the budget. Council can pass motions to amend the budget. The Mayor may veto a Council budget motion and Council may then override a mayoral veto with a two-thirds majority vote. At the end of this process, the resulting budget is "deemed" to be adopted by the municipality.

Many of you may wonder if there are any opportunities for change. I believe that the more people who provide feedback, the more likely a shift would be considered. If no one says anything, things will likely stay the same. Last year, we raised a ruckus about the windrow clearing service and were able to fight back and retain the service. Therefore, I encourage you to continue engaging with us as we move forward in this important process. There are many ways to stay involved and make your voice heard by our budget committee.

I urge you to attend the Willowdale - Our City Budget Virtual Town Hall on January 18, 10:30am - 12pm. This is your opportunity to hear from Althea Hutchinson, Executive Director of Financial Planning, for our city and learn how this budget has been put together as well as any other questions you may have.

Here are other ways that you can get involved:

1. Read through your budget priorities. Most people won’t have the time to deep-dive into all divisions, but I invite you to read through areas of service in the city that are important to you and send us any comments, questions or suggestions. The documents for each division can be found here: www.toronto.ca/budget. Share your comments, questions, and feedback on budget notes by Filling Out This Form.

   
   

2. Join Mayor Olivia Chow and Budget Committee Chair, Councillor Shelley Carroll, at a Telephone Town Hall starting at 7 p.m. on January 15 or 23 by calling toll-free 1-833-380-0687. It’s a great opportunity to learn about the City’s 2025 Budget and ask questions.  

3. Sign up to make a deputation at North York Council Chambers (at North York Civic Centre) on January 22. We will be there from 9am into the evening to hear a broad spectrum of voices in our city regarding our city budget. This is an important opportunity to share your thoughts with Budget Committee members. Speakers are asked to register and indicate a preferred day and time slot by emailing: buc@toronto.ca or calling: 416-392-4666 before 4:30 p.m. on Monday, January 20. Click Here to learn more about how to make a deputation.

   
   

4. Submit a comment online. Click Here to submit a comment.

Our city budget is not immune to the impacts of inflation. The average inflationary impact on the City of Toronto’s 2025 operating budget is 3 percent. As the cost of living has increased, so have the costs of operating our city. Any proposal to freeze property taxes would likely require reductions in city services, and we are open to discussing where these cuts could be made. In this regard, I would like to bring several important issues to your attention:

1. Need for a New Fiscal Framework 

   Across Canada, cities are calling for a new fiscal framework that better reflects the realities of local government finances. Many cities worldwide benefit from a share of sales tax or income tax revenues. Unfortunately, economic growth in our city does not translate into increased city revenues. Large-scale events, such as the Taylor Swift concert or the upcoming FIFA World Cup in 2026, generate substantial income for provincial and federal governments, yet the city is burdened with a significant portion of the infrastructure costs, including policing and transit services. I encourage you to explore national advocacy efforts aimed at securing a more equitable fiscal framework for municipalities. Click Here for more details on these efforts.

   
   

2. Cost Downloading from Higher Levels of Government

   Over the past several decades, municipalities have increasingly assumed responsibilities that were previously managed by higher levels of government, including subsidized housing, which has led to a considerable backlog in repairs and maintenance. More recently, the Province has downloaded 50% of the costs of administering childcare, a service that is not traditionally a municipal responsibility. We have also learned that the Federal government plans to scale back financial support for services provided to asylum seekers in the coming years. These cost shifts put additional pressure on the city's budget, and I urge you to advocate for the re-absorption of these costs by the higher levels of government.

   
   

3. Unique Costs of Toronto

   As the economic and cultural hub of the country, Toronto bears unique costs that other municipalities do not face. We are home to the largest number of consular offices, major sporting and entertainment events, and, unfortunately, the highest level of human trafficking in Canada. These issues require additional policing and security resources. Additionally, as a primary destination for asylum seekers, Toronto provides a disproportionate share of shelter services, contributing to the city's already high demand for public resources. When the provincial and federal governments fail to adequately address issues such as mental health and addiction services, the responsibility for dealing with these gaps falls to the city, further straining our resources.

   
   

4. Outdated Property Assessments

   The Municipal Property Assessment Corporation (MPAC), which is run by the Province, has not updated property assessments since 2016. This freeze on property reassessments means that some property owners are underpaying taxes, while the cost of running the city continues to rise due to inflation. This imbalance requires urgent attention to ensure fairness in the distribution of tax responsibilities. Business leaders feel we are compromising Ontario’s economic competitiveness with property assessment delay.

   
   

5. Dependence on Property Taxes for Municipal Services

   Property taxes are the primary source of funding for essential city services such as libraries, emergency services, roads, water, and other infrastructure. Additionally, public transit funding, particularly for the Toronto Transit Commission (TTC), relies heavily on property taxes and fare revenues. Unlike other cities, Toronto is uniquely dependent on these funding sources. Click Here for a comparison of how other cities around the world fund their transit services.

While it is understandable that we are all looking for ways to alleviate the burden on property owners, the solution lies in a more comprehensive and sustainable fiscal framework. It is essential that all three levels of government work collaboratively to ensure the long-term financial health of our city. We cannot continue to absorb new responsibilities and costs without corresponding increases in revenue. Toronto attracts people from across the country and the world to work and live here; it is only fair that all those who benefit from our city also contribute to its financial well-being. Toronto contributes 20% of the national GDP and 50% of Ontario’s GDP. We should get a significant portion of investment in return. 

I am happy to work with you to highlight this important issue in the upcoming federal and provincial elections to ensure those who represent us on Parliament Hill and at Queen’s Park fight for a new deal for Toronto.

I understand that budget decisions can be a source of concern for many in our community. This process can be challenging, but together, we can work towards solutions that best serve our city. Please continue to share your input and stay involved in making a positive change in our community.

Warmest Regards,

Lily