Wednesday, September 30, 2009

Savings to be spent: City $33.2M from summer strike

Next year's planned 9% water-rate hike and a 2% increase in garbage bin fees will go ahead even though this summer's 39-day municipal workers strike saved the city $33.2 million.

City officials issued a report recommending Toronto councillors forget about giving rebates to taxpayers to make up for service disruptions arising from this summer's labour dispute. They're urging councillors to use the cash to help ease next year's budget crunch.

"I'm absolutely not in favour of what's being suggested," said Councillor Gloria Lindsay Luby, who earlier this week resigned from Toronto Mayor David Miller's executive committee.

Lindsay Luby said the savings could be passed on as a tax credit, which would appear as one line on residents' tax bills.

Using savings to ease next year's budget crunch is worrisome, added Lindsay Luby, who said she fears free-spending councillors will "say 'whoopee' we have" millions of dollars more to use.

But keeping the savings until next year means taxpayers will get a break as a result of the strike, Miller insisted.

"This savings will be put towards keeping taxes down next year," he told reporters yesterday. "I think all we can really say is they (taxes) will be almost 3% less than they otherwise would be because of the savings."

He wouldn't say whether he'll be able to keep the tax hike in line with inflation, as he has pledged to do in his election campaigns.

"Next year's budget is extremely difficult, and we'll have to see the budget as it comes forward," he said.

According to the report, the majority of strike savings are the result of wages and benefits not being paid to the pickets. The garbage bin fee hike will increase annual charges by $4 for a small bin, $5 for a medium bin, $7 for a large bin, and $8 for an extra-arge bin. Revenue is earmarked for new programs needed to divert 70% of Toronto's trash from landfill through such means as recycling programs by next year.

City staff point out the 2% hike, which will generate $4.8 million for City Hall, is less than the 3.5% hike initially forecast last year.

Councillor Mike Del Grande said since garbage was the most aggravating issue in the strike, the savings could be used to offset the trash bin fee increase.

"The average person would ask, 'You inconvenience me for 39 days, you're not giving me a rebate, you said you saved money on the strike ... Why don't you apply the savings to my (garbage bin fee) increase next year?' " he said.

During the strike, City Hall refunded $7.4 million in fees paid for Parks and Recreation programs that were cancelled.

CASH FROM TRASH

A BREAKDOWN OF HOW MUCH THE CITY SAVED DURING THE MUNICIPAL STRIKE THIS SUMMER

The City of Toronto saved $33.2 million as a result of this summer's 39-day municipal strike. Here are some of the extra costs, savings and lost revenue associated with the strike:

- Solid Waste saved $7.8 million in salaries.

- Solid Waste paid its non-union staff $4.4 million in overtime during the strike.

- Solid Waste paid unionized employees $776,000 in overtime once they returned to work.

- Toronto Water non-unionized staff earned $7.6 million in overtime.

- In total, the city's 4,000 non-union staff collected $25.2 million in overtime.

- The city saved $86.8 million in total by not paying the salaries of wages of striking workers.

- Extra security cost the city $5.1 million.

- Managing the 27 temporary dumps around the city, as well as pest control at those sites, cost $3.1 million.

- The city spent $274,000 on advertising during the strike.

- The city paid Harbour Tours Inc. $204,000 to ferry island residents to and from the mainland.

- Parks, Forestry and Recreation lost $15.8 million in revenue.

- Solid Waste missed out on $2.1 million in revenue.

- Court Services lost $615,000 because of red-light camera charges not processed.

- Marriage licensing and the city's wedding chamber lost $110,000 in revenue.
http://www.torontosun.com/news/torontoandgta/2009/09/30/11200731-sun.html

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