Childcare, rent fees to spike after city calls them ‘too low’

By all indications, it’s going to be notably more expensive to enroll your kids in city programs next year.

On Monday, the city manager’s long-awaited review of user fees was released, and while it wasn’t as comprehensive as initially planned — the report focused on broad policy goals rather than specific increases — the message was clear: “user fees are generally set too low.”

And while no specific program was flagged, the report found that some user fees have not been reviewed since amalgamation.

A second report due sometime in fall will describe which of the city’s more than 3,700 user fees, which cover recreation programs, admissions, licensing, childcare, rents and water consumption, among other things, will be affected.

For now, city manager Joe Pennachetti has asked the mayor’s executive committee to approve a citywide policy and set criteria for establishing how much services cost.

Each year the city takes in a little more than $2.8 billion from these fees. For the most part, the city has not accurately priced out how much it costs to deliver the services for which fees are charged, so it’s impossible to determine what’s appropriate.

“City council has not approved an overall corporate user fee policy to guide (programs and boards) in evaluating all fees against the cost of providing the service,” states the report. “A coherent user fee policy will help to allocate resources … and provides the city with a more efficient user fee program … and thus redirects property tax revenues to fund services that provide a benefit to the public.”

The new policy would break down fees into four categories, based on who uses the service. For example, police patrols should be 100 per cent funded through taxes because they benefit the entire community. Alternatively, a building permit should be completely paid for by the individual through a fee, because it solely benefits that individual. Community services, which have some public and individual benefit, would be funded through a mixture of sources, though primarily as fees.

According to the policy, fees should still be waived, in whole or in part, for “identifiable vulnerable groups.” But if having a low income is one of the criteria, the income range should be clearly outlined.

Centrist councillor Josh Colle, who represents the economically diverse Ward 15, Eglinton-Lawrence, said he is open to increases, but would rather look for other types of revenue.

“There’s probably some in my ward who could afford it, but the concern is about a big chunk of the population that can’t. And that’s the balancing act with all of these proposed cuts,” he said. “But I really think there are other areas across the city where we can look for sources of revenue, and that doesn’t always mean asset sales.”

Colle suggested making it easier for residents to donate to programs they care about — such as Riverdale Farm — or developing city-owned land.

Origin
Source: Toronto Star