02
Mar 12

Shocker: budget cuts can negatively impact services

Councillor Michelle Berardinetti, member of Rob Ford’s executive committee and the city budget committee, in her December 2011 newsletter to constituents:

Taxpayers want City Hall to reduce expenses and for the first time ever, we will spend less next year than we did this year. It is a balanced budget that will help rebuild our fiscal foundation. There is a rate of inflation property- tax increase of 2.5% which will be approximately $5 a month for the aver- age tax payer. There are inflationary increases which the city cannot avoid addressing, and we have kept the property tax increase down to the level of inflation.

Through the Core Service Review, service efficiencies and modest service level adjustments we found $355 million in savings. Some of the services being cut were identified as outside of the city’s function.

via Councillor Michelle Berardinetti’s Newsletter – December 2011.

The centrepiece of that budget, of course, was a 10% cut across all city departments — including the TTC. Ford’s move to cut the transit subsidy despite record and ever-growing ridership forced the TTC to make several cuts to bus service, most of which took effect in February.

Which brings us back to Berardinetti’s newsletter. From the March 2012 edition:

I have written a letter to TTC Chair, Karen Stintz, to voice my opposition to the impacts of all bus route schedule adjustments. Residents in my ward have reported to me that signs have been posted at the Warden subway station with respect to a reduction in service specifically affecting the Warden 69 bus route. A large number of people rely upon this route for travel to work and school and the proposed reduction in the frequency of service will significantly and negatively impact their commuting time.

In the context of the considerable 2012 Budget surplus allocations of $139 million made to the T.T.C. for the purpose of purchasing new surface vehicles and the significant nature of the impact reductions on this route will have on the constituents of Ward 35, I am requesting that this decision be reviewed and that the service reduction be cancelled.

via Councillor Michelle Berardinetti’s Newsletter – March 2012.

During the budget debate, Councillor Josh Colle moved a motion that sought to reverse many of the route cuts on the table. Berardinetti opposed it.

This looks like a sign of things to come. Many councillors supported the 10% reduction target as an abstract budget-busting measure, but now that the impacts to services are starting to emerge, how many of them are going to change their tune?

Another example: 311 announced recently that, in order to meet their reduced budget, they would eliminate email service at their support centres. They’re going to force anyone with a question about city services to call in and listen to their hold music. This prompted Mike Layton to ask “What decade are we in? I wonder if they’ll accept faxes.”

Layton, backing a motion by Kristyn Wong-Tam, will attempt to reverse this cut to customer service at council next week. They should have the support of at least one Ford ally — and enthusiastic supporter of the mayor’s 10% cut — in Paul Ainslie, who told the Toronto Star that he was “certainly going to push for putting [email service] back in.”

It’s easy to support budget cuts. It’s hard to support service cuts. Councillors may want to consider that there’s a link between the two.


04
Nov 11

The unlikely (and welcome) return of the Fort York bridge

Torontoist’s Hamutal Dotan:

Though it wasn’t originally on the agenda for today’s meeting, the Public Works and Infrastructure Committee will be considering whether to revive plans for the once-planned Fort York bridge—plans that were killed without notice earlier this year. The proposals being examined today are for some cheaper alternatives, ones that would bring the cost of the bridge down, say staff estimates, by anywhere from six to eight million, depending on which design the committee opts for.

via The Return of the Fort York Pedestrian-Cycling Bridge? | Torontoist.

Soon after Dotan’s article was published, the Public Works Committee approved a new design with a projected cost of $19.7 million.

Back in May of this year, I published a series of posts on this topic, concluding that Council’s decision to kill the original design for this bridge meant that we’d probably never see the project completed. (At least not under this administration.) “If we don’t build this thing on the planned schedule,” I wrote, all wide-eyed and sure of myself,  “it’s essentially never going to happen.”

So, for the record, let me say a couple of things. First: I was wrong. And second: this is good news.

There are still a bunch of questions to ask about this whole process. Given that $1.7 million had been spent on the original design — see page 13 of this staff presentation — are we to assume that that money was, essentially, wasted on nothing? And then there’s the new timeline for construction: is a capital savings of (potentially) $8 million — presumably less the $2 million in sunk costs on the previous design — worth a delay of three years?

And most importantly: was there any reason, aside from spite, that the motion to kill the original design was introduced at the last minute, without informing the local councillor?

I guess these questions are mostly irrelevant at this point. Water under the bridge.

It’s about selling city-owned land, stupid

Last May, Councillor David Shiner — seemingly the guy behind both the surprising death and unlikely rebirth of this project — told us rather plainly why the original bridge design was killed:

Building the bridge eliminates two future sources of cash, Shiner said.

He estimated 10 Ordnance St. — the property where the bridge’s centre columns would be placed — could fetch more than $50 million if sold, while the Wellington St. city-owned property where the bridge would start is worth around $20 million to $25 million.

via Pedestrian bridge to Fort York latest casualty of war on waste | Toronto & GTA | News | Toronto Sun.

Lo and behold, the new design allows for redevelopment opportunities that weren’t possible with the original plan. More public land can now get sold into private hands, with the proceeds used either to pay down capital debt — thus freeing up some of the operating budget that currently goes to debt servicing — or, in a pinch, to cover an operating budget gap directly.


18
May 11

Burning bridges at Fort York

The Toronto Star’s Daniel Dale:

Despite the support of developers, history buffs and hundreds of local residents, Councillor Mike Layton’s effort to save the Fort York pedestrian and cyclist bridge was rejected by council Wednesday.

City staff will now try to find a lower-cost alternative to the $23 million bridge that had been scheduled for completion in 2012, the bicentennial of the War of 1812. But a different bridge could not be built until 2015, and Layton said he considers the project dead.

via Fort York bridge dead, councillor says – thestar.com.

So it’s dead. They killed it, following a 22-23 vote. (It wasn’t as close as it might seem — a two-thirds majority was required to save the item.) It was obvious that, despite near-heroic efforts, Councillor Mike Layton wouldn’t be able to command the votes after Councillor Michelle Berardinetti twittered the following:

[blackbirdpie url=”http://twitter.com/CouncillorMB/status/70698817103728640″]

Berardinetti, along with Councillor Jaye Robinson, has served as a good indicator of the strength of the mayor’s whip on any given item. With her on side, it was clear that this was going to come down to the same old left-versus-right divide.

Very disappointing, and not a good sign at all for those of us who value the innovative and ambitious work going on across the city’s waterfront.


16
May 11

The Fort York Bridge: it’s now or never

At Spacing, Luca De Franco has an interview with activist Richard Douglas, who’s been working to save the proposed pedestrian/cycling bridge that would span the rail tracks near Fort York.

The mayor and his allies have presented their opposition to the bridge as simple fiscal prudence. The bridge is over-budget, they say, so we must study cheaper alternatives. The reality is a bit more complicated, as Douglas explains. If we don’t build this thing on the planned schedule, it’s essentially never going to happen:

The returning of the Fort York Bridge project to Committee at Council effectively eliminates this project. The situation becomes even more time-sensitive when you consider that Metrolinx has provided a small window of opportunity to build this bridge.  Once that window closes, surrounding communities and the City of Toronto will have lost out on a tremendous opportunity.

via Headspace: The Fort York Pedestrian Cycle Bridge « Spacing Toronto.

A commenter to the article also shares an automatic response sent to him by Councillor Mike Del Grande, received after he emailed the Budget Chief regarding the bridge:

I now have too many e-mail messages to read each and every one. So my answer will be automatic. Bridge yes but not at any cost. But… does not carry the day. This kind of thinking has caused a great financial problem for the City. We spend more than we bring in and I have to find $774 million.

Post Script- Sat May 14th I visited the area. This bridge will cost 22 + the opportunity to gain 25 million from proper usage of the site. So it will really cost 47 million at the end of the day. Sorry, that is very poor use of limited funds the City has. I also noted that there were a total of 2 people in City park and a few people in the dog park and on the other side of King there was one person. Does not strike me as demand usage, at least not for today.

In addition there is concern about City land which if the bridge is built in a certain fashion will increase the value of City Lands by millions and this cannot be ignored. An overage of 4+ million and other planning considerations does not justify the just spending because it is a nice bridge. What I am more open to is how about a special levy on all those properties to pay for the overage?

I added some paragraph breaks for clarity. Also added some emphasis.

Councillor Del Grande recounts visiting the area where the bridge will be built on Saturday, May 14, which was not a particular nice Saturday in Toronto. At best it was overcast and drizzling. Regardless, he feels observing the area for a brief window on an unpleasant day is enough to declare that there is no “demand usage.”

As Richard Douglas puts it in a follow-up comment to the article on Spacing, “Aside from the poor weather conditions and the muddy, water logged parking lot as deterents did he really expect to see citizens standing at the roped off opening of the parking lots waiting for the bridge to be built?”

If this is the way Del Grande is going to judge the necessity of infrastructure projects, I’d hope he’ll soon pay a visit to Sheppard Avenue to gauge the need for a multi-billion dollar subway project.

Councillor Mike Layton has put a motion on the agenda for this week’s City Council meeting that would, if passed, essentially reverse the earlier decision by the Public Works & Infrastructure Committee to kill the project. It will require a two-thirds majority, which I initially dismissed as an impossible requirement. Layton has been working really hard to get the votes, however.


08
Apr 11

Replacing the gravy train with a crazy train

Earlier this week, in response to news that board-of-one Case Ootes would approve the sale of 22 TCHC properties, the Toronto Sun’s Don Peat quoted Mike Layton. “What’s the rush now?” asked the rookie councillor.

It’s a question you could ask about a lot of news coming out of City Hall. If there’s a single unifying characteristic for the first four months of Rob Ford’s administration, rushing would be it. If you buy the mayor’s claim that the previous council was some kind of “gravy train,” this council is a train of another sort, rumbling forward at a million miles per hour, taking no care on the curves. This train moves forward even at the expense of planning, consultation or process.

The mayor rushed through the budget process, and attempted to make cuts to TTC bus routes without public consultation. Every effort has been made to avoid debate on transit planning issues, though that may change next week. We were told it was imperative that every member of the TCHC board be immediately removed, even recently-appointed councillors and elected tenant representatives.

For a recent example, take the Sheppard Subway plan. This week we learned that former councillor Gordon Chong was hired as President of CEO of Toronto Transit Infrastructure Ltd, the agency revived a month ago to oversee the early stages of the project. As John Lorinc with the Globe points out today, Chong was essentially “sole-sourced” into the position, bypassing the TTC’s normal process for recruiting senior executive positions.

Chong will be paid the equivalent of a $100,000 per year salary. Lorinc points out that he is “the third high-profile member of Mr. Ford’s transition team to find paid positions in the mayor’s administration.”

This kind of behaviour — rewarding supporters with well-paying positions; avoiding due process –, while it doesn’t appear to break any rules, seems surprising, given the mayor’s history. Ford once publicly accused Adam Vaughan of having a serious conflict of interest because a person who donated $250 to Vaughan’s campaign ended up appointed to a city committee. (Ford was later forced to apologize, then there was a party.)

Giving the mayor his deserved credit, I do believe that any characterization of Ford as even a little bit corrupt is nonsense. I think what drives the mayor is a casual ineptitude when it comes to rules and process, coupled with a general lack of patience.  You can see echoes of this in the stories (also by Lorinc) about irregularities in Ford’s campaign expenses. I doubt very much that the Fords attempted to game the system — it seems more likely that they simply barrelled forward, unencumbered by complicated campaign finance rules, taking the easiest path towards getting things done. Rush rush rush.

There’s an upside to the rushing. People often complain about the general lethargy of government. How nothing changes and nothing gets done. This administration certainly takes a different approach, and up until now it’s been largely effective in the broad-strokes. But a train moving this fast, and with so little regard for the rules of operation, runs the real risk of going off the rails.