First we need to sort out that the way the province forces cities to account for property taxes, EVERY city in Ontario starts EVERY year with a deficit.
The problem being that the tax rate automatically reduces as properties experience inflationary increases in value.
In the absence of 'real' assessment growth (ie. the kind that occurs from turning a surface parking lot into a condo)...
This will leave the city with the inflationary property tax hike sized deficit, until said tax hike is approved.
In Toronto, on a gross budget of about 9Billion, (not all raised through property tax) You're looking about a 200m deficit at the beginning of each year's budget cycle.
Toronto does clearly have additional problems fiscally, but its important to get that sense right away.
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When it comes to dealing with the remaining issue, we have to separate the long-term, from this year as well.
The City is currently yielding real assessment growth in the range of 200M per year, which has NOT been booked into next year's fiscal plans, so far as I understand, when you hear the 774M deficit figure bandied about. In fairness Miller liked to pull those surprise revenues out at the last minute too. The bigger deficit figure was always seen to put pressure on managers and staff to trim budgets.
But if you assume a tax hike of 3% or so; a TTC fare hike at a similar level, and assessment growth, the budget hole is at most in the 400M range, and might well be closer to 300M. Not chump change, but not quite so bad as you may have been led to believe.
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Now to close the remaining gap.
Service Reductions:
Windrow Plowing (gone)
Residential Sidewalk Plowing (gone)
Etobicoke Special Leaf Collection (gone)
** rationale, these services were not offered in the old City of Toronto prior to amalgamation, nor in Scarborough; they are still not offered in large parts of the City; and are unpopular in others (damage to front lawns).
Service Efficiencies
Naturalize significant amounts of mowed-grass in those valley parks that still look like golf courses, but aren't. Mowing should occur only for sports fields/play areas, for picnic areas, or due to botanical plantings (ie. Edwards Gardens)
Shift more medical calls from Fire to EMS, and correspondingly scale back the size of Fire dept over time, slightly (EMS responds with 2 well paid staff and a vehicle, fire w/4 + more expensive vehicle).
Operate the Scarborough RT as intended, driver-less.
Either contract out TTC Collectors or negotiate a more modest pay-rate for that particular posting (not crappy pay, just not $28 per hour + benefits)
Crackdown on frivolous consulting contracts, I can name a long list of lovely City reports currently gathering dust, which only told City staff what they already knew and/or couldn't afford to implement.
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Revenues
Raise Permit Parking prices to market-value. Currently permits are as little at $15 per month, and no greater than $45. I would peg market-value, in most permitted-areas of the City at much closer to $100 per month (and higher).
Raising rates would generate no less than 10M per year, but could raise much more.
Direct the TPA (Green P) to raise on-street parking rates to market-value. Chicago's downtown parking is now around $5 per hour, so is Calgary's and Vancouver's. Toronto is $3.50 Market-rates for on and off-street lots could raise an additional 10M per year.
Hire one of the big mall managers to pursue retail in the TTC. Not a huge money maker, but I have no doubt there are two dozen good opportunities sitting un-used because of lack of ambition or know-how in the TTC.
Similarly, Cafe's and Sporting Goods stores might do well at some rec. Centres (without cutting into activity space); imagine a high-end restaurant at Edward's Gardens or on the Toronto Islands.....without damaging/reducing or selling the park areas, leasing revenues could be attractive.
Personally, I would pay for hot-towel service at the rec centres.
Long-term, intensified development on TTC, GreenP and other City owned lands is being pursued, as it should be, that won't fix this year's issues, but should be pursued more aggressively for the long term.
I would absolutely consider road tolls on the DVP/Gardiner. A modest toll of $3 at point of entry to the City would generate a lot of cash.
Finally, I would consider 'biting the bullet' on residential property tax rates which are well below neighbouring areas, ie. Markham, Mississauga etc.
Some of any meaningful increase would likely need to go to lower corporate property tax rates, but if even a portion were kept, the City's revenues would be much more healthy.
Problem Solved...........
