McKelvie’s No. 1 worry: 2022

McKelvie said she is most concerned about the money for Toronto’s 2022 budget given that the city must soon close the books on that year’s finances and is not, by legislation, allowed to run a deficit.

She noted property tax bills being issued by the city will tell residents that the federal government has failed to honour an election commitment to help Toronto financially.

The city blames its deficit primarily on decreased transit revenue and rising shelter costs during the COVID-19 pandemic, arguing the federal government has a particular responsibility to pick up the costs because its immigration policies have put pressure on Toronto’s shelter system.

However, Deputy Prime Minister Chrystia Freeland, a Toronto MP, told CBC Radio’s “Metro Morning” on Wednesday that city hall should be looking to Premier Doug Ford’s government for bailouts going forward, after past federal help.

The Ontario government gave the city money toward the 2022 budget shortfall, but has not yet made any commitments to help with this year’s deficit.

The city will continue to lobby both governments for a new financial arrangement to make the funding of big cities sustainable, McKelvie said, while looking at what new taxes and levies it can impose on residents to help pay the bills.

The consultant’s report before council says the city’s snowballing fiscal pressures could amount to $46.5 billion over the next decade — more than three times the city’s current operating budget.

Before his shock resignation last month, Tory had vowed to lead a national campaign demanding that other orders of government help big cities get a share of either income or sales taxes to avert ongoing financial crises.

Council heard Wednesday that given the dire circumstances, city staff are fast-tracking release of a report — originally scheduled for autumn — suggesting new so-called revenue tools so councillors can potentially impose some as early as July.

With almost unanimous votes, council decided to expend more effort lobbying MPs and MPPs — from creating information packets to convening delegations of councillors.

The city will also study how much of the $1.1 billion in property tax revenue goes towards expanding federal and provincial programs and what could be adjusted.

McKelvie rejected a reporter’s question on whether city council could save money by voting to end work on Tory’s signature SmartTrack transit plan, which has largely been consumed by provincial transit expansion, with some stations funded by Toronto.

“I’m so proud of our city’s progress on transit,” McKelvie said. “I look forward to seeing this project move forward and seeing transit built in the city of Toronto.”