Tax Hikes ‘Last Resort’ to Fix City’s Budget Gap

The City of Toronto faces a $774-million deficit, but property tax hikes will only be implemented if all else fails, according to Mayor Rob Ford’s spokesperson.

Ford’s press secretary Adrienne Batra said the “last possible thing” the mayor wanted to do was raise taxes.

Ford appeared on the John Oakley Show on Friday to speak to radio listeners. When questioned about property tax increases, he cited a figure of 2.5 to 3 percent maximum if tax hikes occurred.

“The mayor was asked a question about how we’re going to fix our budget gap, and he was simply answering the question,” Batra said. She later added: “The last thing [the mayor] wants to see happen is a property tax increase.”

Though tax hikes would only happen as a last resort, City Hall is determined to fix the structural deficit for the long term, Batra said.

The city is currently offering “voluntary separation packages”—an employee buyout program geared toward reducing costs. Batra said that layoffs are also a possibility, depending on how the buyout program goes.