As you may know, most city committee meetings take pause in August when many city staff members and councillors take a breath before the work of running the city goes back into full swing in September. The big agenda topic for the first meeting will be the Financial Framework of the city. For more information, please see the City Manager and Interim CFO’s Presentation to Executive Committee, Updated Long-Term Financial Plan and the Ernst & Young Report. Click Here to see the Sep 6 Council meeting agenda when it is published this Friday.
While Toronto contributes 21% of Canada’s GDP and 53% of Ontario’s GDP, the City has many financial pressures including the following:
TTC operations impacted by COVID and inflation
Maintaining the DVP and the Gardiner Expressway (no other city in Ontario is paying to maintain their highway)
The rise in homelessness has a greater impact on Canada’s biggest city; Toronto funds more shelter beds per capita than any other city in Canada
The rise in refugees and refugee claimants–many of whom come to Toronto
The rise of interest rates and inflation on the cost of operating the city along with labour shortages and supply chain challenges
Downloaded cost of social housing.
We will be discussing potential revenue tools including:
Multi-year approach for property tax rates
Graduated Municipal Land Transfer Tax rate for high-value residential properties
Removal of $5/hour on-street parking rate cap to enable comprehensive rate review
Increase the Vacant Home Tax rate (1% to 3%)
Foreign Buyer Land Transfer Tax
Commercial Parking Levy
Dedicated 911 Next Generation Levy
Emissions Performance Charge for Buildings
Restructure or dissolve the Imagination, Manufacturing, Innovation and Technology (IMIT) Financial Incentive Program
Remove non-residential non-ground floor area development charge exemptions
Review City’s surplus and underutilized real estate assets for disposition or change in use achieving greatest value.
Here are three interesting news articles by the Toronto Star to consider:
We Want To Hear From You
If you have any ideas on how the city can improve our financial situation or thoughts about the proposed revenue tools, please Click Here to fill out our community survey.