John Tory's new levy: is this the way to pay for transit, housing?

Is the .5 per cent tax proposed by Toronto Mayor John Tory yesterdaythe right way to address the city's pressing needfor transit and housing?

• Mayor John Tory calls for new 0.5% tax for transit, housing
• Toronto city manager questions city's reliance on land transfer tax

Councillors Gord Perks and John Campbell discussed the issue on Metro Morning Thursday, one day after Tory proposed the idea of a "city building" levy on property tax bills.

Tory said the charge would startin 2017 and add about $13 to the average property tax bill. The levy would continue for five yearsand is expectedto generate some$70 million per year, which Tory said would be invested in capital projects across the city.

Tory touted the plan as a transparent way to raise money for big-ticket itemsthe city needs but that can't be covered by existing property taxes.

Perks praised Tory for stepping forward to address what the Ward 14 councillor sees as a revenue problem that has plagued the city for years.

"I'm delighted that the mayor has his toe in the water," said Perks.

However, Perks said the new tax won't be enough to keep any property tax increase agreed to in the budget process(and separate fromthan the levy Tory is proposing)below the rate of inflation.

Coun. Campbell, who represents Ward 4,said Tory's proposed levy is a good first step but said any new tax should not be an excuse to stopfinding ways to save money in the existing operating budget.

"I do believe that efficiencies can be found," said Campbell."We've got over 54,000 employees and every year during the budget cycle, the managers come in and they're continually asking for more and more people."

Perks disagreed, saying no move to trim budgets can address what he sees as a serious revenue problem.

"The answer isn't,and hasn't been for a long time, that we need to keep digging around for efficiencies," he said. "We have to be straightforward with Torontonians. We're at the point where you either cut services or increase taxes. There's no silver bullet beyond those two options."