Toronto Transit Commission Support for

Alternative Funding Mechanisms for

Municipal Public Transit Systems in Ontario.

The Urban Environment and Development Committee recommends that Council endorse the motion approved by the Toronto Transit Commission, as embodied in the following communication (October 13, 1998) from the General Secretary of the Commission:

At its meeting on Wednesday, October 7, 1998, the Toronto Transit Commission (TTC) approved the following motion:

"WHEREAS provincial subsidies for the TTC will run out in 1999; and

WHEREAS the City will have to overcome a yearly average shortfall of about $180million; and

WHEREAS the annual sum required is unacceptable in terms of placing the cost on the property tax system;

THEREFORE BE IT RESOLVED THAT the TTC supports an alternative funding mechanism including a gasoline tax dedicated to public transit or from a dedicated portion of the existing gasoline taxes;

AND BE IT FURTHER RESOLVED THAT this motion go to City Council through the Urban Environment and Development Committee for endorsement;

AND BE IT FURTHER RESOLVED THAT the Province be requested to either provide enabling legislation to the City of Toronto or to establish such a tax itself, with monies directed to Municipalities' Public Transit Systems;

AND BE IT FURTHER RESOLVED THAT TTC staff prepare a report supporting such an initiative; such report examining potential yearly incomes and comparisons with other jurisdictions where similar tax is imposed."

The foregoing is forwarded to the Urban Environment and Development Committee and City Council for necessary action and endorsement, as noted above.