Budget Implementation Including Property Tax Rates, User Fees and Related Matters

City Council elect to raise the tax rates as follows: a. on the restricted property classes: i. on the Commercial Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class; and b. on the unrestricted property classes: i. on the Multi-Residential Property Classes, by one-half of the percentage tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class; and ii. on the Industrial Property Classes, by the full tax rate increase on the residential (and new multi-residential, pipelines, farmlands, and managed forests) property class. 3. City Council adopt the following tax rates, subject to the 2025 Mayor's Proposed Budget being adopted as the City's 2025 Budget, and in the event City Council amends the 2025 Mayor's Proposed Budget so as to impact the following tax rates and such amendments are not subsequently vetoed by the Mayor, City Council direct the Chief Financial Officer and Treasurer to report to City Council with any necessary adjustments to the tax rates to reflect the final budget amendments for Council's consideration: a. the tax rates set out below in Column IV, which will raise a general local municipal tax levy for 2025 of $5,993,404,774, inclusive of a 5.4 percent residential, new multi-residential, industrial, pipeline, farmlands and managed forest tax rate increase, and a 2.7 percent commercial and multi-residential tax rate increase; and b. the additional tax rates set out below in Column V, which will raise an additional special general tax levy of $69,660,969 dedicated for priority transit and housing capital projects (the "City's Building Fund levy"), in accordance with Council adopted Recommendations of Item EX11.26 (December 17, 2019). Column I Column II Column III Column IV Column V Column VI Property Class 2025 Tax Rate for General Local Municipal Levy 2025 Additional Tax Rate to Fund Budgetary Levy Increase 2025 Municipal Tax Rate (excluding Charity rebates) (Column II+III) 2025 Additional Tax Rate for City Building Fund 2025 Municipal Tax Rate Inclusive of City Building Fund Rate (excluding Charity rebates) (Column IV+V) Residential 0.562289% 0.030364% 0.592653% 0.008434% 0.601087% Multi-Residential 1.009478% 0.027256% 1.036734% 0.007571% 1.044305% New Multi-Residential 0.562289% 0.030364% 0.592653% 0.008434% 0.601087% Commercial 1.344199% 0.036293% 1.380492% 0.010081% 1.390573% Industrial 1.405723% 0.075909% 1.481632% 0.021086% 1.502718% Pipelines 1.081521% 0.058402% 1.139923% 0.016223% 1.156146% Farmlands 0.140572% 0.007591% 0.148163% 0.002109% 0.150272% Managed Forests 0.140572% 0.007591% 0.148163% 0.002109% 0.150272% 4. City Council elect to have the subclasses set out in Column II for each of the property classes set out in Column I apply for the 2025 taxation year, and to apply the respective tax rate reductions set out in Column III below. Column I Column II Column III Property Class Tax Subclass Applicable Tax Rate Reduction Commercial Creative Facilities Enterprise subclass 50% of Commercial rate (Creative Co-location Facilities Subclass) Small Business subclass 15% of Commercial rate Excess Land 30% of Commercial rate Vacant Land 30% of Commercial rate Farmland Awaiting Development (First subclass) 60% of Residential/Farm rate Farmland Awaiting Development (Second subclass) 30% of Commercial rate Industrial Creative Facilities Enterprise subclass 50% of Industrial rate (Creative Co-location Facilities Subclass) Excess Land 35% of Industrial rate Vacant Land 35% of Industrial rate Farmland Awaiting Development (First subclass) 60% of Residential/Farm rate Farmland Awaiting Development (Second subclass) 35% of Industrial rate Residential Farmland Awaiting Development (First subclass) 60% of Residential/Farm rate Farmland Awaiting Development (Second subclass) 0% of Residential/Farm rate Multi-residential Farmland Awaiting Development (First subclass) 60% of Residential/Farm rate Farmland Awaiting Development (Second subclass) 0% of Residential/Farm rate New Multi-residential New Multi-Residential Property (Municipal Reduction) Tax subclass 15% of Residential/New Multi-Residential rate 5. City Council authorize a rate reduction of 15 percent for the New Multi-Residential Property (Municipal Reduction) Tax Subclass of the municipal portion of the existing New Multi-Residential Property Class rate. 6. City Council request the Province of Ontario to provide an equivalent 15 percent property tax rate reduction for the New Multi-Residential Property (Municipal Reduction) Tax Subclass on the education property tax rate for eligible properties. 7. City Council adopt the following property tax capping polices for the 2025 taxation year: a. limit tax increases for the commercial, industrial, and multi-residential property classes by capping taxes at 10 percent of the preceding year's annualized taxes, by opting to have subsection 292(1), paragraph 1, of the City of Toronto Act, 2006, apply for the 2025 taxation year; b. continue to provide that the 10 percent cap on tax increases apply to any property within the commercial, industrial and multi-residential classes, regardless of whether the property had reached full Current Value Assessment taxation levels in a prior year, subject to the threshold adopted in Part c. below; and c. for the purposes of subsection 292(1), paragraphs 3 and 4 of the City of Toronto Act, 2006, adopt a threshold limit of $500 to determine the taxes for municipal and school purposes, such that properties that are within $500 (plus or minus) of their full Current Value Assessment level of taxation in the current year are taxed at full Current Value Assessment taxation levels for the year, and are therefore excluded from capping/claw-back provisions for that year. 8. City Council determine that: a. the instalment dates for the 2025 final tax bills be set as follows: i. the regular instalment dates be July 2, August 1, and September 2 of 2025; ii. for taxpayers who are enrolled in the monthly pre-authorized property tax payment program, the instalment dates be July 15, August 15, September 15, October 15, November 17 and December 15 of 2025; and iii. for taxpayers who are enrolled in the two-installment program, the final instalment date be July 2, 2025; and b. the collection of taxes for 2025, other than those levied under the interim levy By-law 1238-2024 , be authorized. PROPERTY TAX, WATER AND SOLID WASTE RELIEF PROGRAMS 9. Effective January 1, 2025, City Council amend the eligibility criteria for the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low-income disabled persons, and amend, as may be required to give effect to Council's decision, City of Toronto Municipal Code Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill, and any other necessary Municipal Code Chapters, to increase the maximum household income for an eligible person to $60,000, and for each calendar year after 2025, effective January 1 of the year, to annually adjust the maximum household income for an eligible person in accordance with the Statistics Canada, All-Items Consumer Price Index by City, Annual Change - Toronto. 10. Effective January 1, 2025, City Council amend the deadline to receive applications for the Tax Deferral and Tax Cancellation programs, the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low-income disabled persons from August 31 to October 31 of the year for which the application is made, and amend, as may be required to give effect to Council's decision, City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill. 11. Retroactive to January 1, 2024, City Council create a new Co-Operative Housing Grant Program, comprised of 3 new grants, for low income seniors and person with disabilities who are members of, and who reside in, a non-profit housing co-operative (as defined in the Co-operative Corporations Act) in accordance with the eligibility criteria and terms and conditions set out in Appendix E to this report, and delegate authority to the Director, Revenue Services to administer the Grant Program, and amend, as may be required to give effect to Council's decision, City of Toronto Municipal Code Chapters 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill. 12. City Council authorize the Co-operative Housing Grant Program be funded as follows: a. the Co-operative Housing Property Tax Grant Program be funded from the Non-Program Tax Deficiency Account; b. the Co-operative Housing Water Grant Program be funded by Toronto Water; and c. the Co-operative Housing Solid Waste Grant Program be funded by Solid Waste Management Services. 13. City Council delegate authority to the Deputy Treasurer, in the Deputy Treasurer's discretion, to accept a late application for the Tax Deferral and Tax Cancellation programs, the solid waste single family residential low-income relief program and the water rebate for low-income seniors and low income disabled persons, received after October 31, but before December 31, of the year for which the rebate is sought, and amend, as may be required to give effect to Council's decision, City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, Chapter 844, Waste Collection, Residential Properties, and Chapter 849, Water and Sewage Services and Utility Bill. 14. City Council direct that the 2025 interim water rebate for eligible low-income seniors and low-income disabled persons set at a rate of $1.4062 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date), adopted by Council in Item EX19.9 at its meeting on December 17 and 18, 2024 is the final water rebate for 2025. 15. City Council determine that the 2025 Non-Program Tax Account for Rebates to Charities in the Commercial and Industrial Property Classes be set in the amount of $6,257,842 to fund the mandatory 2025 property tax rebates to registered charities in the commercial and industrial property classes, which provision is to be funded, for a net impact on the 2025 operating budget of zero, by the following: a. an additional tax rate of 0.004905 percent be levied as part of the general local municipal levy on the commercial class to raise a further additional local municipal tax levy of $6,129,555 to fund the total estimated rebates to registered charities for properties in the commercial class in 2025; and b. an additional tax rate of 0.001585 percent be levied as part of the general local municipal levy on the industrial class to raise a further additional local municipal tax levy of $128,287 to fund the total estimated rebates to registered charities for properties in the industrial class in 2025. USER FEES 16. City Council approve the 2025 fees and charges in Appendix 3 of the 2025 Mayor's Proposed Budget, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges, and any other necessary Municipal Code Chapter accordingly. 17. City Council direct that the water and wastewater consumption rates for metered and flat rate consumers and water and wastewater services fees in the amounts set out in Appendix 5 to the Mayor's Proposed Budget, which is consistent with the 2025 interim water and wastewater consumptions rates for metered and flat rate consumers and water and wastewater services fees adopted by Council in Item EX19.9 at its meeting on December 17 and 18, 2024, are the final rates and fees for 2025. 18. City Council direct that the solid waste management service rates and fees in the amounts set out in Appendix 5 to the Mayor's Proposed Budget, which is consistent with the 2025 interim rates adopted by Council in Item EX19.10 at its meeting on December 17 and 18, 2024, are the final rates and fees for 2025. 19. City Council delegate authority to the Chief Financial Officer and Treasurer to approve automatic annual inflationary adjustments to the fees and charges set out in Table 1 of Appendix A in the report (February 4, 2025) from the Chief Financial Officer and Treasurer, effective January 1 of each year, commencing in January of 2026, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges accordingly. OTHER 20. City Council authorize that interest be calculated on a monthly basis at a rate of 1.25 percent (15 percent per annum) on the first day of default of any Municipal Accommodation Tax amount or its remittance and every month thereafter where the tax or its remittance remains unpaid, and amend the Municipal Code Chapter 758, Taxation, Municipal Accommodation Tax by removing "to and including the date on which such tax is paid or remitted in full" from the interest calculation accordingly. 21. City Council authorize that interest be calculated on a monthly basis at a rate of 1.25 percent (15 percent per annum) on the first day of default of any Municipal Land Transfer Tax amount or its remittance and every month thereafter where the tax or its remittance remains unpaid, and amend the Municipal Code Chapter 760, Taxation, Municipal Land Transfer Tax by removing "to and including the date on which such tax is paid or remitted in full" from the interest calculation accordingly. 22. City Council approve the establishment of a discretionary reserve fund called the Municipal Land Transfer Tax Stabilization Reserve Fund in City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, Appendix B, Schedule 7 - Corporate Discretionary Reserve Funds, for the purpose of ensuring stable, sustainable revenue for the City by mitigating fluctuations in Municipal Land Transfer Tax revenue during economic downturns or real estate slowdowns, and supporting uninterrupted city operations and services, with criteria set out in Appendix D to the report (February 4, 2025) from the Chief Financial Officer and Treasurer. 23. City Council request the Mayor to consider the viability of a tax rate increase which is at or below the rate of inflation while delivering the services Torontonians deserve in future year proposed budgets. 24. City Council direct the City Manager to establish the cost-of-living adjustment rate for non-union and management employees following the ratification of the collective bargaining agreements for CUPE Local 416 and CUPE Local 79, that takes into consideration the recently approved collective agreements with the City's unions; the previous year's average increase to Toronto's consumer price index (CPI); and the overall economic environment. 25. City Council direct the City Manager to continue the Rolling Program Review to realize further in-year savings and savings to mitigate any 2026 property tax increase. 26. City Council direct the City Manager, through the City's interdivisional universal school food task force, and consistent with the City's development of an Inclusive Economic Development framework, to prioritize local procurement and give consideration to the City's Local Food Procurement Policy as approved in 2013 in the City's strategy to expand the school food program. 27. City Council direct the City Manager to ensure that all City Divisions and boards of the City's Agencies and Corporations include performance against service standards in their annual budget presentations. 28. City Council authorize the City Manager to amend agreements governing the Broadview Avenue Extension project to facilitate the early release of funding contributions held by the Province on behalf of the City, as necessary, on such terms and conditions as are satisfactory to the City Manager, and in a form acceptable to the City Solicitor. 29. City Council direct the City Manager, as part of the forthcoming Toronto Action Plan, to develop a Resiliency Strategy to respond to the potential impacts of tariffs placed on Canadian goods and services by the United States of America, incorporating input from impacted sectors and the Mayor's Economic Action Team, in collaboration with the other orders of government. 30. City Council request the Chief Financial Officer and Treasurer, in consultation with Members of Council, the City Manager, the City Solicitor, the Chief Planner and Executive Director, City Planning, the Executive Director, Development Review, and other relevant Divisions and Agencies, to report to the Executive Committee by third quarter of 2025 on a Community Benefits Charge Allocation Framework, which includes, but is not limited to: a. a legal opinion clarifying provincial requirements associated with the Community Benefits Charge Framework and options available to the City to use community benefit charges to address the local impacts of intensification and population growth; b. a consideration of a mechanism to aggregate Community Benefits Charge funds from multiple developments within a ward toward a local community amenity to support population growth; c. a consideration of a collaborative Community Benefits Charge process, which includes local Councillors and relevant City Staff, that enables flexile and timely responses to emergent local priorities through allocations outside the Budget and 10-year Capital Budget processes; and d. an analysis of how the Community Benefits Charge Allocation Framework and the In-Kind Framework relate to each other, and how this framework should account for local circumstances, including developments on small sites. 31. City Council direct the Chief Financial Officer and Treasurer to ensure reserve funds are stable in the event of US tariffs to allow strategic investments that support the businesses and residents most affected. 32. City Council request the Chief Financial Officer and Treasurer to report on the following as part of the 2026 budget process: a. the annual impact to property taxes in the event that the Municipal Land Transfer Tax is no longer a source of revenue. 33. City Council request the Chief Financial Officer and Treasurer, when describing annual budget reductions in public documents, to separate efficiencies from other forms of savings. 34. City Council request the Chief Financial Officer and Treasurer to initiate a comprehensive review of development charges which incorporates the City's growth-related capital requirements, enhances the flexibility to leverage development charge funding across all eligible capital projects, and considers housing affordability and market trends. 35. City Council request the Chief and General Manager, Toronto Paramedic Services to provide a multi-year staffing plan by June 2025 after completing a detailed staffing analysis for consideration through annual budget processes to add staff resources over the next five years to respond to: a. hospital/health care system pressures; b. rising emergency call demand; and c. increasing response times to critical patients. 36. City Council direct the Chief and General Manager, Toronto Paramedic Services to create a multi-year complement-management plan for Toronto Paramedic Services. 37. City Council authorize the General Manager, Toronto Water, in consultation with the Chief Financial Officer and Treasurer, to accelerate the cash flows included in Toronto Water's 2025-2034 Capital Budget and Plan as operationally required to enable implementation of the 2025 Mayor's Proposed Budget, consistent with direction communicated in the 2025 Mayor's Proposed Budget. 38. City Council amend City of Toronto Municipal Code Chapter 743, Streets and Sidewalks, Use Of, to include a definition of Road Disruption Activity Reporting System (RoDARS) and a new definition of RoDARS Approval, to create a new Article III.1, RoDARS, and to amend Sections 743-1, 743-7B, 743-18, 743-34 and 743-49A, such amendments to be effective April 1, 2025, generally as set out in Appendix D to the report (February 4, 2025) from the Chief Financial Officer and Treasurer. 39. City Council authorize amendments to the Municipal Code to enable the City's Deputy Treasurers to perform the duties and responsibilities previously performed solely by the City's Controller to reflect organizational and governance changes. 40. City Council direct the General Manager, Parks and Recreation, to realize service improvements and in-year savings from the implementation of the recommendations of the Audit of Parks Branch Operations and report to City Council prior to staff's preparation of 2026 budget and no later than third quarter of 2025. 41. City Council direct the Executive Director, Municipal Licensing and Standards to temporarily restrict any new Tesla vehicles from participating in Zero Emission Grant Program for vehicles for hire (i.e., taxis and limousines) effective March 1, 2025, and allow all other electric vehicles to continue to qualify for the program, until such time as the negative U.S. trade action has ended. 42. City Council request the Executive Director, Housing Secretariat, as part of the $4.5 million within the 2025 capital budget for the Housing Secretariat to develop a new Choice Based Housing Access System for new affordable rental housing, to provide for the inclusion of sector-specific resident targeting for important groups such as workers in the arts, film, television and culture sector. 43. City Council authorize the Executive Director, Social Development, Finance and Administration, in collaboration with the City Clerk and General Manager, Economic Development and Culture, to negotiate and enter into agreement(s) with the Strong Cities Network as required, for the City of Toronto to host the Strong Cities Network's 2025 Global Summit, on terms acceptable to the Executive Director, Social Development, Finance and Administration, and in a form satisfactory to the City Solicitor. 44. City Council authorize the Executive Director, Social Development, Finance and Administration, in collaboration with the City Clerk and the General Manager, Economic Development and Culture, to negotiate and enter into agreement(s) as required with Federal and Provincial Governments to receive funds to support the planning and implementation of the Strong Cities Network's 2025 Global Summit, on terms acceptable to the Executive Director, Social Development, Finance and Administration and in a form satisfactory to the City Solicitor. 45. City Council request the General Manager, Transportation Services, to dispatch the increased Traffic Wardens to traffic pinch points related to suburban access and egress to highways where traffic management is appropriate to improve traffic speed and reliability for all road users. 46. City Council request the Chief Procurement Officer, in consultation with all City Divisions and Agencies, to: a. align procurement activities with the Government of Ontario's approach in responding to US tariffs where feasible; and b. engage with the Federal and Provincial governments on a Canada/Ontario priority solution, where permissible within the Canadian Free Trade Agreement and Canada-European Union Comprehensive Economic and Trade Agreement, regarding procurement of new subway cars. 47. City Council request the Toronto Transit Commission board to: a. when describing annual budget reductions in public documents, to separate efficiencies from other forms of savings. 48. City Council request the Toronto Transit Commission board to direct the Chief Executive Officer, Toronto Transit Commission, to develop a multi-year operating budget that decreases the Toronto Transit Commission's reliance on property tax increases by: a. advocating to other orders of government for long-term sustainable funding; b. reviewing the Fare Policy, Fare Collection Outlook, and Ridership Growth Strategy; and c. implementing the recommendations of the Auditor General on fare evasion. 49. City Council request the Toronto Public Library board to direct the Chief Librarian to create a staffing model to support the expansion of the Toronto Public Library Open Hours Plan. 50. City Council request the Province of Ontario to amend the Development Charges Act to authorize municipalities to adjust or remove annual indexing provisions without an amendment to the development charge by-law with the objective of incentivizing housing development. 51. City Council request the Government of Ontario to allow the City of Toronto to keep 100 percent of the property taxes collected within the City of Toronto. 52. City Council reiterate its request to the Provincial and Federal governments that the City needs a new fiscal framework that creates sustainable revenue streams that grow with our economy to alleviate the burden on property tax payers and reflects our city's size, complexity and contribution to the economy.