Toronto’s city councillors got a rude awakening at Thursday’s lengthy Executive Committee meeting. City staff gave a presentation on revenue tolls, saying that it is necessary that council approve at least a few of their reforms — increase property taxes, sales taxes, vehicle tax, or user fees like tolls and public transportation fares. If they didn’t, well, they would have to find more cuts.
Toronto currently has $33 billion worth of unfunded projects. As city manager Peter Wallace said during his presentation, if executive council or city council decides not to approve the use of tolls or increase property taxes, then they better be ready to propose reductions in the capital spending.
“Toronto, a $12 billion enterprise, does require a long term, vigorous, and consistent framework,” he said. “Cutting costs on an annual basis doesn’t work long-term. Toronto needs a long-term investment and revenue strategy.”
Wallace spoke candidly about the need to choose, and implement, a revenue plan. If city council is not willing to increase taxes, then tolls are the only option.
Mayor John Tory announced last week that he would be supporting the implementation of tolls as a source of revenue for infrastructure and transit-related projects. His proposal: a $2 flat-rate toll on the Don Valley Parkway and the Gardiner Expressway. With this toll, the city would accumulate approximately $166 million in extra revenue. If the rate were to increase to $3.90, comparable to the cost of a transit fare, the city would make $272 million.
“If you want to live in a city in five or 10 years that is so much worse for congestion, then we shouldn’t have this discussion,” Tory said at a press conference prior to the vote. “But I’m not prepared to be that kind of mayor and when most people think about it, they know we need to build the transit and they know it isn’t free.”
“If anyone is opposed to road tolls, they have an obligation to tell us what they would do instead.”
There seemed to be a lot of differing opinions, but at the end of the day, the executive council saw the light and voted to send the toll proposal to city council for further consideration. The fees/cost of toll implementation will be decided at that point. Executive Committee also voted to ask the province for permission to impose a hotel and short-term accommodation rental tax and an alcohol tax. Council is still adamant not to increase property taxes by more than half a percent.
Tolling Toronto’s major roadways has a lot of benefits, and as was proven by the Mainstreet Research poll conducted last week, most of Toronto’s residents are comfortable paying a fee to use the DVP and Gardiner. The hope is that tolls will not only collect the much-needed revenue to build more transit, but it will also alleviate congestion and gridlock by encouraging car pooling and transit usage.
At the same time, the revenue tool discussion is always a hard one to have. An election is forthcoming, and no city councillor, not to mention mayoral candidate, wants to be the person to say “hey, we are raising taxes and we are making you pay to drive to work.” Toronto’s current mayor seems to have put the politics of re-election aside and was brave enough to push forward a proposal that may not be all that popular among his fellow councillors. And for that, the Transit Alliance commends him.
All I can say is that I hope the rest of council realizes that Toronto is in a pickle. The city needs money and it needs to build transit and infrastructure. The reality is that you can’t do one without the other.