Mississauga’s 2025 Budget adopted

On December 2, 2024, the City of Mississauga’s 2025 Budget was adopted. Charting a path forward to address community priorities while maintaining a vision for building and growth, this budget also reflects the City’s commitment to managing ongoing financial pressures, including inflation. On Thursday, January 23, 2025, the Region of Peel approved its budget.

The 2025 Budget was developed through a collaborative process, incorporating informed recommendations from City staff and leadership to align with the priorities that matter most to residents. Residents also provided feedback through a community-wide Budget Information Session and other City channels.

The 2025 Budget outlines how resources will be allocated to meet service expectations across 13 service areas and more than 200 programs, ensuring value for money and that the services residents and businesses have come to rely on will continue.

Highlights of new initiatives and service enhancements

The 2025 budget features new initiatives and service enhancements, some of which are funded through other non-tax revenue sources and capital reserves. The initiatives prioritize transit, community safety and well-being, support for seniors and winter windrow removal.

Improving safety

• Adding By-law Enforcement Officers for Apartment Rental Compliance and Proactive Inspections programs, and to address other emerging issues
• Adding staff in Animal Services for increased service demands, including requests for public education around coyotes
• Opening Fire Station 124 and adding Communications Operators, Vehicle Technicians and Training Officers

Expanding transit

• Adding 120,000+ transit service hours to meet growing demand for transit service in Mississauga
• Free PRESTO fares for seniors aged 65+ and for children aged six to 12 effective July 1, 2025

Support for residents

• Residential Compassionate Flood Relief Grant Program: one-time payment of $1,000 to support residents impacted by basement flooding due to the July and August severe weather events
• Basement Flooding Prevention Rebate Program: rebates of up to $6,800 for eligible measures
• Vacuum Leaf Collection Program
• Citywide windrow removal, secondary sidewalk clearing and enhanced snow removal for bike lanes (effective Winter 2025/2026)

Highlights of key capital projects

• Renovations for Fire Station 110 & 107
• Design and construction of new net zero Fire Station 123
• Huron Park Community Centre facility renewal
• Cooksville Parkland and Nine Creeks Trail development
• Glenforest Youth Hub construction
• Living Arts Centre renovation
• New and replacement tree plantings
• Decarbonization retrofits of corporate buildings (e.g., River Grove and Huron Park Community Centers) and solar panel installations
• Hybrid Bus acquisitions and hydrogen fuel cell electric bus pilot project

Impact on property taxes

Almost 57 per cent of the City’s revenue comes from property tax. This is the main revenue tool for municipalities as per the Municipal Act, 2001. Mississauga residents will see a 3.3 per cent increase on the City portion of the residential tax bill and business owners will see a 2.2 per cent increase on the City portion of the commercial/industrial tax bill.

Approximately one-third (37 per cent) of every dollar collected in property taxes remains in Mississauga, funding essential services such as:

• Transit
• By-law enforcement
• Fire and emergency services
• Libraries
• Snow removal

The remaining 63 per cent of property tax revenue is distributed to provincial and regional governments with 16 per cent allocated to the Government of Ontario for education and 47 per cent for the Region of Peel for various services, including:

• Housing
• Paramedics
• Police
• Waste and recycling
• Public health and social services

Cost savings highlights

As is standard for the City’s annual budget cycle, Council and staff carefully reviewed every service area for efficiency and value for our taxpayers. Highlights of cost savings include:

• Savings of $229,000 due to lower fuel consumption for hybrid buses compared to diesel buses as hybrids replace diesel buses in the MiWay fleet.
• Savings of $473,000 as a result of IT software rationalization and contract expirations.
• Savings of $132,000 by transitioning Parking Enforcement vehicles from leasing to City ownership.

Cost pressures

Peel Police Budget

Residents and businesses face a number of financial pressures from other levels of government. In particular, the Peel Regional Police budget is increasing by 23 per cent in 2025, with another similar increase planned for 2026. As confirmed by Regional Council, 4.6 per cent of the total Mississauga tax bill increase in 2025 will be driven by police spending. There is only one taxpayer, so the decisions at Peel Region affect Mississauga property taxpayers directly. This means that on a home assessed at $730,000, the proposed police budget increase alone will cost Mississauga property taxpayers more than $400 in 2025.

Apart from the significant police budget increase, how police are funded places a disproportionate financial burden on Mississauga taxpayers. The current funding formula is based on Municipal Property Assessment Corporation (MPAC) assessments, meaning Mississauga pays 62 per cent of the Peel Regional Police budget compared to Brampton paying just 38 per cent. However, our population distribution is much closer to 50/50. As such, Mississauga property taxpayers are paying much more than their fair share for policing services in Peel Region.

Underfunding Peel Region

As members of the Region of Peel, Mississauga property taxpayers also receive less per person than people living in other regions in Ontario, due to provincial underfunding. According to a report by the Metamorphosis Network, residents receive $868 million less or $575 per person every year than other regions in the province. This funding gap must be addressed as it directly affects Mississauga’s property tax bill.

Infrastructure gap

In 2025, the City’s infrastructure gap will be $90 million – that is the gap between what the City needs to maintain infrastructure and the capital budget available. Cities like Mississauga own two-thirds of all infrastructure in Canada, but only receive 10 cents of every tax dollar collected. With infrastructure assets that have an estimated replacement cost of $18.5 billion, the budget pressure on the City of Mississauga to maintain its infrastructure and build for the future is becoming more of a challenge each year. The City’s Capital Infrastructure & Debt Repayment Levy is a critical tool that helps address the cost of maintaining and replacing critical infrastructure. However, the City needs a dedicated and predictable source of funding from upper levels of government to ensure we can meet the demands of building our city.

Looking for more information?

The Business Plan & Budget plays a significant role in shaping our city, so it’s important to take the time to read and understand it. The City’s 2025–2028 Business Plan & 2025 Budget document contains valuable information about how tax dollars are spent and highlights specific projects that will be undertaken throughout the city. Learn more about the City’s adopted 2025 Budget and the budget process at mississauga.ca/budget.

Quotes

“We recognize the difficulties our residents face due to the rising cost of living, and we are making real investments to make the lives of residents better. Our goal is to provide quality services while keeping property taxes manageable. However, we are facing significant financial challenges. The increasing costs of essentials like fuel, utilities, and supplies, coupled with inflation, infrastructure maintenance, and severe weather events, are putting a strain on our budget. This does not include the 23 per cent rise in the cost of the Regional Peel Police or the other financial pressures we face. Despite these challenges, I am proud of the investments in this year’s budget. These include expanded transit services, free transit for seniors and children 12 and under along with improved snow clearing at the ends of driveways. We’re listening and we’re taking action.” – Mayor Carolyn Parrish

“This budget reflects the collaborative efforts of our dedicated City staff and leadership team, aligning with community priorities. It also sets the stage for important projects and initiatives that support residents and businesses alike — paving the way for a stronger Mississauga.” – Geoff Wright, City Manager and Chief Administrative Officer

“This year’s budget demonstrates our commitment to transparency and cost savings as we address the financial challenges posed by other levels of government and increasing economic pressures. Our focus remains on meeting the needs of residents and businesses. By supporting strong business practices, we are strategically managing our resources to ensure the continued delivery of essential services that the public depends on. – Marisa Chiu, Chief Financial Officer & Treasurer

Tags

• Budget and Taxes
• Finance and Revenue