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City proposes property tax hike, fees to tackle shortfall

  Lucas Oleniuk/Torstar News Service

Mayor David Miller and Shelley Carroll, city budget chief, answer questions yesterday after introducing the staff-recommended 2010 operating budget inside Toronto Council Chambers.

Published: February 17, 2010 5:35 a.m.
Last modified: February 16, 2010 11:04 p.m.
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Toronto’s proposed 2010 budget includes a property tax hike of four per cent as well as new user fees meant to narrow its $382-million shortfall.

The tax hike matches last year’s four per cent increase.

It means a home worth $407,374, the average price in Toronto, will be hit with an extra $93 in property taxes.

Property taxes make up 39 per cent of the revenue for the city’s $9-billion budget.

Mayor David Miller notes that despite the rate jump, Toronto still pays the lowest property taxes of any other municipality in the 905 region.

But critics say a house in the suburbs will likely be situated on a much larger property.

Aside from the property tax hike, the city also wants to increase user fees and impose new costs for city-run services and facilities.

That includes a one-time charge of $50 per family to sign up for recreation programs.

Coun. Doug Holyday was quick off the mark to say this is no time to ask people for more money.

Each city department has also been asked to cut spending by five per cent in order to help the city meet its goal of reducing its budget by 10 per cent over two years.

City council will debate the final 2010 operating budget at a council meeting scheduled for April 15 and 16.

More about Toronto City Hall , Economy


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