Toronto residents are facing a property tax increase of 3.8 per cent this year -- almost double the rate of inflation -- because of under-funding from the provincial government, the city's budget chief says.
Shelley Carroll's budget report on Monday said the shortfall of $73 million forced her to call for the significant tax hike. The councillor blamed the Ontario government for failing to pay its share for social services.
"Some services have had to be cancelled, deferred or rationalized. Some fees have gone up to increase cost recovery and ensure stable funding," she said.
The end results means residents would pay about $80 this year on property taxes.
Last year the city increased property taxes three per cent, which meant an average of about $60 per household.
The 3.8 per cent increase is higher than the three per cent analysts were predicting.
Mayor David Miller campaigned to keep residential tax increases in line with the rate of inflation, which is generally around two per cent.
Business property taxes will rise about 1.26 per cent, according to budget figures.
The city's $7.8 billion operating budget offers no new services. In addition to the tax increases, the city is drawing on reserve funds.
Carroll said the province must pony up its full share of money for programs such as the Ontario Drug Benefit Program and the Ontario Disability Support Program.
"They have expected us to either raise taxes or cut services to pay their bills," she said, according to the Toronto Star. "They have expected Torontonians to pay more and receive less.
"Last Thursday the province produced a budget with a $300 million surplus. Their budget was silent on our outstanding accounts payable."
Carroll said the uploaded services would add an extra $175 million to her budget.
The fiscal situation calls for the closure of seven outdoor pools that are in a state of disrepair, a measure that will save $455,000 this year.
User fees for programs at community centres will also be increased by three per cent, which will affect everything from swimming lessons, to dance classes, to arts and crafts.
Permits for on-street parking will also be increasing by just under two per cent.
"These are the measures we've tried to avoid for years and years and years now, and we've reached the point in 2007 where we can't avoid it any longer," Carroll said.
But some councillors said the city could have prevented the tax hike.
"The decisions we've made, we are now dealing with," said Councillor Karen Stintz. "If we want to be an autonomous city, we have to search deep and search long and find the efficiencies and find the savings to be financially accountable and financially autonomous, and it's not about the province."
Councillor David Shiner echoed the remarks.
"None of this has to happen with proper planning. We've seen this coming," he said. "I've said it before that we're going to hit the brick wall, and we're going to hit it this year. It's nobody's fault but our own."
Mayor David Miller was disappointed last Monday when the federal government unveiled its budget, which contained no new money for transit or the one per cent cut of the GST the mayor wanted to help pay for city services.
Miller's frustrations grew on Thursday when the Ontario government laid out its fiscal blueprint, which too did not result in any significant cash for Toronto.
However, the government issued a press release on Monday, saying it has increased funding to $643 million this year, up from $226 million it handed over in 2006.
Monday's report went before the budget committee session. Councillors will now scrutinize the proposals on Wednesday, and the public will get its chance to offer comments at a public meeting at city hall on Thursday.
Council will then debate and approve a budget late next month.
With a report from CTV's Desmond Brown
