Torontonians are facing average annual property tax increases of more than 10% for four years in a row unless the city can find new revenue sources.
Without asset sales or a significant increase in provincial funding, the tax bill could leap by about 12.5% in 2011, 11% in 2012, 9.75% in 2013 and 8.25% in 2014, city staff told the executive committee Wednesday.
The committee approved a much more modest 2.9% increase on residential property taxes for this year, adding $67.69 to the average home assessed at $407,374 and bringing the 2010 tax bill to $2,402.
Mayor David Miller said he feels confident the Dalton McGuinty government will follow through with election promises to upload 50% of the TTC’s operating costs, despite its recent decision to delay half the promised funding for Transit City.
“My confidence in the government was shaken by their position on Transit City,” Miller said. “Am I concerned (about TTC operating funding)? Yes. But I mean they’ve made a clear commitment repeatedly to negotiate this ... I believe on this one that they’ll honour their commitment and it will put this city in good shape for a long time.”
Toronto is also looking for the province to upload social housing costs, and needs the federal government to give it one cent of the GST.
None of the items requested by the city are in the provincial budget.
While the province has agreed to talks with Toronto regarding its TTC operating budget, there is no deadline for an agreement.
McGuinty has said he does not have the money right now.
Councillor Doug Holyday said the city is budgeting based on wishful thinking.
“It counts on too many things that are not likely to happen,” he said.
Without new funding sources or asset sales, the following four years of tax increases could boost the average Toronto homeowner’s bill to more than $3,500 by 2014.
However, Toronto’s residential property taxes still tend to be lower than those in neighbouring communities.
Oakville residents, for instance, paid an average of $3,461 in property taxes compared with Toronto’s $2,334 in 2009. Mississauga homeowners forked over $2,559 and Oshawa ratepayers paid $3,314 on average in 2009.
Councillor Giorgio Mammoliti asked the executive committee to support him in a motion that would have exempted seniors from the Toronto vehicle tax, but his colleagues turned it down flat.
Miller said the budget already provides for low-income seniors to have their property taxes waived or deferred.
The current city council is leaving the budget in good shape overall, and with a surplus that likely will be applied in part to next year’s budget, he said. That will help the future council keep property taxes low.
“Sure there are some risks, no question about that ... but I’m optimistic and I think Torontonians should be, too,” Miller said.
