Toronto’s proposed 2017 budget calls for 2% property tax hike

By News staff

Toronto’s city manager unveiled the proposed 2017 budget on Tuesday, which includes a two per cent property tax hike; however, the city is still facing a $91-million shortfall.

City officials, including city manager Peter Wallace, presented the budget at a committee meeting at City Hall.

However, budget chief Gary Crawford rejected the call for the city to implement a property tax hike.

“I am not willing to go to the residents of this city looking for ways to raise revenues without ensuring that we’ve done everything we can to make sure that we are balancing and looking at our responsibilities as a city first,” Crawford told reporters on Tuesday.

Ahead of the budget committee meeting on Monday, Mayor John Tory has stood by his position that any property tax increases next year will be at, or below, the rate of inflation.

According to Statistics Canada, the annual rate of inflation in Toronto in October was 2.3 per cent. Overall, the national inflation rate was 1.5 per cent.

The city has used several tools to keep the property tax hike at the rate of inflation, including the Municipal Land Transfer Tax and a TTC fare increase.

With $33-billion in unfunded projects, on top of a multi-million-dollar gap in this year’s budget that has to be balanced, the city has to find ways to come up with more money.

Tory said raising property taxes beyond the rate of inflation is not an option. Instead, he has backed road tolls on the Don Valley Parkway and the Gardiner Expressway as well as a hotel tax to help raise money. He has also called on other forms of government to help chip in.

While the cost of the tolls has not been decided, Tory said a $2 fee would bring in more than $200 million every year. All drivers would pay the toll – not just those living outside Toronto.

Tory has also asked all of the city’s departments, including the Toronto Police Service and the TTC, to find 2.6 per cent in reductions.

The $10.46-billion operating budget and the $26.5-billion capital budget will be reviewed by the budget and executive committees. It will then be debated at city council on Dec. 13-14 and voted on by council on Feb. 15-16.

Torontonians can share their views on the budget at public deputations on Jan. 5 and Jan. 9-10.


Related stories:

City’s share of transit plan costs could be equivalent to 2 per cent tax hike

Road tolls, hotel tax unanimously approved by mayor’s executive committee

Tory repeats support for road tolls at York University subway station


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