Mayor proposes a freeze on development charges but going ahead with higher water rates

City gives developers a break

By ANTONELLA ARTUSO, QUEEN'S PARK BUREAU CHIEF Toronto Sun

Last Updated: 18th October 2008, 3:35am

Toronto Mayor David Miller is proposing a freeze on development charges but going ahead with a planned 9% hike in water rates.

Miller said yesterday he's concerned about the impact of the U.S. credit crisis on the city's real estate construction sector so he wants to provide some relief on fees.

"If we don't get new development, that will put a significant (tax) burden on current single family homeowners," he said.

The proposed 9% water rate hike is needed at this time to fix an antiquated system, promote conservation and maintain jobs, he said.

JOB CREATION

"In a time of economic uncertainty, the city has a role to ensure that jobs are created and that we make the investments needed to support jobs," Miller said.

"The investments in our waste budget and in our water budget, in particular, create considerable numbers of construction jobs. The same thing with my proposal with respect to development charges (which) will help support that work and that intensification of our city."

But Miller pointed out a 9% water rate hike doesn't automatically mean a 9% increase in water bills.

Homeowners who want to save money can take steps to reduce consumption, he said.

"People have a choice," Miller said. "They can use less water, they can change the shower heads ... and we'll even give you a coupon to help you install a low-flow toilet so you can reduce the amount of water you use."

FOURTH HIKE

Next year's 9% water rate hike -- the fourth such increase in four years -- is part of a long-range plan to overhaul the city's aging water and sewer infrastructure, which is prone to flooding in some parts of Toronto.

"Homeowners can't afford being flooded ... they don't have insurance any more because their water infrastructure hasn't been renewed properly and in some places is inadequate," Miller said.

The mayor also did not rule out a property tax increase for next year, despite comments from Premier Dalton McGuinty that now is not the time to add any new financial burden to taxpayers.

"The city's in a different position ... from the province and the federal government -- they get more money every year," Miller said. "In fact, I think federal spending under Prime Minister (Stephen) Harper has gone up about 7% annually, more than the city."