Budget committee recommends 2.5% property tax increase for 2014

TORONTO – Mayor Rob Ford arrived at the unveiling of the city’s 2014 budget Monday, denouncing a proposed 2.5 per cent property tax increase by saying the city is returning to its “taxing and spending” ways.

“In just one short week my powers were reduced and we can all see the old ways coming back, of taxing and spending here at city hall,” said Ford.

The staff’s recommended 2 per cent residential tax increase will total 2.5 per cent when a special levy for the Scarborough subway extension is included and works out to an average of about $64 per household.

Ford has said he wants to hold the hike at 1.75 per cent.

“I do not agree with the proposed residential tax increase over 2 per cent,” Ford said.

“I will not stand by and let this happen and the taxpayers in the city should not either.”

Coun. Janet Davis called Ford’s “taxing and spending” claim “bunk.”

“We have a staff-recommended budget here that reflects their best recommendations of a prudent sustainable budget in the city of Toronto,” she said.

Coun. Shelley Carroll says the budget was developed in August.

“It’s quite simply foolishness to think that because of something that happened a week ago, this budget radically changed because of the mayor’s new position,” she said.

But the mayor’s councillor brother Doug Ford feels differently.

“The gravy train started up and it’s only be a week. One week and they want to raise taxes right across the board,” he said.

City manager Joe Pennachetti says the $9.6 billion operating budget will be balanced again without the use of the prior-year surplus funds.

Ford’s budget chair Frank Di Giorgio said there are “no simple solutions” but “this budget process will seek out a miracle budget that is a workable compromise for the citizens of Toronto.”

In their first public appearance together since deputy mayor assumed much of the mayor’s powers, Norm Kelly invited the mayor to work with him on the budget.

“Let’s not forget that respect for the taxpayers’ dollar includes making that dollar work as hard as possible for our families, communities and businesses,” Kelly said.

“Spend wisely and not more than you have to would be my concluding advice.”

Kelly says he was not surprised that Ford returned to his signature slogan.

“While that slogan is good at getting you elected, it doesn’t inform people with respect to a budget debate,” he said.

The mayor, who has promised a 10 per cent reduction in municipal land transfer taxes, asked whether a cut in that tax was included in the operating budget, and the city manager said no.

Ford was told the city needed the $345-million the tax provides annually to city coffers as the amount would be lower beyond 2014.

Coun. Giorgio Mammoliti says he will not support the budget — he wants no tax increase.

“We already got people licking their chops to see how much the property tax owner can absorb,” he said.

The budget committee wraps up Jan. 8. The budget then goes to the executive committee, followed by council for final approval in late January.

Last week, council voted to strip away more of Ford’s mayoral powers, including slashing his office budget by 60 per cent and reducing his staff. On Nov. 15, council voted to remove Ford’s ability to appoint or remove the deputy mayor or members of the executive committee.

Budget highlights

The city manager said that the city started off with a spending pressure of more than $200 million which included inflationary and capital financing pressures as well as depleting reserves. And the city faced an additional $43-million pressure on top of that due to the provincial funding cuts that affect its housing program.

City staff is recommending $14 million in new and enhanced services next year, including $4 million in additional funding for the TTC, $3.1 million for 56 new paramedics and $4 million to support the arts.

The police budget will increase by 3.1 per cent or $29.1 million to $1 billion in 2014 and that will include an additional 120 officers.

The TTC budget will go up 3.2 per cent or $13.1 million, while Wheel-Trans’ budget is going up 10 per cent or $9.6 million.

Other division highlights include two new libraries at Fort York and Scarborough Civic Centre for the Toronto Public Library.

Click here for more on the 2014 budget.

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