LIVE UPDATES: Toronto City Council to consider eliminating Tesla subsidy as it meets to finalize budget

Toronto Mayor Olivia Chow speaks ahead of a budget debate at city council Feb. 11, 2025.

Toronto City Council is considering Mayor Olivia Chow’s latest budget, which includes a proposed 6.9 per cent tax hike.

The tax hike is comprised of a 5.4 per cent property tax increase, along with a 1.5 per cent increase to the city-building fund. It follows a tax increase last year of 9.5 per cent.

The city has said the increase would mean an extra $268.37 a year for an average home with an assessed value of $692,031.

Water and garbage fees are also set to increase by 3.75 per cent.

The $18.8 billion operating budget has grown by $1.8 billion compared to last year. City staff say much of that is the result of inflation and growth.

The budget also includes money for expanded food programs, longer public pool hours, more parks staff, a freeze on TTC fares, more traffic wardens and union-negotiated wage increases for city staff.

Follow along here for live updates.

2:50 p.m.

Coun. Vincent Crisanti has moved a motion to cut two points off the property tax increase by finding $92.9 million – $37.9 million from reserves and $55 million by reducing expenditures by 1.3 per cent across all departments.

His motion draws some intense debate with other councillors on the floor.

2:40 p.m.

Mayor Chow’s office says they are confident her motion will go ahead on dropping Tesla vehicles from eligibility for vehicle-for-hire licensing grants from the city.

2:30 p.m.

Coun. Dianne Saxe says other levels of government should be doing more in their areas of responsibility, but just because they aren’t, it doesn’t mean the city can stop. She points to what happened when asylum seekers were shut out of shelters because the federal government wasn’t chipping in enough support.

However she adds that people need to see results for their money.

“When people pay more, they have a legitimate right to get more. They have a right to see the basic services that the city provides get better,” Saxe said.

2:20 p.m.

Coun. Stephen Holyday has moved several motions aimed at reducing the property tax increase, including a reduction in the TTC’s operating budget.

2:10 p.m.

Council has resumed.

1:55 p.m.

Coun. Shelley Caroll says she’s not sure Mayor Chow’s motion on barring Tesla vehicles from grants for Taxi drivers will go ahead today.

12:35 p.m.

Council has recessed until 2 p.m.

12:30 p.m.

Coun. Vincent Crisanti says he’s hearing from constituents who are concerned about repeated tax increases.

“We’ve already heard the phrase ‘light at the end of the tunnel,’” Crisanti said. “People are asking me, ‘Councillor, is there a light at the end of the tunnel where we’re going to see better days when it comes to these tax increases?’ They feel the tunnel is getting longer, the light is getting a little dimmer.”

He points out that a provincial election is a great time to pressure the province when it comes to negotiations on a new deal for the city.

Crisanti also asks if the TTC could be more aggressive on fare evasion.

Chow says funding talks continue with other levels of government. She also says that the city does want to tackle fare evasion, but switching to single-door boarding on the TTC would make service worse and some people feel the fare evasion fines are already quite aggressive.

12:15 p.m.

Coun. Lily Cheng asks how the city will be able to continue funding community infrastructure long-term without the old tools and avoid a “dystopian” version of Toronto.

“It’s a lot of money, and no one is saying how we’re going to replace it,” Cheng said.

Chow says discussions are underway for part two of a new deal with the province and that discussions are also underway with other levels of government. She said the city is also advocating for revenue tools tied to growth.

12:05 p.m.

Coun. James Pasternak challenges the idea that you can’t build the city without raising property taxes. He lists a number of community facilities that were built when the city held property tax increases to the rate of inflation.

Chow counters that those things were built back when the city had Section 37 funding from developers, a tool it no longer has.

11:55 a.m.

Coun. Jon Burnside is also questioning the need for a 6.9 per cent tax increase and says the city should be more aggressive on cracking down on fare evasion on the TTC.

“No one is ever happy when we’re asking people to pay more, but we have to fix the city,” Chow says.

TTC Chair Jamaal Myers jumps in and says nobody did anything about fare evasion before Chow was mayor.

11:30 a.m.

Coun. Stephen Holyday is questioning why the city needs to grow the operating budget by $94 million.

He said this is not the year for “big changes” and said a 6.9 per cent tax increase feels like more instability to many people.

“If we just did what we did last year, we could reduce it by $94 million and take nearly two per cent off of the tax increase,” Holyday said. “Why would we not take that choice, just given the circumstances in the world right now, right?”

Chow said the city needs the extra money to fix TTC infrastructure and fund growth.

“Because our city is growing, we have to hire more frontline officers, whether they’re police, the paramedics, the firefighters,” Chow said.

9:30 a.m.

Mayor Olivia Chow says she’ll be moving a motion to ban Tesla from the list of vehicles which qualify for a $4.85 million licensing fee grant program aimed at encouraging taxi drivers to buy electric vehicles.

Chow did not answer directly when asked if she is taking the move because the company is headed by Elon Musk, who is a close associate of U.S. President Donald Trump.

Trump has been threatening Canada with tariffs since taking office and signed an executive order Monday imposing steel and aluminum tariffs on Canada.

She said she is taking the move, which would come into effect on March 1, because Tesla is a “very popular brand” and said that there is “no reason” the city should be providing subsidies for it.

“People can still continue to buy electric vehicles, just not Tesla. I see no reason why the city should subsidize the purchase of Tesla,” Chow said.

Chow said the move will not affect taxi drivers who already own Teslas and operate them under the program.

She said the city has other ideas for how it might respond to U.S. tariffs that it could unveil down the road as part of its Toronto Action Plan.

However she reiterated that she does not support a proposal from Coun. Brad Bradford to use reserve funds to provide a 25 per cent property tax reduction for industry and small businesses in the face of tariff threats.

“This is the worst time one would raid a reserve fund,” Chow said. “Why? Because we have a senseless trade action from the south. We are facing economic hard times.”

She said she nevertheless “looks forward to the debate” at council as to how to use around $3 million in unallocated funds.