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Mississauga's Budget Committee approved $40 million in capital project deferrals enabling a 2% reduction in the capital levy while extending the budget amendment deadline to February 4th.

The committee received departmental presentations from Planning and Building, and Information Technology, and heard from two resident deputations challenging property tax reporting transparency and questioning an 8% labour cost increase. Planning and Building absorbed Region of Peel planning duties without adding staff. IT reduced its headcount from 242 to 237 positions while facing escalating cybersecurity threats.

The Applewood Hills and Heights Residents Association questioned debt management, labour negotiations, transit efficiency, and called for hiring an auditor general.

Why It Matters: The committee approved capital deferrals to reduce immediate property tax pressure while leaving questions about long-term infrastructure maintenance unaddressed. Final budget decisions will occur by February 4th, with the mayoral veto process potentially extending adoption to March 4th if amendments are proposed and passed.

Mississauga's Budget Committee met on January 20, 2026, to review capital budget adjustments and departmental presentations while responding to resident concerns about property tax transparency and spending control. The committee approved $40 million in capital project deferrals, extended the budget amendment period, and heard presentations from Planning and Building and Information Technology departments.

Residents questioned an 8% labour cost increase and pressed for greater accountability through an auditor general.

Resident Dan Anderson presented evidence that city press releases report different figures than the actual property tax levy increases residents will pay. Anderson displayed slides showing the expected increases for 2026 are 4.39% for city services and 7.5% for regional services, while press releases and subsequent media reports communicate much lower figures of 1.61% and 3.6%.

Anderson explained the city uses what he termed "meaningless metrics" that measure the change in the net operating budget rather than the actual property tax levy increase. He provided evidence from multiple years and noted that media outlets including Metroland and Insauga have consistently reported the lower figures to residents.

CEO Jeff Wright responded that the city operates transparently and follows standard municipal practice. Wright explained that the 4.39% represents the overall change in the city's net operating budget, which translates to a 1.61% impact on property tax bills. Wright stated this is standard practice used by municipalities in two-tier relationships with regional governments.

Councillor DeMerlo acknowledged the concern and suggested the city could improve transparency by better explaining how the operating expense increase translates to a lower property tax figure through assessment growth and other factors. DeMerlo noted that not everyone may want detailed explanations, but providing them could improve transparency.

The committee voted to acknowledge Anderson's deputation by show of hands. Individual votes were not recorded.

CFO Marissa Chiu presented revised budget timelines following last week's committee decision not to shorten the 30-day budget amendment period. The budget amendment deadline moved from January 28th to February 4th, with a special council meeting scheduled for 11:00 AM on that date.

The CFO clarified that council cannot vote on the entire budget, only on proposed amendments. If no amendments are proposed, the budget will be deemed adopted on February 4th. If amendments pass with a 50% plus one vote, the mayor can exercise her veto within 10 days.

Council can override the veto with a two-thirds vote of 8 out of 12 councillors within 15 days thereafter.

Councillor Tedjo sought clarification on the voting process. Tedjo confirmed that each amendment would be voted on independently and there would be no final vote on the budget as a whole. The CFO confirmed this understanding and explained that the passage of time process means there is no vote for or against the entire budget.

The latest date the budget could be adopted is March 4th based on the passage of time process. The earliest adoption date is February 4th.

Commissioner Whittemore presented the Planning and Building department budget, emphasizing that the department absorbed Region of Peel planning service duties with no new staff added. The department operates largely on a cost recovery basis through application fees, with a net operating budget of approximately $18 million.

The department proposed a net operating increase of $1.8 million, driven primarily by labour and fringe benefit adjustments. The department achieved $550,000 in efficiencies through reviews of IT and other operations to help offset increases.

Despite the residential industry downturn, the department's workload remains substantial. Planning applications totalling over 35,000 units are currently in process, with 15,000 units completing the approval process in the past year. Building permits issued totalled nearly 5,000, with 2,000 for residential units.

There are 12,000 units under construction, requiring over 100,000 inspections completed on those buildings this year.

The department requested four new initiatives totalling approximately $500,000, all funded through fees or the municipal accommodation tax rather than property taxes. These include zoning examiners, mechanical plan examiners, sign inspectors, and music strategy implementation.

The capital budget decreased by $1.4 million, primarily because the official plan and other studies have been completed.

Mayor Parrish commended the department, noting the city is being recognized by the province, premier, and build industry as the leader in planning and building in the Greater Toronto Area and Ontario.

The committee received the presentation by show of hands. Individual votes were not recorded.

IT Director and Chief Information Officer Ryan Lim presented the Information Technology budget, describing it as a "back to basics" budget focused on strengthening cybersecurity, reducing technical debt, and modernizing infrastructure.

The department supports over 500 solutions and applications, operates a data centre with over 1,200 servers, maintains 897 kilometers of fibre network, and manages 15,572 connected devices including traffic lights, sensors, and elevators. The city receives approximately 2 million email messages monthly, with 1 million flagged as threats and 1,671,000 identified as malicious.

Lim reported that the Canadian Centre for Cyber Security estimated losses in Canada at $383 million in 2021, growing to $1.2 billion estimated in 2025. A nearby city was recently hit with a large cyber attack with recovery costs reaching $18 million and continuing to rise.

The net operating budget shows a proposed increase of $941,411 or 2.3%, driven primarily by the industry shift from perpetual licenses to yearly subscription-based software licenses. The increase includes $143,000 for labour and fringe benefits and $2 million for rising maintenance and licensing costs. These increases will be offset by $350,000 in tax revenue and approximately $712,000 in efficiencies from software rationalization and contract expiries.

The capital budget decreased by $4.2 million as the department shifts from capital funding to operating funding for cloud-based software as a service solutions. The 2026 capital budget totals $18.8 million, with major investments in servers at $4.2 million, AV meeting room upgrades at $1.4 million, hardware life cycle replacement at $1.3 million, SAP upgrade at $1.3 million, and AI initiatives at $450,000.

The department proposed no net new full-time positions in 2026. The department won the Sheridan College Co-op Employer of the Year Award in 2025, with co-op students making up approximately 5% of the IT workforce. The department's headcount will decrease from 242 in 2025 to 237 in 2026.

Councillor Hornick acknowledged the department for reducing staff voluntarily and maintaining a lean budget, noting the department has proposed 0% and 1% increases in future years.

The committee received the presentation by show of hands. Individual votes were not recorded.

The committee reviewed proposed adjustments to the 2026 capital budget and 10-year capital plan. The adjustments included approximately $40 million in project deferrals that enabled a 2% reduction in the capital levy.

Councillor DeMerlo questioned why roads rehabilitation originally requested $33 million but the adjusted budget shows only $15.6 million needed without delaying any projects. Staff explained that roads rehabilitation operates as a "bucket budget" with flexibility to reallocate previously approved funds. When projects that follow other agencies like Region of Peel or Metrolinx get delayed, the city can reshuffle funds to 2026 priorities.

Parks and forestry deferred sports field and court rehabilitation from approximately $4.5 million to $1 million. Staff explained they decided to pause some projects based on capacity and backlog, focusing on higher-priority life cycle work. Staff noted some projects have additional useful life remaining and can be addressed in future years.

CFO Marissa clarified that for capital spending, every 1% reduction equals approximately $60 million in project deferrals or cancellations due to compounding impacts of debt repayment and issuance.

Councillor DeMerlo asked whether the $40 million in capital savings should enable a larger reduction in the capital levy beyond the proposed 2%. The CFO explained this represents the 2026 deferral, and the city reviews the entire 10-year program annually. The CFO noted nothing is set in stone and adjustments can be made based on next year's budget review.

Councillor Dasco asked about $1 million deferred from the Port Street East marina project. Staff explained the environmental assessment remains with the province, and the city is reassessing costs and seeking funding partners. Staff described the changes as timeline corrections.

Councillor Tedjo raised concerns about whether deferring numerous projects across many departments creates gaps in staff work plans. CEO Wright explained that many capital programs hire contract capital staff who would not be hired if projects don't occur. Wright stated the short-term impact is manageable, but if deferrals continue long-term, the city would need to scale back capital programming and delivery staff.

The motion to approve proposed adjustments to the 2026 capital budget and 10-year capital plan was a recorded vote. Individual councillor votes were not recorded by name.

The motion passed.

Councillor Fona held correspondence from Mike Harris on behalf of the Applewood Hills and Heights Residents Association for discussion. The association submitted questions about city finances including debt management, labour cost increases, transit efficiency, and requested the city hire an auditor general.

The association asked why the city maintains investments while carrying debt, questioning whether the city should sell investments to reduce debt levels. The association's letter referenced $30 million in investments and $60 million in debt.

CFO Marissa clarified the actual figures are significantly different. The city has approximately $444 million in outstanding debt projected as of the end of 2026. The city's annual debt repayment for interest and principal totals approximately $64 million. The city maintains between $1 billion to $2 billion in cash and investment portfolio made up of reserve fund balances set aside for long-term capital projects and debt repayment.

The association questioned why the city's labour costs increased by $64.5 million, representing an 8% increase for union and non-union wages. The association asked who negotiates on behalf of the city and whether future negotiations could be tied to the annual Consumer Price Index (CPI).

CFO Marissa explained the $64.5 million labour adjustment is not simply an 8% across-the-board raise. The figure includes multiple components:

CEO Wright explained that staff lead union negotiations with support from HR, labour relations, and legal teams. Wright stated the city aims for negotiated settlements that typically follow wage benchmarks established by other municipalities. When negotiations fail to reach agreement, disputes go to binding interest arbitration decided by third parties, which has recently resulted in significant wage increases.

Next, the association questioned why the city uses full-size buses when many routes rarely have more than five or six passengers. The association asked whether the city could save money by purchasing mid-size buses for less busy routes or times.

CEO Wright explained MiWay maintains a range of fleet sizes from 60-foot articulated buses to 40-foot standard buses. Buses may appear not full depending on the time of day, but the same bus may run on busy routes at peak times then shift to different routes as part of operational efficiency. Wright noted scheduling software optimizes route and bus assignments.

Wright stated the majority of transit costs are labour for operators, so vehicle size has minimal impact on operating costs.

The association requested the city hire an auditor general, citing Vancouver and Aurora achieving 0% property tax increases in 2026 and Vancouver's auditor general achieving 160% return on investment in 2023 and 360% in 2024.

Mayor Parrish explained the city has an audit committee chaired by Councillor Hornick with an established audit work plan. The internal audit group reports to the city manager with a dotted line to the audit committee chair. These are compliance audits ensuring the city follows established policies and procedures rather than value-for-money audits.

Mayor Parrish noted council has the ability to hire independent consulting firms to perform value-for-money audits on specific services if desired. Mayor Parrish stated she has confidence in the current level of government because council members are hands-on, asking questions and receiving answers.

Councillor Fona committed to working with the CFO on written responses to the residents association and may bring back a motion for staff to prepare a report on the pros and cons of establishing an auditor general at the city.

CFO Marissa noted the city has a meeting scheduled with One Investment on February 23rd along with Region of Peel, Brampton, and Caledon to discuss investment strategies.

The CFO committed to bringing back a report after that meeting.

The committee received the correspondence and directed staff to respond. Vote was by show of hands. Individual votes were not recorded.

During any other business, Councillor Hornick indicated he is considering a budget amendment to increase staff gapping targets. The city currently budgets approximately $11 million for the time gap between when someone resigns or retires and when a replacement is hired.

Councillor Hornick stated he will work with the CFO and budget staff to explore adding approximately $4 million in additional time gapping, potentially adding an extra month to hiring processes. Hornick compared this to practices used by banks during challenging years when hiring timelines are extended to achieve savings.

Councillor Hornick also raised the topic of One Investment, a non-profit entity that helps municipalities invest reserve savings. Over the last 10 years, One Investment has achieved a 6% return, double what the city has achieved, though with added volatility. The CFO confirmed a meeting is already scheduled for February 23rd and committed to bringing back a report on findings.

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Source Note

This analysis is based on the January 20, 2026 City of Mississauga Budget Committee meeting and supporting documents. All quotes, timestamps, and figures are drawn directly from official meeting transcripts.