Ontario Construction News staff writer
The City of Toronto has launched its 2026 budget process with a proposed $63.1-billion capital budget and plan covering 2026 to 2035, the largest 10-year capital plan in the city’s history.
City staff presented the draft capital plan to the budget committee alongside a proposed $18.9-billion operating budget. The capital program is aimed at addressing aging infrastructure and advancing major investments in housing, transit and water systems.
The proposed capital plan includes $42.6 billion in tax-supported spending and $20.5 billion in rate-supported spending. According to the city, capital priorities include maintaining and repairing existing assets and making major investments in housing, roads, bridges, transit and water infrastructure.
A dedicated 1.5 per cent City Building Fund levy, previously approved by council, will continue to support transit and housing projects. Combined with the proposed residential property tax increase, the levy contributes to an overall residential property tax impact of approximately 2.2 per cent in 2026.
City staff described the capital plan as part of a multi-year approach to stabilizing municipal finances while maintaining service levels and investing in critical infrastructure. The city cited efficiencies, reductions and offsets totalling $788 million across recent budgets to help manage financial pressures.
The proposed capital and operating budgets are staff-prepared and subject to amendment. Provincial legislation requires the mayor to present a final budget to city council by Feb. 1, with council scheduled to consider the 2026 budget at a special meeting on Feb. 10.
Public consultations on the budget will continue through January, including budget committee meetings and opportunities for written and oral submissions.
