Mayor John Tory says he is “determined” to keep the residential property tax increase for 2016 to the rate of inflation despite a budget shortfall that could surpass $100 million.

The staff-proposed budget, which will go to council in the new year, includes $57 million in council-approved spending that is currently unfunded and on top of that it does not provide funding for another $67 million in previously announced initiatives, including earlier subway service on Sundays ($9.6 million next year) and an accelerated capital repair program for public housing buildings ($13.7 million).

Discussing the funding gap during a year-end interview with CP24 on Monday, Tory said he nonetheless remains committed to a residential tax increase of around the rate of inflation – about 1.3 per cent.

Last year, city council approved a residential tax increase of 2.75 per cent, which included a previously approved 0.5 per cent increase to help pay for the Scarborough subway.

“I am very determined that a budget will be brought forward in February that contains a 1.3 per cent property tax increase because that’s what I said I would do,” Tory said, referring to a campaign promise. “There is no reason we can’t do it and at the same time invest in the city.”

City Manager Peter Wallace has recommended that council approve a residential tax increase of 2.17 per cent in order to balance the budget. Meanwhile, a number of other councillors have openly mused about an even higher increase in order to pay for a number of other pressing needs.

Tory, however, said that he is confident that the necessary investments can be made without introducing a large property tax hike.

A 1.3 per cent property tax hike would actually ended up being about 2.69 per cent when a number of previously approved increases are added on. That increase would cause the average homeowner an extra $72.26 a year.

“Those people who say we should just have a five per cent property tax increase and spend on everything that’s on the shopping list I say no we can’t afford to do that and the people can’t afford that,” Tory said.

Appearance at Pride Parade a highlight

During his interview with CP24 Tory touched on a number of other topics, including the return of civility to city hall, the recent surge in violent crime and his hopes and goals for 2016.

The mayor also took a moment to reflect on some of his personal highlights from 2015, including his appearance at the Toronto Pride Parade.

Rob Ford eschewed tradition by never attending the annual celebration of sexual diversity as mayor, despite repeated calls for him to do so.

“If you had to name one (highlight) I would say it was my coming back to the Pride Parade. When I say coming back I was never not there but the mayor of Toronto was not there for four years,” Tory said. “It isn’t so much about gay rights; it is about the city being together and everybody embracing each other and that was a great highlight for me because I saw how much it meant to people to have the elected leader of the city there.”

First full year on the job

Tory assumed office for the first time last December so 2015 marked his full year in the mayor’s chair.

Looking back, Tory said that the city was in “chaos” in his first few months on the job but has since been “stabilized” with a civil tone that didn’t exist under Ford’s leadership returning to city council.

Though challenges still lie ahead, most notably the need for public transit infrastructure and a $2.6 billion backlog in capital repairs on public housing buildings, Tory said he is confident that improved relationships with government leaders will help him get things done.

“We will get more transit built, we are going to get more housing built and make up for some of the time we lost and I just think people are going to see the results themselves and see what happens when you work together as governments instead of fighting and posturing and clamoring for credit,” he said.

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