Mayor John Tory promises to back new taxes this fall

Tory talks taxes, transit, pedestrian deaths and Black Lives Matter with the Star's editorial board

Thestar.com
July 6, 2016
By Jennifer Pagliaro

Mayor John Tory promised he will not delay in backing new taxes and fees to fund the city’s pressing transit and housing needs.

“The answer is absolutely this term, how about this year?” Tory told the Star’s editorial board Wednesday of his pending endorsement of specific revenue tools. “My hope is to bring these forward, the ones that I think are the appropriate ones that are, you know, fair and effective . . . this fall and have them passed by council, I would hope in this calendar year.”

The mayor said what he hopes will be an “adult conversation” on how to raise revenues needs to be preceded by a look for further spending efficiencies.

“So, that we can say to the people by the time we come forward with these initiatives in the fall that we have really looked hard at the spending of the city and found every opportunity we can to do things differently.”

Tory said it should also be guided by his “moderate and modest” campaign promise to not raise property taxes above the rate of inflation at a time when divisions, including the TTC and Toronto Community Housing, are facing budget cuts next year to provide the same level of service they do today.

City manager Peter Wallace has bluntly said the city’s financial challenges are great and cautioned short-term solutions such as blanket budget freezes often create significant future budget pressures. Wallace will weigh in on revenue tools this fall in a report to council.

“I’m not going to say to you that this will earn me a tickertape parade up and down Bay St. from everybody,” Tory said of his fiscal outlook. “I believe people will accept that as being the responsible, honest thing to do.”

So far this term, Tory has only said he would support a hotel-room tax, which city-hired consultants KPMG said could raise between $21 million and $126 million annually. He has ruled out personal and business income taxes - which could collectively net the city $725 million to $1.5 billion annually - saying he believes the other levels of government will not agree to them.
Tory has promised to be “honest” on needing to raise money to build a more than $15 billion transit network plan that includes the controversial one-stop subway extension to Scarborough Town Centre that alone will cost at least $3.2 billion.

Rising costs of the subway have largely eaten into the available funds for a 17-stop LRT along Eglinton Ave. - a project staff and city-building advocates say would provide much-needed local transit connections.

Critics say building light rail in place of the subway, most of which is covered by a funding commitment from the province, would allow the city to fund the second LRT and provide 24 stops instead of just one.

Tory said he remains committed to the subway regardless.

“I think the transit plan has to be taken as a plan. It’s been presented as such,” he said. “I just believe that I’m on the right long-term course for the city.”

Tory said there is funding available for a “big chunk” of the Eglinton East LRT. If the subway price remains at $3.2 billion, there would only be $360 million available in committed funds for the $1.7 billion LRT line.

Tory also signalled that additional investment or measures as part of a road safety initiative may be forthcoming. That follows 18 reported collisions involving 20 pedestrians and cyclists in a span of less than 24 hours Monday.

The plan proposed to council for approval next week budgets $68.1 million over five years, $40 million of which is new money.

“I think it is a solid step forward that we have a plan,” he said, calling it a “significant investment.”

“Are we looking at ways in which we can enhance that? Yes.”

A followup report from staff is likely coming ahead of the meeting, Tory said, but he could not elaborate on whether it would actually recommend additional funds to support a recently revised goal of zero deaths.