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E-BLAST: The 2025 Budget

At this time last year, I had just helped launch the first budget under our current administration. When I accepted the role of Budget Chief the previous summer, I knew it was no small job. The challenges facing our city were immense: We were grappling with a $2 billion operating budget shortfall due to years of underinvestment and continued impacts of the pandemic, including rising inflation and labour shortages. This put both essential services and the long-term health of our city at risk. It was a pivotal moment. Ultimately, we made the hard decision but the right one—we said no to kicking the can further down the road and started to take real action to get our city back on track.


A photo from last year's Budget launch.
A photo from last year's Budget launch.

The focus of last year’s budget was laying the groundwork for recovery and resilience. It started with combing through every line to find savings and efficiencies wherever possible. Then, for the first time in over a decade, we came to you—the people of Toronto—to hear your priorities and solutions for the future of our city. I’m proud to say this hard work paid off. Not only did we craft a budget that made key investments in the areas that matter most, the City also had its credit rating raised for the first time in 20 years. This is a true testament to our strong financial stewardship and deep commitment to responsible planning. 


This year, we’re building on that foundation. The 2025 Budget is a roadmap for a stronger, more vibrant, and more liveable Toronto. It’s a budget for the city we want to see now and in the future. This budget balances our need for fiscal sustainability with critical investments in the areas that matter most to residents—affordable living, safer streets, and better transit. 


I launched this year's Budget this past Monday.
I launched this year's Budget this past Monday.

Here’s everything you need to know about Budget 2025:


Just like in 2024, we left no stone unturned in our quest to find savings. This year, we identified over $680 million in efficiencies, reductions, and offsets. Staff in every department worked tirelessly to find savings wherever possible. Our number one goal is to ensure your tax dollars are spent wisely while protecting the high-quality services you rely on. 


As we worked to find those savings, we also recognized that Toronto cannot afford to continue underinvesting in its future. For over a decade, our city faced chronic underfunding. Torontonians were paying the lowest property taxes in the GTHA despite  living in the country’s largest city, which has to deal with a host of challenges that smaller cities do not. While these artificially low tax rates may have been popular in the moment, they eroded core services and left us extremely vulnerable to today’s challenges. 


As I said at the outset, we can’t keep kicking the can down the road. Underinvestment shows up as dirty and pothole-filled streets, overgrown grass in parks, overflowing litter bins, and a transit system in crisis. Historically, it also forced us to shed hundreds of police officers, leading to some of the safety challenges we face today. To break this cycle, we must make targeted investments that address our most urgent needs while positioning our city for long-term success. 



The 2025 Budget proposes a combined property tax increase of 6.9%—a 5.4% property tax increase plus a 1.5% increase to the City Building Levy. For the average Toronto homeowner, this will translate to an additional $22.36 per month.


I understand that any tax increase is significant for residents. I also know this is a necessary investment in our city, present and future. These extra dollars will directly support the services and infrastructure that Torontonians have told us they value most. Thousands of residents participated in our pre-budget consultations, sharing your priorities and hopes for our city. That feedback was instrumental in shaping this year’s budget, which focuses on three key areas:


Affordable Living

We know that Toronto is facing an affordability crisis. The budget includes a number of measures to make life more affordable for all Torontonians:

  • Significant investments in new housing initiatives, renter protections, and shelters

  • Expanded access to affordable child care and recreation programs

  • Longer library hours and earlier pool openings to better serve families and seniors



Safer Streets

Every Torontonian deserves to feel safe in our city. This budget makes key investments to strengthen public safety by:

  • Hiring hundreds of new first responders, including firefighters and paramedics, to improve emergency response times

  • Supporting an unprecedented multi-year police hiring plan to put more officers on our streets

  • Expanding Vision Zero investments to prevent traffic-related fatalities and injuries

  • Increasing the number of traffic wardens to improve traffic flow, ease congestion, and protect vulnerable road users


Better Transit

Reliable, accessible transit is essential to our city’s success and the economic strength of the region. We’re making the most impactful transit investments possible to keep Toronto moving, including:

  • Expanding service hours to improve transit reliability and capacity

  • Purchasing 55 new subway cars to meet growing ridership needs

  • Investing in cleaner, safer, and brighter transit stations and vehicles


These investments will lead to real, on-the-ground improvements you will see in your communities. Whether it’s knowing that first responders will get to you faster in an emergency, enjoying more affordable classes at your local community centre, or trusting that your bus will show up on time, this budget is helping us build the city we all need to succeed.



In addition to these key priorities, the 2025 Budget tackles Toronto’s growing infrastructure backlog through a 1.5% increase to the City Building Levy. These funds are dedicated to addressing our state of good repair backlog, which includes things like fixing our roads, transit systems, community centres and libraries to ensure they’re safe and functional for years to come.


Torontonians made it clear they want services protected. Affordability, safety, transit reliability—these are the cornerstones of healthy and vibrant communities. We know that making these investments now will help us build a Toronto that is equitable, vibrant, and thriving for current residents and future generations alike.


As we make these core investments, we must continue our journey towards financial sustainability. You’ve heard me say it before, and I’ll say it again. Toronto is a world class city, and we need the revenue tools to go along with it. Even with this and last year’s property tax increases, Toronto still has a lower than average property tax rate compared to other municipalities in the province. We’ve made real progress in our intergovernmental partnerships, particularly when we signed the New Deal with the Provincial government. Rest assured those conversations are continuing. In the meantime, we continue to take a multi-year approach to stabilizing Toronto’s finances, guided by our updated Long-Term Financial Plan.


I had great conversations with residents at this year's North York Pre-Budget Consultation.
I had great conversations with residents at this year's North York Pre-Budget Consultation.

This budget is a reflection of our shared priorities, and your input has been instrumental in shaping it. Over the next few weeks, there will be more opportunities for you to share your feedback, including public consultations and Council meetings. I encourage you to participate in any way you can—ask questions, share your thoughts, and tell us how we can continue building a city that works for all.


Budgets are more than just numbers. They reflect our values, and act as a blueprint for the city we want to live in today and the city we aspire to be tomorrow. We can create a Toronto that is more affordable, safer, and better connected, while laying the foundation for long-term success. I look forward to continuing on this path together as we tweak the 2025 Budget in the weeks ahead. As always, I’ll keep you updated every step of the way right here in this E-Blast. Let’s keep the conversation going and get to work!



 

Don Valley North Budget Town Hall



Join me for the Don Valley North Budget Town Hall to learn about the 2025 City Budget, share your priorities, and discuss how it impacts our community.


Date: Monday, January 20

Time: 7:00 PM

Location: Parkway Forest Community Centre – Multipurpose Room B


Learn more and RSVP at the link below:




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