A 4.4% tax hike up for approval at Toronto budget committee

CBC.ca
Feb. 7, 2022

Toronto’s third “COVID” budget is set to arrive with a $141 average homeowner property tax increase and a TTC-sized $1.4 billion funding gap.

Budget Chief Gary Crawford said the fiscal blueprint maintains the promise to keep property taxes at or below the rate of inflation while preserving services and investing in additional resources like more paramedics.

If it stands as proposed, the budget brings a 2.9% residential property tax increase and a 1.5% city building fund boost that works out to an increase of $141 on the average property tax bill.

The operating and capital budgets go before city’s budget committee Monday and then to city council for final approval Feb. 17.

The city will look to provincial and federal governments to help cover the $1.4 billion gap for the TTC., which is losing around $500,000 a year as a result of slumping ridership revenue, said Crawford, who’s also a city councillor.

“We don’t have commitments at this point, but we are hoping that we get them (by Feb. 17),” he added. “After that, we’ll have to start making some serious decisions, and reducing our capital work… state of good repair, transit or roads could be impacted again if we don’t receive this money.

“But we are keeping our fingers crossed and are hopeful that they will continue supporting the city as they have in the past,” he said.

Senior levels of government provided around $1.8 billion in 2020 and $1.6 billion in 2021 to help the city address challenges, said Crawford.

He added some are pushing for higher property tax rates.

“I am a fiscal conservative when I’m looking at managing the budget,” Crawford said. “I, along with the Mayor (John Tory), have continually looked at trying to keep property taxes as low as possible. That’s the first and foremost thing we do when we start the process.”

Councillor Stephen Holyday countered most people understand the 2.9% increase in property taxes, which reflects the inflationary pressure the city faces, but many have serious questions about the portion of the increase attributed to the city building fund.

“The rising cost of the budget will be felt by citizens more so than ever when you consider a 4.4% increase in taxes, alongside other cost of living increases like higher fuel prices and more expensive food at the grocery story,” Holyday said. “It’s critical that the city manage its budget because that is the one expense on households that we are in full control of.”

The city building fund is dedicated solely to transit and housing, and this is not the time to be supporting this additional levy, he said.

“The bottom line is it’s going to cost extra dollars out of people’s wallets and that’s the important number, the bill you get at the end of the day,” Holyday said. “Household incomes and salaries have not necessarily gone up, but the bills have. So they are very concerned about continuing to be able to live in this city.”

PROPOSED TORONTO 2022 PROPERTY TAX INCREASE

On “average” home assessed at $697,185:

-- Budget levy increase: 2.9% or $93

-- City Building Fund: 1.5% or $48

-- 2022 Municipal Taxes: $3,339, a 4.4% increase