Is Toronto Fiscally Healthy? A Check-up on the City’s Finances
This paper describes the City of Toronto’s financial condition and recent fiscal trends in four areas: spending and services; taxes and revenues; infrastructure; and debt and savings. It also explores some frequently asked questions (FAQs) about Toronto’s finances. Overall, the authors have four main findings.
- Toronto does not have a “spending problem”
- Residential property taxes are low and have been growing slowly
- The City cannot maintain the infrastructure it has or invest in what it needs without new revenues
- Toronto’s debt is relatively modest and manageable for a growing city
Toronto’s fiscal condition can be likened to the health of an aging Maple Leafs defenceman: he may be a solid performer on the ice and well cared for by training staff, but he is increasingly expensive and in need of major knee surgery. In other words, the City’s fiscal health is sound by most measures, but it faces cost pressures and its aging infrastructure and investment needs present a huge financial challenge. This election is a critical opportunity to discuss the difficult choices that lie ahead.