Mayor Soraya Martinez Ferrada has tabled a $7.7 billion budget, representing a 5.4% spending increase. The plan attempts a difficult balancing act: tackling the city’s homelessness crisis while aggressively paying down municipal debt.
Thank you for reading this post, don't forget to subscribe!1. The “Homelessness First” Strategy
The city is pivoting from emergency management to long-term property ownership.
- Operating Funds: $30 million annually for community organizations.
- Capital Investment: $100 million over 10 years to purchase and convert buildings into permanent shelters, reducing reliance on temporary provincial funding.
- Coexistence: New funding for “tactical teams” to manage the impacts of homelessness on local businesses and neighborhoods.
2. Tax Hikes and Revenue
While the spending is up, the Mayor has tied tax increases to the rate of inflation.
- Residential Tax: Average increase of 3.8%.
- Non-Residential Tax: Average increase of 3.4%.
- Borough Variance: Your actual bill will depend heavily on where you live. Some boroughs (like RDP–PAT) face hikes over 5%, while others remain near 2%.
3. “Trimming the Fat” at City Hall
To offset the $7.7B price tag, the administration is focusing on internal efficiency:
- Headcount Reduction: A plan to eliminate 1,000 administrative positions through attrition and a hiring freeze.
- Debt Reduction: $87.3 million in “accelerated payments” to lower the city’s debt-to-revenue ratio to 100% by next year.
4. Urban Transit and Infrastructure
- The STM: $1.8 billion for transit operations, including the continued rollout of the Blue Line extension.
- Public Safety: $17.4 million for “secure school zones” and a $40 million commitment for police body cameras.
- Housing: $579 million over a decade to acquire land for social and affordable housing projects.
Summary of Spending Priorities
| Priority | Funding Target |
| Homelessness | $130M (combined annual & capital) |
| Social Housing | $579M (10-year land bank) |
| Civil Service | Cut 1,000 non-essential roles |
| Transit | $1.8B for STM operations |
