The Simple Truth

For the second time in about five years, the audit/advisory/consultant thingie, KPMG, was asked to answer the burning question: Does Toronto have a spending or revenue problem? tellmewhatiwanttohearFor the second time in five years, KPMG has reported back: All things considered, there’s more of a revenue problem at work than spending. The city’s pretty tightly run. To avoid seriously cutting essential and even mandated services and programs, City Hall should look at accessing increased revenues.

Oddly though, what many of our elected local representatives, including Mayor John Tory have heard and concluded is: Right. Just like I thought. We need to cut spending. Tighten our belts. To the efficiency-mobile, Batman!

Some urban legends die hard, it seems, if at all, when they run contrary to the political ideology of right wing, small government politicians. There is always more fat to be trimmed, gravy to be drained, excess to excise before we can start talking about revenue. We must learn to live within our means. There’s always money in the banana stand.

This sentiment is so strong with enough of our city council that it’s more than a little surprising that KPMG was called upon to deliver a revenue tools report at all.deaf It was and it did, the City of Toronto Revenue Options Study coming out earlier this week. A boatload of suggestions for raising revenue, some immediately in the city’s purview, others it would have to get provincial permission to implement.

I want to focus on one section of the report, 17, pages 165-170. (A PDF I cannot figure out for the life of me how to load up on this page here, so you’ll just have to follow along via this link). Property Tax Analysis.

This is another shibboleth our mayor and his council allies, and the administration before it, and pretty much every small-minded member of council since at least amalgamation, has taken and spouted as gospel truth. We pay too much in property taxes, dammit! Homeowners (as if it’s just those owning their homes pay property taxes) are already stretched to the max. They cannot afford any more hikes in their property taxes. Seniors will be chased out into the streets…

Similarly, the information presented above suggests that residential property tax rates levied by the City of Toronto and the implied burden on households, expressed both in dollar terms and as a percentage of household income, are lower than those in the majority of other GTHA municipalities. This indicates that there may be an opportunity to increase property tax rates and still maintain burdens that are below the average of the municipalities reviewed, while also considering that Toronto is the only city in the sample that also applies MLTT.

What’s that, you say? By almost any measure, Toronto’s property tax rates “are lower than those in the majority of other GTHA municipalities”? That simply can’t be. If it were, our local politicians wouldn’t be pretending otherwise. “This indicates that there may be an opportunity to increase property tax rates and still maintain burdens that are below the average of the municipalities…” youdontsay1So, why all this ‘at or below the rate of inflation’ insistence Mayor Tory’s pursuing?

Now, I get all the property tax caveats. It’s not a tax that accurately reflects or benefits from current economic realities. The city is too dependent on it and needs to diversify its revenue sources more. There are people who are house rich but cash poor, and property tax increases could jeopardize their ability to own. Toronto does have access to another form of property taxation, the Municipal Land Transfer tax, that other municipalities don’t.

All these can be addressed but the point I’m trying to make here is this determined pursuit of at or below the rate of inflation property tax rate increase simply does not measure up to reality. parrotToronto property tax payers are not already overburdened like the mayor claims, just like his predecessor had trumpeted. As Matt Elliott pointed out last month after City Manager Peter Wallace’s Long Term Financial Report came out, “Since 2010, when adjusted for inflation, the city’s overall take from property taxes has gone down by 4.8%. Homeowners have gotten a break.”

Property taxes have contributed less to the city’s budget over the past 6 years, and even keeping rate hikes at the rate of inflation will further reduce them since costs will inevitably rise higher than that. 5%, I believe the city manager told the budget committee yesterday in its initial meeting about the 2017 budget. If so, other sources of revenue will be needed to help balance the operating budget or further cuts to spending which is already down in terms of per capita numbers since 2010, as Elliott also pointed out.

Arrows heading in a different direction than the one Mayor Tory wants us to believe.

There will be new revenue tools introduced, though very likely not in time for the 2017 budget. texaschainsawmassacreThe mayor, however, has made a point of saying for capital spending which explains his spate of transit announcements this week. Softening the public up for new taxes or fees, dedicated to building all this new stuff the city wants and needs while the operating budget will continue to be squeezed.

Or, as Councillor Mike Layton quoted the city manager telling the budget committee, heading toward “direct austerity” and “smaller government”.

As the KPMG revenue options study suggests, that will be a choice Mayor Tory and his council allies will make not one made out of necessity.

factually submitted by Cityslikr

I Told You So, Sadly

I really, really resisted writing this. The tone, invariably, would be predictable, dreary even. I Told You Sos are boring, bringing little satisfaction to even the teller, this teller.

But Toronto’s mayor, John Tory, had a terrible, terrible week last week. Like, amazingly bad, exuding a willful, stubborn defiance of good judgment, an eager willingness to swipe aside anything that ran contrary to his rigid, preconceived notions.

Sound familiar?

At his Executive Committee meeting on Tuesday, Mayor Tory plugged his ears and refused to listen to City Manager Peter Wallace lay out all the reasons to consider new and increased revenues. Did you say, Find more efficiencies? Sell off city owned assets? That’s what I thought you said.

(NOW magazine’s Jonathan Goldsbie does an excellent job recreating the Tory-Wallace exchange.)

Also at his Executive Committee meeting on Tuesday, Mayor Tory punted the ward boundary review debate off into the fall, threatening the timeline that would see any changes in place for the 2018 municipal election. He pooh-poohed 3 years of work and public and stakeholder consultation that wound up recommending the addition of only 3 new wards, simply shook his head and shrugged his shoulders with a blithe We Don’t Need More Politicians down here at City Hall. Consult some more. Come back with the mayor’s preferred choice of 44 wards.

(David Hains in Torontoist explains why this is a particularly boneheaded and short-sighted direction the mayor seems determined to take.)

Fine. Fuck it. Whatever. None of this should come as any sort of surprise. John Tory is performing his duties as mayor pretty much as underwhelmingly as I expected.

And then his week got even worse.

That’s when the Toronto Police Services carried out its ill-advised raids of illegal pot dispensaries throughout the city, a course of action Mayor Tory seems to have encouraged in a letter he wrote 2 weeks earlier to the Municipal Licensing and Standards executive director. While this was happening, the mayor decided, not at all coincidentally I’m sure, to go plant some flowers while taking a crap on the head of a city council colleague and staff in the process. “Awful. A cheap stunt,” Metro’s Matt Elliott tweeted.

Indeed.

Isn’t this the kind of bullshit grandstanding we were supposed to have left behind in not electing a Ford mayor of Toronto? This isn’t Mayberry RFD. We live in a city of more than 2.5 million people with far bigger problems than a weedy street garden plot. It is not the mayor’s job to get involved in this kind of penny ante, day-to-day type of customer service.

If Mayor Tory really wanted to help the situation, speed the process up, maybe he should stop insisting on below-the-rate of inflation property tax increases and demanding across the board budget cuts to the departments that would take the lead on matters like this. Or he’d realize that in one of the fastest growing wards in the city where this neglected street garden plot was, the little things sometimes get missed and, in fact, we could use a few more councillor office’s at City Hall. If, you know, the mayor was interested in anything other than photo ops and playing political games.

After his sad sack performance this week, it dawned on me why, in the end, I believed electing John Tory mayor would be worse than Doug Ford. If Doug Ford had won, I think we would’ve remained on guard, prepared to fight the inevitable civic assault he’d attempt to carry out. With John Tory’s victory, we collectively stood down, many of us believing that whatever else, we’d elected a reasonable, competent candidate who might not do much but wouldn’t inflict too much damage.

Nearly 18 months into his tenure as mayor of Toronto, John Tory has proven to be anything but reasonable or competent. He has no ideas. He possesses an utter lack of imagination. His urban views are amber encased in the 20th-century, the mid-20th-century, no less. The only thing he’s proven adept at so far is avoiding our 21st-century challenges.

Let’s not mistake regular press conferences and media availability for dynamism. The boldness of this administration is inversely proportional to the number of times it claims to be bold. As the world moves on, continues forward, simply running on the spot still leaves us further behind. This isn’t a holding pattern we’re experiencing in Toronto. It’s just quiet regression that seems acceptable only after the noisy havoc of the Ford years. Little of that damage is being undone. The messenger has changed. The message remains firmly in place.

The frustrating thing about all this is that Mayor Tory has been given plenty of cover to adapt and rework his positions. A case has been made to consider new approaches to revenue generation, to civic governance, to the redesign of our streets and how we get around this city. The opportunities have been presented for the progressive side of John Tory to step forward, the red carpet rolled out for CivicAction John Tory to make his way into the spotlight, that side of the candidate voters were assured would figure prominently if elected.

“Progressive” John Tory has gone AWOL, if there was every such a thing as a “progressive” John Tory. I don’t want to say, I told you so but… I told you so. We’ll all probably be better off going forward if we stop pretending, and hoping for that side of the man and his administration to emerge. It was never really a thing anyway despite our insistence to believe otherwise.

resignedly submitted by Cityslikr

Vernacular Of The Vine

guestcommentary

(With yesterday’s Public Works and Infrastructure Committee’s unanimous vote of approval for the Hybrid #3 option to keep the Gardiner East expressway elevated, a timely post from our L.A. correspondent, Ned Teitelbaum)

*  *  *

For some time now, I have been playing a game in my head whereby I compare the freeway system of L.A. to a system of vines in a vineyard. losangelesvineywardHow, for example, would a particular vineyard be helped if a little strategic pruning were done? Would the vines allow for a more effective transport of minerals and nutrients to the grapes? And how, analogously, would the city of Los Angeles be helped by a judicious pruning of its freeways? Would cars move more freely into our pedestrian-oriented neighborhoods? Is that a good thing? A bad thing? Some wine-growers like to stress their vines, but could that very stress lead to grape rage?

Okay, so the analogy isn’t exact. But this particular act of analogizing is not so far-fetched, because while we don’t usually think of L.A. as wine country, that’s exactly what it was for the first hundred-plus years of its existence, with the earliest vineyards being established in 1781 at the Mission de Los Angeles. At first they were planted primarily to the drought-resistant, low-acid Airen grape from La Mancha, in Spain. Soon they were joined by other vitis vinifera and spread throughout the area. cheonggyecheonMany vineyards were added in the early 1800s and the industry was well-established by the time the Forty-Niners hit northern California with a rapacious thirst for Los Angeles wine.

The vineyards, unfortunately, were torn up long ago, but palimpsests of that key period of L.A.’s wine history abound, from the random ubiquity of grapes growing in private gardens and backyards to the streets named after early L.A. winemakers like Vignes, Kohler, Wolfskill and Requena. And then there’s the world’s most iconic street corner, Hollywood and Vine, which marks the transition from a town tied to the land to a city hitched to the stars.

L.A. Times architecture critic Christopher Hawthorne had not dissimilar thoughts on “trimming” (his word) what he calls the “stub end of the 2 freeway as it bends south and west from Interstate 5 and dips into Silver Lake and Echo Park.” Upon reading the article I wanted to celebrate. cheonggyecheonafterI had been waiting for this moment in L.A. history, when the city would decide, or at least decide to decide, that it was time to start pruning.

The plan for the 2 freeway doesn’t call for tearing it down (or uprooting it, in the language of the vine), but for re-purposing it. Traffic lanes would be reduced and narrowed, and housing and storefronts would go up along its sides. A park would be built down the middle, which would connect to the L.A. River, where another park is currently being planned under the direction of Frank Gehry. There is even a notion to run a resurrected light rail through it, from Downtown to Glendale, summoning the memory of the Red Cars of two generations ago.

This all comes against the backdrop of other cities removing their urban highways, from the Embarcadero in San Francisco, to the Whitehurst Freeway in Washington,DC, to Harbor Drive in Portland to Cheonggyecheon in Seoul. Could L.A. join this illustrious list of cities? hollywoodandvineIt’s beyond imagination – and, most probably at this time, beyond the imagination of city leaders as well.

Mr. Hawthorne knows it won’t be easy. But even in the letters to the editor critical of his idea (which most of them were), one could sense that the status quo is to nobody’s liking. Being aware of that is a good first step. Los Angeles will surely not be able to support the number of vines (or cars) that it once did, but that shouldn’t prevent it from pruning, as well as uprooting, in order to save the vineyard.

vino veritasly submitted by Ned Teitelbaum