>CTF Submission to City of Toronto

OTTAWA: The Canadian Taxpayers Federation (CTF) is calling on the City of Toronto to live within its means by looking for innovative ways to reduce costs, return to basics and freeze property taxes in advance of Toronto's official budget debates that begin on Wednesday, March 29.

With an annual budget shortfall of over $400-million, Toronto must trim costs and focus on essentials instead of providing frills while relying on annual handouts from Queen's Park. Contracting out services such as waste collection, and landscaping would begin to reduce the city's rising labour costs. City Hall should also review city salaries which have increased 19% in four years, while also scrapping its union-only policy which prevents it from getting the best value for taxpayers.

"With the province of Ontario still running budget deficits of their own, it is unacceptable for Toronto to expect annual bailouts to fund their spending increases," stated CTF research director Adam Taylor. "The City of Toronto cannot continue to spend more than it takes in, ramp up spending and taxes year after year, and remain ideologically-opposed to exploring ways to reduce costs."

In the last mayoralty campaign, candidate David Miller vowed to hold residential property tax increases at or below the level of inflation. Instead, property taxes were hiked by 3% in 2005 - exceeding inflation. Last week it was reported the council will raise taxes another 3% in 2006. With that increase, the average Toronto residential property tax bill will have risen by 20% since 2000.

"Higher taxes drain money out of the local economy, decrease demand for services and products, and penalize homeowners' and renters alike," stated Mr. Taylor. "The City of Toronto should get its spending priorities in order and not raise taxes again."

"Furthermore, Toronto's business taxes are the highest in the GTA which is driving businesses out of the city in droves," continued Taylor. According to the city's own staff report, Enhancing Toronto's Business Climate, 100,000 jobs have been lost to the 905 from the 416 over the past 15 years.

"With higher taxes than other regions of the GTA, Toronto will continue to be at a competitive disadvantage and will lose all the benefits that come with economic development," said Taylor. "Toronto is supposed to be the economic engine of Canada, however high taxes have driven people and businesses out of the city core and left Canada's largest municipality sputtering and chugging behind other municipalities in the region."

The full report of the CTF's 2006/07 City Hall budget recommendations are available by Clicking here.