The cash-strapped City of Toronto has suddenly found an extra $100 million in budget surplus from last year, whittling the 4 per cent residential property tax hike to 2.9 per cent, Mayor David Miller announced Wednesday. At a news conference extraordinary in several ways, Miller said that “more accurate year-end accounting, only now,” shows that the 2009 surplus came to $350 million — not $250 million, as he reported Feb. 16 when the 2010 budget was unveiled. Miller said that of that $100 million windfall, $25 million will be used to reduce the property tax hike, with the commercial rate dipping below 1 per cent. Also, some new user fees and spending cuts will be reconsidered. A threatened reduction in subsidies for daycare centres located in public schools is likely to be reversed. A city spokesman said most of the $100 million is the result of returns on investments that were better than expected, as well as fewer-than-expected successful property tax appeals by big commercial property owners. The tax drop will save about $23 on the average homeowner’s tax bill.
Instead, the mayor took the unusual step of essentially planning the 2011 budget, even though he will be leaving office Nov. 30. Miller said he has told the budget committee to plan “a balanced 2011 budget by placing the remainder ($75 million) in a tax stabilization reserve that will allow for a balanced 2011 operating budget with no TTC fare increase, assuming a 3 per cent tax increase in 2011 and the successful conclusion of the agreed-upon negotiations with the province regarding its long-awaited assumption of the sharing of TTC operating costs.”
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