A civic action group is trying to make the case that Torontonians shouldn't throw the baby out with the bathwater when they vote in the Oct. 25 municipal election.
"In this election debate, there's been a lot of negativity and criticism of the city," Peggy Nash, a spokesperson for One Toronto, a coalition of activist groups, told CTV Toronto on Friday.
"There are challenges … but on the other hand, let's hear about building Toronto up, let's hear about a vision for the future and not just constant criticism of the state of the city."
Nash is a former NDP MP who currently works for the Canadian Auto Workers.
In an analysis done by CAW economist Jim Stanford, One Toronto made the following points:
- Toronto has the lowest average residential property taxes in the GTA
- Per capita property taxes rose at 1.8 per cent per year between 2006 and 2009, which is about the pace of inflation
- Less than four per cent of the income of someone making the average of $38,549 goes to pay city taxes and user fees
- While the city owes about $3 billion in debt, it has an AA1 credit rating and far more assets than debt
The city only uses debt to fund long-term capital projects, the group argued.
However, in a Feb. 21 Toronto Star commentary, Don Drummond, then TD Bank's chief economist, and Carol Wilding, president of the Toronto Board of Trade, wrote about Toronto’s budget woes: "Despite the city's attempts at restraint, its overall spending has nonetheless grown by roughly $500 million. That's a 5.7 per cent increase, three times the rate of inflation."
They referred to a Toronto Board of Trade study called The Growing Chasm, which warns of a structural deficit problem that could grow to $1.2 billion by 2019. The board said the city admitted it already has a $469-million hole in its 2011 budget (the board estimated the structural deficit to be $465 million).
Coun. Rob Ford (Ward 2, Etobicoke North) surged to frontrunner status on a relentless theme of stopping the gravy train at City Hall and getting spending under control. He tabled his fiscal plan on Friday, and is talking about a spending cut of more than $500 million in 2011.
To put that in perspective, Toronto had a 2010 operating budget of $9.2 billion. Another $2.4 billion will be spent on capital projects, mainly on maintaining and expanding the TTC.
Globe and Mail columnist Marcus Gee wrote Friday that by selling a pitch of deep spending cuts but no service reductions, Ford is playing Toronto voters for fools.
However, George Smitherman and Rocco Rossi, two of Ford’s other opponents, have also campaigned on the City-Hall-is-broken theme. They also promise cost cutting, with Smitherman even offering a property tax freeze (Ford would only commit to keeping property tax hikes to the rate of inflation). Rossi has echoed Ford’s promise to cut the size of city council in half, contract out and sell assets.
Only Deputy Mayor Joe Pantalone, endorsed this week by departing Mayor David Miller, seems to think the status quo is okay. His financial plan is expected this coming week.
In a Globe and Mail interview published Friday evening, Miller was asked if he thought Torontonians were angry. He said no.
Nash said with the 2008-09 recession, "people are feeling squeezed … But just saying the issue is taxes, is not going to build the city."
However, retiring Coun. Kyle Rae used $12,000 of his office allowance to throw himself a party. Ford has dined out on that move ever since.
How much can dumb spending be cut back without hurting core services?
"That's one issue, but another issue is that let's not mislead people that spending is wildly out of control, or that taxes are wildly out of proportion to other cities in the area ... it simply is not true," Nash said.
In the meantime, here are some issues to consider according to the Toronto's Vital Signs report issued this past week by the Toronto Community Foundation:
- Toronto is weak in attracting investment dollars
- Its innovation output, as measured by patents, is modest
- Housing is becoming severely unaffordable
- Middle-income neighbourhoods are disappearing, separating into rich and poor ones
- Traffic congestion costs the city $5 billion annually in lost economic output
The foundation threw out this challenge to the mayoral candidates: "It has been said that 'a politician thinks of the next election; a statesman of the next generation.' What kind of mayor will you be?"
Nash said Toronto has many strengths and has recently been declared one of the world's most liveable cities and one of the top arts cities.
“The point is, let’s not denigrate what we have built together here in this city. If there are shortcomings, let’s develop a vision on how we can do better,” she said.
