Toronto city council approves 2% property tax increase

Toronto homeowners can expect to pay around $100 more on their property tax bill this year, after city council approved a two per cent increase Wednesday.

Mayor John Tory supported the increase, which he called fair and affordable. City council voted 35-8 in favour of the plan during the first of two scheduled days of debate on the 2017 budget. 

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City staff confirmed residents would actually pay about 3.29 per cent more, once the 0.5 per cent City Building Fund and several other fees that aren't controlled by the city are factored in.

During a lengthy debate, Coun. Giorgio Mammoliti put forward a motion for a zero per cent property tax increase, while Coun. Gord Perks urged city councillors to back a 4.26 per cent increase. Both motions failed.

Tory, who called Mammoliti and Perks an "odd couple," said the fact that his proposed budget falls in the middle of the two sides is an indication that it's in the right place.

Mammoliti asked Tory why he urged the mayor to ask the province to lift some of the costs off the city, which Tory pointed out he had done on Tuesday.

"We should not have the responsibility for housing — at least not the financial responsibility," Tory responded, adding if the city is going to spend money on housing the costs should be shared with the other two governments.

He also reiterated a call for the province to pay for the repairs and maintenance of the Gardiner Expressway and Don Valley Parkway, before turning to criticize Mammoliti for not helping with those efforts.

"I haven't seen you saying a peep to support me in that regard because you're busy with gameshow politics," he said.

Perks, meanwhile, said homeowners in his ward are ready to pay more property tax if it improves city services. He said his proposal would have only seen residents pay $62 more dollars per year.

He said sooner or later, the city will have to consider raising property taxes to pay for things like affordable housing, or risk being "the worst landlords in the city."

In his remarks, Tory said he never meets people who say they want their taxes increased. 

Coun. Joe Mihevc, meanwhile, put forward a motion for city staff to review the methodology used to calculate inflation, which was approved.

City staff confirmed that Toronto has held its property tax increase at or below the rate of inflation for 15 out of the last 19 years, and has some of the lowest average property tax rates in the GTA.

Anti-Gardiner protest leads up to debate

Earlier, protesters blasted the city's spending choices and smashed a piñata shaped like the Gardiner Expressway.

The protesters behind the rally — who represented a number of different groups — questioned how the mayor can justify spending some $2.3 billion on rebuilding the aging Gardiner Expressway in the future while cutting, or not making larger investments, in areas like shelter services.

"We think there are better ways to build our city than building expensive Gardiner Expressways," said Jessica Bell, from the TTC Riders group.

"There are a whole lot of services that need funding right now."

Street nurse and activist Cathy Crowe also blasted several small cuts, including a proposal to have 10 fewer shelter staff.

"This is a bitter budget," Crowe said.

Several city councillors have vowed to attack those cuts at Wednesday's meeting.

City manager says budget is 'neutral'

With the public gallery close to full, city manager Peter Wallace ran through the budget, deeming it: "Neutral all the way around."

Wallace reiterated his warning that this year's budget is heavily reliant on the Municipal Land Transfer Tax (MLTT), which can be "volatile." While Toronto's hot housing market has sent proceeds from the MLTT soaring, Wallace warned that money could go up or down in the future.

The city now has two options, Wallace said: consider changing the services it provides, or find more revenue to pay for those services. 

On Wednesday morning, former city manager Joe Pennachetti told CBC Radio's Metro Morning that he's also concerned with how the city is leaning on the MLTT and drawing from reserve funds to balance its budget — something it's required to do. You can listen to that interview in the media clip attached to this story.