In recent days, Mayor Rob Ford has been warning that his opponents on city council would raise residential property taxes next year by 35 per cent.
Ford didn’t respond to the Star’s request for elaboration, but finance officials say every 1 per cent hike adds $22.6 million to city coffers, so a 35 per cent hit would generate $791 million.
The mayor told reporters such an outcome would “put people out of their homes.”
A key Ford ally, Councillor Giorgio Mammoliti, this week warned citizens there would be a 34 per cent tax increase — yielding $768.4 million — if the left wing were in charge.
“That’s the number,” Mammoliti told the Star.
But is it?
The administration has been emphasizing that the city needs to come up with $774 million to balance next year’s operating budget.
Critics note the city has already set aside money to partially fill the hole. So they say a 35 per cent hike isn’t required.
The city has banked money from previous years. It expects a windfall of taxes from new buildings, an increase in land transfer taxes and Toronto Hydro dividends.
That money and other revenues cut the shortfall to less than $500 million. The strategy is to wipe out the remainder through cost cutting and pressing the province to contribute at least $200 million for transit.
If the province balks and the city can’t find any savings, taxes would have to go up by about 22 per cent to yield $500 million.
But a 22 per cent hike is highly unlikely, and a 35 per cent increase can be safely ruled out, critics say.
“Since the day he took office, Mayor Ford has been exaggerating the financial challenges,” said Councillor Gord Perks. “He’s trying to scare people into submission with ridiculously exaggerated tax increases.
“As we move closer to setting the budget in January, more realistic options will emerge,” Perks said. “It’s not a choice between devastate services or have an outlandish tax increase. There’s room within the city’s finances to solve this problem.”
Councillor Joe Mihevc said setting the tax rate won’t happen until January, when the picture will be altered after “a whole bunch of revenues get plugged into the budget.”
“But at the moment, he (Ford) is putting out this preposterous number that no one in their wildest imagination would support,” Mihevc said.
“It’s called the big lie. There is no one, no one, no one, advocating a 35 per cent tax increase.”
Mammoliti, however, said it’s fair to say council’s left wing would impose a huge tax hike because they haven’t suggested ways the city could save significant money.
“None of them have come forward with ideas,” he said. “They don’t want to work with us. There’s only criticism, and not a willingness to figure out how to deal with this.”
Origin
Source: Toronto Star
Ford didn’t respond to the Star’s request for elaboration, but finance officials say every 1 per cent hike adds $22.6 million to city coffers, so a 35 per cent hit would generate $791 million.
The mayor told reporters such an outcome would “put people out of their homes.”
A key Ford ally, Councillor Giorgio Mammoliti, this week warned citizens there would be a 34 per cent tax increase — yielding $768.4 million — if the left wing were in charge.
“That’s the number,” Mammoliti told the Star.
But is it?
The administration has been emphasizing that the city needs to come up with $774 million to balance next year’s operating budget.
Critics note the city has already set aside money to partially fill the hole. So they say a 35 per cent hike isn’t required.
The city has banked money from previous years. It expects a windfall of taxes from new buildings, an increase in land transfer taxes and Toronto Hydro dividends.
That money and other revenues cut the shortfall to less than $500 million. The strategy is to wipe out the remainder through cost cutting and pressing the province to contribute at least $200 million for transit.
If the province balks and the city can’t find any savings, taxes would have to go up by about 22 per cent to yield $500 million.
But a 22 per cent hike is highly unlikely, and a 35 per cent increase can be safely ruled out, critics say.
“Since the day he took office, Mayor Ford has been exaggerating the financial challenges,” said Councillor Gord Perks. “He’s trying to scare people into submission with ridiculously exaggerated tax increases.
“As we move closer to setting the budget in January, more realistic options will emerge,” Perks said. “It’s not a choice between devastate services or have an outlandish tax increase. There’s room within the city’s finances to solve this problem.”
Councillor Joe Mihevc said setting the tax rate won’t happen until January, when the picture will be altered after “a whole bunch of revenues get plugged into the budget.”
“But at the moment, he (Ford) is putting out this preposterous number that no one in their wildest imagination would support,” Mihevc said.
“It’s called the big lie. There is no one, no one, no one, advocating a 35 per cent tax increase.”
Mammoliti, however, said it’s fair to say council’s left wing would impose a huge tax hike because they haven’t suggested ways the city could save significant money.
“None of them have come forward with ideas,” he said. “They don’t want to work with us. There’s only criticism, and not a willingness to figure out how to deal with this.”
Origin
Source: Toronto Star
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