Toronto has to 'do our share' to fix billion-dollar deficit with property tax increases, new fees: Chow

Toronto may have a new deal with the province for financial relief, but Mayor Olivia Chow says city residents will also need to do their part to battle the $1.5-billion shortfall — and that will mean property tax increases and new fees in 2024.

Chow made the comments to CBC Toronto in a wide-ranging year end interview.

The new mayor and Premier Doug Ford announced an agreement last month that will see the province provide billions of dollars in aid and upload the Gardiner Expressway and Don Valley Parkway. But Chow says the city has to be willing to show it will make sacrifices as well to fix the city's structural deficit.

"We'll do our share," she said. "You have to prove and show that you're willing to pay for things first or else you wouldn't get other people to come on."

As examples, Chow points to work she and city council did in the fall to increase the rate of the vacant home tax and create new tiers for high-end homes on the land transfer tax.

City staff are also studying several new taxes, including a commercial parking lot levy and a tax that would target foreign home buyers. They're expected to report back to council in 2024. 

Chow is candid when asked if the city will need more revenue tools. 

"Yes," she said. "There will be."

But questions remain about the new deal between Toronto and province and whether the federal government will come to the table to provide $2.7 billion in funding requested by the city. In some instances — like with the purchase of new subway trains and shelter supports — cash from Ontario is contingent on matching funds from Ottawa.

It's why Chow choose to conduct her year-end interview in the TTC's Greenwood yard aboard one of the subway trains that needs to be replaced.

"We desperately need investments on both fronts," she said.

That request comes despite some good news from the federal government earlier this week, as Prime Minister Justin Trudeau announced Toronto would receive nearly half a billion dollars to help speed up housing construction in the city.  

The new mayor has been dogged by questions about what property tax rates will look like under her leadership. Her go-to line since the spring byelection has been that a "modest" increase is in order. 

Chow wasn't ready to give an answer during the interview, but said the rate will be decided soon. It will depend on the federal response to the request for more funding, but also a consultation process with city residents that started in November.