User fees to rise for some Toronto services

Toronto residents will have to dole out a bit more for the convenience of paying a parking ticket by phone or online in 2010, as user fees for some popular city services are set to increase.

Nearly one million people a year use the city's automated system to pay for parking tickets, and starting Jan. 1, they'll have to pay $2 for the service — 50 cents more than the current fee.

Toronto will also charge a $50 fee to residents who have bought a new home and need to create a property tax account. People with existing property tax accounts will be charged $50 to make changes to their bills — $15 more than it cost to make billing changes in 2009.

The increased fees will bring in revenue to help fight a funding shortfall that could hit $500 million in 2010.

By law, municipalities cannot run a budget deficit, so the city has to either increase revenues through taxes and fees, or cut expenditures.

A property tax hike is also likely when the city introduces it operating budget in February. Homeowners experienced a four per cent increase in 2009, increasing taxes by about $89 on the average house.

City agencies and boards are also being asked to help the city balance its budget by cutting spending by five per cent — but some city boards have balked at the proposed cuts and instead asked for budget increases in 2010.

Earlier this month, the Toronto Police Service board approved a five per cent increase to its operating budget. The Toronto Zoo board, the Toronto Public Library board and Toronto Public Health have also asked the city for more funding next year.