Taxes / en Mayor Tory’s Gardiner, DVP toll good for Toronto, says U of T’s Enid Slack /news/mayor-tory-s-gardiner-dvp-toll-good-toronto-says-u-t-s-enid-slack <span class="field field--name-title field--type-string field--label-hidden">Mayor Tory’s Gardiner, DVP toll good for Toronto, says U of T’s Enid Slack </span> <div class="field field--name-field-featured-picture field--type-image field--label-hidden field__item"> <img loading="eager" srcset="/sites/default/files/styles/news_banner_370/public/2016-11-24-dvp-lead.jpg?h=8c4bd285&amp;itok=JWhUPb-k 370w, /sites/default/files/styles/news_banner_740/public/2016-11-24-dvp-lead.jpg?h=8c4bd285&amp;itok=D4mbliCC 740w, /sites/default/files/styles/news_banner_1110/public/2016-11-24-dvp-lead.jpg?h=8c4bd285&amp;itok=DWlymQy- 1110w" sizes="(min-width:1200px) 1110px, (max-width: 1199px) 80vw, (max-width: 767px) 90vw, (max-width: 575px) 95vw" width="740" height="494" src="/sites/default/files/styles/news_banner_370/public/2016-11-24-dvp-lead.jpg?h=8c4bd285&amp;itok=JWhUPb-k" alt="Photo of DVP"> </div> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span>Romi Levine</span></span> <span class="field field--name-created field--type-created field--label-hidden"><time datetime="2016-11-24T14:44:25-05:00" title="Thursday, November 24, 2016 - 14:44" class="datetime">Thu, 11/24/2016 - 14:44</time> </span> <div class="clearfix text-formatted field field--name-field-cutline-long field--type-text-long field--label-above"> <div class="field__label">Cutline</div> <div class="field__item">Traffic snarls on the Don Valley Parkway test drivers' patience (photo by Jess via Flickr) </div> </div> <div class="field field--name-field-author-reporters field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/authors-reporters/romi-levine" hreflang="en">Romi Levine</a></div> </div> <div class="field field--name-field-author-legacy field--type-string field--label-above"> <div class="field__label">Author legacy</div> <div class="field__item">Romi Levine</div> </div> <div class="field field--name-field-topic field--type-entity-reference field--label-above"> <div class="field__label">Topic</div> <div class="field__item"><a href="/news/topics/city-culture" hreflang="en">City &amp; Culture</a></div> </div> <div class="field field--name-field-story-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/tags/toronto" hreflang="en">Toronto</a></div> <div class="field__item"><a href="/news/tags/transportation" hreflang="en">Transportation</a></div> <div class="field__item"><a href="/news/tags/imfg" hreflang="en">IMFG</a></div> <div class="field__item"><a href="/news/tags/economy" hreflang="en">Economy</a></div> <div class="field__item"><a href="/news/tags/taxes" hreflang="en">Taxes</a></div> <div class="field__item"><a href="/news/tags/enid-slack" hreflang="en">Enid Slack</a></div> <div class="field__item"><a href="/news/tags/city" hreflang="en">City</a></div> <div class="field__item"><a href="/news/tags/tolls" hreflang="en">Tolls</a></div> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Toronto Mayor John Tory announced plans to implement a $2 road toll for&nbsp;the Gardiner Expressway and Don Valley Parkway today, hoping to generate much-needed income for the city.</p> <p>The highways carry thousands of commuters in and out of the city each day, but Tory said the tolls&nbsp;would raise $200 million every year – funds that could then be used for&nbsp;transit costs and expansion projects.&nbsp;With&nbsp;$33 billion in unfunded capital projects, the city is in need of a new source of revenue, he said.&nbsp;</p> <p>Tory also proposed&nbsp;a number of cost-cutting measures such as a hotel tax and a 2.6-per-cent reduction in the operating budget&nbsp;of city divisions like police and libraries.&nbsp;</p> <p>U&nbsp;of T's Institute on Municipal Finance &amp; Governance (IMFG), which is part of the Munk School of Global Affairs,&nbsp;<a href="http://munkschool.utoronto.ca/imfg/uploads/368/imfgperspectives_no15_kitchenandslack_nov_23_2016.pdf">released a paper</a> this week outlining different taxing options for cities like Toronto in order to generate revenue. &nbsp;</p> <p><em>οNews</em> spoke with <strong>Enid Slack</strong>, IMFG director and co-author of the report about Tory’s toll proposal and alternative revenue sources. &nbsp;</p> <hr> <p><strong>Why does Toronto need more sources of revenue?&nbsp;</strong></p> <p>What we've talked about in our paper is really the demands on municipal expenditures and how they've changed over the last 30 years – so for things like roads and transit, investing in infrastructure that's deteriorating, investing in new infrastructure. Our cities over the last 30 years are more interested in being more internationally competitive and that means not only providing water, sewer, roads and the traditional services but also making our cities very livable so we can attract young, skilled workers. Frankly, they can go anywhere, but we want them to come here.&nbsp;</p> <p>The list goes on and on for&nbsp;the expenditure side of the budget, but when we get to the revenue side and look over the last 30 years, nothing much has changed. Cities in Canada have property taxes, user fees and some provincial and federal transfers so the time has come to think about what other sources of revenue are appropriate for cities.</p> <p>When we looked at cities around the world – they all have other sources of revenue. They are not reliant on property taxes as their only source of revenue.</p> <p>This is not as bold as you might think. Other cities are doing this, and other cities have tolls on their major roads.</p> <p><strong>Other than generating income, what are the benefits to introducing road tolls?</strong></p> <p>The obvious benefit is to reduce congestion so that fewer people will get in their cars – maybe they'll carpool or maybe they'll take transit. It has a lot of time benefits for people and environmental benefits – less pollution, fewer health care costs as a result, fewer accidents, less policing costs. There are a whole lot of benefits over and above just the revenue.&nbsp;</p> <p>The point with tolls is that the users of the road are paying for it – whether they live in Toronto or somewhere&nbsp;else. And if the money is put into improving the roads or into transit, everybody benefits as well.</p> <p><strong>Tory also proposed a hotel tax during today’s announcement – an initiative included in the IMFG paper – what can this kind of levy provide for the city?&nbsp;</strong></p> <p>Hotel tax has advantages because it's a tax on visitors. When visitors come to the city, they use services. They walk on the streets. They use parks and policing services, and they don't pay any taxes in Toronto. A hotel tax is a way to get tourists to pay for some of the services they use when they're in the city. Other cities in Canada have hotel taxes – Vancouver, other B.C. municipalities, Montreal, Charlottetown. When you look around the world, many cities have hotel taxes.&nbsp;</p> <p><strong>How can Torontonians be convinced that increased taxes or taxes on more services will benefit them in the long-run?&nbsp;</strong></p> <p>We shouldn't start the conversation with taxes. We should start the conversation with what's our vision for cities in Canada. What do we want to see? People know what they want. They want good services. They want good transit. They want roads that aren't congested. They want parks. They want libraries. And&nbsp;we have to pay for them. If they have some understanding that those taxes are paying for these services, that they are getting something for their taxes, I&nbsp;think they're less unwilling to pay taxes.</p> <p><strong>Some politicians will also need convincing that taxes are a good idea. How can that be done? &nbsp;</strong></p> <p>If we want a great city, we all have to understand – citizens and politicians – that we will have to pay for it. If we don't, our cities will crumble. Infrastructure will deteriorate. The services won't be very good, and people won't be very happy when that happens.&nbsp;</p> </div> <div class="field field--name-field-news-home-page-banner field--type-boolean field--label-above"> <div class="field__label">News home page banner</div> <div class="field__item">Off</div> </div> Thu, 24 Nov 2016 19:44:25 +0000 Romi Levine 102572 at οexperts on why Tory's tax plan is not enough /news/u-t-experts-why-torys-tax-plan-not-enough <span class="field field--name-title field--type-string field--label-hidden">οexperts on why Tory's tax plan is not enough</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span>sgupta</span></span> <span class="field field--name-created field--type-created field--label-hidden"><time datetime="2015-12-04T11:32:38-05:00" title="Friday, December 4, 2015 - 11:32" class="datetime">Fri, 12/04/2015 - 11:32</time> </span> <div class="clearfix text-formatted field field--name-field-cutline-long field--type-text-long field--label-above"> <div class="field__label">Cutline</div> <div class="field__item">“We have dramatic needs for infrastructure investment,” Matti Siemiatycki says (photo by Ashton Pal via Flickr)</div> </div> <div class="field field--name-field-author-reporters field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/authors-reporters/alan-christie" hreflang="en">Alan Christie</a></div> </div> <div class="field field--name-field-author-legacy field--type-string field--label-above"> <div class="field__label">Author legacy</div> <div class="field__item">Alan Christie</div> </div> <div class="field field--name-field-topic field--type-entity-reference field--label-above"> <div class="field__label">Topic</div> <div class="field__item"><a href="/news/topics/city-culture" hreflang="en">City &amp; Culture</a></div> </div> <div class="field field--name-field-story-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/tags/ttc" hreflang="en">TTC</a></div> <div class="field__item"><a href="/news/tags/transit" hreflang="en">Transit</a></div> <div class="field__item"><a href="/news/tags/taxes" hreflang="en">Taxes</a></div> <div class="field__item"><a href="/news/tags/revenue" hreflang="en">revenue</a></div> <div class="field__item"><a href="/news/tags/cities" hreflang="en">Cities</a></div> <div class="field__item"><a href="/news/tags/more-news" hreflang="en">More News</a></div> </div> <div class="field field--name-field-subheadline field--type-string-long field--label-above"> <div class="field__label">Subheadline</div> <div class="field__item">It's a good start but more revenue is required for infrastructure, researchers say</div> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Toronto Mayor <strong>John Tory</strong>’s plan to introduce a property tax dedicated to public transit and social housing infrastructure is a good start, University of Toronto experts say&nbsp;–&nbsp;but just a start.</p> <p>Tory announced on Nov. 2 that he will be seeking an annual “city building” tax of 0.5 per cent added to property tax bills, for transit and housing. It would start in 2017 and add about $13 to the average property tax bill of $2,654.50.</p> <p><strong>Enid Slack</strong>, director of the Institute on Municipal Finance and Government at U of T’s Munk School of Global Affairs and one of Canada’s foremost experts in municipal finance, said Tory’s plan “shows that the city recognizes it has a revenue problem,” not a spending problem.</p> <p>The Institute did a study before the last municipal election in 2014 on the fiscal health of problems of Toronto that showed it has not been increasing property taxes very rapidly, and has huge infrastructure needs.</p> <p>“Increasing the property tax is a good start,” Slack said, “but it may not be enough. It’s not a lot of money coming in, so I think they may still have to think about other things to do, perhaps increasing borrowing.”&nbsp;</p> <p>Dedicating the tax increase to transit and infrastructure for housing “makes it a bit more palatable for taxpayers,” she said, noting that such infrastructure lasts for 30 or 40 years and citizens can reap the benefits at the same time the city is paying back loans over the same period.</p> <p><strong>Matti Siemiatycki</strong>, an associate professor of geography who focuses on municipal infrastructure and transit, echoed Slack’s views.&nbsp;</p> <p>Siemiatycki pointed to a report from city manager Peter Wallace this week that City Council has planned $23 billion in capital projects without identifying any sources of funding. &nbsp;</p> <p>“We have dramatic needs for infrastructure investment,” Siemiatycki said.</p> <p>Tory’s plan “is the beginning of a recognition that we have to come up with ways to pay for all of this. If you want to have it, you have to pay for it,” Siematycki said, suggesting&nbsp;a “variety of other” taxes could be needed.</p> <p>Borrowing for infrastructure projects is a good thing, he said, as long as the right projects are chosen. They should be ones that “drive the economic engine and create jobs.”</p> <p>The report released by the institute last year made three basic points: Toronto’s residential property tax is relatively low compared to other cities and growing slowly, and actually declining in real terms; the city can’t manage its infrastructure deficit without new revenue tools and Toronto’s debt load “is modest and manageable for a growing city.”</p> <p>Slack said that Tory’s plan shows the city is starting to address the problems outlined in the report.</p> <p>(<a href="https://www.flickr.com/photos/ashtonpal/10938717866/">See the original of the photo above at Flickr</a>)</p> </div> <div class="field field--name-field-news-home-page-banner field--type-boolean field--label-above"> <div class="field__label">News home page banner</div> <div class="field__item">Off</div> </div> <div class="field field--name-field-picpath field--type-string field--label-above"> <div class="field__label">picpath</div> <div class="field__item">sites/default/files/2015-12-04-tory-bus.jpg</div> </div> Fri, 04 Dec 2015 16:32:38 +0000 sgupta 7500 at Can Toronto meet growing demand for services with existing resources? /news/can-toronto-meet-growing-demand-services-existing-resources <span class="field field--name-title field--type-string field--label-hidden">Can Toronto meet growing demand for services with existing resources?</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span>sgupta</span></span> <span class="field field--name-created field--type-created field--label-hidden"><time datetime="2015-10-15T13:31:16-04:00" title="Thursday, October 15, 2015 - 13:31" class="datetime">Thu, 10/15/2015 - 13:31</time> </span> <div class="clearfix text-formatted field field--name-field-cutline-long field--type-text-long field--label-above"> <div class="field__label">Cutline</div> <div class="field__item">City Manager Peter Wallace addresses the Institute on Municipal Finance &amp; Governance at ο(all photos by Johnny Guatto)</div> </div> <div class="field field--name-field-author-reporters field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/authors-reporters/alan-christie" hreflang="en">Alan Christie</a></div> </div> <div class="field field--name-field-author-legacy field--type-string field--label-above"> <div class="field__label">Author legacy</div> <div class="field__item">Alan Christie</div> </div> <div class="field field--name-field-topic field--type-entity-reference field--label-above"> <div class="field__label">Topic</div> <div class="field__item"><a href="/news/topics/city-culture" hreflang="en">City &amp; Culture</a></div> </div> <div class="field field--name-field-story-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/tags/top-stories" hreflang="en">Top Stories</a></div> <div class="field__item"><a href="/news/tags/taxes" hreflang="en">Taxes</a></div> <div class="field__item"><a href="/news/tags/munk-school-global-affairs-public-policy" hreflang="en">Munk School of Global Affairs &amp; Public Policy</a></div> <div class="field__item"><a href="/news/tags/imfg" hreflang="en">IMFG</a></div> <div class="field__item"><a href="/news/tags/cities" hreflang="en">Cities</a></div> <div class="field__item"><a href="/news/tags/alumni" hreflang="en">Alumni</a></div> </div> <div class="field field--name-field-subheadline field--type-string-long field--label-above"> <div class="field__label">Subheadline</div> <div class="field__item">City manager, οpresident talk taxes, growth and why citizens want more for less</div> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Should Toronto implement more revenue tools, including a sales tax, to help meet the growing demand for services and to address the problems of its citizens who are not benefiting from the city’s success?</p> <p>The question was the focus of a session sponsored by the Institute on Municipal Finance &amp; Governance (IMFG) at the George Ignatieff&nbsp;Theatre on Oct. 14.</p> <p>Alumnus&nbsp;<strong>Peter Wallace</strong>, Toronto’s new city manager, spoke to an audience of what President <strong>Meric Gertler</strong> called “an A-list gathering of city builders” and was interviewed by Gertler afterwards. (<a href="http://news.utoronto.ca/photo_gallery?photoset_id=72157659522211288">See a photo gallery from the event</a>.)</p> <p><strong>Enid Slack</strong>, director of the institute at the Munk School of Global Affairs, opened the session by noting that while Toronto has revenue tools such as property taxes, user fees, the land transfer tax and a billboard tax, “as we look around the world we see that other major cities have access to a broader mix of taxes, and the question we always ask is here is can Toronto remain fiscally healthy without the ability to levy other taxes?”</p> <p>Wallace, a former senior civil servant in the Ontario government and city manager since last July, then gave an outline of the city’s fiscal situation and&nbsp;talked about the “standard dilemma” government officials face: “Give us (citizens) more for less.”</p> <p>People want more transit, better environmental protection and more public safety, but are really uncomfortable paying more taxes to get them, he&nbsp;said.</p> <p>Wallace, who holds both a BA in political economy and an MA in public administration from U of T, then sat down with Gertler in a question and answer session.&nbsp;</p> <p>Gertler said that “other cities around the world do indeed levy a pretty broad range of taxes….I think folks in this room would argue that there is capacity for the city to do more in this regard.”</p> <p>The president asked: “Does Toronto need to consider levying other kinds of taxes, and if so, what approach should one use” to make that happen?</p> <p>Wallace said from his&nbsp;perspective “it doesn’t start with revenue tools” but rather a commitment from local politicians on what core investments they want to make. “You have to make wise choices otherwise it is just considered a tax grab.”</p> <p>He noted that Toronto “does not yet have access to progressive revenues…we have a property tax that in its structure has the potential to be regressive.”</p> <p>Wallace also took questions from the audience and one came from alumna <strong>Anne Golden</strong>, the former head of the Conference Board of Canada and ex-president of the United Way of Greater Toronto.<br> <img alt="photo of Anne Golden" src="/sites/default/files/2015-10-14-IMFG%20City%20Manager%20Address-Anne%20Golden.jpg" style="width: 600px; height: 400px; margin: 5px 25px;"></p> <p>A study conducted by the conference board about the “fiscal gap” in the city concluded that “we needed access to a growth tax,” Golden said. She added that from her perspective, after working for the United Way for 20 years, it is clear that many Torontonians aren’t benefiting from the growth in the city, especially those in public housing. &nbsp;</p> <p>“If you put those two perspectives together, it does seem to me you need to look a revenue changes to keep the city sustainable.” &nbsp;</p> <p>Her personal favourite, she said, is a “small sales tax,” not large enough to dissuade people from buying but large enough to raise meaningful revenue.&nbsp;</p> <p>Wallace said there needs to be a “reality-based conversation” about such revenue tools, but noted that the land transfer tax has brought in $500 million to the city, “radically over-performing expectations.” &nbsp;</p> <p>Gertler said some American cities are holding referenda to ask citizens whether they would support new tax increases for specific spending priorities, “as a way of building confidence among the electorate that indeed money is being used for a specific purpose, (so that it is) less an act of faith on behalf of the voter and more a social contract to deliver better transit, or for example, better library services.”</p> <p>The president asked Wallace: “Can you ever imagine these kinds of ballot initiatives coming&nbsp;to Toronto?<span style="font-size: 12px; line-height: 18px;">”</span></p> <p><img alt="photo of Meric Gertler and Peter Wallace at microphone" src="/sites/default/files/2015-10-14-IMFG-City-Manager-Address-President-Gertler.jpg" style="width: 600px; height: 400px; margin: 5px 25px;"></p> <p>Wallace said “that is not something that comes naturally to me” and suggested there are enough existing mechanisms to deal with allocating money for city projects.&nbsp;</p> <p>In terms of city borrowing money to fund major projects, Gertler said “many people have suggested that this is a good time to take on debt given the state of interest rates…is it not time to reconsider the city’s debt strategy?”</p> <p>Wallace said increasing debt “won’t buy you as much as you think it will, even at low interest rates.”&nbsp;</p> <p>The president summarized the debate by saying “many of the problems that we have stem from the success of the city…we are fortunate to have considerable growth but in the future it can’t be taken for granted, and even&nbsp;with growth we still face pressing needs in terms of services and infrastructure.”</p> <p>Gertler said it is critical that the city address these issues “to ensure that we don’t kill the goose that is laying the golden eggs.”</p> <p>One of the president’s main priorities is to work more closely with its partners in the Toronto region, to the mutual benefit of both parties.</p> <h2><a href="http://threepriorities.utoronto.ca/">Read more about Cities and the 3&nbsp;Priorities</a></h2> <p>“A goal is to make the imaginary boundary around the University more porous, easier to transcend, as a way of fostering collaboration and partnership,” he told the audience. &nbsp;</p> <p>In that vein, Gertler asked “how do we start a larger conversation about what the city needs to do,” with other organizations “such as the one in which we sit, playing a part to convene that conversation?”</p> <p>Wallace said he agreed that οcould play an “enormously important role in that discussion,” since it is both a “place for inspiration and a source of talent” that the city could use in deciding its future. &nbsp;</p> </div> <div class="field field--name-field-news-home-page-banner field--type-boolean field--label-above"> <div class="field__label">News home page banner</div> <div class="field__item">Off</div> </div> <div class="field field--name-field-picpath field--type-string field--label-above"> <div class="field__label">picpath</div> <div class="field__item">sites/default/files/2015-10-14-Peter-Wallace-City-Manager-IMFG.jpg</div> </div> Thu, 15 Oct 2015 17:31:16 +0000 sgupta 7355 at