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KEY TAKEAWAYS
Mississauga residents packed the budget committee to speak out against a 5.21% property tax increase while many are already struggling with rising costs. City hall lowered the increase from earlier projections, but did it by draining savings, delaying repairs, and pushing major costs into future years. Residents warned this feels like election-year math, not long-term planning — and the bill may come due right after voters head to the polls.
What Happened
Mississauga approved a 5.21% combined tax increase by using $33 million from emergency reserves instead of permanent savings
Infrastructure repairs were cut by $259 million, delaying road, park, and building projects
A long-standing fire station funding program was paused, shifting growth costs into future years
City staff acknowledged taxes are projected to jump again in 2027 after the election
Major future costs — including a new hospital levy — were excluded from the current budget
Why This Matters
This budget keeps taxes lower today by borrowing from tomorrow. Repairs were deferred, reserves were drained, and future tax hikes were quietly baked in — all while residents warned affordability is already stretched to the limit. If income growth doesn’t catch up, homeowners may face even steeper increases just a year from now, with fewer options left to soften the blow.
FULL MEETING COVERAGE
Mississauga's Budget Committee heard from more than two dozen residents on January 13, 2026, as the city presented its proposed 2026 budget with a 5.21% combined property tax increase. The city portion is 1.61% and the Region of Peel portion is 3.6%. The meeting ran from 6:08 PM past 11:00 PM.
Resident Khaled Shuja, representing over 3,000 petition signers, told council:
"Today is the final meeting where residents are invited to speak. Yet many residents strongly feel that the decision to approve a property tax increase has already been made and that we say today may not change the outcome."
What You Need to Know
The proposed 2026 budget is much lower than the originally forecasted 10-13% increase. The city achieved this by:
Taking $33 million from reserve funds (money set aside for emergencies)
Cutting the capital infrastructure levy from 3% to 1% (money used to fix roads, parks, and buildings)
Pausing the 1% public safety fire program (money to build new fire stations)
Multiple residents said this looks like election-year politics. The city's own projections show a 5.5% increase planned for 2027—right after the municipal election. Property taxes have increased nearly 40% since 2019, while most household incomes have not kept up.
Council and staff said the temporary measures are necessary and pointed to future savings from taking over services from the Region of Peel, including roads and waste management. These changes could save Mississauga taxpayers about $60 million per year once fully implemented.
All motions to receive deputations and presentations passed unanimously.
How the Budget Was Built
Director of Finance Faraz Ahuja explained that the 2026 budget totals $789 million in operating expenses—a $41.9 million increase from 2025. The budget was originally forecast to increase by 13.3%, but staff found ways to bring it down to 1.61% for the city portion.
Where Your Tax Dollars Go:
The city only receives 37 cents of every property tax dollar you pay but delivers more than 200 services like transit, parks, recreation, and emergency services. The Region of Peel gets 48 cents, and the province takes 15 cents for education.
Major Cost Increases:
The biggest expense driving the budget up is labour costs, especially union contracts. All city union agreements were settled in the same year, which is unusual. Labour makes up 76% of the cost to maintain current services, and 68% of that is from union settlements.
Where Savings Were Found:
Staff identified $17.4 million in savings, including:
$1.8 million from using hybrid buses instead of diesel
$1.7 million from lower fuel prices
Money saved through IT improvements
Reducing temporary staff positions
The city added almost no new programs for 2026. The few additions include more bylaw enforcement officers and staff to approve housing projects faster.
The Big Cuts: Infrastructure and Fire Safety
Infrastructure Levy Reduced
The city normally adds 3% to your taxes each year to fix roads, repair parks, and maintain buildings. For 2026, this was cut to just 1%—a reduction of $259 million in repairs and improvements.
What got cut or delayed:
Road repairs: $110 million less
Park improvements: $60 million less (including $46 million for major park upgrades)
Community centre renovations: $35 million less
Fire station maintenance: $26 million less
Library technology: $23 million less
"This change was extremely difficult to achieve. We had to rework the capital budget multiple times to balance the numbers."
The infrastructure levy is planned to go back up to 3% starting in 2027.
Fire Program Paused
Since 2019, the city has been adding 1% to taxes each year to build new fire stations as Mississauga grows. This program has been paused for 2026, saving another 1% on your tax bill.
The program is scheduled to restart in 2027 and 2028.
Taking Money from Savings
The city is using $33 million from its reserve fund—like a savings account—to keep the 2026 tax increase lower. This money is normally saved for emergencies like snowstorms or unexpected costs.
CFO Marissa Chu explained that this reserve fund is meant for "unforeseen or uncertain liabilities relating to labor settlements, assessment appeals, legal settlements and other commitments."
Chu said 2026 is unusual because all the city's union contracts were settled in the same year, creating a big one-time expense. She said the city doesn't plan to keep using reserves this way every year.
Many residents questioned whether this is wise financial planning or just a way to keep taxes lower during an election year.
Future Savings: Taking Services from the Region
Mayor Carolyn Parish explained that the city is working to take over several services currently run by the Region of Peel. This should save Mississauga taxpayers significant money.
Services Coming to Mississauga:
Roads maintenance (was supposed to start July 1, 2026, but may be delayed to 2027)
Garbage and recycling collection
City planning
Possibly our own police force
These changes were approved by the provincial government in December 2025. Once fully in place, they could save about $60 million per year.
"We know for sure we'll be saving 30, 48, about 60 million a year by taking those out of the region and handling them ourselves."
The catch?
These savings aren't included in the 2026 budget because the services haven't transferred yet. If roads are delayed to 2027, Mississauga won't see the $15 million in savings expected for 2026.
Hospital Funding: $390 Million Commitment
Mississauga has committed to paying $390 million toward building the Peter Gilgan Hospital at Trillium Health Partners. This will be Canada's largest community hospital when completed around 2033.
Starting in 2029, residents will pay an extra 1% property tax increase each year to fund this hospital. This 1% tax will continue for several years. Whatever isn't collected through this tax will be borrowed by the city, similar to a mortgage.
The hospital levy is not part of the 2026 budget—it starts three years from now.
What Residents Said: Top Concerns
More than a dozen residents spoke at the meeting. Here are the main themes that came up repeatedly:
1. Election-Year Politics (Most Common Concern)
Multiple speakers showed charts proving that tax increases are always lower in election years. Athena Tagadoo from Applewood Hills showed data:
2018 (election year) was 2.07%
2019 was 2.73%
2022 (election year) was 2.5%
2023 was 5.53%
2025 was a massive 9.2%.
The city's own budget projections show 2027 at 5.5% and the Region of Peel estimating 6.3%—potentially a combined 11-12% increase right after the October 2026 election.
Khaled Shuja, who collected 3,000 signatures on a petition, said:
"I strongly feel that budget sessions like this often function as a release valve. Residents are allowed to speak, frustration is heard, but decisions proceed largely unchanged."
2. Unsustainable Tax Growth
Property taxes have increased 39.1% since 2019—nearly 40% in just eight years. Meanwhile, pensions and most salaries have increased only 2-3% per year to match inflation.
Christine Kosmara, a retiree on a fixed pension, explained:
"For me as a pensioner, pensions increase by whatever the CPI is—it's 2%. So it's not sustainable when salaries and pensions increase by such a small amount in comparison to what our taxes do."
3. Comparing Mississauga to Other Cities
Several speakers noted that Mississauga's 5.21% increase is much higher than nearby cities:
Oakville: 1.96%
Toronto: 2.2%
Kitchener: 2.2%
Vaughan: 3%
London: 3.4%
4. Reserve Fund Concerns
Multiple residents questioned the wisdom of taking $33 million from emergency savings. Robert D'Oro quoted a city staff report warning that:
"The use of reserves without a corresponding reduction in spending would result in a higher tax rate impact in future years."
Dale Bassen from the Rockwood Residents Association said:
"Costs deferred in 2026 will simply reappear in the 2027 budget, compounding affordability challenges rather than addressing them in a sustainable way."
5. Regional Peel Unfairness
Mississauga pays 62% of the regional police budget even though Brampton now has a bigger population. A 50-50 split would save Mississauga taxpayers about $100 million per year on police costs alone.
Several speakers asked why council can't vote together at the Region to fix this, since Mississauga has 12 votes, Brampton has 9, and Caledon has 3.
Mayor Parish explained that the 62% split is based on property values (Mississauga has more expensive buildings), not population. She's working with the province to either get a fairer formula or create Mississauga's own police force.
6. Wasteful Spending Examples
Mike Harris, from Applewood Hills & Heights Resident’s Association questioned:
Tree planting program costing $500 per tree (stakes and watering bags seem excessive)
Replacing 8-15 sidewalk slabs in a row when only one is broken
Using massive 6x6 posts for small park signs
Central Parkway installing roundabouts when traffic lights already work fine
George Tavares criticized the windrow clearing program (city plows clearing snow from driveways). He said it leaves "compacted snow in the middle of driveways" and creates a fairness problem since condo and apartment residents already pay for private snow removal through their fees but also pay city taxes for a service they don't get.
7. Program Effectiveness
Freda Ricardo, who volunteered with Safe City Mississauga (a crime prevention program), said:
"I saw that the work presented to the public does not match what is being done. Why is taxpayer money being directed into services that are ineffective?"
Councillor Dipika Damerla defended the program, saying the neighbourhood watch and business watch programs have helped reduce thefts in her ward.
8. Requests for Independent Audit
Several speakers asked for an independent financial audit to review city spending and make sure tax dollars are being used wisely. Dale Bassen's residents association specifically requested:
"A cost-benefit analysis of spending to provide residents with confidence that public funds are being used responsibly."
Council's Response
Councillors and staff emphasized they're listening and working hard to keep costs down. Deputy Mayor Pat Mahoney said:
"We understand last year was a horrendous budget... We've really tried our best to sharpen the pencil."
Mayor Parish reminded residents about the upcoming $60 million in annual savings from taking over regional services, saying:
"We're not stupid. We know if we cut too hard this year with no prospect of replacing it, we're doing a disservice to all the taxpayers."
Surprise Announcement: Possible Provincial Money
Sherry Davis told council she heard from her MPP (provincial representative) Deepak Anand about police funding costs:
"The city of Mississauga will be getting a significant amount of money in the millions of dollars from the province to alleviate the tax burden on our home and business owners caused by this disparity"
Davis said the announcement is "supposed to be made in the next few days."
Mayor Parish looked surprised and said:
"I never count my chickens before they're hatched. I don't even have any chickens on the ramp coming up to see me. I think Deepak probably chatters a bit too much. If in fact this is happening, it's not included in this budget. I hope you're right."
This potential provincial funding is not included in the 2026 budget numbers.
Other Questions Answered
Staff answered questions about basement apartment taxation and the storm water charge during public question period.
Basement Apartments: When you legally add a basement apartment and get a building permit, MPAC (the provincial property assessment agency) increases your home's assessed value. This means you automatically pay higher property taxes. The number of people living in your home doesn't change your taxes—only the value of your property.
Storm Water Charge: This is a separate fee on your water bill (not part of property taxes) that pays for flood prevention, fixing storm sewers, and helping residents whose basements flood.
The charge increased by 4% for 2026. For an average home, this equals about $1.28 more per year, or roughly $5 total increase when spread across the year. This money can only be used for storm water projects—it cannot be spent on other city services.
Next Steps
Council will meet again on January 20, 2026 to continue budget discussions. Under the strong mayor legislation, there's a 30-day period when councillors can propose changes (amendments) to the budget.
A special council meeting is scheduled for February 4, 2026 where all amendments will be voted on. After that, Mayor Parish has 10 days to veto any changes if she chooses. If she uses her veto power, council can override it with a two-thirds majority vote within 15 days.
The budget will become official at the end of this process unless council or the mayor shortens the timeline.
Councillors requested staff presentations on IT improvements, the planning and building department, and a detailed list of which projects were delayed due to the infrastructure levy cuts.
UPCOMING KEY DATES
January 20, 2026: Budget Committee meeting continuation
February 4, 2026: Special Council meeting for amendment voting
February 14, 2026: Earliest date for mayoral veto (if applicable)
March 1, 2026: Final deadline for council override of veto (if applicable)
July 1, 2026: Originally scheduled regional roads transfer date (under review)
2029: Proposed start date for 1% Peter Gilgan Hospital levy
2033: Peter Gilgan Hospital substantial completion target
SOURCE NOTE
This analysis is based on the January 13, 2026 Budget Committee meeting and supporting documents. Voting records were not provided by name for individual agenda items; unanimous votes were recorded by show of hands. Where councillors are specifically named in votes, information comes from resident deputations citing publicly available council records from prior meetings.