Toronto Budget 2024

Toronto, January 10, 2024 - The City of Toronto officially launched its 2024 Budget process today, unveiling a staff-prepared budget that aims to safeguard core services while strategically investing in transit, shelters, and community safety. With an eye on long-term financial stability, the city is adopting a new multi-year approach to budgeting.

The Budget Committee was presented with a comprehensive proposal, including a tax-supported operating budget of $17 billion and a 2024-2033 capital budget and plan totalling $49.8 billion. This move aligns with the City's commitment to financial sustainability as outlined in the Long Term Financial Plan (LTFP) and the Ontario-Toronto New Deal Agreement.

Public input played a pivotal role in shaping the budget, with Toronto residents actively participating in consultations held in November 2023. A total of 661 individuals engaged in 16 in-person and six virtual sessions, supplemented by an online survey that garnered 10,802 responses and 11,600 ideas submitted in 28 languages. Additional discussions led by Indigenous, Black, and equity-deserving community organizations involved 314 participants.

The budget reflects the community's priorities, emphasizing affordable housing, transit services, and community safety. Notably, the majority of respondents advocated for the Province of Ontario and the Government of Canada to contribute their fair share of funding for intergovernmental responsibilities.

In response to these priorities, the staff-prepared operating budget allocates an additional $152 million for new and enhanced initiatives. Key areas of focus include shelter and housing ($82 million), transit services and environmental sustainability ($30 million), community initiatives ($20 million), and community safety ($19 million).

Despite facing ongoing financial challenges, including increased demand for refugee claimant support and shelter spaces, the city has proactively sought efficiencies and implemented LTFP actions to mitigate an opening operating budget pressure of $1.776 billion.

To fund these initiatives, the staff-prepared budget proposes a property tax increase of nine percent for residential properties, aligning Toronto with other municipalities in the Greater Toronto and Hamilton Area. This translates to an average annual increase of $321 or a monthly increment of $26.75 for Toronto homeowners.

Moreover, the budget includes a base property tax increase for multi-residential (4.5 percent), commercial (4.5 percent), and industrial properties (nine percent). A 15 percent property tax rate reduction is maintained to support over 29,600 small businesses.

To support critical capital investments in transit and housing, the 2024 Capital Budget includes a 1.5 percent increase for the City Building Fund levy.

Anticipating further support, the staff-prepared 2024 operating budget expects access to a federal funding program, providing full reimbursement of costs associated with refugee claimant response, estimated at $250 million for the upcoming fiscal year.

As the budget process unfolds, Toronto residents and businesses are encouraged to contribute their feedback to the Budget Committee through in-person sessions, online submissions, or written correspondence.

By Dawar Naeem
Dawar is a community journalist with FOCUS MEDIA ARTS CENTRE