Mayor David Miller.
Toronto Mayor David Miller makes a surprise announcement Wednesday morning at City Hall about the Toronto budget surplus and future budget plans. (March 10, 2010)
Photo/AARON VINCENT ELKAIM
Toronto taxpayers got a $100-million break Wednesday, as Mayor David Miller announced a larger-than-anticipated surplus will lead to a smaller-than-expected property tax increase in 2010.
"When the budget was announced almost a month ago, the estimated surplus was $250 million," Miller told a packed news conference Wednesday morning. "I am pleased to announce today that more accurate year-end accounting only now available estimates the surplus to be over $100 million higher."
The news conference was as packed as it was because the vague wording of the alert sent out by the city was very similar to the alert sent out in September, when Miller announced he would not run for a third term as mayor.
Media outlets speculated Miller might be resigning early, or even reversing his decision not to run for a third term.
But the only mayoral politics that came into the news conference was an oblique attack by Miller on candidates for his job who are suggesting the city needs better fiscal management.
"Anyone who tells you they can freeze or cut your taxes and provide the vital services we all rely on... is simply not telling you the whole story," he said, before settling into a lengthy discussion of the details of the surplus.
Miller said the surplus means the city can revisit its 2009 operating budget plan, which was released last month.
The newly-found cash means that property tax increases will only be 2.9 per cent on residential, as compared to the four per cent property tax hike recommended. User fee hikes might be cushioned.
And the surplus will let the city come up with a balanced budget for 2011, eliminating the need for a TTC fare hike and keeping property tax increases to three per cent. That plan, however, requires a successful agreement with the province regarding a proposal to have it begin to assume a share of TTC operating costs.
The news means an average home assessed at $400,000 will now pay $70 more a year in property taxes -- a reduction of $23 from the $93 increase initially slated (a four per cent increase).
The bonus surplus was only discovered as city budget officials looked deeper into 2009. According to Miller, the extra numbers came from higher-than-anticipated interest and investment earnings, higher-than-expected parking revenues, and increases in supplementary taxes - which come from new residents - and a reduction in property tax assessment appeals.
Critics on council were unimpressed with the news, despite the fact it will take pressure off taxpayers.
"He tries to make out that a $100 million surplus is a good announcement. It deflects the fact that water rates are going up nine per cent and other user fees are going up astronomically," said Toronto-Danforth Councillor Case Ootes. "It's not a question of having a 2.9 per cent or four per cent property tax increase. What we have here is costs piling upon costs. He thinks going from four per cent to 2.9 per cent is good news. To me that's a lack of good management finding $100 million. My question is why did he find $100 million? Why didn't he know about it before?"