After Chow makes her pitch, Councillor Holyday asks Chow about the use of reserve funds in the budget.
Chow says this budget is the result of "prudent fiscal management" where the city saved money over the last few years for things like FIFA, collective bargaining agreements, and shelters.
"How do we face the public knowing that our expenses will continue to go up, and we won't have reserve funds to offset those costs?" asks Holyday.
Chow says reserve funds will continue to grow. She's hopeful the federal gas tax contribution to municipalities will increase, which will help even more
"Will you commit that if you are re-elected, you will deliver next year's budget also at the rate of inflation?" Councillor Brad Bradford asks Chow.
Chow runs out the clock talking about reserve funds and affordability. She notes Bradford advocated for using reserve funds in recent years.
"You are effectively trying to buy Torontonian's votes with this budget," says Bradford. "Do you know how much you'll have to raise taxes to replace the $550 million draw you're raiding from the reserves this year?"
Chow rejects the premise. Again points out Bradford tried to use reserves last year
Moving on, Chow notes that she recently gave PM Carney a card for the Chinese New Year with a house on it. Inside, she wrote a message about building fast. (It's the year of the horse, and horses are fast, she explains.)
Budget Chief Carroll has A LOT of motions, including:
- $6.2 million to offset fed funding for youth violence prevention, if necessary
- $355K for rat response and coyote coexistence
- $300K for youth hub in Scarborough
- $150K for Scarborough food scene pilot
More Carroll motions:
- $200K for free school field trips to the zoo
- $100K for Cecil Street Community Centre
- $32K for Neighbourhood Climate Action Grants
- $30K for Weston Area Emergency Supports
- $75K for Weston Community Association
- $35K for fireworks at Mel Lastman Square
Even more Carroll motions:
- $45K for banners in Little Iran
- $80K for Malvern community initiatives
- $15K for vehicle theft prevention pilot
- $150K parks in Don Valley West
- $100K for drop-in centres
- $185K for legal services for tenants
And yet more motions from Carroll:
- $7K for Thorncliffe Park Sports
- $50K for micromobility in Greektown
- $90K for pest removal at Toronto Seniors Housing.
"There's nothing there! Nothing but the hiring plan and the collective bargaining agreement," says Carroll of the police budget increase. She says that's also true of many other departments.
"I hope you will keep that in mind and not plunder these budgets," she adds.
Councillor Holyday has three motions, all in service of reducing draws on reserve funds:
- Eliminate the new fare capping policy on TTC
- Start charging fares for kids under 12
- Increase TTC fares
Councillor Holyday requests that the City Clerk install a red warning light on the desks of councillors. "I want that red light to show that the gas tank is empty. We're running on fumes. That's the fuel warning light — that we're drawing down on reserves to make the budget appear as it does here."
On behalf of Deputy Mayor Malik, who is not in the chamber, Councillor Morley moves to add $450K to fix up the Amsterdam Bridge on the waterfront, and $2.125 million to revitalize Victoria Memorial Square. Both funded via dev fees.
Councillor Mike Colle takes a moment to encourage people to visit their local Italian bakery.
And that, appropriately, brings us to lunch. Back at 2 p.m. to polish off this budget debate.
Council is back. Councillor James Pasternak moves to remove $4 million in near-term funding for a new homeless shelter on Wilson Avenue, saying the project needs more time for consultation.
"We're the leading producer of housing in this country, yet we were cut by $10 million from the Housing Accelerator Fund based on a petty dispute over sixplexes," complains Pasternak.
Pasternak ends by apologizing to the police for his earlier question about "hiding behind the charter." He says he has "high regard for them and high respect for their work."
Bravo asks Pasternak if he's concerned that his motion could delay the opening of the Wilson Ave shelter by 12-18 months, and/or force the city to break design and construction contracts, and/or cost $340K per month as the city is forced to shelter people in hotels. Pasternak is not concerned.
Here's my ongoing motion tracker for this city budget debate, if you want to play along at home. I'll update it with motions as they come and the results of the votes when we finally get there.
https://datawrapper.dwcdn.net/GqDUo/2/
Toronto Budget 2026: Motion Tracker
Based on motions from the February 10, 2026 Council meeting. Work in progress.
Councillor Lily Cheng laments that "every year I have to advocate for economic and cultural investments" in North York Centre.
She warns that without those investments, the North York Centre Secondary Plan and resulting population growth will turn the area into a "vertical suburb."
"There have some people that are saying, 'OK, the police budget, why did you increase it?'" notes Councillor Mike Colle. "And I say, 'Where the heck have you been?' The policework has meant there's a significant decrease in criminal activity in Toronto."
Councillor Parthi Kandavel moves a pair of motions: one to accelerate playground and splashpad construction at Bluffer's Park, and one to speed up a rec centre project.
Councillor Bradford moves to move some capital dollars up to speed up the Main Square Community Centre project.
"Mayor Chow is using one-time reserve draws to paper over operating costs. The same operating costs that she has ballooned since taking office," says Bradford. "It's not that we've never used reserves — it's to the extent and what we are using them for."
Bradford calls Chow's budget "financial malpractice."
"This budget is mortgaging the city's future to make an election-year budget look better on paper today."
"I do have an announcement for everyone — it's raining!" says Councillor Fletcher, metaphorically. "We have somebody south of the border creating a lot of storms!"
She points to tariffs and the economic situation as reasons to prioritize affordability in this budget.
Before Council voted on the budget motions, Councillor Mike Colle declares a conflict of interest on any TTC-related portions and says he won't vote on those parts. His son Josh works for the TTC.
All 18 parts of Councillor Shelley Carroll's omnibus budget amendment CARRY 23-2.
Councillor Stephen Holyday's motion to cancel the TTC's new fare capping program FAILS 3-21.
Holyday's motion to change TTC policy so kids under 12 have to pay fares FAILS 1-23.
Holyday's motion to raise TTC fares this year FAILS 1-23.
Councillor James Pasternak's motion to delay funding for the new Wilson Ave shelter FAILS 5-20.
Councillor Bradford's motion to accelerate the Main Square Community Centre Redevelopment Design project CARRIES 25-0.
And that completes the debate on the mayor's budget. Unless Chow vetoes any of the amendments — and she won't — it'll be deemed adopted shortly.
But we're not done yet. There's still the not-so-small matter of approving the tax rates. https://secure.toronto.ca/council/agenda-item.do?item=2026.CC38.1
On the tax rate item, Councillor Carroll moves an expected motion to increase the tax break for small businesses from 15% to 20%. The money will be offset by a larger increase to larger businesses in the commercial property tax class.
Carroll also moves for the City Manager to continue with his rolling review of programs to look for more savings. And for the feds to continue funding youth violence programs. And for a review of eligibility for the small biz tax class.
"We promised that we would work on paying the COVID bill, and then we would stabilize. And as a result, you have one of the most reasonable property tax increases anywhere in the GTHA. Others are not finished paying their COVID bill!" says budget chief Shelley Carroll.
"If you're worried about our reserves, I don't think the public should come away from watching this little TV show on YouTube without remembering we have almost $10 billion in reserve. Almost 10 billion dollars!" says Carroll.
Councillor Myers moves for a report as part of next year's budget on ways to improve the working relationship between the TTC and City Hall. He says that could include the city attaching KPIs to the operating subsidy, and the TTC formalizing requests for what they need to meet those KPIs.
The budget motion tracker has been updated with the vote results.
https://datawrapper.dwcdn.net/GqDUo/5/
Toronto Budget 2026: Motion Tracker
Based on motions from the February 10, 2026 Council meeting. Work in progress.
Councillor Josh Matlow moves for the City Manager to start negotiations on getting the city a share of the HST. He doesn't offer a speech, though. I guess it speaks for itself.
Matt Elliott
Deborah Preuss, pcc 🇨🇦