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Sustainable solutions a must for our urban centres
October 16, 2008 11:46 AM
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Mayor David Miller stoked a bit of controversy last week in floating the notion of a 2009 property tax hike in the range of two to four per cent.

It's not a figure set in stone, but given the ongoing economic instability and likelihood of a recession in Ontario, city officials and residents should expect some sort of hike if they are to continue providing - and in some cases improving - city services.

Miller's opponents on council reacted predictably to the directive from the mayor, contained in a letter to senior city staff, but it's important for citizens and fellow Toronto councillors to fully consider the idea.

Property tax increases in line with inflation that are broadly based will spread the burden across the city. It seems more fair - spreading the tax burden among property owners - than targeting residents who want to renew their licences, or first-time home buyers facing an additional tax on transferring property ownership.

And despite the general abhorrence of taxes, they are a necessary component of urban living. Those taxes provide transit, roads, social services and more: all of the things necessary to keep a big city running. Let's face it, had Torontonians paid modest tax increases throughout the Mel Lastman years, we wouldn't be in such dire financial straits today.

To the mayor's credit, he is not being stealthy in his approach and is matching the tax-hike rhetoric with a directive to proportionately reduce departmental operating budgets.

We believe the mayor and senior city staff and councillors should also work towards creating a new dialogue with the incoming federal government and build relationships in Ottawa to better educate them about the critical contribution cities make to the national economy, and to bring them to the table as partners instead of adversaries.

Given the political climate - the federal Tories were shut out again in Toronto and Montreal and must finally begin to recognize they require urban support to achieve a majority - Toronto might find a window of opportunity to take the first step.

But in the meantime, Toronto still has limited options to raise revenue and must primarily rely on property taxes.

So, there's fair warning to prepare for digging just a little deeper in 2009. But we can do so with the notion that, as taxpayers, we continue to do our part to make the city work effectively. But a deep and abiding responsibility still lies with city politicians, newly elected MPs being sent to Ottawa and Stephen Harper's new minority government to come together, work on compromises and find sustainable solutions for Canada's major urban centres.

     


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