City budget passes with $1.4-billion shortfall and a 4.4-per-cent hike in residential property taxes

Addressing the shortfall relies on promises of funding to come from feds, province. Mayor John Tory emphasized that the budget is not unambitious, that it’s simply trying to weather the pandemic “storm.”

Thestar.com
Feb. 18, 2022
Jennifer Pagliaro

Don’t call this year’s city budget unambitious, Mayor John Tory said on Thursday; officials are just trying to weather the continuing health “storm.”

“The ambition we had ... was to safely get the ship to shore,” he said in a press conference ahead of the final budget vote. “To get this city through the pandemic, in safe hands, without cutting services, being able to provide the supports people needed.”

In that spirit, council approved a $15-billion operating budget for 2022, which had a $1.4 billion hole in it because of the costs COVID-19 imposed on city services.

Council’s budget approval came with added costs for Torontonians: Overall, a 4.4 per cent increase in residential property taxes or $141 more every year for the average homeowner with a property assessed at $697,185, bringing the total average bill to $3,339.

As council met to discuss the problem and priorities for spending this year, the federal government promised $750 million for municipalities to cover transit costs. That followed a promise earlier this week from the provincial government to spend $332.5 million to help transit systems after cities advocated for support.

Despite the financial pressure on it, the 2022 budget debate saw last-minute funds allocated for community programs and services, such as $500,000 to help eliminate adult and teen library fines; $300,000 to expand a gun-violence intervention program in hospitals; $250,000 for a youth space in the Oakwood-Vaughan neighbourhood; and $185,000 for free menstrual and incontinence products for vulnerable residents accessing shelter and drop-in sites.

As the mayor’s allies reinforced his message that this was a pandemic or “wartime” budget, others involved in shaping the budget, such as Coun. Mike Layton (Ward 11 University-Rosedale), remained concerned the city was not going to achieve its stated mission to “build back better,” based on the spending approved Thursday

“We can’t just keep putting off difficult decisions because they’re difficult,” he said about urgent needs for affordable housing, transit upgrades and climate-change action.

“If we don’t start having a dialogue about what uncomfortable changes need to be made to our budget, we’re simply never going to have them, and we just keep passing them on to future generations.”

As the single largest line item at more than $1 billion, the Toronto Police budget dominated much of the discussion once again. It included a request for a $25-million increase, largely related to pre-approved salary hikes.

Council rejected motions from Coun. Gord Perks (Ward 4 Parkdale-High Park) to take $11 million of the $25 million increase and spend it, instead, on housing initiatives -- establishing a housing watchdog and increasing available rent supplements to those who qualify for help affording housing.

City officials have requested the other levels of government come forward to cover the $1.4-billion shortfall.

The largest part of it is related to the TTC, as transit riders continue to avoid the city core, work from home and use other means of transportation. The trend is expected to cost the city $561 million in 2022.

It’s not clear how much of the funding promised this week from other governments would be dedicated to Toronto, which has the country’s largest transit system.

If the TTC’s budget was made whole, the city would still be short more than $800 million, money the city has also requested from other governments.

The city’s backup plan includes delaying various capital projects planned, which would be a blow to jobs and have other economic consequences.