Mayor Olivia Chow proposes 9.5% tax hike for 2024 budget

Toronto Mayor Olivia Chow is proposing the city raise property taxes by 9.5 per cent as part of a 2024 budget aimed at filling a nearly $1.8 billion budget shortfall.

Chow unveiled her first draft budget as mayor at a press conference in Scarborough on Thursday morning. 

You watch Chow's 10:30 a.m. appearance live in the player above.

Chow is recommending councillors raise residential property taxes by eight per cent and add 1.5 per cent to the city building levy — a fund dedicated to transit and housing — for a combined tax increase of 9.5 per cent on property owners.

The proposed increase, which comes after months of public consultations, is one per cent less than the 10.5 per cent increase city staff proposed in its draft budget, but it's still the largest Toronto has seen since amalgamation in 1998.

The mayor's draft budget also includes $620 million in spending cuts and offsets previously identified by city staff to address the budget shortfall, according to a press release.

"We cannot cut our way out of this mess. If we cut deeper, we could be cutting at bone and hitting the marrow," Chow said.

"It would only accelerate the decline of our transit system. It would also damage our ability to provide affordable housing. It would make it harder to service parks, protect people in an emergency, or even just filling potholes. It would damage our city and we can't do that."

The mayor's draft budget includes $67.9 million to fully fund the construction of the Scarborough busway, a dedicated right-of-way for buses meant to replace the decommissioned Scarborough Rapid Transit (SRT) line. It also includes the creation of a $50 million fund for state of good repair work, including fixing potholes and park upkeep, more funding for affordable housing and additional money for drop-in centres for people experiencing homeless.

City council will hold one final budget meeting on Feb. 14.

More to come.