Toronto Deputy Mayor Jennifer McKelvie is warning that tough decisions lie ahead for the city as she wraps up her final day performing mayoral duties for council before Olivia Chow is sworn in.
Speaking with reporters at city hall ahead of her final Executive Committee meeting Tuesday, McKelvie said “it is no secret that the city is enduring the lingering financial impacts of the COVID-19 pandemic” and reiterated that Toronto remains in a difficult financial position.
While the province kicked in $235 million toward the shortfall in March, the federal government did not match the contribution, leaving a funding shortfall of $395.3 million for 2022.
The 2022 capital variance report before Executive Committee today, McKelvie said, recommends filling the gap by removing $300 million from the capital plan and making a one-time draw of $95 million from the COVID-19 reserve backstop.
“The COVID-19 backstop will now be reduced to $1.039 billion, which is sufficient to manage the 2023 budgeted COVID-19 impacts,” McKelvie said. “However, without additional provincial and federal support, difficult decisions will need to be made for 2024. We continue to collaborate with our provincial and our federal colleagues on this and many other issues.”
The cuts recommended to the 2022 capital budget include the cancellation or permanent funding reduction to a range of city programs and services. The cancellations include $2.2 million in library renovations and expansions, $3.6 million less for the revitalization of shelter services on George Street, $78 million less for sidewalks, laneways and rehabilitation of major and local roads, $2 million in state of good repair funding for Toronto police, and nearly $1 million for heritage preservation.
The $188 million in deferred spending also touches a range of programs and services, most notably $64.4 million in various state of good repair projects, $27 million from Parks, Forestry and Recreation and $34 million in real estate management costs for projects like state of good repair work at Union Station.
A long-term financial plan for the city will be considered at a special meeting of the Executive Committee in August called by Chow, who is set to be officially sworn in as mayor on Wednesday. It will then go to council for consideration in September.
McKelvie said that while she has not seen the plan in detail, there are “three general buckets” it considers: Efficiencies, especially around procurement by working with other GTA municipalities to bring down costs; revenue tools, including a possible new deal for all municipalities; and uploading costs for “the things the city pays for that we should not” because they are part of provincial and federal responsibilities.
“So I think that’s really going to be an important task of Mayor Olivia Chow, is to have those important conversations with the province and the federal government about the things that Toronto is paying for but should not be,” McKelvie said. “And so we’ll see that laid out in the report and then council will make a decision and find a way to move forward and I have every confidence in our ability to do that.”
LOOKING FORWARD TO RETURNING TO JOB OF COUNCILLOR
The deputy mayor also reflected on her four months carrying out mayoral functions for the city in the wake of John Tory’s sudden departure.
It was back in February that McKelvie, a second-term councillor for Scarborough-Rouge Park, suddenly found herself running the mayor’s office after Tory’s bombshell resignation.
She cited approval of the city’s HousingTO Action Plan, ending exclusionary zoning across the city to allow for more multiplexes, and chairing a mental health roundtable as her proudest achievements in her short time in the role.
“I continue to be so impressed by my council colleagues, their ability to work together to find common ground to advance things,” she said. “We saw that in the last four months. We pushed through more than 500 items through council. I know we’ll all continue to find ways together and find all the very important things that we agree upon.”
She said getting an early-morning call about a fatal fire or the murder of an innocent bystander has been “the most heartbreaking part of this job” and said the city needs to continue to work together to make investments in safety.
She seemed to step into the role with ease, but decided not throw her name in the hat to run for the top job in the mayoral byelection.
“I’m looking forward to vacation at the end of the month,” she joked Tuesday. “I’m going to miss seeing residents across Toronto but I’m really looking forward to serving my community of Scarborough Rouge Park 100 per cent of the time. That’s what I signed up to do and that’s why I didn’t run for mayor.”
‘NO DOUBT’ COUNCIL WILL COME TOGETHER
While she didn’t run herself, she did support former colleague Ana Bailao, the pick of almost half of council as well as Tory.
Asked Tuesday how council will be able to work together given the fact that so many councillors endorsed another candidate, McKelvie said she has “no doubt” that council will come together to advance the work of the city.
“Political campaigns are hard and people take hard lines during those campaigns and we often see that they soften over time.”
McKelvie said she’s had several positive meetings with Chow and her staff as part of the transition.
“So those have been wonderful meetings that I’ve had with her,” McKelvie said. “She has lots of ideas. I look forward to hearing those ideas. I look forward to finding ways that we can work together for this great city.”
McKelvie also thanked the residents of Toronto for their support and wished Chow “all the best as she takes office.”
