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 forfinancial relief, but Mayor Olivia Chow says city residents will also need to do their part tobattle the $1.5-billion shortfall and that will mean property tax increases and new feesin2024.

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 andupload 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."

WATCH: Olivia Chow sits down with CBC Toronto's municipal affairs reporter Shawn Jeffords:

Olivia Chow talks transit, taxes and housing in a year-end interview

10 months ago

Duration 5:16

Toronto Mayor Olivia Chow sat down with CBCs Shawn Jeffords to discuss what shes focused on for 2024: including how the city could fix its structural deficit and a plan to accelerate housing development.

As examples, Chow points to work she and city council did in the fall toincrease 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."

Questions remain about federal commitment

But questions remain about the new deal between Toronto and provinceand 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.

Chow coy on property tax hike

The new mayor has beendogged 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.

"The budget committee is going to take a look at it and say, 'Maybe that's too high or too low,'" she said.

"Maybe we need to add more and subtract here. And then at the end of January, they're going to present to me the budget. And then as the mayor, I will take all of that into consideration and present a budget on Feb. 1."

Chow said her focus will be on restoring TTC services which havebeen cut during the pandemic. She said she also wants toshore up basic services across Toronto.

"I have noticed that a lot of regular bread and butter kind of services, potholes, washrooms, garbage bins, all of those things that are really fundamental to the quality of life of local residents are not done as well as they can be," she said. "And my commitment is really enhancing those kinds of services because they've been cut."

Chow downplays Toronto Science Centre idea

Part of the city's agreement with the province on the new deal means dropping the fight over the future of Ontario Place and, by extension, the Ontario Science Centre.

Chow says she is not responsible for the province's move on the waterfront parkand believes it should remain a public space. That fight is now in the hands of opposition leaders at Queen's Park, she said.

"I'm a municipal government leaderand the City of Toronto remains on the books to be very concerned about Ontario Place and the Science Centre," she said.

The city owns the land that is home to the Ontario Science Centre and some city politicians have mused about creating a Toronto Science Centrein that space when the province moves it to Ontario Place.

But Chow downplayed the idea.

"We don't have the financial means to run a science program," she said. "That's not our mandate. We could assist in bringing people together and look at some local programming."

Moving too fast? Mayor says no

Chow also poured cold water on critics suggesting she has moved too quickly on a trio of recent decisionsthat bypassed the city's normal consultation process.

Those critics havesaid that inher push to cap ride-sharing and the bids to rename Yonge-Dundas Square and the football stadium in Centennial Park after former mayor Rob Ford, Chow and her council allies circumvented the normal process to receive public feedback.

Asked if this was becoming a pattern, Chow said no.

"We invite people for meaningful consultation," she said, pointing to her advance budget consultations in November.

"The Dundas discussion has been around for two years," she added. "There have been 19 meetings. My goodness, you know, at some point, you can process and process everything, but you need to make a decision. If not, then we just go around and around and around. We need to make a decision."