The poor financial forecasts for Toronto took center stage at City Hall today, with potential new taxes and fees under consideration to avoid a crisis.

All 25 city council members will get their first chance to discuss – and change – the measures recommended by city staff last month to address what they are calling an unprecedented financial crisis.

City staff proposed potential tax increases including an increase in the municipal land transfer tax and a vacant homes tax, as well as the creation of a parking tax to generate hundreds of millions in new revenue.

Council members will also address the staff recommendation to create a municipal sales tax, which could generate nearly a billion dollars annually for the city. Councillor James Pasternak, who represents York Centre, Ward 6, described this tax as “Toronto-made sales tax,” which he strongly opposed. He said that a Toronto-made sales tax would not work. “People will shop elsewhere, they will leave our jurisdiction, and shop at retail stores outside of Toronto.”

However, this requires provincial approval and an amendment to the City of Toronto Act.

The mayor's executive committee, led by Olivia Chow, supported the plan last month, but they now need to get council approval to move forward.

On Tuesday, she urged council members to work together to address the financial crisis.

She said at a press conference, “We know we are stronger together.” “There is no disagreement that every council member recognizes that the City of Toronto is facing a budget shortfall.”

Toronto is facing a budget pressure of $1.5 billion this year, projected to grow to $46.5 billion in operating and capital shortfall over the next decade.