Toronto mayoral candidate Joe Pantalone talks to the Globe and Mail editorial board, Oct. 14, 2010.Deborah Baic/The Globe and Mail
Vowing to stay in the race despite his third-place standing in the polls, Joe Pantalone unveiled a balanced budget plan Thursday that includes a 2.5-per-cent residential property-tax hike.
The deputy mayor said the modest tax increase - coupled with a projected $180-million surplus for 2010, land sales and efficiencies - would make it possible for him to balance the books in 2011 without asking the province for a bailout or gutting city services.
Mr. Pantalone said his incremental approach to restoring fiscal probity differentiates him from Rob Ford and George Smitherman, the front-running candidates who are in a statistical dead heat according to a Newstalk 1010/Ipsos-Reid poll released Wednesday.
"There's three remaining candidates and two visions," Mr. Pantalone said. "As a matter of fact, I can't tell you how much people are telling me, 'thank god you're there Joe. We fear for our city with those two.' "
The same poll helped convince Rocco Rossi to quit the race Wednesday night. The survey of 400 Torontonians, conducted over the Thanksgiving weekend, found that Mr. Rossi enjoyed the support of only 4 per cent of respondents, less than the 4.9-percentage-point margin of error.
Mr. Pantalone was at 11 per cent, well back of Mr. Ford at 30 per cent and Mr. Smitherman at 31 per cent.
But Mr. Pantalone insisted he wouldn't follow the examples of Mr. Rossi and Sarah Thomson and withdraw.
He is hoping his financial plan will help convince voters that he offers an alternative to Mr. Ford and Mr. Smitherman. Both have promised to slash or freeze taxes and cut city staff through attrition.
Municipal finance staff say the next administration will need to find an extra $503-million to balance the 2011 operating budget. Mr. Pantalone has already promised to phase out the $60 vehicle-registration fee, freeze property taxes for seniors with a household income of $50,000 or less, and enhance some services. Together, those promises bring the 2011 budget pressure to $541-million.
To fill the gap, Mr. Pantalone would raise $55-million by passing a residential property-tax increase of 2.5 per cent and a commercial/industrial property-tax increase of 0.833 per cent. Projected assessment growth of $35-million would add to the property-tax haul.
He would make up the rest with: 2009 surplus cash ($76-million); the projected 2010 surplus ($180-million); service efficiencies ($85-million); strategic land sales ($75-million); and a reduction in the amount of debt the city pays off ($35-million).