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  • Mar 12, 2010 - 10:29 AM
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EDITORIAL: Larger than expected city surplus leads to understandable cynicism

No one expected Mayor David Miller's Wednesday press conference would be about the city's miraculous discovery of an extra $100 million, raising their surplus to more than $300 million dollars.

How could the city suddenly find an extra $100 million? Who is in charge of the books at City Hall?

The much-anticipated announcement left many with a bad taste in their mouths.

Some, like York West councillor and mayoral candidate Giorgio Mammoliti, are calling for the mayor's resignation. On the other side of the ledger, Miller supporters such as deputy mayor and mayoral candidate Joe Pantalone, were all aflutter, saying, like Miller, the surplus proves the city's finances are managed well.

Regardless, the city has more money: The average homeowner faces a $70 hike (2.9 per cent property tax increase) instead of $93 (four per cent).

The city will be able to cut less, while keeping most services. And the mayor is creating a 'tax stabilization reserve' for 2011, which will help ease some of the billion-dollar pressures come next year's budget process. He also promised no TTC fare hikes, but only if the province gives the TTC another $250 million in 2011. Quick note: the province is running a massive deficit.

You would be hard pressed to find anyone saying an extra $100 million is a bad thing. But how can this money suddenly appear, especially taking into consideration the City of Toronto - unlike its provincial and federal counterparts who can run deficits until the cows come home - must balance its budget every year?

Question: Why announce the budget in January when all the numbers, from all city departments aren't in until sometime in March?

The announcement smelled of a ripe political ploy, one that has been called self-serving, deceitful and cynical. Toronto-Danforth Councillor Case Ootes said it best: "(Miller) 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."

At his announcement, Miller also took shots at those running for his seat in 2010, except for Pantalone, actually giving him props. After the slag, mayoral front-runners Rocco Rossi and George Smitherman were all too happy to voice their opinions.

"This is the most commonly played political trick in the game - get the people upset and save the day at the last minute," Smitherman said.

While Rossi noted, "This is one of the more cynical announcements we've seen at City Hall."

Miller's lame duck mayoral status allows him to do whatever he wants, whenever he wants, however he wants. Announcements like this will leave a mark on his legacy, despite the fact an extra $100 million added to the city budget should make everyone, even his critics, smile just a bit.



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