David Miller reveals budget surplus of $350-million

TORONTO, Ont. – Toronto’s financial picture is much brighter thanks to a higher than expected budget surplus announced by Mayor David Miller, Wednesday.

When the budget was announced in February, the surplus was estimated at $250-million, but has been upgraded to $350-million.

Miller proposed the money be used to reduce the proposed four per cent residential property tax increase to 2.9 per cent and trimming the business property tax to less than one per cent.

He said the surplus is the result of the following:

*Wage constraint on management and front-line staff
*Higher than expected parking revenues
*Revenue from new development and new construction
*Cost cutting in 2009
*Higher than expected interest in investment earnings

“When I introduced the budget in February, I said you can’t have a great city for free. I said this is important,” Miller said. “Anyone who tells you they can freeze or cut your taxes, and provide services, emergency services, public transit, crime and protecting […] is simply not telling you the whole story.”

He said that by placing remainder of the surplus in a tax stabilization reserve, it will allow for a balanced 2011 budget, with no TTC fare increase — assuming a three per cent tax increase in 2011 and the province agreeing to return to 50 per cent funding of the TTC’s operating costs.

The province has not yet agreed to the cost-sharing, but Premier Dalton McGuinty has assured Miller he will listen.

Miller also said the city is taking steps to work with a two-year operating budget process instead of a one-year plan.

“Our current budget must be set within current financial constraints,” he added.

Miller announced last fall he would not seek re-election as mayor. There was no announcement about his immediate career plans.