This Is Not A New Message

Just in case you were wondering, I am indeed acutely aware of my increasingly out there position on the Mayor Tory crank scale. Where others detect glimpses of positive in his governance approach, I see lapses of courage and conviction. Well, at least it’s something leadership now passes for a welcome breath of fresh air. It Could Be Worse, Our Strength.

But honestly, I look at this…

johntoryvision

… and think, Are you fucking kidding me?

That picture and headline (taken from a news article) strikes me as more depressing and discouraging than anything I saw during the Ford administration. Yeah, seriously. You could take comfort, albeit a cold kind, during the Ford years, warmed by the knowledge that the darks days couldn’t last. Wobbly almost from the outset through the weight of sheer incompetence and personal demons, it had to eventually, and fairly quickly as it turned out, come crashing down. Shocking for sure but kind of like an unsuccessful siege. Damage inflicted but the fundamentals left intact, relatively sound.bloodied

Perhaps the worst outcome of the Ford mayoralty is that now, a full year out from its official end, we as a city reward any politics that aren’t crack and booze fueled. We grant anything as ‘vision’ that isn’t… a-hem, a-hem… blurred. Doing the right thing means not doing the wrong thing.

Mayor Tory’s proposed .5% Capital Building Fund levy is the wrong thing going generally in the right direction. But times being what they are here in Toronto, the Ford spectre still looming large, we call such an announcement visionary. ‘Modest’. ‘Sensible’. ‘Workable’. ‘Unsexy’. Even, incredibly, ‘a new vision’.

After writing about this yesterday, I sat down and re-watched City Manager Peter Wallace’s budget pre-presentation, let’s call it, to Executive Committee this week. I urge everyone to take 30 minutes or so and give it a look. It’s clear, easy to follow and very direct about what we have to do (and what won’t really work) in order to develop a sustainable fiscal plan (especially on the capital side of the ledger) going forward.

I want to focus on this one slide. (Lifted right from Steve Munro as I’m too much of a technical knucklehead to figure out how to convert a PDF to JPEG. Thanks, Steve!)

stateofcityfinanceschart

While it is true that, since 2000, Toronto’s property tax rate increases have been kept to below the rate of inflation, all property taxes have not been treated equally. In order to bring certain business and ‘non-residential’ property taxes (including some very residential apartment buildings) more in line with other GTA municipalities, in the spirit of competitiveness, the Miller administration set in motion a re-jigging of the ratio between residential and non-residential rates. wonkyIt’s a process that’s still going on but, in effect, it’s meant that any property tax increase over the last decade or so has been felt more heavily on the residential side.

Now, while I still believe that for the services we receive and demand from the city, Toronto homeowners are getting a pretty sweet deal on their property taxes, the dynamic as shown in the above slide from the city manager provides a picture of why they may be feeling a little squeezed. Since about 2005, residential property tax rate have gone up above the rate of inflation. In a surprising bit of information, and running contrary to the Ford narrative of respecting the taxpayers, the city manager pointed out that over the past 4 years, residential property tax hikes have gone up at an increasing rate!

So, homeowners, those vaunted hardworking tax payers, have not been wrong in feeling that they’ve been squeezed, certainly in terms of their property taxes.

Listening to this, reading through the prepared documents, what is Mayor Tory’s response? To increase property tax rates by an additional .5% above whatever annual bump will happen. fingerscrossedbehindbackHe and his supporters can call it a levy. They can try to pretend it’s something it isn’t. But it’s a property tax increase.

I don’t think it’s accidental that throughout the Executive Committee presentation, the city manager continued to point in the direction of the Land Transfer Tax. He called it a lifesaver, and that without it, the city would’ve been forced to face the financial wringer sooner. Lookit it, people. Lookit this source of revenue. Controversial? For some. Sustainable? Probably not, and certainly not at the level it’s been at during our housing market boom. But lookit it. You see what the city manager sees? It’s not the property tax.

This is why Mayor Tory should not be applauded for his announcement. An additional property tax isn’t in any way, shape or form ‘a new vision’. In fact, it’s just the opposite. Even Rob Ford was in favour of increasing the property tax to help fund his Scarborough subway vision.

Mayor Tory was presented with an opportunity for a wider conversation about revenue tools and he chose to ignore it. charliebrownInstead, he simply continued to pile on the property tax base, and at a rate that, in the end, won’t even make much of a dent in the capital state of good repair backlog let alone build anything much new. And if one nickel comes out of this fund for SmartTrack… ?

When we come up short again — and the proposed implementation date of this Tory tax in 2017 means we’re already short in 2016 – and another round of discussions about revenue tools raises its head, people will be indignant. We are being nickel and dimed to death! What about that .5% levy, they’ll ask. Where did all that money go?

At best, this should be seen as a sideways move, a side-step, another dodge by a politician unwilling to face up to reality. Yet, for Mayor Tory, it’s like he’s invented the wheel. It’s not much (modest) but it’s better than nothing (workable). This is exactly what exceeding exceedingly low expectations looks like.

crankily submitted by Cityslikr

 

2 Responses to This Is Not A New Message

  1. Ron Wm. Hurlbut says:

    Exactly! We’re being Nickel and Dimed to death!

    Ford did it with his ongoing war on Council Office Expenses and the Scarbway Tax.

    Now, fellow adherent of the Chicago School – Neo Liberal Nit Wit, Tory is doing it with this Capital Tax.

    Where are we heading?

    Boutique Taxation..

    Every service will be a line item and maybe we’ll be given the choice as to which ones we’re willing to pay for while the city goes bankrupt.

  2. rogerb says:

    I expect there was a connection between city manager (being allowed to) advocating for more revenues the day before Tory unveiled property tax levy (hike). Tory as always has his eye on Ford, and also claims he is not raising taxes above inflation., Like Ford he tied this tax levy (hike) to transit and housing, and even explicitly made the connection to Ford’s Scarborough levy in case anyone didn’t notice. Like Ford, he further misrepresented the cost by describing only the first year costs.
    While Ford childishly set out to destroy his predecessors Mayoral legacy, Tory’s is much closer to deja-vu.

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