Toronto Mayor Olivia Chow and Ontario Premier Doug Ford held their first meeting Monday since Chow was elected in June.
"We just had a great conversation," said Ford, before taking questions from reporters at Queen's Park. "Thrilled to be standing here with my friend, Olivia Chow."
He said he and Chow have several shared priorities, including housing, public transit and major infrastructure projects.
"Investing in the city has never been more important," Ford said.
When it comes to the city's budget woes, Ford said he and Chow have agreed to create a "new deal" working group that the federal government will be invited to join.
"It's certainly my expectation that any agreement will include additional financial support from the federal government," Ford said.
Chow said their discussion covered many topics. Both Chow and the premier agree the current financial arrangement "is just not sustainable," she said.
The working group will have results ready by the end of November, Chow said, in time for the city budgeting process.
Ford said the province wants the group to come up with a sustainable funding model so the city doesn't have to keep asking for money every few months or years.
Chow said Ford understands cutting core city services is not the way to go on the budget issues.
"Right now, the city of Toronto is carrying over $1.1 billion worth of services on behalf of the provincial and federal governments," Chow said. "We're delivering the service we're just not getting the bills paid … the premier understands that."
Asked if he will support a Toronto municipal sales tax if the working group recommends it — something Chow has been lobbying for — Ford did not answer directly. He said he's generally against putting "more of a burden on the backs of taxpayers."
Chow put the city's financial position bluntly: "Whatever kind of revenue we, the city of Toronto, really doesn't completely care where the money comes from, as long as there's structurally a promise."
When it comes to Ontario Place, Chow reiterated comments she made last week and said she wants the province to follow the city's planning process.