Smooth sailing for $13.53-billion operating budget at Toronto city council

Thestar.com
Feb. 20, 2020
Jennifer Pagliaro, David Rider and Francine Kopun

In an unusual display of harmony, billions of dollars in city spending were approved at city hall with little fuss on Wednesday.

For a process that has previously been marred by midnight crises and in-fighting between council members, the 2020 budget sailed through a final vote with far less drama than its predecessors under Mayor John Tory’s administration.

“This is the sixth budget I’ve been a part of and it is far and away the least contentious and I think that is a good sign in and of itself,” said Coun. Joe Cressy (Ward 10 Spadina-Fort York), a left-leaning voice not always aligned with Tory, ahead of a vote that included last-minute funding for libraries, a youth recreation centre and eviction prevention

Council approved the city’s $13.53-billion operating budget and the $43.46-billion capital budget before 5 p.m. on Wednesday after less than six hours of debate -- which may be a council record.

That budget still includes a $77-million hole for refugee services the city has requested the federal government fill. There has yet to be any commitments from Prime Minister Justin Trudeau’s Liberal government ahead of the federal budget.

As part of city budget discussions, council agreed nearly unanimously to increase residential property taxes by 4.24 per cent this year -- the biggest rise under Tory.

Councillors Michael Ford (Ward 1 Etobicoke North), Stephen Holyday (Ward 2 Etobicoke Centre) and Anthony Perruzza (Ward 7 Humber River-Black Creek) voted against the increase. Councillors Jaye Robinson (Ward 15 Don Valley West) and James Pasternak (Ward 6 York Centre) were absent for the vote.

Robinson has been away receiving cancer treatment.

Pasternak, who was at city hall Wednesday, told the Star he purposely abstained from the vote, citing concerns from his residents about rate increases and also saying it was as a “courtesy” to Tory who he did not want to be seen as publicly opposing (Pasternak is a member of Tory’s official inner circle as a member of his executive committee).

For the average homeowner with a home assessed at $703,232, that increase will mean paying an extra $128 in 2020 and total annual taxes of $3,141 for an average homeowner into the city’s coffers -- not including provincial education taxes.

That increase includes two per cent to help pay for the increased costs of and additions to city services yet to be finalized as part of the debate Wednesday. Revenues raised from an additional 1.5 per cent increase will go to the city building fund for capital housing and transit projects after Tory pushed for increases to that levy in December.

Before the meeting, Tory called the spending plan “a good, responsible, realistic, forward-looking budget for a very fast-growing and successful city,” that balances revenue needs with residents’ ability to pay.

Tory, first elected mayor in 2014, ended a long-standing vow to hold tax hikes to the rate of inflation or less. He said the 4.24 per cent hike will trigger historic investments in transit and public housing.

“This city, right now, is in a very successful mode and is recognized as such, but it doesn’t stay that way on its own. We have to invest in protecting that success.”

Late additions to the budget on Wednesday included $858,000 for 5,538 more hours at eight Toronto Public Library branches to support existing and future youth hubs at those locations -- dedicated spaces for young people to be mentored and a safe place to hang out.

The budget already included $6 million in increased funds to combat youth violence, which will in part fund 14 new youth hubs at library branches and recreation centres across the city -- pushed by Tory after criticism the budget didn’t do enough to tackle the growing problem.

Council did not find room in the budget for a substantial plan to increase library hours across the city, the first two phases costed at $5.1 million in the Toronto Public Library’s budget request.

It also failed to fund more than $26.2 million for anti-gun violence initiatives in the community first approved by council in 2018. That plan, costing in total over $50 million, relied entirely on funding from other levels of government -- requests which were largely rejected.

The budget approved by council Wednesday included just over $1 million to expand the city’s program to help those at-risk of eviction, part of the strategy to prevent and solve homelessness.

And a motion from Coun. Kristyn Wong-Tam (Ward 13 Toronto Centre) for $161,000 in one-time funds to sustain the struggling Cabbagetown Youth Centre and keep its programs was approved unanimously.

Council rejected a motion from Coun. Josh Matlow (Ward 12 Toronto-St. Paul’s) to dip into a reserve account to roll back some TTC fare hikes for youth and students with Tory against the motion.
Coun. Gord Perks (Ward 4 Parkdale-High Park), a Tory critic over austerity measures, congratulated the mayor for agreeing that a quickly growing city needs a hike in residential property taxes -- still well below the GTHA average -- to keep providing adequate city services.

But after hearing city staff talk about the multi-billion-dollar backlog in repairs to city roads, sewers and other infrastructure, Perks said council can’t stop with the building fund hike and must look for new revenue sources, potentially including a municipal sales tax.

That would require provincial approval.

No new revenue tools under the city’s control or otherwise were proposed in this budget but it was clear Wednesday that council will again grapple with the politically-charged issue, likely this year.

A motion from Wong-Tam for staff to report back on the feasibility of re-introducing the vehicle registration tax killed in 2011 under then-mayor Rob Ford failed without Tory’s support. A motion from Coun. Mike Layton (Ward 11 University-Rosedale) for a report back on a commercial parking levy carried with Tory’s vote.

Coun. Ana Bailao (Ward 9 Davenport) had championed the idea of a vacant home tax but a delayed staff report expected back in the spring meant debate over that new tool will come later.

The city’s 10-year capital budget -- which sets aside funds to pay for infrastructure projects like rebuilding the Gardiner Expressway -- also got final approval at Wednesday’s meeting with little discussion.