The Executive Committee met on January 28 to review some key issues pertinent to the City’s revenue-generating powers and fiscal situation, including an update on a commercial parking levy and stormwater charge as two potential new revenue tools, and the creation of an Advisory Body on Municipal Autonomy and Effective Local Governance.
Commercial Parking Levy
The committee received an update on the revenue potential and implementation considerations for introducing a commercial parking levy. A commercial parking levy is a revenue tool that charges commercial property owners a rate based on the amount of land they have devoted to parking. Commercial parking levies are seen as a tool to take pressure off property taxes and fund critical services, programs, and infrastructure needs. Read our recent post to learn more.
The City staff report indicated that a commercial parking levy could raise between $100-$108 million a year, but there may be challenges implementing it. Toronto Environmental Alliance and TTCriders have campaigned to have the funds dedicated to public transit and action on the climate emergency.
The City’s “Plan A” is to work with the Municipal Property Assessment Corporation (MPAC) to implement the levy. MPAC is a provincial agency that assesses the value of residential and commercial properties across Ontario. City staff noted that MPAC has the information about commercial parking lots, relevant systems, and expertise to support the implementation of a levy. MPAC staff have said they require approval from their Board of Directors to proceed, and there’s no timeline for getting that answer.
If MPAC isn’t willing to partner, the City will have to move on to “Plan B” where they will consider if they can implement and administer the levy on their own, leaving the future of this important revenue tool very uncertain. The Executive Committee voted against a motion by Councillor Josh Matlow that would have staff report on the feasibility of a City-run administration of a parking levy. Starting this work now rather than months later when MPAC decides to provide the City with their decision would save valuable time. SPT has long-advocated for Toronto to implement new revenue tools in order to fund critical community infrastructure and services. Melissa Wong, Director of Engagement & Strategic Initiatives spoke to the Committee asking them to find a way to implement the levy.
TTCriders and the Toronto Environmental Alliance shared a scathing statement and called the delay “irresponsible”. Read their statement on why the City of Toronto should investigate implementing a commercial parking levy, without MPAC.
Stormwater Charge
The Executive Committee also considered a report to improve flood protection and mitigate basement flooding, with an update on consultations on implementing a stormwater charge. A stormwater charge requires a property owner to pay based on the amount of impermeable surface on their property and how much each property contributes to the storm sewer system (City of Toronto, 2021). A stormwater charge would require properties such as outdoor parking lots to pay their fair share towards flood protection, rather than simply charging them based how much water they consumed. Funding from this revenue tool has been used in other municipalities in Ontario to support efforts to reduce flooding. As Toronto sees an increasing number of severe storms, resulting in flooding across the City, we need funding for measures that will mitigate flooding and help the City and property owners reduce the stormwater runoff that ends up overflowing our sewer systems. Unfortunately, the Executive Committee supported the staff recommendations to suspend any further consultations on the stormwater charge due to a negative response from commercial and corporate property owners. It was disappointing decision by the Executive Committee as they approved new efforts to support the greening of properties, but shot down another opportunity for the revenue tools that could pay for these new programs. Learn more from Toronto Environmental Alliance’s work.
Advisory Body on Municipal Autonomy and Effective Local Governance
Good news! The Executive Committee voted in favour of establishing an Advisory Body on Municipal Autonomy and Effective Local Governance, which would bring together city staff and community experts to explore how to strengthen Toronto’s autonomy through measures like a Charter City. Since 2018, there have been multiple threats and a dismantling of the strength of Toronto’s local democracy, from the slashing of Toronto’s wards from 47 to just 25 to the implementing of strong mayor powers and more recently, the extreme overreach of the provincial government in moving to remove Toronto’s bike lanes and close supervised consumption sites. Having municipal powers strengthened through a Charter would also allow Toronto to implement new revenue tools and could strengthen local democracy by putting the decision-making power back in the hands of local representatives. SPT’s Director of Engagement and Strategic Initiatives spoke to the Committee in support of the motion.