Agenda

This meeting of City Council will be conducted with Members participating in person and remotely and the proceedings of City Council will be conducted publicly.

Notice to people writing to Council: The City of Toronto Act, 2006, and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

Closed Meeting Requirements: If Council wants to meet in closed session (privately), a Member of Council must place a motion to do so and give the reason why Council has to meet privately (City of Toronto Act, 2006).

February 6, 2025

toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its committees.

- O Canada

- Moment of Silence

Introduction of New Business submitted by City Officials.

Members of Council will declare interests under the Municipal Conflict of Interest Act.

Members of Council may file petitions.

Various presentations and announcements will be made at the City Council meeting.

City Council will review the Order Paper.

2025 OPERATING BUDGET

The Mayor has prepared, for City Council's consideration, the 2025 Operating Budget as follows, noting that all third-party funding included in the 2025 Operating Budget are subject to the execution of an agreement or receipt of funding, and if such agreement or funding is not in place by 2025 or forthcoming, the approval to spend must be reassessed by City Council relative to other City-funded priorities and needs in future budget processes.

COMMUNITY AND SOCIAL SERVICES

Children's Services

1. The 2025 Operating Budget for Children’s Services of $1,672.5 million gross, $1,577.7 million revenue and $94.8 million net for the following services:

- The 2025 staff complement for Children’s Services is comprised of 1,023.1 operating positions.

Court Services

2. The 2025 Operating Budget for Court Services of $38.925 million gross, $32.433 million revenue, and $6.492 million net for the following services:

- The 2025 staff complement for Court Services comprised of 255.2 operating positions.

Economic Development and Culture

3. The 2025 Operating Budget for Economic Development and Culture of $108.044 million gross, $16.165 million revenue and $91.879 million net for the following services:

- The 2025 staff complement for Economic Development and Culture of 324.1 positions comprised of 12 capital positions and 312.1 operating positions.

Parks, Forestry and Recreation

4. The 2025 Operating Budget for Parks, Forestry and Recreation of $598.886 million gross, $218.897 million revenue and $379.989 million net for the following services:

- The 2025 staff complement for Parks, Forestry and Recreation of 5,450.3 positions comprised of 260.0 capital positions and 5,190.3 operating positions.

Seniors Services and Long-Term Care

5. The 2025 Operating Budget for Seniors Services and Long-Term Care of $412.513 million gross, $331.761 million revenue and $80.753 million net for the following services:

- The 2025 staff complement for Seniors Services and Long-Term Care of 3,623.3 positions is comprised of 1.0 capital position and 3,622.3 operating positions.

Social Development, Finance and Administration

6. The 2025 Operating Budget for Social Development, Finance and Administration of $137.303 million gross, $16.806 million revenue, and $120.497 million net for the following services:

which is inclusive of:

- $0.100 million for costs related to planning and hosting the FIFA World Cup 2026 in Toronto.

- The 2025 staff complement for Social Development, Finance and Administration is comprised of 365.0 operating positions.

Toronto Employment and Social Services

7. The 2025 Operating Budget for Toronto Employment and Social Services of $1,367.543 million gross, $1,277.044 million revenue, and $90.499 million net for the following services:

- The 2025 staff complement for Toronto Employment and Social Services comprised of 2,037 operating positions.

Toronto Fire Services

8. The 2025 Operating Budget for Toronto Fire Services of $574.298 million gross, $25.874 million revenue and $548.425 million net for the following services:

- The 2025 staff complement for Toronto Fire Services comprised of 3,379.3 operating positions.

Toronto Paramedic Services

9. The 2025 Operating Budget for Toronto Paramedic Services of $372.314 million gross, $241.868 million revenue and $130.445 million net for the following services:

which is inclusive of:

- $1.525 million for costs related to planning and hosting the FIFA World Cup 2026 in Toronto.

- The 2025 staff complement for Toronto Paramedic Services of 2,079.8 positions comprised of 6.0 capital positions and 2,073.8 operating positions.

Toronto Shelter and Support Services

10. The 2025 Operating Budget for Toronto Shelter and Support Services of $897.957 million gross, $656.778 million revenue and $241.178 million net for the following services:

- The 2025 staff complement for Toronto Shelter and Support Services of 1,497.5 positions comprised of 3.0 capital positions and 1,494.5 operating positions.

INFRASTRUCTURE SERVICES

Engineering and Construction Services

11. The 2025 Operating Budget for Engineering and Construction Services of $94.354 million gross, $92.442 million revenue and $1.912 million net for the following services:

- The 2025 staff complement for Engineering and Construction Services of 690.1 positions comprised of 531.0 capital positions and 159.1 operating positions.

Municipal Licensing and Standards

12. The 2025 Operating Budget for Municipal Licensing and Standards of $86.885 million gross, $59.363 million revenue, and $27.523 million net for the following services:

- The 2025 staff complement for Municipal Licensing and Standards of 670.5 positions comprised of 667.5 operating positions and 3.0 capital positions.

and a further:

- $1.368 million gross and $0 net and 10.0 operating positions, offset by a corresponding decrease in the 2025 Operating Budget for Corporate Accounts for the RentSafeTO for Tenants Program.

Policy, Planning, Finance and Administration

13. The 2025 Operating Budget for Policy, Planning, Finance and Administration of $27.739 million gross, $21.752 million revenue and $5.987 million net for the following services:

- The 2025 staff complement for Policy, Planning, Finance and Administration of 210.1 positions comprised of 37 capital positions and 173.1 operating positions.

Solid Waste Management Services

14. The 2025 Operating Budget for Solid Waste Management Services of $428.262 million gross expenditures, $443.787 million revenue, and $15.525 million net for the following services:

- The 2025 staff complement for Solid Waste Management Services of 1,192.3 positions is comprised of 70.3 capital positions and 1,122.0 operating positions.

Toronto Emergency Management

15. The 2025 Operating Budget for Toronto Emergency Management of $8.224 million gross, $2.977 million revenue and $5.247 million net for the following services:

which is inclusive of:

- $2.006 million for costs related to planning and hosting the FIFA World Cup 2026 in Toronto.

- The 2025 staff complement for Toronto Emergency Management consists of 44.0 operating positions.

Toronto Water

16. The 2025 Operating Budget for Toronto Water of $525.997 million gross, $1,610.763 million revenue and $1,084.766 million net for the following services:

- The 2025 staff complement for Toronto Water of 1,937.3 positions comprised of 141.0 capital positions and 1,796.3 operating positions.

Transit Expansion

17. The 2025 Operating Budget for Transit Expansion of $12.080 million gross, $9.386 million revenue and $2.694 million net for the following services:

- The 2025 staff complement for Transit Expansion of 77.0 positions comprised of 18.0 capital positions and 59.0 operating positions.

Transportation Services

18. The 2025 Operating Budget for Transportation Services of $561.746 million gross, $266.514 million revenue and $295.232 million net for the following services:

- The 2025 staff complement for Transportation Services of 1,736.3 positions comprised of 217.1 capital positions and 1,519.2 operating positions.

DEVELOPMENT AND GROWTH SERVICES

City Planning

19. The 2025 Operating Budget for City Planning of $73.876 million gross, $63.391 million revenue and $10.486 million net for the following services:

- The 2025 staff complement for City Planning of 564.0 positions comprised of 16.1 capital positions and 547.9 operating positions.

Development Review

20. The 2025 Operating Budget for Development Review of $9.676 million gross, $9.676 million revenue and $0 million net for the following services:

- The 2025 staff complement for Development Review of 50.0 operating positions.

Housing Secretariat

21. The 2025 Operating Budget for Housing Secretariat of $840.057 million gross, $259.653 million revenue and $580.404 million net for the following services:

- The 2025 staff complement for Housing Secretariat of 278 positions comprised of 19 capital positions and 259 operating positions.

and a further;

a. increase of $0.363 million gross and $0 net, from the Social Housing Stabilization Reserve Fund for the Toronto Tenant Support Program as an additional measure to prevent renovictions.

Toronto Building

22. The 2025 Operating Budget for Toronto Building of $91.900 million gross, $107.666 million revenue and ($15.766) million net revenue for the following services:

- The 2025 staff complement for Toronto Building comprised of 641.0 operating positions.

CORPORATE SERVICES

Corporate Real Estate Management

23. The 2025 Operating Budget for Corporate Real Estate Management of $232.998 million gross, $108.535 million revenue, and $124.463 million net for the following services:

- The 2025 staff complement for Corporate Real Estate Management of 1,063.4 positions comprised of 102.1 capital positions and 961.3 operating positions.

Customer Experience (311 Toronto)

24. The 2025 Operating Budget for Customer Experience of $25.352 million gross, $9.727 million revenue and $15.625 million net for the following services:

- The 2025 staff complement for Customer Experience of 216.5 positions comprised of 19.0 capital positions and 197.5 operating positions.

Environment and Climate

25. The 2025 Operating Budget for Environment and Climate of $24.796 million gross, $9.105 million revenue and $15.691 million net for the following services:

- The 2025 staff complement for Environment and Climate comprised of 125.6 operating positions.

Fleet Services

26. The 2025 Operating Budget for Fleet Services of $79.096 million gross, $44.295 million revenue and $34.802 million net expenditures for the following services:

- The 2025 staff complement for Fleet Services of 211.0 positions comprised of 207.0 operating and 4.0 capital positions.

Office of the Chief Information Security Officer

27. The 2025 Operating Budget for Office of the Chief Information Security Officer of $35.127 million gross and $34.526 million net for the following services:

- The 2025 staff complement comprised of 96.0 operating positions.

Technology Services

28. The 2025 Operating Budget for Technology Services of $199.862 million gross, $60.215 million revenue, and $139.647 million net for the following services:

- The 2025 staff complement for Technology Services of 843.0 positions comprised of 172.0 capital positions and 671.0 operating positions.

FINANCE AND TREASURY SERVICES

Financial Operations and Control

29. The 2025 Operating Budget for Financial Operations and Control of $83.029 million gross, $53.855 million revenue and $29.174 million net for the following services:

- The 2025 staff complement for Financial Operations and Control of 588.0 positions is comprised of 45.7 capital positions and 542.3 operating positions.

Office of the Chief Financial Officer and Treasurer

30. The 2025 Operating Budget for the Office of the Chief Financial Officer and Treasurer of $58.755 million gross, $25.426 million revenue and $33.329 million net for the following services:

- The 2025 staff complement for the Office of the Chief Financial Officer and Treasurer of 423.0 positions comprised of 134.0 capital positions and 289.0 operating positions.

CITY MANAGER AND OTHER CITY PROGRAMS

City Clerk's Office

31. The 2025 Operating Budget for City Clerk’s Office of $58.743 million gross, $19.910 million revenue and $38.833 million net for the following services:

- The 2025 staff complement for City Clerk’s Office of 393.0 positions comprised of 21.4 capital positions and 371.6 operating positions.

City Council

32. The 2025 Operating Budget for City Council of $26.322 million gross, $0.395 million revenue and $25.927 million net for the following services:

City Manager's Office

33. The 2025 Operating Budget for the City Manager’s Office of $144.408 million gross, $65.142 million revenue and $79.267 million net for the following services:

- The 2025 staff complement for the City Manager’s Office of 547.0 positions comprised of 17.0 capital positions and 530.0 operating positions.

- The total planning costs for the 2025 Operating Budget for FIFA World Cup 2026 Toronto Secretariat is $55.547 million gross, $55.547 million revenue and $0 million net. The delivery of the FIFA World Cup 2026 is a multi-program effort.  Of the $55.547 million budget, $8.710 million related to planning and hosting the FIFA World Cup 2026 are included in the respective Division and Agency Budgets, as noted in the table below:

Legal Services

34. The 2025 Operating Budget for Legal Services of $73.988 million gross, $31.429 million revenue and $42.559 million net for the following services:

- The 2025 staff complement for Legal Services of 451 positions comprised of 35 capital positions and 416 operating positions.

Office of the Mayor

35. The 2025 Operating Budget for the Office of the Mayor of $3.061 million gross and net for the following services:

ACCOUNTABILITY OFFICES

Office of the Auditor General

36. The 2025 Operating Budget for the Auditor General’s Office of $8.651 million gross and net for the following:

- The 2025 staff complement for the Auditor General’s Office of 44.0 positions, comprised of 44.0 operating positions.

Office of the Integrity Commissioner

37. The 2025 Operating Budget for the Office of the Integrity Commissioner of $0.831 million gross, $0.100 million revenue and $0.731 million net for the following services:

- The 2025 staff complement for the Office of the Integrity Commissioner of 3.0 positions comprised of 0.0 capital positions and 3.0 operating positions.

Ombudsman Toronto

38. The 2025 Operating Budget for Ombudsman Toronto of $3.986 million gross and net for the following services:

- The 2025 staff complement for Ombudsman Toronto of 24 positions comprised of 0.0 capital positions and 24.0 operating positions.

Toronto Lobbyist Registrar

39. The 2025 Operating Budget for Toronto Lobbyist Registrar of $1.420 million gross and net:

- The 2025 staff complement for Toronto Lobbyist Registrar of 8.3 positions comprised of 0.0 capital positions and 8.3 operating positions.

AGENCIES

CreateTO

40. The 2025 Operating Budget for CreateTO of $18.953 million gross, $18.953 million revenue and $0.0 million net for the following services:

- The 2025 staff complement for CreateTO of 84.0 positions is comprised entirely of operating positions.

Exhibition Place

41. The 2025 Operating Budget for Exhibition Place of $67.863 million gross, $67.413 million revenue and $0.450 million net for the following services:

- The 2025 staff complement for Exhibition Place of 356.0 positions comprised of 7.0 capital positions and 349.0 operating positions.

Heritage Toronto

42. The 2025 Operating Budget for Heritage Toronto of $1.441 million gross, $0.758 million revenue and $0.683 million net for the following services:

- The 2025 staff complement for Heritage Toronto comprised of 10.8 operating positions.

Sankofa Square (Yonge-Dundas Square)

43. The 2025 Operating Budget for Sankofa Square of $3,464.4 million gross, $1,967.5 million revenue and $1,496.9 million net for the following services:

- The 2025 staff complement for Sankofa Square is comprised of 8.0 operating positions.

TO Live

44. The 2025 Operating Budget for TO Live of $45.511 million gross, $39.363 million revenue and $6.148 million net for the following service:

- The 2025 staff complement for TO Live of 256.3 positions is comprised of 12.0 capital positions and 244.3 operating positions.

Toronto and Region Conservation Authority

45. The 2025 Operating Budget for Toronto and Region Conservation Authority of $11.935 million gross, $5.887 million revenue and $6.049 million net for the following services:

Toronto Atmospheric Fund

46. The 2025 Operating Budget for Toronto Atmospheric Fund of $12.224 million gross, $12.224 million revenue and $0.0 million net for the following services:

- The 2025 staff complement for Toronto Atmospheric Fund of 42 positions is comprised entirely of operating positions.

Toronto Parking Authority

47. The 2025 Operating Budget for Toronto Parking Authority of $144.174 million gross, $186.095 million revenue and $41.921 million net revenue for the following services:

- The 2025 staff complement for Toronto Parking Authority consists of 326.5 positions.

Toronto Police Service

48. The 2025 Operating Budget for the Toronto Police Service of $1,418.2 million gross, $198.0 million revenue and $1,220.1 million net for the following services:

which is inclusive of:

- $5.078 million for costs related to planning and hosting the FIFA World Cup 2026 in Toronto.

and a further:

a. increase of $63.327 million gross and net in the 2025 Operating Budget, offset by a corresponding decrease in the 2025 Operating Budget for Corporate Accounts, for the impacts from the 2024 collective agreement.

- The 2025 staff complement for the Toronto Police Service comprised of 8,207 positions.

Toronto Police Service Board

49. The 2025 Operating Budget for the Toronto Police Service Board of $3.442 million gross, $1.066 million revenue and $2.376 million net for the following services:

and a further:

a. increase of $0.089 million gross and net in the 2025 Operating Budget, offset by a corresponding decrease in the 2025 Operating Budget for Corporate Accounts, for the impacts from the 2024 collective agreement.

- The 2025 staff complement for the Toronto Police Service Board is comprised of 10.5 operating positions.

Toronto Police Service Parking Enforcement Unit

50. The 2025 Operating Budget for the Toronto Police Service Parking Enforcement Unit of $57.510 million gross, $2.145 million revenue and $55.365 million net for the following services:

and a further:

a. increase of $2.167 million gross and net in the 2025 Operating Budget, offset by a corresponding decrease in the 2025 Operating Budget for Corporate Accounts, for the impacts from the 2024 collective agreement.

- The 2025 staff complement for the Toronto Police Service Parking Enforcement Unit is comprised of 394.0 operating positions.

Toronto Public Health

51. The 2025 Operating Budget for Toronto Public Health of $288.576 million gross, $202.870 million revenue and $85.706 million net for the following services:

- The 2025 staff complement for Toronto Public Health of 1,884.4 positions comprised of 10.0 capital positions and 1,874.4 operating positions.

Toronto Public Library

52. The 2025 Operating Budget for Toronto Public Library of $268.903 million gross, $21.768 million revenue and $247.135 million net for the following services:

- The 2025 staff complement for Toronto Public Library of 1,950.8 positions comprised of 5.0 capital positions and 1,945.8 operating positions.

Toronto Transit Commission

53. The 2025 Operating Budget for Toronto Transit Commission of $2,818.723 million gross, $1,431.976 million revenue and $1,386.747 million net for the following services:

- The 2025 staff complement for Toronto Transit Commission of 18,201 positions comprised of 3,285 capital positions and 14,916 operating positions.

Toronto Zoo

54. The 2025 Operating Budget for Toronto Zoo of $72.795 million gross, $59.855 million revenue and $12.940 million net for the following services:

- The 2025 staff complement for Toronto Zoo comprised of 455.0 operating positions.

Corporate Accounts

55. The 2025 Operating Budget for Corporate Accounts of $2.529 billion gross, $3.190 billion revenue and $0.662 billion net revenue comprised of the following accounts:

which is inclusive of:

- the contribution of $383.757 million to the City Building Reserve Fund from the dedicated City Building levy for priority transit and housing capital projects

- the contribution of $40.699 million to the Scarborough Transit Reserve Fund from the dedicated special property tax levy, in support of commitments to transit investments

- the contributions and withdrawals to / from reserves in Corporate Accounts as indicated in Appendix 1.

- funding for the continuation of the existing Solid Waste Rebates for Low Income Seniors, Disabled and Multi-Residential customers

- the 2025 operating budget for Parking Tag Operations as set out in Briefing Note 9 - 2025 Operating Budget Briefing Note - Parking Tags Enforcement and Operations attached as background to BU9.1

- $3.000 million in Non-Program Expenditures related to 2025 emergent budget priorities.

- The 2025 staff complement for Parking Tag Operations is 394 operating positions

- The 2025 staff complement for Association of Community Centres is 98.9 operating positions

- The 2025 staff complement for Arena Boards of Management is 68 operating positions.

and a further:

a. decrease in the 2025 Operating Budget for Corporate Accounts, of $65.583 million for the impacts from the 2024 collective agreements for Toronto Police Service, Toronto Police Service Board, and Toronto Police Service Parking Enforcement Unit.

b. decrease in the 2025 Operating Budget for Corporate Accounts of $1.368 million gross and $0 net, for Municipal Licensing and Standards for the RentSafeTO for Tenants Program.

2025-2034 CAPITAL BUDGET AND PLAN

The Mayor has prepared, for City Council's consideration, the 2025-2034 Capital Budget and Plan, noting that all sub-projects with third party financing are subject to the receipt of such financing, or an agreement as appropriate, in 2025 and if such funding is not forthcoming, their priority and funding and approval to spend will need to be reassessed by City Council relative to other City-financed priorities and needs, as follows:

COMMUNITY AND SOCIAL SERVICES

Children's Services

56. The 2025 Capital Budget for Children’s Services with cash flows and future year commitments totalling $89.720 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Children's Services.

57. The 2026-2034 Capital Plan for Children’s Services totalling $16.460 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Children's Services.

Economic Development and Culture

58. The 2025 Capital Budget for Economic Development and Culture with cash flows and future year commitments totalling $48.919 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Economic Development and Culture.

59. The 2026-2034 Capital Plan for Economic Development and Culture totalling $145.531 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Economic Development and Culture.

Parks, Forestry and Recreation

60. The 2025 Capital Budget for Parks, Forestry and Recreation with cash flows and future year commitments totalling $1,998.482 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Parks, Forestry and Recreation.

61. The 2026-2034 Capital Plan for Parks, Forestry and Recreation totalling $2,315.756 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Parks, Forestry and Recreation.

Seniors Services and Long-Term Care

62. The 2025 Capital Budget for Seniors Services and Long-Term Care with cash flows and future year commitments totalling $468.328 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Seniors Services and Long-Term Care.

63. The 2026-2034 Capital Plan for Seniors Services and Long-Term Care totalling $56.502 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Seniors Services and Long-Term Care.

Toronto Employment and Social Services

64. The 2025 Capital Budget for Toronto Employment and Social Services with cash flows and future year commitments totalling $0.600 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Employment and Social Services.

65. The 2026-2034 Capital Plan for Toronto Employment and Social Services totalling $8.400 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Employment and Social Services.

Toronto Fire Services

66. The 2025 Capital Budget for Toronto Fire Services with cash flows and future year commitments totalling $46.184 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Fire Services.

67. The 2026-2034 Capital Plan for Toronto Fire Services totalling $27.100 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Fire Services.

Toronto Paramedic Services

68. The 2025 Capital Budget for Toronto Paramedic Services with cash flows and future year commitments totalling $146.316 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Paramedic Services.

69. The 2026-2034 Capital Plan for Toronto Paramedic Services totalling $120.902 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Paramedic Services.

Toronto Shelter and Support Services

70. The 2025 Capital Budget for Toronto Shelter and Support Services with cash flows and future year commitments totalling $904.517 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Shelter and Support Services.

71. The 2026-2034 Capital Plan for Toronto Shelter and Support Services totalling $52.587 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Shelter and Support Services.

INFRASTRUCTURE SERVICES

Solid Waste Management Services

72. The 2025 Capital Budget for Solid Waste Management Services with cash flows and future year commitments totalling $731.552 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Solid Waste Management Services.

73. The 2026-2034 Capital Plan for Solid Waste Management Services totalling $690.015 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Solid Waste Management Services.

Toronto Water

74. The 2025 Capital Budget for Toronto Water with cash flows and future year commitments totalling $9,914.224 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Water.

75. The 2026-2034 Capital Plan for Toronto Water totalling $7,826.830 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Water.

Transit Expansion

76. The 2025 Capital Budget for Transit Expansion with cash flows and future year commitments totalling $855.236 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Transit Expansion.

Transportation Services

77. The 2025 Capital Budget for Transportation Services with cash flows and future year commitments totalling $5.119 billion as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Transportation Services.

78. The 2026-2034 Capital Plan for Transportation Services totalling $1.012 billion in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Transportation Services.

DEVELOPMENT AND GROWTH SERVICES

City Planning

79. The 2025 Capital Budget for City Planning with cash flows and future year commitments totalling $10.607 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for City Planning and Development Review.

80. The 2026-2034 Capital Plan for City Planning totalling $49.750 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for City Planning and Development Review.

Housing Secretariat

81. The 2025 Capital Budget for Housing Secretariat with cash flows and future year commitments totalling $3,442.673 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Housing Secretariat.

Waterfront Revitalization Initiative

82. The 2025 Capital Budget for Waterfront Revitalization Initiative with cash flows and future year commitments totalling $403.927 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Waterfront Revitalization Initiative.

CORPORATE SERVICES

Corporate Real Estate Management

83. The 2025 Capital Budget for Corporate Real Estate Management with cash flows and future year commitments totalling $1,420.422 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Corporate Real Estate Management.

84. The 2026-2034 Capital Plan for Corporate Real Estate Management totalling $541.823 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Corporate Real Estate Management.

Customer Experience (311 Toronto)

85. The 2025 Capital Budget for Customer Experience with cash flows and future year commitments totalling $5.675 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Customer Experience.

86. The 2026-2034 Capital Plan for Customer Experience totalling $0.165 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Customer Experience.

Environment and Climate

87. The 2025 Capital Budget for Environment and Climate with cash flows and future year commitments totalling $81.265 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Environment and Climate.

88. The 2026-2034 Capital Plan for Environment and Climate totalling $220.000 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Environment and Climate.

Fleet Services

89. The 2025 Capital Budget for Fleet Services with cash flows and future year commitments totalling $723.402 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Fleet Services.

90. The 2026-2034 Capital Plan for Fleet Services totalling $1,127.096 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Fleet Services.

Office of the Chief Information Security Officer

91. The 2025 Capital Budget for the Office of the Chief Information Security Officer with cash flows and future year commitments totalling $17.156 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Office of the Chief Information Security Officer.

Technology Services

92. The 2025 Capital Budget for Technology Services with cash flows and future year commitments totalling $607.884 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Technology Services.

93. The 2026-2033 Capital Plan for Technology Services totalling $9.215 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Technology Services.

FINANCE AND TREASURY SERVICES

Financial Operations and Control

94. The 2025 Capital Budget for Financial Operations and Control with cash flows and future year commitments totalling $70.476 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Financial Operations and Control.

95. The 2026-2034 Capital Plan for Financial Operations and Control totalling $10.950 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Financial Operations and Control.

Office of the Chief Financial Officer and Treasurer

96. The 2025 Capital Budget for the Officer of the Chief Financial Officer and Treasurer with cash flows and future year commitments totalling $24.921 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Office of the Chief Financial Officer and Treasurer.

97. The 2026-2034 Capital Plan for the Office of the Chief Financial Officer and Treasurer totalling $1.000 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Office of the Chief Financial Officer and Treasurer.

CITY MANAGER AND OTHER CITY PROGRAMS

City Clerk's Office

98. The 2025 Capital Budget for the City Clerk’s Office with cash flows and future year commitments totalling $7.447 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for City Clerk's Office.

99. The 2026-2034 Capital Plan for the City Clerk’s Office totalling $29.735 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for City Clerk's Office.

ACCOUNTABILITY OFFICES

Ombudsman Toronto

100. The 2026-2034 Capital Plan for Ombudsman Toronto totalling $0.800 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Ombudsman Toronto.

Toronto Lobbyist Registrar

101. The 2025 Capital Budget for Toronto Lobbyist Registrar with cash flows and future year commitments totalling $0.730 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for the Toronto Lobbyist Registrar.

102. The 2026-2034 Capital Plan for Toronto Lobbyist Registrar totalling $1.0 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for the Toronto Lobbyist Registrar.

AGENCIES

Exhibition Place

103. The 2025 Capital Budget for Exhibition Place with cash flows and future year commitments totalling $123.241 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Exhibition Place.

104. The 2026-2034 Capital Plan for Exhibition Place totalling $162.795 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Exhibition Place.

Sankofa Square (Yonge-Dundas Square)

105. The 2025 Capital Budget for Sankofa Square with cash flows and future year commitments totalling $0.060 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Sankofa Square.

106. The 2026-2034 Capital Plan for Sankofa Square totalling $0.418 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Sankofa Square.

TO Live

107. The 2025 Capital Budget for TO Live with cash flows and future year commitments totalling $77.513 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for TO Live.

108. The 2026-2034 Capital Plan for TO Live totalling $127.765 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for TO Live.

Toronto and Region Conservation Authority

109. The 2025 Capital Budget for Toronto and Region Conservation Authority with cash flows and future year commitments totalling $22.504 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto and Region Conservation Authority.

110. The 2026-2034 Capital Plan for Toronto and Region Conservation Authority totalling $266.540 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto and Region Conservation Authority.

Toronto Parking Authority

111. The 2025 Capital Budget for Toronto Parking Authority with cash flows and future year commitments totalling $328.284 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Parking Authority.

112. The 2026-2034 Capital Plan for Toronto Parking Authority totalling $70.328 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Parking Authority.

Toronto Police Service

113. The 2025 Capital Budget for the Toronto Police Service with cash flows and future year commitments totalling $171.763 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Police Service.

114. The 2026-2034 Capital Plan for the Toronto Police Service totalling $946.142 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Police Service.

Toronto Public Health

115. The 2025 Capital Budget for Toronto Public Health with cash flows and future year commitments totalling $14.153 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Public Health.

116. The 2026-2034 Capital Plan for Toronto Public Health totalling $1.848 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Public Health.

Toronto Public Library

117. The 2025 Capital Budget for Toronto Public Library with cash flows and future year commitments totalling $286.202 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Public Library.

118. The 2026-2034 Capital Plan for Toronto Public Library totalling $348.808 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Public Library.

Toronto Transit Commission

119. The 2025 Capital Budget for the Toronto Transit Commission with cash flows and future year commitments totalling $12.277 billion detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Transit Commission.

120. The 2026-2034 Capital Plan for the Toronto Transit Commission totalling $4.118 billion in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Transit Commission.

Toronto Zoo

121. The 2025 Capital Budget for Toronto Zoo with cash flows and future year commitments totalling $71.624 million as detailed by project in Appendix 5a to the 2025 Capital and Operating Budget Notes for Toronto Zoo.

122. The 2026-2034 Capital Plan for Toronto Zoo totalling $240.854 million in project estimates as detailed by project in Appendix 5b to the 2025 Capital and Operating Budget Notes for Toronto Zoo.

Corporate Initiatives

123.The 2025 Capital Budget and Plan for Corporate Initiatives with cash flows and future year commitments totalling $0.805 million as detailed in Appendix 2.1 to the report (January 11, 2025) from the City Manager and Chief Financial Officer and Treasurer.

OPERATING BUDGET FUNDING SOURCES

124. The Mayor's Proposed 2025 Operating Budget of $18.85 billion is to be funded by funding sources described in the table below:

CAPITAL BUDGET AND PLAN FUNDING SOURCES

125. The Mayor's Proposed 2025-2034 Capital Budget and Plan of $59.60 billion is to be funded by funding source described in the table below:

Section 226.14 (2) of the City of Toronto Act, 2006 provides that the Mayor shall, in accordance with the regulations, prepare a proposed budget for the City and provide the proposed budget to City Council for City Council’s consideration. This report fulfills this requirement.

In the 2024 Budget we faced a $1.8 billion budget shortfall. That’s why, after a decade of neglect, we brought in a bold budget and a New Deal with the provincial government that worked to get our city back on track. We made significant progress over the last year with improved City services, faster emergency response times, and more shovels in the ground building affordable housing. And, for the first time in decades, we improved the City’s credit rating to AA+ – saving Torontonians money on borrowing costs related to transit, housing, and more.

Of course, our challenges are too great to solve in one year, but the hard choices made in 2024 are paying off for Toronto as seen in this year’s budget. The 2025 Budget began with a $1.2 billion budget shortfall. That’s a $600 million improvement from 2024. But closing this shortfall remains a challenge. To balance the 2025 Budget we are delivering another $680 million in reductions and offsets combined with the results of successful intergovernmental agreements that help us do more for Torontonians. 

The Mayor’s 2025 Budget makes important investments to build more homes faster, accelerate approvals for purpose built rentals, and rapidly increase the supply of affordable and non-market housing. The budget works to prevent evictions, the loss of affordable housing, and to support renters through investments in the new Renoviction by-law, as well as critical programs like Eviction Prevention in Community, the Rent Bank, RentSafe, the Multi-Unit Residential Acquisition Program and the Tenant Support Program. We are getting Toronto moving with historic investments in the TTC and traffic agents. We are improving TTC service while freezing fares. The budget feeds more kids through expanded School Food Programs, summer camps and continues to invest in youth with expanded after school programs, additional youth hubs, increases to grants for youth-serving organizations, and a new $5 million Youth Safety Initiative to stop rising youth violence in our city. This Budget also expands library hours as we move to seven day a week library service at every branch in the city. It works to build a more liveable city with improved 311 service, investments to fix our community centres, roads, parks, and public space, expanded hours for pools and recreation centres, alongside opportunities to help Torontonians reduce their climate footprint.

In the 2025 Budget, we are also introducing the first full-year of our City-wide fourth emergency service, Toronto Community Crisis Service (TCCS). It is a caring approach to supporting people in crisis, where trained crisis workers respond, de-escalate, and refer people to appropriate mental health and other social services. In addition, through the adoption of a multi-year hiring plan by the Toronto Police, 109 net new police officers will be added this year, including an expanded neighbourhood officer program. We are also adding 95 new frontline paramedics and 52 new firefighters to improve emergency response times across the city. And we are expanding eligibility for property tax deferral and cancellation programs, so thousands more qualify for support.

The Mayor's Proposed 2025 Tax and Rate Supported Operating Budget is $18.849 billion gross and $5.639 billion net. The Mayor's Proposed Tax and Rate Supported 2025-2034 Capital Budget and Plan is $59.597 billion gross and $10.524 billion debt. The Capital Budget and Plan focuses on investments in Transit Funding ($17.0 billion), Transportation ($6.1 billion), and Housing ($4.5 billion plus a further $4.5 billion provided through foregone revenues); and includes investments such as the Line 2 subway train replacement and e-Bus procurement, focuses on climate mitigation and adaptation actions aimed at reducing ~160,725 tonnes/CO2 across all capital projects in the 2025 budget, and reduction of State of Good Repair (SOGR) backlog with an additional $6.0 billion increase in SOGR spending over the next 10 years.

On January 28, 2025, the City of Toronto, the Government of Canada, and the Government of Ontario announced $975 million to accelerate the delivery of Waterfront Toronto’s revitalization plan. With this investment, this partnership will build more than 14,000 homes, including affordable rental housing; create an estimated 100,000 skilled trades jobs; and add $13.2 billion to the economy. Each order of government has agreed to contribute $325 million to this initiative. Based on this recent announcement, I have directed the Chief Financial Officer to report to City Council in the first quarter of 2025, allocating $325 million in available capital funding capacity to the 2025-2034 Capital Budget.

 The Mayor's proposed Operating Budget is not consistent with the Staff Prepared budget and reflects the following change:

• Increase of $0.363 million gross and $0 net, from the Social Housing Stabilization Reserve Fund for the Toronto Tenant Support Program as an additional measure to prevent renovictions.

The Mayor has prepared the 2025 Operating Budget of $18.849 billion gross and $5.639 billion net.

The Chief Financial Officer and Treasurer recommends that:

2025 PROPERTY TAX RATES AND RELATED MATTERS

1. City Council adopt the 2025 tax ratios shown in Column II for each of the property classes set out below in Column I:

2. City Council elect to raise the tax rates as follows

(a) On the restricted property classes:

(i) On the Commercial Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class.

(b) On the unrestricted property classes:

(i) On the Multi-Residential Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class,

(ii) On the Industrial Property Classes, by the full tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class.

3. City Council adopt the following tax rates, subject to the 2025 Mayor's Proposed Budget being adopted as the City's 2025 Budget, and in the event City Council amends the 2025 Mayor's Proposed Budget so as to impact the following tax rates and such amendments are not subsequently vetoed by the Mayor, City Council direct the Chief Financial Officer and Treasurer to report to City Council with any necessary adjustments to the tax rates to reflect the final budget amendments for Council's consideration:

(a) The tax rates set out below in Column IV, which will raise a general local municipal tax levy for 2025 of $5,993,404,774, inclusive of a 5.4 percent residential, new multi-residential, industrial, pipeline, farmlands and managed forest tax rate increase, and a 2.7 percent commercial and multi-residential tax rate increase.

(b) The additional tax rates set out below in Column V, which will raise an additional special general tax levy of $69,660,969 dedicated for priority transit and housing capital projects (the "City’s Building Fund levy"), in accordance with Council adopted Recommendations of Item EX11.26 (December 17, 2019).

4. City Council elect to have the subclasses set out in Column II for each of the property classes set out in Column I apply for the 2025 taxation year, and to apply the respective tax rate reductions set out in Column III below.

5. City Council authorize a rate reduction of 15 percent for the New Multi-Residential Property (Municipal Reduction) Tax Subclass of the municipal portion of the existing New Multi-Residential Property Class rate.

6. City Council request the Province of Ontario to provide an equivalent 15 percent property tax rate reduction for the New Multi-Residential Property (Municipal Reduction) Tax Subclass on the education property tax rate for eligible properties.

7. City Council adopt the following property tax capping polices for the 2025 taxation year:

(a) limit tax increases for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year’s annualized taxes, by opting to have subsection 292(1), paragraph 1, of the City of Toronto Act, 2006, apply for the 2025 taxation year;

(b) continue to provide that the 10 percent cap on tax increases apply to any property within the commercial, industrial and multi-residential classes, regardless of whether the property had reached full Current Value Assessment taxation levels in a prior year, subject to the threshold adopted in Part c. below.

(c) for the purposes of subsection 292(1), paragraphs 3 and 4 of the City of Toronto Act, 2006, adopt a threshold limit of $500 to determine the taxes for municipal and school purposes, such that properties that are within $500 (plus or minus) of their full Current Value Assessment level of taxation in the current year are taxed at full Current Value Assessment taxation levels for the year, and are therefore excluded from capping/claw-back provisions for that year.

8. City Council determine that:

(a) The instalment dates for the 2025 final tax bills be set as follows:

(i) The regular instalment dates be July 2, August 1, and September 2 of 2025.

(ii) For taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 15, September 15, October 15, November 17 and December 15 of 2025.

(iii) For taxpayers who are enrolled in the two-installment program, the final instalment date be July 2, 2025.

(b) The collection of taxes for 2025, other than those levied under the interim levy By-law 1238-2024, be authorized.

PROPERTY TAX, WATER AND SOLID WASTE RELIEF PROGRAMS

9. Effective January 1, 2025, City Council amend the eligibility criteria for the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low-income disabled persons, and amend, as may be required to give effect to Council’s decision, City of Toronto Municipal Code Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill, and any other necessary Municipal Code Chapters, to increase the maximum household income for an eligible person to $60,000, and for each calendar year after 2025, effective January 1 of the year, to annually adjust the maximum household income for an eligible person in accordance with the Statistics Canada, All-Items Consumer Price Index by City, Annual Change – Toronto.

10. Effective January 1, 2025, City Council amend the deadline to receive applications for the Tax Deferral and Tax Cancellation programs, the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low-income disabled persons from August 31 to October 31 of the year for which the application is made, and amend, as may be required to give effect to Council’s decision, City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill.

11. Retroactive to January 1, 2024, City Council create a new Co-Operative Housing Grant Program, comprised of 3 new grants, for low income seniors and person with disabilities who are members of, and who reside in, a non-profit housing co-operative (as defined in the Co-operative Corporations Act) in accordance with the eligibility criteria and terms and conditions set out in Appendix E to this report, and delegate authority to the Director, Revenue Services to administer the Grant Program, and amend, as may be required to give effect to Council’s decision, City of Toronto Municipal Code Chapters 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill.

12. City Council authorize the Co-operative Housing Grant Program be funded as follows:

(a)  the Co-operative Housing Property Tax Grant Program be funded from the Non-Program Tax Deficiency Account.

(b) the Co-operative Housing Water Grant Program be funded by Toronto Water; and

(c) the Co-operative Housing Solid Waste Grant Program be funded by Solid Waste Management Services.

13. City Council delegate authority to the Deputy Treasurer, in the Deputy Treasurer’s discretion, to accept a late application for the Tax Deferral and Tax Cancellation programs, the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low income disabled persons, received after October 31, but before December 31, of the year for which the rebate is sought, and amend, as may be required to give effect to Council’s decision, City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill.

14. City Council direct that the 2025 interim water rebate for eligible low-income seniors and low-income disabled persons set at a rate of $1.4062 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date), adopted by Council in Item EX19.9 at its meeting on December 17 and 18, 2024 is the final water rebate for 2025.

15. City Council determine that the 2025 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,257,842 to fund the mandatory 2025 property tax rebates to registered charities in the commercial and industrial property classes, which provision is to be funded, for a net impact on the 2025 operating budget of zero, by the following:

(a) An additional tax rate of 0.004905 percent be levied as part of the general local municipal levy on the commercial class to raise a further additional local municipal tax levy of $6,129,555 to fund the total estimated rebates to registered charities for properties in the commercial class in 2025.

(b) An additional tax rate of 0.001585 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $128,287 to fund the total estimated rebates to registered charities for properties in the industrial class in 2025.

USER FEES

16. City Council approve the 2025 fees and charges in Appendix 3 of the 2025 Mayor’s Proposed Budget, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges, and any other necessary Municipal Code Chapter accordingly.

17. City Council direct that the water and wastewater consumption rates for metered and flat rate consumers and water and wastewater services fees in the amounts set out in Appendix 5 to the Mayor's Proposed Budget, which is consistent with the 2025 interim water and wastewater consumptions rates for metered and flat rate consumers and water and wastewater services fees adopted by Council in Item EX19.9 at its meeting on December 17 and 18, 2024, are the final rates and fees for 2025.

18. City Council direct that the solid waste management service rates and fees in the amounts set out in Appendix 5 to the Mayor’s Proposed Budget, which is consistent with the 2025 interim rates adopted by Council in Item EX19.10 at its meeting on December 17 and 18, 2024, are the final rates and fees for 2025.

19. City Council delegate authority to the Chief Financial Officer and Treasurer to approve automatic annual inflationary adjustments to the fees and charges set out in Table 1 of Appendix A in this report, effective January 1 of each year, commencing in January of 2026, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges accordingly.

OTHER

20. City Council authorize that interest be calculated on a monthly basis at a rate of 1.25 percent (15 percent per annum) on the first day of default of any Municipal Accommodation Tax amount or its remittance and every month thereafter where the tax or its remittance remains unpaid, and amend the Municipal Code Chapter 758, Taxation, Municipal Accommodation Tax by removing “to and including the date on which such tax is paid or remitted in full” from the interest calculation accordingly.

21. City Council authorize that interest be calculated on a monthly basis at a rate of 1.25 percent (15 percent per annum) on the first day of default of any Municipal Land Transfer Tax amount or its remittance and every month thereafter where the tax or its remittance remains unpaid, and amend the Municipal Code Chapter 760, Taxation, Municipal Land Transfer Tax by removing “to and including the date on which such tax is paid or remitted in full” from the interest calculation accordingly.

22. City Council approve the establishment of a discretionary reserve fund called the MLTT (Municipal Land Transfer Tax) Stabilization Reserve Fund in City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, Appendix B, Schedule 7 – Corporate Discretionary Reserve Funds, for the purpose of ensuring stable, sustainable revenue for the City by mitigating fluctuations in MLTT revenue during economic downturns or real estate slowdowns, and supporting uninterrupted city operations and services, with criteria set out in Appendix D of this report.

23. City Council direct that the City Manager establish the cost-of-living adjustment rate for non-union and management employees following the ratification of the collective bargaining agreements for CUPE Local 416 and CUPE Local 79, that takes into consideration the recently approved collective agreements with the City’s unions; the previous year’s average increase to Toronto’s consumer price index (CPI); and the overall economic environment.

24. City Council request the Province of Ontario to amend the Development Charges Act to authorize municipalities to adjust or remove annual indexing provisions without an amendment to the development charge by-law with the objective of incentivizing housing development.

25. City Council request the Chief and General Manager, Toronto Paramedic Services to provide a multi-year staffing plan by June 2025 after completing a detailed staffing analysis for consideration through annual budget processes to add staff resources over the next five years to respond to:

(a)  hospital/health care system pressures,

(b)  rising emergency call demand, and

(c) increasing response times to critical patients.

26. City Council authorize the General Manager, Toronto Water, in consultation with the Chief Financial Officer and Treasurer, to accelerate the cash flows included in Toronto Water’s 2025- 2034 Capital Budget and Plan as operationally required to enable implementation of the 2025 Mayor’s Proposed Budget, consistent with direction communicated in the 2025 Mayor’s Proposed Budget.

27. City Council amend City of Toronto Municipal Code Chapter 743, Streets and Sidewalks, Use Of, to include a definition of Road Disruption Activity Reporting System (RoDARS) and a new definition of RoDARS Approval, to create a new Article III.1, RoDARS, and to amend Sections 743-1, 743-7B, 743-18, 743-34 and 743-49A, such amendments to be effective April 1, 2025, generally as set out in Appendix D to the report from the Chief Financial Officer and Treasurer.

28. City Council authorize amendments to the Municipal Code to enable the City’s Deputy Treasurers to perform the duties and responsibilities previously performed solely by the City’s Controller to reflect organizational and governance changes.

The purpose of this report is to recommend the additional approvals required to give effect to the 2025 Budget and includes the following matters:

2025 Property Tax Rates and Related Matters: City Council must enact a by-law to levy property tax rates that generate the tax revenue set out in the City’s budget. This report recommends the 2025 municipal tax rates, reflected in the 2025 Mayor's Proposed Budget.

For 2025, an average budgetary tax rate increase of 4.37 percent is proposed, as detailed in Table 1. This includes a 5.40 percent increase for residential and industrial properties and a 2.70 percent increase for multi-residential and commercial properties.

Additionally, this report recommends an incremental tax rate increase for the City Building Fund Levy to support critical capital investments in transit and housing. This includes a 1.50 percent increase for residential and industrial properties, and a 0.75 percent increase for multi-residential and commercial properties.

Table 1: 2025 Recommended Municipal Property Tax Rate Increases

This report further recommends:

• annual adjustments to the income threshold for the City’s property tax, solid waste and water relief programs;

• creating a new Co-operative Housing Grant Program for eligible low-income seniors or persons with disabilities who are members of, and who reside in, non-profit housing co-operatives;

• extending application deadlines for tax relief programs; and

• applying interest and penalties for the Municipal Accommodation Tax and the Municipal Land Transfer Tax programs in the same manner as property taxes.

2025 User Fees: User fees are reviewed and adjusted through the budget process, including the final rates and service fees for Rate Supported Programs (Solid Waste Management Services and Toronto Water). The 2025 Mayor’s Proposed Budget outlines estimated revenues from user fees, subject to City Council approval as required by the City of Toronto Act, 2006. This report seeks Council approval for user fee changes and the introduction of new fees.

Provincial Gas Tax and Canada Community Building Fund: In accordance with the directive to report annually to City Council through the capital budget process, this report provides an overview of the Provincial Gas Tax (PGT) and Canada Community Building Fund (CCBF) programs, which are vital to supporting Toronto's public transit and infrastructure investments. These programs, as outlined in the 2025-2034 Capital Budget and Plan, have enabled the City to fund key projects aimed at maintaining and expanding its transit network. Details of the planned eligible projects funded under these programs are included in Appendix B.

Other Items Requiring Council Direction: This report also makes recommendations with respect to matters related to the 2025 Budget that do not fall under the strong mayor powers:

• Requests for Program specific report backs and interdivisional collaboration

• Establishment of a new reserve fund

• Request for an amendment to the Development Charges Act to authorize the City of Toronto to prevent or change annual indexing requirements, to aid in incentivizing housing development

• Technical changes to the Toronto Municipal Code to reflect governance changes and responsibilities of the City’s Deputy Treasurers

• Amendment of Municipal Code Chapter 743, Streets and Sidewalks, Use of to support the implementation of Road Disruption Activity Reporting System (RoDARS)

2025 Property Tax Rates and Related Matters

The tax ratios and rates recommended in this report reflect tax policy decisions previously adopted by City Council as permitted and/or mandated by recent Provincial regulatory changes, including:

• one-half of the tax rate increase on the Residential property class to be applied to the Commercial and Multi-residential property classes;

• the full tax rate increase on the Residential property class to be applied to the Industrial property class; and

• a 15 percent tax rate reduction to be applied to the New Multi-Residential Property (Municipal Reduction) Tax subclass

Municipal Tax Levy

The recommended total municipal tax levy for 2025 is summarized in Table 2:

Table 2: 2025 Municipal Tax Levy

As per the above table, the City will generate $6.063 billion in municipal property tax funding, including an incremental $250.8 million associated with the 5.4 percent increase for the budgetary levy and an incremental $69.7 million reflective of a 1.5 percent increase for the City Building Fund levy.

Impact of Budgetary Levy and City Building Fund Levy Increases

The average residential property value for tax assessment purposes for 2025 is $692,031. A summary of the 2025 tax impacts on the average residential property, with the above noted adjustments and budgetary tax increases is outlined in Table 3.

Table 3: Impact of Budgetary Levy and City Building Fund Levy Increases in 2025

As per the above table, the average home will receive a municipal property tax bill of $4,160 for 2025. This excludes provincial education property taxes.

The average 2025 impact of the budgetary levy and city building fund levy increases on the various property classes is outlined in the following table:

New Multi-Residential Property (Municipal Reduction) Tax

In November 2024, City Council adopted a New Multi-Residential Property (Municipal Reduction) Tax subclass to incentivize new purpose-built rental housing. The recommended 15 percent reduction for the subclass is estimated to result in about $1.01 million in foregone assessment growth in 2025 and will provide property owners with a discount over the residential property tax rate. The actual financial impacts will be determined as new buildings are developed and added to the assessment roll.

2025 User Fees

Adjustments Requiring City Council Approval

In accordance with the City User Fee Policy, Council approval is required for user fee revenue set out in the 2025 Mayor’s Proposed Budget, including fee adjustments above inflation, new fees, discontinuations, rationalizations, transfers, and technical adjustments. The proposed changes to user fee adjustments, excluding automatic inflationary user fees, will generate $18.56 million in total incremental revenue, including $0.70 million in new fees. Revenue impacts from the proposed changes are reflected in the Budget Notes for each Program and Agency.

Adjustments Requiring City Council Approval

Annual inflationary increases are applied under delegated authority, generating an additional $14.94 million in the 2025 Budget. The Chief Financial Officer and Treasurer has been delegated authority to apply these increases effective January 1 of each year. It is recommended that authority be delegated to apply inflationary adjustments to new fees in 2026, as outlined in Appendix 4 of the 2025 Mayor’s Proposed Budget.

Water, Wastewater and Solid Waste Fees

Proposed increases in water, wastewater, and solid waste fees were initially adopted by City Council as part of the 2025 interim rates and service fees (Item EX19.9 and Item EX19.10), with final approval requested in this report. These fee adjustments are aligned with financial modeling and the 2025-2034 Capital Budget and Plan.

• A 3.75 percent increase in solid waste management and water and wastewater rates are expected to generate $13.5 million and $53.35 million in additional revenue for Solid Waste Management Services and Toronto Water respectively to support operational and capital program needs.

• Inflationary increases to water and wastewater service fees for services provided by Toronto Water and Revenue Services are projected to generate an additional $2.3 million.

Provincial Gas Tax and Canada Community Building Fund in the City’s 2025-2034 Capital Budget and Plan

Provincial Gas Tax (PGT):

Introduced in 2004, the PGT permanently allocates two cents per litre of provincial gas tax revenues to municipalities to expand and improve public transit systems. Annual allocations are determined by a provincial formula based on transit ridership (70 percent) and population (30 percent), ensuring funding is responsive to transit demand and population growth.

Since 2005, Toronto has received over $3.2 billion in PGT funding, with the 2023-24 allocation confirmed at $178.2 million. The 2025-2034 Capital Budget and Plan includes approximately $866 million in PGT-funded investments, supporting essential transit projects. Specific details are provided in Appendix B, Table 1.

Canada Community Building Fund (CCBF)

Initially established in 2005 and formerly known as the Federal Gas Tax Fund, the CCBF allocates over $2 billion annually to Canadian municipalities, distributed on a per capita basis. Since its inception, Toronto has received $2.8 billion, primarily directed toward the Toronto Transit Commission to support transit system investments.

In 2024, Toronto received $176.6 million from the CCBF. Over the next decade, the City projects $1.9 billion in CCBF funding to support projects such as fleet replacement and state of good repair initiatives, ensuring the ongoing functionality of Toronto’s transit network. Full details of planned projects can be found in Appendix B, Table 2.

The Chief Financial Officer and Treasurer recommends that:

1. City Council authorize City Staff to publish, on the City website, information related to Ontario Regulation 286/09 "Budget Matters - Expenses" in future fiscal periods and thereby, satisfy legislative reporting requirements.

The City of Toronto’s (City) annual balanced budget is prepared using the cash basis of accounting. This method allows the City to focus on the funds required to support operating expenses in the fiscal year and to acquire capital assets.

Ontario Regulation 286/09 "Budget Matters - Expenses" (Regulation) permits exclusion of non-cash accounting expenses from the City’s annual budget such as amortization expenses, post-employment benefits expenses, and solid waste landfill closure and post-closure expenses. 

The Regulation further requires the City to provide:

• An estimate of the change in accumulated surplus as a result of the exclusion of the above expenses, and
• An analysis of the estimated impact of the exclusion of these expenses on future tangible capital asset funding requirements.  

Total expenses excluded from the 2025 budget is estimated to be $1.84 billion. These expenses will be recorded in the City’s financial statements and reduce the accumulated surplus balance.  The accumulated surplus represents the City's net investment in its tangible capital assets. 

The City’s processes for capital requirements, through the City's Ten-Year Capital Budget and Plan, provide transparency in current and future year funding required for tangible capital assets.

City Council will introduce General Bills and Confirming Bills.