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Ontario will still have a revenue problem

I became a Liberal advocate in 2011 because they were the only party honest enough to admit that both Ontario and Toronto have huge revenue problems. Services like healthcare and education suck up all the tax dollars collected by the province and, as our population grows, there is an even greater need for more funding options. Few politicians have the guts to stand up for increasing taxes or implementing tolls because they risk their chances of re-election. But Toronto Mayor John Tory did. He stood up for tolls despite the risk of losing support in the suburbs because he, like many of us, understands that dedicated funding for transit has to come from somewhere.

I met Kathleen Wynne and others in the Liberal party who said they were willing to admit that Ontario didn’t collect enough revenue to pay for the services residents want — services like transit and housing that cities desperately need. I became a Liberal because of these facts. I believed the Premier would stand up and do the right thing, and not cave to low-polling numbers or pressure from cabinet members desperate to get re-elected. She once believed that tolls were a necessary tool to get the dedicated transit funding Toronto needs.

Tolls on Toronto highways are just as important as tolls on provincially-owned highways. Not allowing Toronto to access this funding tool will simply push the cost of transit expansion and other services on to future generations. From health care, to education, to efficient transit, we don’t have enough funding to pay for everything. But today, Premier Wynne has decided to ignore that problem and gamble that economic growth and low gas prices will last forever.

Relying on our current gas taxes for the billions of dollars needed over the next decade for transit expansion in Toronto is the same “do nothing” approach that has caused the growth of gridlock in the city. Gridlock is costing residents over $13 billion per year in time and lost revenues. A slight slip in economic growth, or increase in gas prices will lower the amount of revenue Ontario collects, meaning we’ll be financing all this transit expansion through debt.

So, why would Premier Wynne go against everything she stood for? Rumours of internal “poli-tricking” swirl with cabinet ministers outside Toronto apparently demanding she stop her support of Mayor Tory’s plan. The Premier should remember how flip flopping on the gas plant in Mississauga almost cost Liberals the 2011 election and this huge change in her position on Toronto tolls may very well lose her the liberal base of support in 2018. This kind of internal poli-tricking is why voters lose faith in politicians, and will choose an honest buffoon over a smart, intelligent, candidate.

Today I am ashamed.

City council votes to support tolls

“You rarely have to ask permission to do the right thing.”

This quote comes from an open letter released Tuesday morning, with the signature of five different Canadian mayors attached to it. The letter calls for more municipal power to create city revenue, so that municipal leaders can match infrastructure funding provided by the provincial and federal governments.

In essence, Canada’s biggest cities, including Toronto, were asking for the power to do their part to expand and grow.

This sentiment was much needed prior to the city council meeting Tuesday, where councillors discussed how they would be paying for city services for the foreseeable future.

After much debate, city council approved staff recommendations by staff to generate revenue by using various taxes and tolls. The implementation of tolls is a brave new step for the city – proof that politicians understand the need to create revenue and alleviate congestion on city roads.

Toronto Mayor John Tory proposed the use of tolls on the Don Valley Parkway and the Gardiner Express over a month ago, and since then it has received a mostly positive response. The money would be directly funnelled into maintaining and funding transit-related projects, which works to both alleviate congestion on roadways and expand Toronto’s transit network.

City council ultimately voted in support of the mayor’s proposal. Nine councillors opposed the motion.

These tolls, which could be implemented as early as 2020, would affectively alleviate congestion, unlock gridlock, and help pay for the much-needed transit network being built throughout Toronto. A win-win scenario.

Council also agreed to look into a 0.5 per cent levy on property taxes, a four per cent tax on hotels, up to a 10 per cent tax on short-term rentals like Airbnb, and harmonizing and/or increasing land transfer taxes. The city will also be asking the province for a share of the harmonized sales tax.

The debate on tolls will continue in the new year, when city staff will present options for implementation, including cost.

City Manager Peter Wallace made it clear in his presentation on the city budget that council had to approve of some of the proposed revenue tools — if they didn’t, they should be prepared to provide solutions to the $33 billion in unfunded projects the city is undergoing.

“I think it comes down to what level of public service does city council want to endorse,” Wallace said bluntly. He also made it clear that by voting to take tolls to the next level, council can rest assured that city staff will proved thoughtfully.

Other councillors were not so thoughtful. Many ignored the fact that people pay for the use of public transportation and that user fees are popularly used in large cities. However, at the end of the day, even the wary councillors understood the need to make a firm decision or risk being left with a large revenue gap to fill.

And to that brave majority, Toronto thanks you.

Executive Committee gets a toll awakening

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, Women’s Post 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.

Mayor John Tory right on the money with revenue tools

Toronto Mayor John Tory announced Thursday that he would be proposing the use of tolls and a hotel tax to create extra revenue for transit and infrastructure projects in the city. Prior to that announcement, a report was released by the Munk School at the University of Toronto indicating the need for a multi-tax system to pay for services. The conclusions of the report back up Tory’s decision to actively search for more revenue tools to help pay for the much-needed transit system being built in the city.

The report was written by Harry Kitchen, a professor in the economics department at Trent, and Enid Slack, director of the Institute on Municipal Finance and Governance and a professor at the Munk School of Global Affairs. They argue that property taxes, user fees, and transfers from other levels of governments have remained unchanged as large cities continue to grow and expand. This is unsustainable and larger cities in Canada must adapt.

The authors’ argue that decisions on public spending need to be linked with revenue decisions. This is what the mayor was trying to say in his speech on Thursday — that Toronto can’t afford to keep building and providing better service unless there is a way to pay for this growth.

The report also makes mention of services that benefit people across municipal boundaries like roads. While the report suggests transfer of responsibility to the province, sometimes that isn’t possible. Tolls, for example, would be a good compromise, allowing people who often travel into the city on a daily basis to contribute in a way besides property taxes.

In terms of the property tax, something Mayor Tory refuses to increase by more than half a per cent, the authors’ say it’s a good way to raise revenue for infrastructure, but that a mix of taxes is recommended. Property tax is also more expensive to administer compared to income or sales tax. “The property tax is relatively inelastic (it does not grow automatically as the economy grows), highly visible, and politically contentious,” the report reads. “It may therefore be insufficient to fund the complex and increasing demands on local governments.”

“A mix of taxes would give cities more flexibility to respond to local conditions such as changes in the economy, evolving demographics and expenditure needs, changes in the political climate, and other factors.”

The report suggests charging user fees for services as often as possible, as under-pricing can result in over-consumption. Tolls were specifically mentioned as an example of a user fee that can be used on a major highway or arterial road running into a big city. While high-occupancy tolls, which charges vehicles for using a specific lane, can be effective on big highways, it’s much more efficient to toll the entire roadway.

Revenue collected from the tolls in place on the 407 in 2011 earned the provincial government an extra $675 million. The proposal set forth by Tory indicated an extra $200 million in revenues with a $2 toll charge on the Gardiner Expressway and the Don Valley Parkway. The other benefit is that it will reduce congestion and unlock gridlock while creating funds that can be dedicated for transit.

Other options presented in the report include a parking charge, an increase in personal income and sales tax, a fuel tax, hotel tax, and vehicle registration fee. The conclusion seems to be by increasing/implementing a number of these revenue tools, it won’t affect a singular demographic to harshly while still generating funding for a large Canadian city to grow.

It looks like our mayor was right on the money, so to speak.

Mayor John Tory proposes tolls for DVP and Gardiner

The city of Toronto has finally clued in — if you want change, you need to be willing to make the unpopular decision to pay for it. As the mayor said in a speech Thursday afternoon, “If we are to achieve those goals we have to acknowledge that things we need, from transit to affordable housing, are not free. Pretending otherwise is not responsible and it’s not fair to the people of Toronto.”

Mayor John Tory chose to announce a new proposal to find much-needed revenue to help pay for the new transit network being built in the city at a luncheon at the Toronto Region Board of Trade Thursday afternoon.

What was this exciting solution? It was tolls.

Tory is proposing a $2 single-use toll to use the Don Valley Parkway and the Gardiner Expressway. This will bring in an approximate $200 million of extra revenue that can be used specifically for infrastructure. This would be a tax on everyone, whether or not they live in the city or not. This will ensure that those who work in the city also contribute to its growth.

“People say that Toronto’s population is approximately 2.8 million. That’s true, at night, when the people who live here are home sleeping,” said Tory. “But by day, the number of people in this city goes up dramatically with all the people who come to work or to visit, all the while using the services paid for by Toronto taxpayers.”

The details of the proposal are still unknown. It will be presented to executive committee next week along with all the other options for revenue tools. The city has to find about $33 billion over the next 20 years to fund capital projects, despite provincial and federal aide.

Mayor Tory has said he will not be considering vehicle registration tax or a parking levy. Two other forms of revenue were proposed during the speech, including a half per cent levy on property taxes and a mandatory hotel tax at all Toronto hotels and short-term rentals like Airbnb.

During a press conference following the speech, the mayor said that doing nothing is not an option. The $2 cost, as well as the functionality of the tolls, will be up for discussion at city council in the upcoming months. Assuming city council sees the value of tolls, Tory hopes to see it implemented as of 2019.

City council approves transit network plan

As a reporter, I love covering City Hall. But, sometimes it can get frustrating — for example, when it takes nine hours of discussion before a decision can be made surrounding a transit plan that has been on the table for over a year.

City Council voted Tuesday to go forward with the “motherlode” Transit Network Plan and approve a deal made with the province that will see them contribute approximately $11 billion towards transit. This includes $3.7 billion for Regional Express Rail (RER) and $7.84 billion for Light Rail Transit (LRT).

The problem? The city was not prepared to carry their weight of SmartTrack. This agreement would see the city contribute $3 billion of their own funding towards the project (or $2 billion if the federal government pitches in). Toronto will also be responsible for day-to-day-operations and maintenance of the Finch West, Sheppard East, and Eglinton Crosstown LRTs.

Mayor John Tory had to remind council a number of times that the deal with the province really does benefit the city, saying that if the province had meant to pay for everything, they would have had a parade and used it as an election campaign issue.

“The number one thing they want me to do is ease the strangulation that has taken place in this city as a result of traffic congestion and the number one way you can do that is build public transportation,” Tory said to reporters half way through the meeting.

This transit network has been a continuous source of political capital for city councillors, which is why staff divided the funding discussion into two parts in hopes of making the decision easier. During this particular council meeting, councillors were simply voting to approve the negotiations between the province and the city, and committing the city to continue their work. Staff will then return with the exact costs and details of construction for each project.

The second discussion will be about revenue tools — how exactly will Toronto pay for transit? Will they have to raise property taxes? Will they have to find cuts somewhere in the budget? This discussion will happen in December or January and is sure to be just as lengthy, if not more so.

However, this did not stop a number of councillors from using this time to try and amend the motion to squeeze as much as possible out of the province. Staff warned that by delaying the provincial negotiations, it could result in the province completely reneging on the agreement. As City Manager David Wallace pointed out, Toronto needs to make an investment and they need to do it now.

There were a number of councillors who were concerned about making that investment, saying that approving a plan before knowing how the city was going to pay for it was irresponsible. While I can admire their tenacity and commitment to the budget, city staff, as well as the Toronto Transit Commission, have reached an agreement that appears to be quite fair. By continuing to delay the building and construction of necessary transit systems, council will ultimately ruin all the hard work city staff have put into building an integrated transit network to begin with.

The solution seems simple: instead of complaining, be creative and start to come up with ways of creating revenue without raising property taxes to the extreme. I’ve previously suggested the use of tolls, something I firmly believe would help raise the much-needed revenue for transit. Not only would it unlock gridlock on our congested roads, but the money could be earmarked for SmartTrack specifically!

Toronto NEEDS transit, and if at all possible, it would be great if part of it was finished in my lifetime. Let’s stop the bickering and start to think of real solutions to the city’s gridlock problems.

WATCH: Doug Ford blows his stack in council defending brother, Mayor charges at opponent

Just when you think things can’t get any more insane in the circus that surrounds Rob Ford, like, you know, the massive protest outside City Hall today, new police files that allege prostitutes have visited the Mayor’s office, and the now doldrum crack cocaine use that Rob Ford has admitted to, things got a little more crazy.

In today’s special debate surrounding Ford’s recent actions his brother, Councillor Doug Ford, blew his stack by repeatedly demanding to know if Councillor Denzil Minnan-Wong has smoked marijuana — to the point where the speaker had to shut off his microphone and call a recess.

After this was all said and done the Mayor stood up and charged at Minnan-Wong in a stance of physical intimidation while the gallery cried out that he is a bully.

Minnan-Wong, once a fierce advocate of the Fords on Council, has turned his back on the administration after the most recent slew of revelations surrounding the mayor’s crack use. Minnan-Wong has also expressed some interest in running for mayor himself.

Watch the video and let us know what you think, is this behaviour (even divorced from the context of crack cocaine) acceptable in an elected leader?

 

Follow Travis on Twitter at @TravMyers.

What David Price’s GO station blow-up says about the integrity of the Mayor’s office

If not this, then what?

In the wake of a temper tantrum at a GO Transit station by David Price, Mayor Rob Ford’s director of logistics and operations, the Mayor has done everything in his power to pretend such issues are not occurring on his watch.  However, he may have slipped up when responding to an inquiry from a publication with which he rarely finds himself at odds. I speak; of course, of the Toronto Sun. Veteran Sun City Hall beat journalist Don Peat questioned the Mayor regarding the internal investigation by GO Transit and Metrolinx into Price’s actions. That prompted something of a peculiar response. The Mayor stated, “It’s actually no one’s business what happens in my office. I take care of the people that work for me and they do a great job, as you see.”

That hardly sounds like the candidate I recall demanding “respect for taxpayers” a mere three years ago.

Amid rising property taxes and an ever expanding budget, the Mayor signed David Price, his former high school football coach to handle much of his political outreach to the tune of approximately $125,000 per year at the taxpayers’ expense. As a matter of comparison Norm Kelly, Deputy Mayor of Toronto and elected Councillor from Ward 40, will be paid approximately $102,000 for his service to the City. If this is not the business of Torontonians – those who pay Mayor Ford’s and Mr. Price’s salaries – than I am not sure what else could. To suggest otherwise would be; dare I say, a demonstration of disrespect for the taxpayer.

More to the point; it is comments such as these from the Mayor that harkens back to the scandal-plagued days of the previous federal Liberal government. Mayor Ford and his staff have clearly developed an overwhelming sense of entitlement. It appears as though they truly believe that the rules do not apply to them. It appears as though they have forgotten that they work for the citizens of Toronto and not the other way around.

What will this mean come October 2014?

While I still believe that the Mayor would beat a polarizing candidate on the left in a one-on-one race, it is this sense of entitlement that could challenge the Mayor on the right and encourage conservative councillors such as Karen Stintz and Denzil Minnan Wong to challenge the Mayor. Given the Mayor’s propensity to spending money the City no longer has, perhaps it is challenges such as these he should be worrying most about.

 

Follow Jordan on Twitter at @JordanAGlass.

Follow Women’s Post on Twitter at @WomensPost.

 

Check out these great articles:

WATCH: Trailer for new documentary about the TTC

#TOpoli with Sarah Thomson, Adam Vaughan, Andy Byford, and Travis Myers (July 22, 2013)

Toronto’s next Mayor must come from outside city council

Founder of Kik Messenger takes stand against LRTs because they don’t look futuristic enough

DENIAL: Mayor Rob Ford says he is not a crack addict

Rob Ford addressed the media Friday at 3:30 p.m. to address allegations of his crack cocaine use and the video that was viewed by Star and Gawker reporters.

In a prepared statement Ford, flanked by his brother Doug Ford, flat out denied the allegations of him using crack and also added that he is not a crack addict.

He used the press conference to express his displeasure with what he described as hardships endured by his family as a result of this scandal and thanked his supporters for “calls and e-mails” he received.

He noted that his week long silence was the result of advice from his lawyer.

The Mayor also took this time to continually thank the people of Toronto, along with Deputy Mayor Doug Holyday who he described as the best the city could ever ask for. This comes on the heels of Holyday expressing concerns over Ford’s state and expectations that he may have to fill the top slot should Ford step down.

Mayor Ford left the room promptly amidst shouts of rehab related questions from the press and his brother took to the podium, giving a stern look to the press gallery, and answered a short few questions. When reporters shouted out to correct inconsistencies and factual inaccuracies  in his answers, he stuck to the trope that the Star is after the Fords. He asked that they ask the questions and he give the answers, covering no new ground with the press before ending the press conference.

This conference comes after more than a week of silence from Mayor Ford on the matter.

It remains to be seen whether Ford can recover from this scandal. As Councillors have urged him to seek help, co-operation at City Hall may not be possible for long if Ford remains mayor.

Video surfaces of Rob Ford smoking crack cocaine

Rob Ford has had his low moments, like when it was uncovered that he is an alcoholic, or when he groped WP publisher Sarah Thomson’s behind at a party.

Now it has come to light that there is a video of Rob Ford smoking crack (yes, crack cocaine, that stuff) that was filmed in the last six months.

Gawker reported that they have viewed the video and he is “fucking hiiiiigh” on the tape. It is currently for sale for six figures by a group of Somali-Canadian drug dealers and Gawker is looking for a partner to purchase it with.

This comes with the revelation that his dealers service “Ford’s longtime friend, people on his staff, his brother, a prominent hockey analyst, and more.”

The video in question shows Rob Ford smoking a glass pipe:

The man in the video is Rob Ford. It is well-lit, clear. Ford is seated, in a room in a house. In one hand is a a clear, glass pipe. The kind with a big globe and two glass cylinders sticking out of it.

After the Gawker story was posted they were contacted by an attorney about the tape saying he represents Ford and that the mayor does not smoke crack.

The tipster who informed Gawker of the video sent a photo that shows Rob Ford apparently partying and drinking with a young man who was murdered in a gang-style  shooting on King Street in Toronto’s Entertainment District, Anthony Smith.

Apparently a Canadian news organisation has already offered the owner of the video $40,000 for the video.

Thomson famously suggested that the Mayor might have been under the influence of a drug like cocaine when he groped her.

UPDATE: The Toronto Star viewed the video in question on May 3 and did not release this information to the public until early Friday.

Follow Travis on Twitter: @travmyers