Toronto Council Urged to Reject Another Hefty Tax Hike

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Toronto should be focused on saving public tax dollars, rather than approving yet another sizable tax increase, according to the Progressive Contractors Association of Canada (PCA).

PCA is urging City Council to stop overpaying for public construction projects, and start supporting open tendering to save taxpayers an estimated $347 million annually.

“Toronto’s refusal to consider open tendering defies logic, given that other regions are working hard to insulate their residents from U.S. tariff threats and higher costs,” said Karen Renkema, Vice-President Ontario, at PCA. “Instead, Toronto Council remains tone deaf to today’s fiscal realities.”

PCA member companies, who build major infrastructure projects across Canada, are barred from bidding on and building taxpayer-funded projects in Toronto because they are not affiliated with select unions. While PCA member workforces are unionized, they are not members of the “right” unions.

“It’s an insult to taxpayers when Toronto Council deliberately chooses to build city projects in the most expensive way possible,” added Renkema. “Our members would welcome the opportunity to bid on this work, if only City Council would let them.”

Research from the Cardus think tank shows competition has resulted in major savings in municipalities where bidding was previously restricted. The Region of Waterloo, Sault Ste. Marie and Hamilton have seen a significant drop in the cost of building public projects. Toronto is the only municipality in Ontario to reject open tendering.

Today, Toronto Council considers a proposal to raise taxes by 6.9 percent. That follows a tax increase of 9.5 percent last year. Over the last 3 years, Toronto property taxes have increased approximately 25 percent.