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Toronto's Fiscal Position and Cliff's Plan
for an Efficient City
Unsustainable in the long term |
The City must maintain a sound and responsible financial
position in building infrastructure and delivering
programs. On an annual budget of over $7 billion, we
have systemic funding problems in the order of $1
billion. In 2005, we engaged in a number of one-time
patches to cover the shortfall – selling assets, raiding
reserve funds, and taking on more long-term debt.
Our Chief Financial Officer described this strategy as
“unsustainable”. Without dramatic action, our debt will
increase and result in massively increased interest
payments in future years. No one wants a municipal
repetition of the federal and provincial budget messes,
where interest payments grew to the point of being one
of their largest budget items.
Some help is on the way. The Federal Government will
remit a portion of the gasoline tax as a stable funding
source. The Provincial Government similarly will remit
gasoline tax money to the City. As well, the Provincial
Government may enable the City to tap other revenue
sources through the proposed City of Toronto Act. But
much more is required.
My Plan for an Efficient City
First, the provincial government must either provide
funding or reassume responsibility for certain social
programs previously downloaded without adequate funding.
Second, we need to fully capture certain funding sources
that we have previously neglected – in particular, we
must move residential development charges, over time,
much closer to the recovery level of the city-wide
infrastructure ultimately required to support new
residents.
Third, we need to look for and find significant savings
in our operations and administration. As an example, the
City and the TTC should examine, in co-operation with
our unions, the possible operational benefits of
eliminating split shifts by hiring part-time operators –
perhaps from a pool of retired TTC employees.
Fourth, we need to examine our grants programs for value
for money. As well, we need to re-examine our “Welcome
Policy”, in which fees are waived for some users. Under
this policy, foregone revenues are increasing very
significantly year over year.
Since all levels of government have financial
challenges, it is critical that we ensure that every one
of your tax dollars is spent wisely and efficiently in
delivering our municipal services.
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