October 30, 2008: THE NATIONAL POST

By: ALLISON HANES
      

In tough economic times, some city councillors question whether Toronto really needs to spend $40-million over the next five years for a makeover of Nathan Phillips Square, another $70-million for bike lanes and $10-million to study tearing down part of the Gardiner Expressway.


Mayor David Miller yesterday unveiled the city’s $1.6-billion capital budget for 2009, which will put the city debt at $2.9-billion, double what it was when Mr. Miller took office.


Councillor Denzil Minnan-Wong (Don Valley West) argued the city is not investing enough on such essentials as a $310-million road-repair deficit and a $230-million-and-growing recreation centre backlog, which would improve basic services for Torontonians. 

“We’ve got skating rinks falling apart and skating rinks that aren’t functioning,” he said. “It’s hard to accept the fact that we’re fixing Nathan Phillips Square when kids can’t go to their local swimming pool.”


The capital budget, which goes to council in December, does propose major investment in infrastructure for core services, with 48% dedicated to the Toronto Transit Commission and another 17% allocated to road and bridge repairs. Spending includes: 


• $173-million in 2009 and $836-million over five years to put 420 kilometres of road and 80 bridges in a state of good repair


• $105.9-million next year out of $728-million by 2013 toward the purchase of 360 new subway cars or 60 train sets


• $17-million to start construction on four new community centres


• $3.8-million as an initial investment to build three new daycares, creating 174 new places. 


Mr. Miller said the city is acting “prudently” in tumultuous times, and the current economic situation is not a reason to veer away from “city building” priorities, which include waterfront revitalization and environmental initiatives.


“When I studied economics, I studied Keynesian economics,” said the Mayor, “and it’s very clear that at a time of uncertainty like this, governments should be investing, particularly in infrastructure that helps build a strong economy. Public libraries are just as important to the economy as public transit.”


But Councillor Mike Del Grande (Scarborough Agincourt) argued the city should not be increasing its debt, raising property taxes, creating new taxes and imposing user fees without re-evaluating what is truly necessary spending. One example he cited of a low-priority project is the $24.7-million this year to construct an underpass to eliminate the so-called Dufferin Street jog.


“The Dufferin jog’s been that way since the city of Toronto was established. Is that really a high priority? I mean really, really, at the end of the day, does life not go on in this city?” Mr. Del Grande said. “When this mayor got elected, the debt was $1.4-billion, and now it’s going to be $2.9-billion and we’ve got a plethora of taxes.”


The city will take on $367-million in new debt in 2009 to finance the capital plan, said Councillor Shelley Carroll (Don Valley East), the city budget chief. But she said that is $99-million under the allowable target set by council.


“It’s under simply because there are some large-scale projects that begin with small amounts this year,” she said. “That’s why although we find ourselves under the target by $99-million, we’re not saying, ‘Therefore let’s find something new to spend it on.’ We’re holding on to that particular potential debt envelope and using it in future years.”


But Kevin Gaudet, the Ontario spokesman for the Canadian Taxpayers Federation, said that is the city’s problem. 


“Debt is ballooning, spending is ballooning and all it means is that more interest is being paid to the banks instead of being put into proper programs in Toronto because this mayor and this council can’t get their spending under control,” Mr. Gaudet said. “In the meantime, they’re looking at raising more money and they’re going to spend every single penny of it on a myriad of crazy programs that aren’t seemingly increasing the quality of service here."