Toronto is poised to approve its biggest property tax hike in decades

Toronto's month-and-a-half budget process ends today and could see councilors approve the city's biggest property tax hike in 25 years.

Council members are studying Mayor Olivia Chow's first budget this morning and the possibility of changes to her proposed 9.5 percent property tax. But if advisers want to do that, or add anything new to their $17 billion spending package, they'll have to find compensation.

SEE | Sean Jeffords in a pre-Budget interview with Olivia Chow:

In an interview ahead of the final debate, Chow said he was comfortable with the number and that it would add to the city's aging services, such as transit and the city's better state of repair.

“I think the rate is right,” he said. “I'm hearing that people are realizing that we need to invest in urban regeneration and services – basic services.”

The budget process officially began in January when city staff presented their draft budget, which proposed a 10.5 percent property tax increase. Chow lowered that number by a full percentage point after weeks of public consultations and recommendations from the council's budget committee to focus on affordability for residents.

On Tuesday, the mayor said he would support a series of proposals that would provide additional funds for city services such as snow removal. The service cuts will affect 262,000 homes in the suburbs, and Chow said he has heard seniors are concerned about it.

“I'm hearing old people saying they're having a hard time shoveling snow,” he said. “That's why we support its restoration. “Many councilors are listening to their constituents.”

Chow will have a negative impact on the police budget

The mayor reversed course Tuesday afternoon on a contentious debate over the Toronto police budget. After weeks of opposition, Chow said he would support a proposal to increase the net budget of about $1.2 billion by $20 million, instead of the $7.4 million in his spending plan.

Those funds come from the provincial and federal governments, he said.

“It gives me confidence that we don't have to cut other services to provide extra support to the police, because I don't want to do that,” he said.

But Kon. John Burnside said he thinks the mayor is under pressure from council members and residents to increase police funding. With a 22-minute response time to priority calls, it's about service levels, he said.

“You can love the police, you can hate the police. But when you need the police, you need the police, and 22 minutes is unacceptable,” he said.

Number. Brad Bradford said without additional funding, the service will be limited in its ability to hire more officers.

“We need to make sure they have the resources so they can do the recruiting so we can get more bodies online,” he said. “It's going to be really important.”

Meanwhile, Chow continues to signal that he will not use the powers granted to him under the “strong mayor” legislation introduced by Premier Doug Ford's government.

That law gives him veto power over any changes to the city council's budget. They can then be removed by a two-thirds majority vote of the council.

The mayor said he expects the process to wrap up today and a compromise to balance the $17 billion budget.

“Democracy works,” he said.