Mayor Given New Budget and Veto Powers

Summary#

This item explains recent Ontario laws that change how Toronto’s City government works. Bill 3 is in force. Bill 39 was pending at the time of the City report. Both give the Mayor new powers, mainly to advance provincial priorities on housing and related infrastructure.

City Council also moved to update local by-laws and processes so the City can operate under these new rules.

Key changes:

• The Mayor can appoint the City Manager and hire or dismiss division heads (with important exceptions).
• The Mayor can set up or dissolve Council committees and appoint their chairs and vice-chairs.
• The Mayor can direct City staff, and must issue written decisions that are shared with Council and the public.
• The Mayor prepares the annual City budget. Council can amend it. The Mayor can veto those amendments. Council can override a veto with a two‑thirds vote. Similar rules apply to in‑year budget changes that raise tax levies.
• For by-laws tied to prescribed provincial priorities (housing and supporting infrastructure): the Mayor can veto by-laws that could interfere, or require Council to consider matters that could advance them. Council can override a veto with a two‑thirds vote. If Bill 39 is proclaimed, the Mayor could also propose certain by-laws tied to these priorities that pass with more than one‑third of Council voting in favour.
• Conflict of interest rules now cover the Mayor’s use of these powers, including written declarations and limits on action.
• By-laws now have a short delay after Council passage to allow for possible mayoral approval or veto notice.
• The City Clerk and City Solicitor are authorized to process by-laws needed because of the new mayoral powers, and the Municipal Code will be updated.

What it means for you#

• Residents

  • Most changes affect internal City governance. Day-to-day services do not change directly.
  • You will see the Mayor present the City budget each year and issue written decisions posted online.
  • Budget timelines are more fixed. If Council does not act within set windows, the Mayor’s proposed budget (or an amended version without a veto) is deemed adopted.

• City councillors

  • The Mayor now controls committee structures and chairs.
  • To overturn a mayoral veto (on budgets or certain by-laws), Council needs a two‑thirds vote.
  • If Bill 39 is in force, some by-laws linked to provincial priorities could pass with support from just over one‑third of Council when proposed by the Mayor. This would not apply to budget or procedural by-laws.

• City staff

  • The Mayor can direct staff to do research, provide advice, and implement mayoral decisions under these powers.
  • The Mayor can hire or dismiss division heads. Some roles remain Council‑appointed and are excluded (for example: City Clerk, Treasurer, Integrity Commissioner, Ombudsman, Auditor General, Chief Building Official, Police Chief, Fire Chief, Medical Officer of Health).

• Developers and applicants

  • Planning and development charge by-laws may be affected by mayoral vetoes or proposals when linked to provincial priorities. This could speed decisions on housing and related infrastructure, but outcomes will depend on how the powers are used.

• Community groups

  • If the Mayor declares a financial interest on a budget matter, Council may amend that part of the budget and the Mayor cannot veto that amendment.
  • There is now a public repository of mayoral decisions you can review.

• Administrative processes

  • By-laws under key Acts (including planning and development charges) are not considered passed until either two days after Council’s vote or earlier mayoral written approval. This allows time for possible veto notice.
  • The City Clerk and City Solicitor can process by-laws needed to align the Municipal Code with the new rules.

Expenses#

No direct public cost is identified in the available material.

• The City report states there are no financial impacts from the report’s recommendations to align local by-laws and processes.
• Broader implementation or administrative costs for the City are not quantified.
• Provincial postings indicate no expected fiscal impact for the provincial government and note possible, unestimated administrative costs for designated municipalities.

Proponents' View#

• The laws appear intended to give mayors tools to advance provincial priorities, especially building 1.5 million homes by 2031 and constructing and maintaining transit, roads, and utilities to support housing.
• Allowing the Mayor to propose the budget and organize parts of the administration could be seen as increasing accountability for results.
• Veto and proposal powers tied to prescribed priorities could speed decisions on housing and infrastructure and reduce delays.
• Written, publicly posted mayoral decisions could improve transparency about when and how these powers are used.

Opponents' View#

• Resident associations in the supplied letters oppose centralizing power in the Mayor’s office. They argue it undermines Council’s supremacy, risks the independence of the public service, and may weaken open public debate.
• A key concern about Bill 39 is allowing some by-laws tied to provincial priorities to pass with support from just over one‑third of Council, which they say departs from majority rule.
• The scope and wording of “provincial priorities” were not finalized at the time of the report, creating uncertainty about when the powers apply.
• Short timelines and “deemed adopted” budget rules may limit deliberation and public input.
• Giving the Mayor hire/dismiss authority over division heads may affect staff willingness to give independent professional advice.