Oct 05, 2009 02:06 PM
Vanessa Lu
City Hall Bureau
Toronto taxpayers won't be getting a rebate cheque in the mail for the $33 million the city saved during the 39-day civic strike.
The executive committee voted Monday to apply that money into balancing next year's operating budget instead of issuing an immediate credit or rebate.
They did, however, vote to add a notice or line item on the 2010 tax bill to explain to taxpayers where the savings come from.
"The strike savings will be returned to the citizens of Toronto," said Mayor David Miller. But Miller later told reporters that he cannot say what sort of tax hike property owners will be facing next year.
Given the global recession and rising welfare costs, Miller issued a warning that it's going to be a tough year ahead.
"The proposal that passed this committee will reduce property taxes next year by about 2.8 per cent," he said. "People will be notified and I think that's far and away the fairest and most efficient way to do it."
City council will vote on this plan later this month.
Departments funded by taxes (which excludes garbage pickup and water services) saved $36.1 million from not having to pay wages and benefits to striking workers.
But those savings are offset by lost revenue from the strike including $15.8 million on fees for day camps, recreation programs and permits, for example; $2.1 million on payments for recyclables that were never delivered; and nearly $616,000 on red-light camera tickets that couldn't be processed.
Lost marriage licence fees and wedding bookings alone totalled $110,000.
Extra costs included $5.1 million spent on strike-related security and $3.1 million running the temporary dumps
Of the services funded by fees, the garbage division lost $4.1 million mainly because of cleanup costs after the strike a loss to be absorbed in its 2009 budget while Toronto Water saved $1.2 million that will go toward the department's 2010 operating budget.
The city is already planning on hiking garbage fees and water fees next year final votes on those increases are scheduled for December.
"We are about to endure the most difficult budget than we have ever had," said budget chief Shelley Carroll.
While no official figures are available on next year's shortfall, it is estimated to be between $300 million and $500 million. With Queen's Park in deficit this year, the city won't likely receive any bailout money. This year, the city received $238 million in infrastructure money from the province which helped in balancing the $8.7 billion operating budget.
Carroll urged her fellow councillors to buy some "goalie pads and helmets," to prepare to fight for precious programs like windrow snow clearing and leaf-blowing services.
Councillor Gloria Lindsay Luby, who quit the executive committee last week, asked that every single family homeowner be given a $53 credit, but her motion was easily defeated.
"People need to see for themselves a line item on the tax bill," she said. "It's doable. It's visible and I believe it will be practical."
