Toronto council unanimously approved a 2020 tax-supported operating budget of $11.6 billion and a 10-year tax-supported capital budget of $27.9 billion last week.
The budget preserves all 150-plus existing services and makes new investments in key capital infrastructure, including significant funding for transit and housing.
The 2020 operating budget focuses on keeping the property tax increase for City operations at the level of inflation, preserving or improving existing services and investing in key Council priorities. There is $79.4 million in new investments to address key commitments including:
- Climate Change: $5.9 million
- Transit: $9.5 million
- Poverty Reduction: $15.3 million
- Safety and Security: $27.8 million
- Ravine Strategy: $1.3 million
When combined with the $1.9 billion rate-supported operating budget approved by City Council on December 17, 2019, the total 2020 operating budget is $13.5 billion.
“City council approved a good, responsible, realistic, and forward-looking budget for our fast-growing city,” said Mayor John Tory. “The 2020 budget includes the most significant investment in upgrading our transit system in the city’s history.
“We have almost doubled the TTC 10-year capital plan so we can invest $13.2 billion in upgrading our existing transit system. This budget makes it clear that the city is making investments in transit and housing and will be working with the province and the federal government so that we are all funding the work that must be done to protect Toronto’s success.”
The 10-year capital plan prioritizes achievability and affordability, and where possible, allows the city to move up planned capital work and complete it sooner. With the additional $15.5 billion approved by City Council on Dec. 17, 2019, the total 10-year capital plan is $43.4 billion. It meets the City’s “most critical needs” for transportation, the environment, real estate and emergency service facilities.
The capital budget invests a total of $13.2 billion in transit, nearly doubling the investment in state-of-good-repair this year.
City Council approved an extension to the City Building Fund to invest an additional $6.6 billion to improve Toronto’s transit system and build more affordable housing across the city.
The extension will increase the City Building Levy by an additional one per cent in 2020 and 2021 (bringing the total levy increase to 1.5 per cent in those years) and continue with a 1.5 per cent annual increase in each year from 2022 to 2025, costing the average Toronto household an increase of approximately $45 per year.
It also reflects continued federal and provincial partnership support for Toronto Community Housing building repairs, refugee support and transit investment.
As part of the 2020 budget process, programs and agencies considered the impact on all Torontonians, analyzing the effect of budget changes on equity-seeking groups, such as residents with low incomes. The budget includes more than $25 million in poverty reduction and anti-violence community investments to make City services and programs more accessible.
Budget notes, presentations, videos and reports are available at toronto.ca/budget.