Toronto's mayoral race centers on competing visions for city debt and spending
Brad Bradford's plan to borrow heavily for infrastructure divides candidates two weeks before voters decide between him and incumbent Olivia Chow.
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With less than a month until Toronto's mayoral election, the two leading candidates are locked in a fundamental debate over how the city finances itself. Brad Bradford has unveiled hundreds of millions in financial promises, including a land transfer tax cut on the first $1.1 million of all homes and plans to spin the city's water services into a separate corporation. At the core of his strategy: dramatically increasing the amount of debt Toronto carries.
Bradford's approach represents a departure from how Toronto has traditionally budgeted. Rather than saving money upfront from property tax revenue for future projects, his plan would redirect that money into the operating budget to spend today—and replace it with debt to fund capital projects over decades, the way senior levels of government do. "Elections are about big ideas, elections are about visions. I'm presenting my vision and my big ideas for a safer, more affordable city," Bradford said at a campaign event Friday.
Incumbent Olivia Chow's campaign responded sharply. In a statement Thursday, Chow called Bradford's debt scheme "reckless," saying "He is asking taxpayers to pay interest to big lenders and keeping secret which city services will get slashed, and how big the bill will be when the debts come due."
Peter Weltman, who served as Ontario's financial accountability officer from 2018 to 2023, said that Bradford's plan would be a fundamental departure. "Municipalities in Ontario have been run very conservatively and run basically on a pay-as-you-go system. So none of them really do this capital budget funding, debt funding to a great degree," Weltman said. "But it's important to examine it because there is no particular legislative reason why this option can't be done."
Ontario rules cap municipal debt at 25 per cent of reliable revenue for most cities, though Toronto aims to keep its own debt service ratio below 15 per cent annually. The city's 2026 budget document warns that carrying too much debt could harm its credit rating and borrowing capacity. Part of Bradford's strategy involves creating a public utility company to manage Toronto's water system separately from city hall—a move that would allow the city to move water debt off its own books and free up room to borrow for other projects.
Voters head to the polls in October to choose Toronto's next mayor.
If implemented, how much would Toronto's debt service ratio change, and would it approach or exceed the city's current 15% target?
Which specific city services would be cut or delayed to fund operations if revenues fall short under Bradford's plan?
We'll update this story as answers emerge.
The facts
What is Brad Bradford's main financial strategy for Toronto?
Bradford proposes redirecting property tax revenue into the operating budget for immediate spending, then using debt to fund capital projects over decades rather than saving upfront—a departure from Toronto's traditional pay-as-you-go approach.
What specific financial proposals has Brad Bradford made?
Bradford has proposed a land transfer tax cut on the first $1.1 million of all homes and plans to spin Toronto's water services into a separate corporation to move water debt off the city's books and create borrowing capacity for other projects.
