The city’s executive committee met on Tuesday afternoon, where a final draft of Toronto’s 2016 operating budget, including a residential property tax increase of 1.3 per cent was approved.
The tax increase, which is in line with inflation combined with the Scarborough subway levy of 0.6 per cent, will see the average homeowner pay just over $70 more annually.
It will go before before city council next week, where its expected final approval will be given.
However, alarm bells were sounded at the executive committee meeting by city manager Peter Wallace.
In a report presented to the committee on Tuesday afternoon, Wallace warned of an over reliance on a hot housing market to bring in revenue and of ever expanding budgets in areas like policing and transit.
He also pointed out that new methods of generating revenue must be identified in advance of next year’s budget process.