Let’s talk about the money

IS FINANCIAL ESTIMATE ACCURATE?

With a few days to digest the details of the OneCity transit proposal, the National Post’s Lasia Kretzel and Kristin Annable ask two nagging questions about the economics of the plan.

Whether the TTC board’s financial estimates regarding the OneCity plan are sound is a hotly contested issue among city councillors. “The numbers don’t add up,” Don Valley West councillor Jaye Robinson said. “The CVA Uplift that they’re proposing would only raise about $272-million per year when it’s phased in. That’s only a quarter of what’s needed to fully fund this.” With all levels of government imposing austerity measures, Ms. Robinson is concerned the provincial and federal governments may be unwilling to make up the remaining funds. She is also concerned about budget overruns, a common symptom of many government projects. But TTC board member and Scarborough councillor Glenn De Baeremaeker is “confident in the board’s numbers.” The board has thoroughly consulted with the TTC Capital Planning Staff Mr. De Baeremaeker said. “We triple checked our numbers with TTC staff so these are not figments of our imagination.” The board has been working on the high end of cost estimates in an effort to cushion overspending Mr. De Baeremaeker said. However, these higher cost estimates may be too much for some councillors and residents to swallow. The city will need to consult with higher levels of government before a final verdict on the financial feasibility of the project can be reached. The city should be wary of putting all its financial eggs in one basket Ms. Robinson said. A diversified funding stream would be a better approach to the current property tax model, she said.