That was the message from Mayor David Miller Monday, when he made public a letter to senior city staff, outlining his expectations for the preliminary 2009 operating and capital budgets.
"There could be a tax increase, and I've asked that if (staff) recommend one it be in line with inflation, which is 3.6 per cent, I think," Miller said. "So I think it will be in the range of two to four per cent. And that's an if."
The letter, addressed to now-former City Manager Shirley Hoy, was dated Oct. 1 and provided to the city's Executive Committee as a courtesy. In it, Miller makes it clear that he wants any staff-recommended budgets to reflect Miller's mandate and priorities.
So it is to fund initiatives such as Transit City, Miller's climate change plan and the agenda for prosperity. The city will, Miller wrote, fund increased service levels in public transit, and implement the 311 program. The Toronto Bike Plan will go ahead, implementing the full network of bike lanes by 2012. Other programs approved by council are to go ahead and appear in budgets.
But Miller also set out a blueprint for fiscal restraint. Net operating budgets should be frozen at 2008 levels for the next two years. Departments must budget for a two per cent cut, anticipating future wage negotiations.
And departments should set priorities for service levels, and minimize the use of property tax and provincial cost-shared programs should be minimized.
Asked whether he could guarantee that all would mean no front-line service reductions, Miller said he could not.
"This is the start of the budget process," said Miller. "That's the direction at the start - the direction I've given."
The letter drew ire from some of Miller's critics on council. Ward 24 (Willowdale) Councillor David Shiner had been trying to change the budget process to allow the city's standing committees to craft the budget.
"Today we have the budget plan walked on by a mayor who doesn't have the courage to circulate in advance his budget priorities, and won't even allow members of council to ask him a question or speak to the question," said Shiner. "There's not any time for the public, the community or interested members of council to participate in the budget process."
Ward 16 (Eglinton Lawrence) Councillor Karen Stintz attempted to question Miller at the Executive Committee meeting, but was unable to because of procedural rules barring debate on an item provided as information.
"It wasn't circulated to council members today. It doesn't necessarily reflect what council's priorities are with respect to the budget," said Stintz.
But budget chief Shelley Carroll said the process as it unfolds will provide plenty of opportunity for councillors and the public to have input.
"This is the mayor's directives on the budget," he said. "Council gives their directives by whether they yay or nay the budget. Budget committee is made up of councillors and they give their direction� and ultimately Council say is in the Council Chamber when we have special budget Council. The letter is simply the mayor's communication to staff and he has that ability."
The city's $8 billion budget will be approved in the spring of 2009.