Committee receives 2026 budget update

The Finance and Corporate Services Committee today received a status update on the City’s 2026 budget. The overall tax-supported, transit services and rate-supported budget is facing a year-to-date deficit of $38.59 million. The City is projecting, however, a year-end surplus of $11.16 million.

Second-quarter citywide tax-supported services results show a combined deficit of $40.17 million, driven mainly by winter operations and an $8.92-million Transit Services deficit. Rate-supported programs reported a $10.49-million surplus, mainly due to staffing vacancy savings and higher than anticipated water consumption. Measures such as discretionary spending restrictions and hiring controls continue to reduce operating deficits.

The projected year-end surplus is driven by continued revenue growth, strong performance in rate-supported programs, and mitigation measures, such as spending restrictions, hiring controls and enhanced financial monitoring. The year-end forecast includes a projected $3.31-million surplus for tax-supported programs, a $20.2-million surplus for rate-supported programs, and a $12.35-million deficit for Transit Services.

The City is also monitoring financial implications related to the severe weather event on July 1, as well as subsequent weather events and recently announced tariffs.

The Committee approved a brownfield grant application for 349 Danforth Avenue in Westboro for just under $147,000. The grant would support rehabilitation of the site, which is possibly contaminated due to its proximity to a dry-cleaning business and a former coal-burning heating system.

The approved development would replace the existing two-storey duplex with a new three-storey mixed-use rental building that has 13 residential units and two commercial units.

The overall economic impact of the proposed development is estimated at more than $354,000 in direct construction value. Once completed, the project would add more than $350,000 in residential and commercial assessment to the property tax roll. The applicant estimates the City would see more than $28,000 in increased tax revenues in the first year after the project is completed in 2027. 

City Council will consider these recommendations on Wednesday, September 9.

• Agenda