Toronto strike savings yield property tax break

The savings recouped from Toronto's civic workers strike will likely be put towards property tax bills next year instead of being mailed out as rebates to city residents.

The city's executive committee recommendedMonday thatthe estimated $33.2 million saved in the summerwork stoppage be appliedto next year's operating budget.

Some city councillors had pushed for an immediate rebate.

But the city has estimated the cost of issuing and administering rebate cheques at somewhere between $2 million and $3 million.

Mayor David Miller said Monday that reflecting those savingsin property tax bills is "the fairest and most efficient way" to return the money to Torontonians.

The proposal is expected to save taxpayers around 2.8 per cent on their tax bills about $36 million next year.

But Miller wouldn't sayifproperty taxes will increase in 2010, or by how much.While there are no official figures out, the cityis facing a significant budget shortfall next year.

Council will vote on the executive committee'srecommendation later this month.

The 39-day strike by about 30,000 municipal employees left most residents of Canada's largest city with no residential garbage or recycling collection. City-run daycares and summer day camps were closed, along with swimming pools and most other city services.