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Mississauga’s budget committee heard more than $62 million in new spending requests from four major departments, with most of the money going to wages just to maintain current service levels. No budget votes were taken, but large cost pressures were laid out that will shape the final 2026 budget. The committee also advanced planning for two $150-million community centres, creating a major funding gap. While nothing is approved yet, many future costs are already being lined up.

These presentations show how much of Mississauga’s budget growth is already locked in before council votes. Wage contracts, winter service levels, and long-term capital plans leave little room to cut costs later. Advancing projects with large funding gaps increases pressure for future tax increases or debt, while residents are asked to weigh in after many decisions are already set.

Mississauga’s Budget Committee opened a detailed review of the 2026 budget with presentations from four major departments, revealing the scale of cost pressures building beneath the city’s operations. While no votes were taken, staff outlined why spending continues to rise even as service levels remain largely unchanged.

Across departments, most of the increases are driven by existing labour agreements, winter service commitments, and infrastructure demands that are difficult to unwind once in place.

At the same time, committee advanced early planning for major capital projects that carry large funding gaps, setting the stage for budget trade-offs council will face when final approval comes in February.

Fire Chief Steph Malo presented a $16.4 million operating budget increase for 2026. Nearly all of this increase—98%—covers rising labour costs for the department's 830 employees under existing union contracts that include automatic wage increases negotiated in previous years. The fire department represents 23% of Mississauga's total operating budget.

Malo explained that emergency response times have not improved despite budget increases. The department aims to reach emergency calls within 240 seconds (four minutes) at least 75% of the time. In 2024, fire crews met this target only 50% of the time. Population growth, building density, and traffic congestion have contributed to longer drive times.

On capital spending, which funds major purchases like fire trucks and station construction, the budget decreased by $4.2 million from 2025 levels. The department set aside $2.4 million to design two new fire stations—Station 127 and Station 128—but construction timelines have been pushed back. Another $13.4 million will renovate three existing stations, and $6.4 million covers vehicle replacement.

When asked if delayed station construction would compromise public safety, Malo acknowledged some areas fall short of response time targets.

Though crews may arrive after the four-to-six-minute target.

Committee voted to receive the Fire Services presentation for information. No vote was held on approving the actual budget.

MyWay Director Moren Cousin Heath presented a $23.2 million increase to the transit operating budget. The department initially calculated it needed $31.1 million to maintain current bus service levels but found $7.8 million in savings and new revenue.

Heath explained that federal government caps on international student enrolment at Canadian universities caused transit ridership to drop approximately 10% in 2025. International students represent a significant portion of transit users in Mississauga. Fewer students meant fewer riders.

Despite the ridership decline, MyWay is not cutting bus service. Heath explained that ridership decreases rarely translate to simple service cuts because riders come from all parts of the city. The department's planning team adjusts service eight times per year, shifting buses from underused routes to routes experiencing overcrowding. This allows real-time responses without major service disruptions.

The transit system operates more than 500 buses across 63 routes, serving 3,225 stops. In 2024, the system recorded 58.4 million passenger boardings.

MyWay found budget relief through two main sources:

Hybrid buses consume less diesel, allowing staff to reduce fuel purchases and lower the projected diesel price by 10 cents per litre.

Heath projected that fare revenue will cover approximately 47% of operating costs in 2026, with the remaining 53% funded through property taxes.

The capital budget totals $127.8 million for 2026, including 88 new 40-foot buses, 10 articulated buses, and Ontario's first hydrogen fuel cell bus pilot launching late 2026. Capital spending includes $46.2 million for rapid transit projects on Dundas Street and Lakeshore Road.

Councillor Tedjo asked when operating costs for the Hazel McCallion Light Rail Transit (LRT) would appear in budgets. Carolyn Riyle, Director of Rapid Transit, said budget requests would come in 2027 for 2028 operations. Riyle confirmed staff would research how other Ontario cities secured provincial operating funding for their LRT systems rather than absorbing all costs through property taxes.

Committee voted to receive the Transit presentation for information.

Director Helen Nohammer presented a $21.1 million operating budget increase for roads, bringing the total to $110.7 million for 2026. This represents 14% of Mississauga's overall operating budget.

The roads service area maintains all city streets, sidewalks, bridges, traffic signals, street lights, and winter snow and ice control.

The largest cost driver is $12.3 million to annualize enhanced winter maintenance services council approved partway through 2025. Council directed staff to increase snow plowing and road salting frequency on residential streets. The 2025 budget covered November and December costs. The 2026 budget must include a full 12 months of funding to maintain this higher service level year-round.

Additional pressures include $2.7 million for labour costs tied to union wage agreements and $2.7 million for increased salt costs.

Road salt prices have increased industry-wide.

The roads service area manages infrastructure with an estimated replacement value of $6.5 billion—the theoretical cost to rebuild all roads, bridges, traffic signals, street lights, and sidewalks from scratch if they disappeared.

Municipalities track this number to justify adequate funding for repairs before complete failure.

The department proposed five new initiatives totalling $133,000, mostly converting temporary contract workers into permanent full-time employees with benefits.

The capital budget decreased by $69.3 million to $107.8 million for 2026, reflecting shifted project timelines rather than cancelled work. Major projects include Ninth Line widening and Port Credit Active Transportation Bridge construction.

Councillor Tedjo questioned why road rehabilitation shows only $15 million for 2026 but jumps to $62 million in 2027. Nohammer explained staff are conducting new pavement inspections and updating the asset management plan.

The 2027 numbers remain preliminary.

The roads budget excludes costs for taking over regional roads from Peel Region. The provincial government is forcing municipalities to assume these roads, but timing remains uncertain. If the transfer happens in 2026, staff would request additional funding mid-year.

Committee voted to receive the Roads presentation for information.

Director Emma Calvert presented a $2 million operating budget increase for stormwater services, funded entirely through the stormwater charge that appears as a separate line on property tax bills. This dedicated charge was introduced years ago to fund rainwater management and basement flooding prevention. Revenue cannot be used for other city services.

The increase covers higher labour costs from union agreements, increased contract costs for catch basin cleaning and manhole repairs, and larger transfers to reserve funds—savings accounts that accumulate money for major infrastructure projects too expensive for one year's budget.

Calvert updated committee on actions after severe summer flooding hit Mississauga in 2024. The compassionate grant program paid $1,000 to more than 1,600 flood-affected residents. The city installed its first flood wall along Little Etobicoke Creek as immediate protection while conducting longer-term upstream studies.

A dedicated maintenance team now inspects and cleans the city's 1,300-plus storm sewer inlets and outlets monthly, up from twice yearly. Inlets are grated openings where water enters sewers from streets. Outlets discharge water into creeks. Keeping these clear helps water flow during heavy rains rather than backing up onto streets or into basements.

The federal government awarded Mississauga $24 million for the Dixie-Dundas flood mitigation project, which will upgrade storm sewers in a repeatedly flooded area.

The capital budget totals $48 million for 2026. The 10-year forecast reaches $320 million. The Dixie-Dundas project begins detailed design in 2026 and construction in 2027.

Committee voted to receive the Stormwater presentation for information.

Committee received a report advancing planning for community centres in Cooksville (Ward 7) and Mississauga Valley (Ward 4). Each facility is projected to cost approximately $150 million to construct—three times higher than the city's initial budget estimates.

Commissioner Raj Sheth explained that staff spent the past six months developing alternative approaches after years of slow progress trying to partner with the Peel District School Board on the Cooksville location.

"This is really about control and finding a way to get the actual community centre built," he said. By pursuing city-owned sites rather than shared school board properties, staff can control design, timelines, and construction schedules.

The city currently has $5 million budgeted for design work per facility and $75 million total allocated for future construction costs. However, Sheth confirmed each facility will actually require approximately $150 million to build at current construction costs.

This creates a $225 million funding gap between what the city has budgeted and what the projects will actually cost.

Staff plan to pursue provincial and federal funding to close this gap, similar to the approach used for South Common Community Centre. That project had a total budget of $110 million, with the province contributing approximately $45 million. The city covered the remaining $65 million through local property taxes and development charges.

Councillor Kovac asked how councillors could assist in securing government funding. Sheth responded bluntly:

He indicated that political advocacy would be necessary to convince provincial and federal officials to commit funding.

Construction timelines depend entirely on securing outside funding. If provincial and federal dollars come through, both facilities could be developed at the same time. The Mississauga Valley project is designed to keep the existing community centre and library operating during construction, minimizing service disruption to residents.

Committee voted to approve the report and advance planning work. Deputy Mayor Mahoney and Councillor Hart were absent, attending an anti-extortion forum hosted by Peel Regional Police. Councillor McFadden joined late due to a medical appointment.

Committee deferred staff's recommendation to shorten the budget amendment period from 30 days to 23 days. The Municipal Act requires a 30-day public notice period before final budget approval, allowing residents and community groups to propose amendments for council consideration.

Staff had recommended reducing this to 23 days to allow final budget passage at a council meeting scheduled for January 28, 2026. Councillor Tedjo moved to maintain the full 30-day period, which pushed the final budget vote to a special council meeting on February 4, 2026.

This decision gives residents, business owners, and advocacy groups more time to review the proposed budget and submit formal amendment requests. All amendments will be compiled and presented to council along with staff recommendations before the final vote.

Committee approved Councillor Tedjo's motion. Individual councillor votes were not recorded for this procedural matter.

February 4, 2026: Special Council Meeting for final 2026 budget approval

Late Spring 2026: Staff report to Stormwater Advisory Committee on Little Etobicoke Creek upstream flooding review

Late 2026: Hydrogen fuel cell buses introduced to MyWay fleet

SOURCE NOTE

This analysis is based on the January 13, 2026 City of Mississauga Budget Committee meeting and supporting documents. All quotes and figures are drawn directly from official meeting transcripts.