On Tuesday, Toronto released its proposed budget for 2023, and things are not looking good for local wallets. So, prepare for a dent in your savings, folks.
According to the city's budget launch presentation, Toronto is planning to invest billions of dollars into its infrastructure this year while prioritizing areas like front-line and emergency services, transit, housing, COVID-19 impacts, and economic recovery.
At first glance, you may think, "good, I want those things improved!" But it's important to note, the city isn't funding those efforts from one gigantic piggy bank. Sadly, it will be tapping into taxpayer money, meaning — unless you have yet to enter the adult world — your bank account is about to take a hit.
So here are the areas that will have a direct impact on your own cost of living this year:
Property Taxes
Toronto's 2023 Budget.
Toronto plans to increase its residential property taxes by 5.50%, with multi-residential units rising by 2.75%. The spike, if approved, will cost the average homeowner an additional $183 per year.
The move marks a significant bump from last year's tax hike. The 2022 budget saw Toronto households pay an extra $93 on their property taxes, representing a 2.9% increase.
The document states that the average home in Toronto has an assessed value of $695,268, so the 2023 property tax of a home at that price point would be $3,569.
City Building Fund
Toronto's 2023 Budget.
The average homeowner will also have to pay another $50 a year toward the City Building Fund thanks to a 1.5% increase to help build transit and housing. This means the average homeowner will actually be paying an extra $233 a year.
Water and Wastewater Consumption
Toronto's 2023 Budget.
The city's 2023 budget has proposed a 3% increase in its water and wastewater consumption rates. If followed through, the change would cost the average household an extra $29 a year "based on 230 cubic metres of water."
Solid Waste Management
Toronto's 2023 Budget.
A planned 3% increase to solid waste management service rates and fees could cost the average single-family residential unit an extra $5 to $16 a year, depending on the size of their garbage bin.
TTC Fares
Toronto's 2023 Budget.
Mayor John Tory recently announced Toronto's intentions to invest $53 million into the TTC's budget, an investment that aims to improve the safety of riders and frontline employees.
However, to cover the massive investment, Tory and the city plan to hike TTC fares by 10 cents, arguing the spike is "well below" an inflation increase and citing the transit's two-year freeze on pricing during the COVID-19 pandemic.
It's worth noting that the following investments and their resulting impacts are still in the proposal phase. Nothing is set in stone until it's presented to city council on February 1 and ultimately approved.
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