Debt
Debt cost as a percentage of property tax revenues, Toronto, 2018-2027
The City of Toronto is exempt from the Province’s borrowing limits, but Council has chosen to set a ceiling at an even lower level -- 15 percent of property tax revenues. The 2018 Budget projects that the City’s debt servicing costs are approaching the 15 percent limit, on average, over the next ten years, climbing from just over 13 percent in 2018 to over 15 percent in 2021 before declining (Figure 10).
Infrastructure investment continues to be a critical priority, debt levels are manageable, and borrowing costs are low. The City’s decision to maintain the 15 percent debt-ceiling will limit its financial flexibility in the years ahead.
