Mayor David Miller got his taxes approved this week, but Toronto's financial problems are far from over.
 
The land transfer tax and the vehicle tax will likely stave off major cuts to services, but the city continues to face a budget shortfall for next year that is expected to be about $200 million.

It now appears certain further tax hikes are inevitable.

Miller doesn't pretend the two new taxes approved Monday have solved all the city's problems.

The land transfer tax and the vehicle registration tax, combined, will raise about $175 million next year. In subsequent years, they're estimated to bring in about $300 million.

But next year's budget shortfall is expected to be about $500 million. 
 
In considering how to fill that hole, Miller said property taxes will go up by at least three or four per cent, maybe a lot more. Finance officials have suggested it could be as high as 10 per cent.
 
Minor service cuts could also be a possibility, although the huge cuts threatened earlier in the summer are now off the table.

Miller is also counting on new money from the provincial and federal governments.

"We've done our part as Torontonians. It's time social services costs were uploaded. We're at the table with the province, working very hard to make sure there are some results in time for next year's budget." 

Miller thinks the new taxes will also put pressure on Queen's Park and Ottawa to hand over some of their surpluses to Toronto.

"We've now taken the steps that are available to us. It's now time for the province and the federal government to take the steps available to them," said Miller.

For some, Miller's statement is a perfect example of why the city's finances are permanently in crisis and chaos.

Councillor Case Ootes said raising taxes and hoping for more help from other governments to balance the budget is the root of the problem.

"There's no long-term thinking. It's all knee-jerk. That hurts this city and it means people lose confidence in council as an elected body," said Ootes.