TORONTO – The city’s budget committee will meet for the final time today before it presents council with a budget plan to tackle Toronto’s $86 million funding gap in 2015.
There have been suggestions from several city councillors to look at implementing a sales or income tax to cover the loss.
Toronto Mayor John Tory proposed an option earlier this month to borrow a chunk of the money from the city’s own pockets.
READ MORE: Toronto needs cash. Why is the city so scared of new revenue?
The proposal would have $60 million coming from reserves as the city pays it back with interest over the next four years — the other $26 million is expected to come from efficiencies.
The city says the $86 million hole is a direct result of the province phasing out the Toronto Pooling Compensation fund which helped pay for the city’s affordable housing commitments.
City Manager Joe Pennachetti suggested during last Friday’s meeting that the city cannot continue to rely solely on property taxes to pay for services.
“We are probably the only city of 3 million residents and more in the world that funds all of its services from property taxes. There’s no sales taxes, no income taxes, et cetra,” he said.
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