Property taxes will skyrocket if city hall doesn't find other ways to generate cash, Toronto's chief financial officer said Thursday.
Joseph Pennachetti told the Budget Committee a 20 per cent increase will be necessary if other taxes, such as a land transfer tax and a vehicle licence registration fee, aren't implemented.
The city should also tap the province and Ottawa for funds to avoid the hike, Pennachetti said.
Specifically, the CFO recommended city council:
- Commit to continuous improvement and cost control;
- Upload social service programs to upper levels of government;
- Force the province to pick up 50 per cent of transit funding; and
- Bring in new taxation -- such as the land transfer tax and vehicle licence registration fee.
"If we don't implement some of these new revenue taxes, and if we don't get the assistance from the province, we are into significant property tax increases, and/or possibly massive service reductions," Pennachetti said.
But Coun. Denzil Minnan-Wong said the city should try and clean up their own backyard before hitting residents up for more cash.
"We should be bringing in the board of trade ... in to study the city's financial problems, and how we run our operations," Minnan-Wong said.
"We should be opening up our books and saying ... 'Do you have any ideas here where we could find some savings?'"
The meeting comes a day after Mayor David Miller announced he will push to reopen community centres on Mondays, reversing an earlier decision.
The cut, one of many measures to tackle the city's $575 million budget shortfall, caused a raucous backlash from residents and some city councillors.
Miller maintains the proposed land transfer tax and vehicle registration fee are important revenue tools that will help alleviate Toronto's cash crunch.
The taxes could raise $350 million for the cash-strapped city.
With a report from CTV's Roger Petersen
