Big tax increases, service cuts needed in Toronto without help: Tory
City has accrued hundreds of millions of dollars in pandemic-related costs
Author of the article:Antonella Artuso
Publishing date:Nov 10, 2022 • 1 day ago • 2 minute read • 187 Comments
Toronto needs a commitment for more funding from senior levels of government by the end of the month to avoid “an unprecedented and inflationary property tax increase” and extreme severe service and program cuts, Mayor John Tory says.
In a bluntly worded open letter to Ontario Premier Doug Ford and federal Finance Minister Chrystia Freeland released Thursday, Tory said the city has accrued hundreds of millions of dollars in pandemic-related costs that it can’t cover on its own without significant impacts on Torontonians.
“I am writing today to reiterate our request for continued assistance from the Government of Canada and the Province of Ontario to address the continued impacts COVID-19 is having on our city’s finances, so that we do not have to make deep cuts to services our residents require, impose massive tax increases they cannot afford or implement reductions to our capital budget which will eliminate thousands of jobs and threaten our economic recovery,” Tory wrote.
“The entirety of the amounts requested are as a direct result of the pandemic and the necessary measures taken to deal with the consequences of the pandemic.”
Tory spelled out the shortfalls: An additional $123 million in lost TTC fares on top of a previously noted $483 million, $201 million in extra shelter costs and to care for hundreds of refugees arriving monthly, and $491 million in reduced hotel tax, user fees, parking fees and other revenue streams.
Weekly ridership on the TTC remains at 65-70% of pre-pandemic levels, he noted.
Tory had campaigned on a promise to keep property tax increases below the rate of inflation.
“As we look ahead to 2023, based on continuing COVID-19 financial impacts and other factors, including rising interest rates and cost of fuel, we are wrestling with an opening budget pressure of $1.489 billion prior to any property tax increase or intergovernmental funding commitments,” Tory said.
The mayor thanked both the provincial and federal levels of government for their financial support during the pandemic but said the related costs continue to mount.
Tory previously expressed disappointment that Freeland’s Fall Economic Statement contained no promise to help address the city’s funding gap.
His letter arrived four days before Ontario Finance Minister Peter Bethlenfalvy is set to release the province’s Fall Economic Statement.
aartuso@postmedia.com
Toronto Mayor John Tory writes open letter to Ontario Premier Doug Ford, federal Finance Minister Chrystia Freeland seeking funding.
torontosun.com