This year’s City of Toronto budget surplus is higher than the forecast $139 million, sources say — a windfall that would increase pressure on Mayor Rob Ford’s allies to spare threatened city services.
City finance staff will reveal revenues for the first nine months of 2011, and update the year-end surplus projection, on Jan. 9. The same day, the budget committee will vote on $88 million in proposed cuts that include eliminating some homeless shelters, daycares, wading pools, community centres and programs for recreation, the arts and HIV prevention.
A source with knowledge of the calculations said the surplus to be carried over to 2012 is “significantly” higher than the $139 million predicted earlier this year. Another source would only say the operating surplus will be “more than $139 million, certainly.”
However, Councillor Mike Del Grande, the budget chief, told the Star on Thursday: “I have no idea what you’re talking about.” And Cam Weldon, the city’s chief financial officer, said in an email: “I have not reviewed the final report so I can’t release a number now. Not sure of your sources but I doubt they are well informed.”
A late-year windfall from land-transfer tax revenues, rising assessment values, unsuccessful assessment appeals or other sources would shift the ground under the budget battle about to unfold.
Ford, adamant the city must end its reliance on unpredictable revenue sources, wants to balance the books with service cuts, steep user-fee hikes and city staff layoffs. His proposed budget would split any surplus between a rainy-day fund and paying down city debt.
Councillor Michelle Berardinetti, a budget committee member, wouldn’t speculate on the surplus. If it has grown, she hopes her committee will reject some cuts, including a nutrition program for 14,000 needy students and programming at 12 school-based community centres.
“There is a major (budget) problem, but maybe we have to address it over a couple of years,” she said.
Councillor John Parker, who is also on the budget committee, said a surplus of any size “is a windfall and should be taken as such, to replenish reserves. I’m cautious about putting (a surplus) toward operating costs.”
Councillor Joe Mihevc, a Ford critic, accused the mayor of manipulating the budget process to fit his mantra of reducing the cost and size of government, and to free up cash to keep his campaign promise to eliminate the land-transfer tax.
“I believe cuts being prevented will be a function of residents keeping up pressure on city hall now as (the) budget committee votes, on Jan. 12 when the budget goes to executive committee, right through to council voting starting on the 17th,” Mihevc said.
Original Article
Source: Star
City finance staff will reveal revenues for the first nine months of 2011, and update the year-end surplus projection, on Jan. 9. The same day, the budget committee will vote on $88 million in proposed cuts that include eliminating some homeless shelters, daycares, wading pools, community centres and programs for recreation, the arts and HIV prevention.
A source with knowledge of the calculations said the surplus to be carried over to 2012 is “significantly” higher than the $139 million predicted earlier this year. Another source would only say the operating surplus will be “more than $139 million, certainly.”
However, Councillor Mike Del Grande, the budget chief, told the Star on Thursday: “I have no idea what you’re talking about.” And Cam Weldon, the city’s chief financial officer, said in an email: “I have not reviewed the final report so I can’t release a number now. Not sure of your sources but I doubt they are well informed.”
A late-year windfall from land-transfer tax revenues, rising assessment values, unsuccessful assessment appeals or other sources would shift the ground under the budget battle about to unfold.
Ford, adamant the city must end its reliance on unpredictable revenue sources, wants to balance the books with service cuts, steep user-fee hikes and city staff layoffs. His proposed budget would split any surplus between a rainy-day fund and paying down city debt.
Councillor Michelle Berardinetti, a budget committee member, wouldn’t speculate on the surplus. If it has grown, she hopes her committee will reject some cuts, including a nutrition program for 14,000 needy students and programming at 12 school-based community centres.
“There is a major (budget) problem, but maybe we have to address it over a couple of years,” she said.
Councillor John Parker, who is also on the budget committee, said a surplus of any size “is a windfall and should be taken as such, to replenish reserves. I’m cautious about putting (a surplus) toward operating costs.”
Councillor Joe Mihevc, a Ford critic, accused the mayor of manipulating the budget process to fit his mantra of reducing the cost and size of government, and to free up cash to keep his campaign promise to eliminate the land-transfer tax.
“I believe cuts being prevented will be a function of residents keeping up pressure on city hall now as (the) budget committee votes, on Jan. 12 when the budget goes to executive committee, right through to council voting starting on the 17th,” Mihevc said.
Original Article
Source: Star
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