Budget Time

I was under the impression that a budget was; "an estimate, often itemized, of expected income and expense for a given period in the future." Expected income & expenses! Nothing about borrowing, going further into debt or running to your father-in-law for handouts. I don't have a problem with higher property taxes and it should be mandated that property taxes should increase in relation to the expenses and I will bet that councilors would learn fiscal control if their re-election was jeopardized by high tax increases.

City approves whopping budget
By ZEN RURYK, CITY HALL BUREAU CHIEF

Councillor Rob Ford had 45 proposals of cost-cutting measures to help the city balance its books -- but the mayor claimed many of Ford's motions were "false economies." (Greg Henkenhaf, Sun Media)

It's more expensive to live in Toronto today, courtesy of the city's government.

Council yesterday imposed tax hikes of 3.8% on homeowners, 1.26% on businesses -- and drove up the cost of its recreational programs by 3%.

In a 27-15 vote, councillors okayed this year's $7.8-billion budget, digging deeper into dwindling cash reserves to fund a $71-million shortfall.

The residential tax increase will add $81.19 to the $3,149 property-tax bill imposed on an average home -- one assessed at $369,300.

While residents and business owners will pay more, the budget offers little in the way of enhanced services.

Councillors also decided to take the province to court in a bid to settle their feud over funding. The city argues that the Ontario government has failed to pay its fair share of social programs that are provided by Toronto council.

Mayor David Miller said the city cannot afford to foot the bill for provincial decisions to stick it with additional costs.

"My mandate is very clear. I got elected to preserve services -- and where we have, we have very modestly enhanced them," Miller said.

In what has become an annual occurrence, Councillor Rob Ford called on his peers to target their own perks as he unsuccessfully pushed for spending cuts. "They're just self-serving individuals. You saw the greed there," said the representative for Etobicoke North (Ward 2). "They blame the province, but they didn't cut one red cent of their own perks."

Ford said his list of about 45 proposed cuts would have saved taxpayers up to $110 million. "We wouldn't have had a tax increase if they would have supported at least half of my motions -- but they didn't support one," he said.

Ford wanted to reduce councillors' annual $53,100 office budgets by $23,100, eliminate their free admission and parking at Exhibition Place, take away their TTC passes, and stop letting them in the Toronto Zoo for free.

His list of proposed cuts included the sidewalk snow removal provided in much of Toronto and several newsletters that taxpayers now finance.

The only thing that came close to passing was his call to eliminate the provision of councillors' passes to play golf at city courses. That lost in a 22-22 tie. A majority of councillors must support something for it to win approval.

Councillor Denzil Minnan-Wong accused Miller of breaking his commitment to keep tax hikes in line with inflation. While the residential increase came in at 3.8%, municipal finance officials peg the rate of inflation in Toronto at about 1.8%.

Miller last week rejected such accusations and defended the tax increase.

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TAXES UP, UP, UP

This year's $7.8-billion city budget includes:

- A 3.8% property tax hike for homeowners.

- A 1.26% property tax hike for businesses.

- A 3% increase in the fees charged to take municipal recreational programs. For example, adult aquafit classes go up $1.79 a session to $61.50 from $59.71, a preschool arts and crafts program increases by $1.13 to $38.85 from $37.72.

- The cost of renting an indoor or outdoor ice rink goes up by 6%, an amount designed to cover two years of increases.

- The hiring of an additional 746 municipal employees. A budget document attributes 160 of the increased positions to city operations. The remainder of the increase is earmarked for Toronto's agencies, boards and commissions such as the police department and TTC.

- Up to $3 million to fix potholes.

- About $65 million to clear snow, including $13 million for sidewalks.

- $59,000 to buy wine for homeless alcoholics and $17,000 to provide cigarettes to those in the city's reduction program.

- $77,000 to pay for plant watering in city-owned buildings.

- $40,000 for a news clipping service.

- A $561,000 boost to Mayor David Miller's office budget so he can hire four additional employees.