At its meeting of Tuesday, December 17, City of Toronto Council approved extending the the City Building Fund to invest another $6.6 billion for improving Toronto’s transit system and building more affordable housing across the city.

The City can only invest this dedicated levy in major transit and housing capital initiatives. This separate levy (or tax) will generate extra revenue that City staff will now incorporate into the 2020 to 2029 tax-supported capital plan. The staff-recommended 2020 operating and capital budgets will be available for the public to review Friday, January 10, 2020.

The plan increases the City Building levy by 1.0 per cent in 2020 and 2021 (bringing the total levy to 1.5 per cent in those years) and extends the current levy by 1.5 per cent annually from 2022 until 2025, costing the average Toronto household about $45 per year. The City will phase in the increases year over year, totalling a household tax increase of about $280 over six years.

Mayor John Tory said, “Extending the City Building Fund puts Toronto on the right path to improve our existing transit system as the provincial and federal government help fund further transit expansion and the right path to build more affordable housing so people can live here. This is the best way forward - given the current political climate and the true lack of revenue tools realistically available - to help us raise $6.6 billion for transit and affordable housing. These are investments we need to make to protect and continue our city’s success.”

Councillor Gary Crawford, the City’s budget chief, stated, “Over the last five years, we have saved taxpayers $891 million… We have saved millions, but we need billions to make major infrastructure investments. To do that, things have to be done differently. Extending our City Building fund will provide the necessary dedicated funding for specific priorities. This dedicated levy… ensures that the money collected is used to invest solely in our transit and housing infrastructure.”

The City Building Fund was first approved by City Council as part of the 2016 budget. You can learn more about the City Building fund here.