John Tory has committed to limiting any property tax increase to at or below the rate of inflation should he be re-elected, even against the backdrop of a budget shortfall that is projected to reach $1.42 billion within five years.
Tory made the announcement during a morning news conference at a home on Rouge Hills Drive, telling reporters that the Oct. 22 election will be a choice between a “mayor who will continue to keep property taxes low” and one who may allow taxes to “soar.”
“Before I became mayor I heard it again and again: ‘You will not be able to keep property taxes at or below the rate of inflation’ and I am here to tell you that was not true and that was not right. It can be done,” Tory said. :”You can keep taxes low and make new investments in bigger and better services for people because we have done it for the last four years. It takes discipline, it takes focus and it takes leadership but it can be done.”
Tory promised to keep taxes at or below the rate of inflation during the 2014 mayoral campaign and has largely delivered on that, partly thanks to record amounts of revenue from Toronto’s land transfer tax.
The city’s fiscal situation could, however, present challenges going forward.
In March, then City Manager Peter Wallace tabled a long-term financial plan that indicated that the city will face a growing shortfall in its budget over the next five years unless it finds a new revenue source or raises taxes.
The report projected a gap of $388 million in the 2019 budget but it said that in 2020 the shortfall will nearly double to $730 million and will continue to climb steadily before reaching $1.42 billion in 2023.
“When numbers like that get put out people start to react to those but I would just say that we have shown with our track record that we can invest in new services and have invested in new services and we have ended each year with a surplus,” Tory said on Wednesday. “This last year we ended up with a $300 million surplus and the year before that I think it was $170 million and that is because we are running the city carefully.”
Tory’s announcement on Wednesday marks the first major commitment he has made during this campaign.
He said that it is his belief that all other candidates should also “be clear about their plans on taxes and affordability,” calling it “the minimum that people have a right to expect.”
There are 35 candidates in the mayoral race, though former chief planner Jennifer Keesmaat is Tory’s only high profile challenger.
