Item - 2016.EX20.2

That:

a.  City Council request the Province to move ahead with legislative reforms and/or agreements for sharing of the Harmonized Sales Tax (HST) with the City of Toronto and other municipalities in the Greater Toronto and Hamilton Area for future budgets;

b.  if a share of the HST is not granted, City Council request the City Manager to engage the Province and the Canada Revenue Agency to explore the feasibility of a collection agreement that would facilitate the remittance of a sales tax to the City of Toronto, coordinate with other municipalities in the Greater Toronto and Hamilton Area to move forward with the same, and report to the Executive Committee in the fourth quarter of 2017;

c. City Council direct the additional funds from a sales tax to the City Building Fund;

d. if sufficient Revenue tools are not approved to cover the costs of projects such as transit, housing and child care, that previously approved unfunded projects be reconsidered.

Parts c and d of motion 1a, lost.

That City Council request the City Manager to determine the priority and scope of Toronto's infrastructure projects, to be funded in whole or in part with any new revenue tool(s), based on ridership/user projections, land-use patterns, most urgent need, density, future development potential, and other methods of assessment consistent with recognized urban planning principles, and report to the Executive Committee in the fourth quarter of 2017.

That City Council re-introduce the personal vehicle tax at a rate of up to $120 annually per four-wheeled vehicle and direct the proceeds to addressing TTC capital improvements and service gaps and accelerating the implementation of the Road Safety Plan, and direct the Deputy City Manager and Chief Financial Officer to report back to Executive Committee in January 2017 on tax design and implementation and forward this matter to Budget Committee for consideration as part of the 2017 budget process.

That City Council refer the Item back to staff for further consideration and request staff to report to the Executive Committee once the Province of Ontario has formally committed to allowing the City of Toronto to toll the Gardiner Expressway and the Don Valley Parkway and to tax alcohol.

That City Council delete the Executive Committee Recommendations and request the City Manager to report directly to the February 15 and 16, 2017 meeting of City Council considering the following options as alternative to revenue tools:

a. amalgamate all City of Toronto affordable housing related offices and direct that all affordable housing services be operated under the Toronto Community Housing Corporation for a savings of $100 million or more.

b. transition out of the Child Care Services as soon as possible and request the Province of Ontario to assume responsibility of all child care services in the City of Toronto for a savings of $ 76 million;

c. transition out of the public transportation services and request Metrolinx to assume responsibility of the Toronto Transit Commission for a savings of $600 million or more;

d. request the Province of Ontario to eliminate the Finch LRT Line for a savings of $1.1 billion;

e.  find further savings by implementing a plan to amalgamate Fire Services with Toronto Paramedic Services;

f.  eliminate the $100 million for the Poverty Reduction Strategy;

g.  abandon plans for the Rail Deck Park; and

h.  request the Province assume the responsibility and cost of Homes for the Aged.

1.  City Council endorse, upon legislative changes from the Province, implementation of a hotel tax at a rate of 4 percent.

2.  City Council endorse, upon legislative changes from the province, implementation of a tax on lodging applied to short-term rentals and request the City Manager to report back on a recommended tax rate no higher than 10 percent.

3.  City Council refer to the City Manager for inclusion in the consultations on the City’s Long-Term Financial Plan:

a. Graduated residential property tax rates

b. Income tax

c. Commercial parking levy

d. Sales tax

e.  Alcohol tax

4.  City Council request the Province work collaboratively with the City to address current and future revenue shortfalls, better reflecting the unique needs of the City of Toronto.

Part 3a of motion 4, lost.

Amendment on Item EX20.1

That City Council request that the City Manager report to the Budget Committee, as part of the 2017 Budget Process, details on the city services, enhancements and cost which were voluntarily adopted by Council, however could be the responsbility of the Federal or Provincial Government.

That City Council amend Executive Committee Recommendation 6 by adding the following:

c. establishing toll-free time periods on off-peak weekday hours, evenings and weekends;

d. establishing a rebate program to recover tolls paid by Toronto Taxpayers on their property tax bills;

e. establishing a mechanism to exempt from tolls vehicles registered to Toronto businesses;

f. establishing a mechanism to exempt from tolls vehicles with mulitple occupants who are car-pooling.

That City Council amend the Executive Committee Recommendations by:

a.   amending Recommendation 1 by adding a new part f:

f.  introducing an above inflationary increase to the Third Party Sign Tax;

b.   deleting Recommendation 2:

Recommendation to be deleted:

2.  City Council direct that consideration of any increase in the Third Party Sign Tax be deferred until the Planning and Growth Management Committee has considered the staff report on the review of the Tax expected in April, 2017, as referenced in the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer;

c.  amending Recommendation 4a. by adding a new part iv:

iv.  the imposition and collection of alcohol tax at LCBO stores; and

d.  amending Recommendation 4. by adding a new part b:

b. Legislative reforms and/or agreements for application in future budgets (2018 and beyond)

i.  graduated residential property tax rates;

ii.  parking sales tax;

iii.  municipal income tax; and

iv.  sharing of the Harmonized Sales Tax (HST) with municipalities.

Parts c and d of motion 7, lost.

That City Council direct the General Manager, Transportation Services to consider including the Allen Road Expressway as part of the forthcoming report to the Executive Committee on tolling options for the Gardiner Expressway and the Don Valley Parkway.

Should City Council receive authority to implement the tolling of roads, City Council direct the General Manager, Transportation Services to report on the traffic impacts of diversion onto local roads anticipated from implementing tolling, including an analysis of the impacts on road safety for all users (cyclists, pedestrians, motorists, etc) and the environment.

That City Council direct the General Manager, Transportation Services to consider, as part of the forthcoming report to the Executive Committee on tolling options for the Gardiner Expressway and the Don Valley Parkway:

a. approaches to implement distance and time based pricing and the implications; and

b. approaches to provide discounts to tolling for Toronto residents and other discount options such as discounts for residents with low-income or seniors.

Should City Council receive authority to implement the tolling of roads, City Council direct the General Manager, Transportation Services to report on:

a. approaches for dedicating a portion of net revenue from tolling, such as:

i. public transit infrastructure projects and a portion of that to be directed to Toronto Transit Commission annual operations; and

ii. the public transit infrastructure projects supported be in the same transportation corridor as the tolled roads.

That City Council direct the City Manager and Chief Financial Officer to report back to the Executive Committee in the first quarter of 2017 on:

1. Recommendations and ideas for the sale and lease back of large office towers in strategic locations currently owned by the City of Toronto; and

2. Recommendations for fairness in the application of the Land Transfer Tax by having both the buyer and the seller pay a percentage of the sale price as a tax.

That City Council direct the City Manager in consultation with the province to examine the potential impacts and the possibility of the City of Toronto levying an additional land transfer tax on purchase and/or sale of homes to non-Canadian residents (this comprises of foreign nationals that are not Canadian citizens or permanent residents of Canada) of up to 5 percent of the value of the sale of the house.

That City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to consider a long-term phased approach to adjusting Toronto's Property Tax rates to the Greater Toronto Area average, across all classes and include public consultation of Council's consideration, the phased approach to align all class adjustments with Council's social and economic development policies.

That:

1.  City Council request the General Manager, Transportation Services to report to the Executive Committee in the third quarter of 2017 on a mechanism to bring unauthorized parking pad locations into compliance to be included as a revenue source in the 2018 Budget process.

2.  City Council request the City Manager to report to the Budget Committee as part of the 2017 budget process to consider increasing the City's investment in Arts and Culture funding from a portion of the revenue generated from a Hotel Tax.

That motion 2 by Councillor Wong-Tam be amended by adding the words "including the maintenance and improvement of local roads" after the word "Plan" so that it now reads as follows:

That City Council re-introduce the personal vehicle tax at a rate of up to $120 annually per four-wheeled vehicle and direct the proceeds to addressing TTC capital improvements and service gaps and accelerating the implementation of the Road Safety Plan, including the maintenance and improvement of local roads and direct the Deputy City Manager and Chief Financial Officer to report back to Executive Committee in January 2017 on tax design and implementation and forward this matter to Budget Committee for consideration as part of the 2017 budget process.

That City Council delete Executive Committee Recommendation 3:

Recommendation to be deleted:

3. City Council give consideration to expanding the use of electronic signs as a way of increasing the amount of funds raised by the Third Party Sign Tax.

City Council request that the City Manager, in consultation with the Deputy City Manager, Cluster B and the General Manager, Transportation Services, and any other appropriate City staff, thoroughly investigate, study and report on the short and long-term impacts of the implementation of road tolls on:

a. the travel patterns of 905-area residents and other out-of-area commuters into the City on local roads in Ward 6, including Brown's Line, Evans Avenue, Kipling Avenue, Islington Avenue, Park Lawn Road, Royal York Road, and the future Legion Road extension;

b.  the current Park Lawn Lake Shore Transportation Master Plan work and delivery timelines, and current Waterfront Transit Reset work and delivery timelines, including identifying any infrastructure improvements that will be required; and

c. current traffic initiatives in Ward 6, including but not limited to the Palace Pier Court and Lake Shore Boulevard ("highway 2") pinch point; closing the gap on a dedicated right-of-way from St. Joseph Hospital to Exhibition Place and connecting options; possible relocation of the Humber Loop to Park Lawn Road and Lake Shore Boulevard West; and a dedicated rush-hour, transit-only lane on Lake Shore Boulevard West east of Park Lawn Road.

That City Council amend Executive Committee Recommendation 4a by adding a new part iv:

iv.  personal income tax.

That City Council:

1. Delete Executive Committee Recommendation 3; 

2. Amend Executive Committee Recommendation 2 by adding the words "such review to include consideration of expanding the use of electronic signs as a way of increasing the amount of funds raised by the Third Party Sign Tax."

so that Recommendation 2 now reads:

2. City Council direct that consideration of any increase in the Third Party Sign Tax be deferred until the Planning and Growth Management Committee has considered the staff report on the review of the Tax expected in April, 2017, as referenced in the report (November 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, such review to include consideration of expanding the use of electronic signs as a way of increasing the amount of funds raised by the Third Party Sign Tax.

City Council request that the City Manager, in consultation with the Deputy City Manager, Cluster B and the General Manager, Transportation Services, and any other appropriate City staff, thoroughly investigate, study and report on the short and long-term impacts of the implementation of road tolls on:

a. traffic patterns into and out of Ward 5 Etobicoke-Lakeshore, with particular focus on traffic flow along The Queensway; and

b. the current and expected redevelopment of the 6 Points Area and Bloor/Dundas corridor.

That City Council direct the General Manager, Transportation Services to include in the report back to Executive Committee in 2017 on tolling and pricing of the Gardiner Expressway and Don Valley Parkway, potential traffic impacts on parallel roads and neighbourhood streets in areas adjacent to the Don Valley Parkway and Gardiner Expressway.

That City Council direct that all revenues generated by road tolls be applied to reduce Toronto Transit Commission fares from present (2016) levels.

That City Council request the Province of Ontario to convert its operating subsidies to the City of Toronto to an equivalent share of provincial income tax revenue.

That City Council request the City Manager to report to the Executive Committee, as part of the long-term financial plan, on all legal, policy and regulatory tools to ensure that all revenue collected from road tolls on the Don Valley Parkway and the Gardiner Expressway are dedicated exclusively to transit and transportation initiatives and to further advise on possible independent oversight and audit with a view to maintaining the integrity of these funds and their intended purpose and maintaining public confidence.

Adoption of Executive Committee Recommendation 1c.

Adoption of Executive Committee Recommendation 1d.

Adoption of the Item as amended, as it pertains to the Municipal Land Transfer Tax.

Adoption of  Executive Committee Recommendation 3.

Adopt the balance of the Item as amended.

Councillor Mammoliti, rising on a Point of Privilege, asked the Speaker to define in writing how he had been badgering staff.

Councillor Carroll, rising on a Point of Privilege on behalf of Speaker Nunziata, stated that rude treatment and combative and argumentative comments to the Speaker besmirch governance rules of the Chamber and stated that she hopes Council supports her in her concerns.

Councillor Campbell, rising on a Point of Order, stated that Councillor Cressy had placed motions on the floor, and that his understanding was that questions of the mover should only relate to clarification of the motion.

Councillor Mammoliti, rising on a Point of Privilege, stated that the Speaker was not treating him like other Members in the Chamber and asked that the Speaker add 15 seconds to his time to ask Councillor Davis questions about her motion.

Councillor Campbell, rising on a Point of Order, stated that when a Councillor puts a motion on the floor, it is not an opportunity to debate the motion but to ask and respond to questions to clarify the motion.

Councillor Carroll, rising on a Point of Privilege stated that she was answering questions about her motion.

Councillor Holyday, rising on a Point of Privilege stated that he was asking questions to clarify Councillor Carroll's motion.

Councillor Mammoliti, rising on a Point of Privilege, acknowledged that his debate with the Mayor had become heated and rowdy, and apologized to his colleagues.

Councillor Mammoliti, rising on a Point of Privilege, stated that he had done some research into the Mayor's comment that Councillor Mammoliti had previously supported road tolls in an interview, and found that he did state in an interview in 2010 that he would support tolling new highways, but not existing highways.

Councillor Holyday, rising on a Point of Privilege stated that he had made an error with one of his numbers when questioning the Mayor. He should have stated $1.40 not $1.60 and apologized for the error.

Councillor Filion, rising on a Point of Order, stated that Deputy Mayor Minnan-Wong's motion 17 was proposed to be voted on before his motion 14, which seems to be procedurally incorrect, as Deputy Mayor Minnan-Wong's motion would make some of his motion redundant.

Councillor Perks, rising on a Point of Order stated that he wished to clarify that voting on EX20.2 was in no way pre-emptive of the City's budget debate.

Councillor Fragedakis, rising on a Point of Privilege, stated that Councillor Karygiannis had previously suggested that Highway 5 was Danforth Avenue when in fact it is Dundas Street.

That the following recommendations from the report be adopted, with the following amendments:

3.  City Council endorse changes and request the Province to move ahead with:

a.  Legislative and/or regulatory reforms to enable in 2017:

i.  Hotel and short-term accommodation rental tax;

ii.  Clear authority to require the collection of taxes by intermediaries, such as for alcohol, tobacco, hotel and short-term rental accommodation taxes;

iv. Tolling of roads under the jurisdictional ownership of the City.

4.  City Council direct the City Manager, the Deputy City Manager and Chief Financial Officer, and the General Manager, Economic Development and Culture to consult impacted businesses on the revenue options identified in recommendations 2 and 3, as part of the Long-Term Financial Plan consultation process.

5.  City Council request the Province to continue to support regional tourism in Toronto by maintaining or enhancing the annual funding, with the base being the current funding level of $9.9 million, provided to Tourism Toronto as a Regional Tourism Organization.

That Recommendation 1 (a) through (e) be adopted with the following amendments:

1.  City Council refer the following revenue options to the Budget Committee for consideration as part of the 2017 budget process:

a.  introducing a dedicated property tax levy of 0.5 percent directed to the City Building Fund.

b.  allowing the commercial property tax rates to rise at the maximum allowed 50 percent of the residential property tax rate increase;

c.  harmonizing the Municipal Land Transfer Tax (MLTT) rates with the Ontario Land Transfer Tax (LTT) rates, including the new graduated rate;

d.  harmonizing or increasing the Municipal Land Transfer Tax first-time homebuyer (FTHB) rebates with the Ontario Land Transfer Tax first-time homebuyer rebates, including the new Canadian citizenship and permanent residency test;

e.  changing the Municipal Land Transfer Tax first-time homebuyer rebate eligibility criteria to include a maximum value of consideration.

That, should the City receive authority to implement the tolling of roads, City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to report on:

a. capping the amount of toll that a Toronto resident would pay per year, and

b.  issuing a Request for Expression of Interest on the methods in which tolls would be administered, including the use of dynamic pricing that would reduce tolls during off-peak travel periods.

1.  That consideration of any increase in the Third Party Sign Tax be deferred until the Planning and Growth Management Committee has considered the staff report on the review of the Tax expected in April, 2017, as referenced in the report (November 17, 2016) from the City Manager.

2.  That consideration be given to expanding the use of electronic signs as a way of increasing the amount of funds raised by the Third Party Sign Tax.

That City Council direct the City Manager, in consultation with the Chief Planner and Executive Director, City Planning and the City Solicitor, as part of the 2017 Budget Process, to report on options for City Council to establish a cash payment-in-lieu of parking policy for new residential developments which do not meet the City's parking standards, with the funds to be held in a reserve account dedicated to funding transit and cycling capital improvements.

That City Council request the Province to exempt any Toronto road tolls from HST and in the event that this is not possible, that the HST be applied to transit expansion in the City of Toronto.