Finance officials propose new and higher user fees
$50 charge for opening an account to pay property taxes, among fees being proposed by city finance officials.
A new $50 charge for Toronto residents and businesses opening an account to pay their property taxes is one of several fees being proposed to bring in an extra $2-million for the cash-strapped municipality next year.
City finance officials have recommended a mix of new charges and increases to existing fees, to be debated at council government management committee on Monday. If approved by council later this month, the fees will take effect on Jan. 1.
The move comes as the city scrambles to fill an operating budget hole estimated at between $400-million and $500-million next year, with departments told to shave 5 per cent off their costs and, where possible, raise user fees to generate added revenue.
“We will see more of that,†predicts budget chief Shelley Carroll (Ward 33, Don Valley East) of prospects for higher user fees in 2010. But she added that departments have also been told to “look for sustainable solutions and efficiencies,†rather than simply jack up fees.
The proposed new charges drew fire from committee member Doug Holyday (Ward 3, Etobicoke Centre).
“It seems like just another tax increase,†he said. “It's the sign of a desperate administration.â€
Committee vice-chairman Bill Saundercook (Ward 13, Parkdale-High Park) says he is “not too surprised†by the proposals and plans to support them given the city's budget pressures next year.
If approved, the city will bring in two new fees: $50 for a new property-tax account and $35 to transfer ownership of an existing utility bill for water and solid waste. Some cities already charge even higher fees for those services – $62 for each of them in Ottawa – with others in the $30-$50 range.
As well, the city would raise four of 27 existing fees for property-tax and utility-related services.
The new charges, some of which have not been updated in years, are intended to reflect the actual cost of providing the service, says Casey Brendon, acting director of revenue.
“Only the people who use the service pay the cost of whatever service is being provided,†he said, which eases the burden on other property taxpayers.
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