On January 13, the City of Toronto Budget Committee greenlit an $18.8 billion operating budget and a $59.6 billion capital budget for the following year. The former will be used to operate the City’s services in 2025, and the latter for key investments in the coming decade. 89 per cent of the cost increases in the budget are focused on key public concerns: public transit, affordable housing, emergency services — including police, medical, and fire services — and collective agreement provisions, which are essentially contracts with city employees, covering wages and benefits.

Transit services

Good news for commuters: Mayor Olivia Chow has pledged $4.9 billion in TTC investment. The funding will support the production of new subway cars, e-buses, and “State-of-Good-Repair” — essentially maintenance for existing infrastructure. Importantly, the City has confirmed that fares will remain frozen at $3.30 for the second consecutive year since the last increase in early 2023. 

Service hours are also set to increase by 5.8 per cent, approximately 500,000 hours, which is expected to reduce wait times during off-peak periods. Additionally, this year’s budget introduces a trial program to address bus and streetcar congestion on busy routes. On-street supervisors will be deployed on key routes, such as Dufferin Street and Don Mills, to help keep service evenly spaced.  

Housing and tenancy

Given Toronto’s surging housing crisis, it’s no surprise that affordable housing remains a top concern for Torontonians in 2025 — as well as for many U of T students who are tenants. The upcoming capital budget includes a 1.5 per cent on the City building fund to support transit and housing initiatives. Additionally, $2.5 million in new spending will be allocated to extend rent bank assistance — financial aid for tenants at risk for eviction due to financial hardship — and increase eviction protection funding.

The City is supporting these increased costs with a 5.4 per cent residential property tax hike, marking the second consecutive year of significant increases following last year’s 10 per cent hike. Multi-residential buildings, such as condos and apartments, will face a 2.7 per cent property tax increase, although this won’t apply to owners of condos and single-family homes who rent out their properties. While these increases are necessary to cover new spending costs, the Toronto Star outlined concerns that landlords may pass the burden onto tenants. 

Collective agreements and city services

The City reached a new collective bargaining agreement with service workers, including waste management staff, Toronto Water workers, and paramedics. The agreement includes higher wages, benefits, and enhanced insurance, helping workers recover some of the income lost due to inflation since the pandemic. 

The City also plans to expand its workforce by hiring 109 police officers, 95 paramedics, and 52 firefighters in the coming months. This move may be controversial — public consultations and preliminary surveys in the 2025 budget launch report indicated that 40 per cent of Torontonians support disinvesting in police services.

Community services

When The Varsity attended a telephone town hall on January 23, some participants expressed concerns about community services such as food programs and Toronto Public Libraries being closed on Sundays. For those who frequent Toronto Public Libraries, there’s good news — 67 branches will now be open seven days a week: a 14 per cent increase in Sunday service. Additionally, school food programs will support 16,425 more students, a 7.2 per cent increase.