LIVE UPDATES: Chow says she’ll move motion to end taxi grants for Tesla vehicles as city budget debate gets underway

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.

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.