Some scary shit about Toronto's future........

[Mia.Colpa]

I read an article in the Star over the weekend and it's some scary shit about Toronto's financing, I'll give you some key points to ponder:

1. Toronto is facing a $400 million shortfall
2. This shortfall grew rapidly from $72 million short in 2002
3. If we keep status quo and left it unchecked this shortfall will grow to $1.2 Billion by 2019
4. Funding a deficit of this size will require a property tax increase of 37%, don't worry won't happen but to give you an idea of how big the problem is
5. To balance the budget the city has many options including reducing expenses, increasing property taxes, increase and/or introduce new user fees, ie. road tolls, higher TTC fares, increase parking fees, higher land transfer tax, higher vehicle registration fees, etc..., sell assets, ie. property, ask for handouts from the province and/or the feds, or come up with some ingenious, new method of raising revenues.
6. Forget about handouts as the feds and province ($24.7 Billion deficit) have problems of their own
7. Residential property taxes are relatively low compared to business property taxes, thus why many businesses have left the city for the 905 area
8. Water rates are already increasing at 9% per year until 2012 due to an old infrastructure that desperately needs replacement over the coming years
9. The city borrows money to finance its infrastructure and the interest on the debt has been rising at 11% per year
10. The major expenses having been rising higher than average, ie. roads and transit at 6.4% per year, police and fire services at 6.1%, wages and salaries at 6% per year due to bigger workforce and increase wages/benefits


The problem is simple, expenses are increasing an average 5.3% per year but the main source of revenue, ie. property tax is only increasing at 3.6% per year, thus the deficit gap widens.

Man oh man does Miller look like shit, he was afraid to increase property taxes more than he did, Lastman promised us no property tax increase for a couple of years so he can look like a hero, but now here we are, with all the gutless mayors we've had, it's now time to face the music and some tough decisions have to be made, God help the next mayor.


Expect the following in the not too distant future: big property tax increases and don't be suprised if it's double digits, higher user fees, new user fees, reduced services for Torontonians, layoffs and hiring freeze for civic workers which is overdue IMO, TTC fare increase again which will piss transit users off but has to be done, and the sale of numerous, key properties around Toronto. Also expect the feds and province to tell us to take a hike for any handouts.

This problem is big and we can't sweep this under the rug anymore or else the chasm grows even wider. We have no option now.

WE NEED A NEW MAYOR WITH SOME GUTS, A BIG THINKER AND VISIONARY TO COME UP WITH LASTING SOLUTIONS, AND ONE WHO ISN'T AFRAID OF MAKING TOUGH DECISIONS FOR THE BETTERMENT OF TORONTO AND NOT FOR SELF SERVING PURPOSES. I DON'T SEE ANYONE ON THE SLATE AS OF YET WHO CAN MEET THIS CRITERIA, MAYBE TORY COULD HAVE BEEN THE ONE DUE TO HIS CORPORATE EXPERIENCE, BUT IF WE DON'T FIND ONE I'M SELLING MY HOUSE AND MOVING TO ARIZONA.

 

[Rockslinger]

The commies are killing Toronto. That which they touch, dies.

 

[Fozzie]

Couldn't be said any better Rockslinger

 

[lurkerjoe]

Choppity chop for the TTC and the police. Do we really need to pay $100K for a glorified cashier? The latter can make up for it by doing more "paid duty".

 

[Don]

Choppity chop for the TTC and the police. Do we really need to pay $100K for a glorified cashier? The latter can make up for it by doing more "paid duty".

Do that and the unions will hold the city hostage.

 

[Macator2003]

Great post MC

Not to go on about amalgamation. It was 11 years ago but, most of the former municipalities never ran a deficit......

 

[Nickelodeon]

When a leftish paper like The Star writes about this problem, we know how deep is the pile of crap that we are in. The other big point the article made is that most of the city expenses are salaries, although there are community and social programs.

So how do we tackle 2010 problems when you have salaries, benefits and labour structure built on the 1970's-80's model of growth and labour entitlements?

Our future could be what some US states and cities are going through....run the risk of declaring bankruptcy to break the employee contracts.

 

[happy the man]

Mia C!
Maybe you should run for mayor, since you know all that ails us (or should that be 'ales'). You got my vote!
My suggestion! Make prostitution legal and build a Red Light District. Then tax the hell out of all those who DON'T use it regularly...lol! Of course, it should be unisex...to be a fair canadian.

 

[Shallow Throat]

Here's a radical idea, let's keep all the tax $$$ generated by Toronto IN Toronto. Let the provincial and federal governments have to fight to get our money, instead of giving it to them and begging to get trickles back.

 

[tboy]

I'm not an economist and don't pretend to be one. But I knew all this years ago and it is nothing new.

I can see toronto becoming like a LOT of major US cities: downtown core, vibrant and well tended. Go 1 mile away from city centre and you have a barren waste land of abandoned buildings, burned out wrecked cars, drug infested crime riddled streets.....I will use Phoenix Az for an example: Last time I was there I was driving into the city and the "burbs were pristine, the core was pristine, but it was like Beirut in between. I talked to some people and they told me Phoenix did what Toronto is doing: driving everyone out with mismanagement. Only the multi-national corporations can afford to stay in the city and all residents and small business owners (who really do make a city work) left because of insanely high taxation and poor services.

I can EASILY see it happening here. The thing is: It isn't just residents here who wear out or road system, it is commuters coming into the city every morning, then leaving at night. What do THEY pay in taxes? Not a damn thing.......

 

[onehunglow]

They always talk about ways to raise revenue and increase taxes. They never talk or do anything to cut costs. The city owns two homes on my street that have been sitting empty for 3 years. They were supposed to be for low income housing. If they own 2 on my street how many do they own across the city?

My councillor refuses to discuss this with me and will not take my calls. If i call from home or my cell, the call goes to voicemail. If i call from a neighbor they answer and then just hang up when i let them know who i am.

 

[blackrock13]

....... and his Whiteness, with other boot lickers behind him smiling, is ecstatic that Toronto' finally' as a world sporting event to showcase TO and dig the hole deeper.

 

[buckwheat1]

The city shouls sell some of it's property. The person who stated a cahier makes $10000 + ask yourself how many hours does one have to work to make that kind of money. Most of those employees are under a duty to accomadate. They should get ride of plants in city hall too it costs like $85000 to have them looked after.

 

[landscaper]

Here's a radical idea, let's keep all the tax $$$ generated by Toronto IN Toronto. Let the provincial and federal governments have to fight to get our money, instead of giving it to them and begging to get trickles back.

OK lets say you get to keep the money that yopu generate, everybody else will want to keep the money they generate out of toronto , not to nit pick but the only reason that you are not in worse shape is the provincial govt has been pumping billions into toronto from other municipalites for the last decade. In part to support the lower ( much lower ) property taxes that the municiple politicians have been promising. Toronto property taxes are less than half of some of the gta municipalities.

Union wages such as the 416 outside deal that guarenteed the labours jobs for life acouple of contracts ago is just one example of unrestrained spending that the rest of the province has been footing . There are many more.

 

[r_s426]

How many people that bitch and moan about municipal government actually take the time to vote during elections?

Our turnout rate is about 40%, and that's for mayoral elections.

The low interest that the sane majority take come election time allows the (mainly socialist) inmates to run the asylum. These guys are great at getting people to turn up to vote for them. Many of their constituents have nothing else to do all day anyway. It goes right up to the mayoral level.

There is simply no accountability for our local politicians, and that lets them get away with all these hair brained schemes that cost the city a fortune.

 

[Pencap]

The city shouls sell some of it's property. The person who stated a cahier makes $10000 + ask yourself how many hours does one have to work to make that kind of money. Most of those employees are under a duty to accomadate. They should get ride of plants in city hall too it costs like $85000 to have them looked after.

What is the answer to that question, btw? I don't know that 'duty to accomodate' means.

I think that job is low-skill enough to hire teenagers and retirees at much lower wages.

With some upgrades in technology, metropasses, tokens and tickets can alternatively be sold in vending machines. However, the vending machines that dispense tokens right now are not as convenient as they could be. They do not accept credit cards, certain types of currency, and are often insufficiently stocked. A reliable system could save the city a lot of money.

 

[buckwheat1]

One could use the Washington system, you buy like a debit card put money on it and swip it through the turn style as one enters the system and when one departs the system they swipe the card again the machine deducks the proper amount depending on distance travelled on system. I'm not sure how their bus system works. I do know it's more to ride the subway at peak peroids of the day rush hours.

Duty to accomadate, these works say have been hurt on the job and unable to say drive or work out on the road and the TTC must find them a job so they place them in a cleection job (desk job) there are labour laws that protect these type of things.

 

[adickson]

How many people that bitch and moan about municipal government actually take the time to vote during elections?

Our turnout rate is about 40%, and that's for mayoral elections.

The low interest that the sane majority take come election time allows the (mainly socialist) inmates to run the asylum. These guys are great at getting people to turn up to vote for them. Many of their constituents have nothing else to do all day anyway. It goes right up to the mayoral level.

There is simply no accountability for our local politicians, and that lets them get away with all these hair brained schemes that cost the city a fortune.

That's Canadian democracy for ya...the reason ppl don't vote though is the politicians say one thing during campaign and the do something totally different once elected. We have no respect at all for public office and the ppl running are just two-face liars.

 

[blackrock13]

The city shouls sell some of it's property. The person who stated a cahier makes $10000 + ask yourself how many hours does one have to work to make that kind of money. Most of those employees are under a duty to accomadate. They should get ride of plants in city hall too it costs like $85000 to have them looked after.

One could use the Washington system, you buy like a debit card put money on it and swip it through the turn style as one enters the system and when one departs the system they swipe the card again the machine deducks the proper amount depending on distance travelled on system. I'm not sure how their bus system works. I do know it's more to ride the subway at peak peroids of the day rush hours.

Duty to accomadate, these works say have been hurt on the job and unable to say drive or work out on the road and the TTC must find them a job so they place them in a cleection job (desk job) there are labour laws that protect these type of things.

BW1;

Slow down when you type and read your posts before you send them, please. We all make mistakes but yours hurt the eyes. I can't help read your post s and put them in context with the ones you posted during the garbage strike, almost night and day. Hmmmmm! Some good thoughts here.

 

[buckwheat1]

OR when people leave office they don't tell the public how bad they have left it as in the harris governement they told us books are balanced and they were not 5.6 billion $$$ debt. I think maybe we should get more women to run for office they sure cannot be as bad as the guys running things.