Rocco Rossi says he will run for mayor of Toronto. (Ontario Heart & Stroke Foundation)

The latest contender for Toronto's mayoralty said he would whip the city's finances into shape by selling Toronto Hydro and other city assets if elected.

"I'm big, I'm bald and I've got bold ideas for this city," said Rocco Rossi, who until last week was the Liberal party's national director in Ottawa.

News that Rossi wants to follow David Miller as mayor has been floated in the media since late last week. He made the announcement on Monday at Toronto City Hall, though it won't become official until January at the earliest, when candidates are allowed to file their nomination papers.

"We're going to sell assets," Rossi told reporters. "We're going to start with Toronto Hydro."

Rossi also said he will set the bar for other candidates in next year's municipal vote by cutting his own pay and asking councillors to roll back the controversial pay raise they voted themselves earlier this year.

"I am pledging today that on the very first day, I will cut my pay by 10 per cent and I will freeze my salary for the four-year term of mayor and I will be encouraging each and every councillor to roll back the salary increase they've just voted themselves," he said.

The city's debt stands at $2.4 billion.

The Toronto-born Liberal spoke in French Spanish, Italian and English when he announced his intention to run. He trumpeted his Italian-Canadian roots, saying that although Toronto is a city of immigrants, he doesn't see that diverse population reflected on council.

'Surprise announcement'

Rossi, 47, has never held public office. For the past year he has been the federal Liberal Party's top administrator and fundraiser. His resignation from that job takes effect Dec. 31.

Before working for the Liberals full time, Rossi headed up the Ontario Heart and Stroke Foundation.

University of Toronto political scientist Nelson Wiseman said Rossi's candidacy is a "surprise announcement."

"Rossi is largely an unknown, so now he is trying to get known and define himself," Wiseman said. "And I wouldn't discount him, although he has a lot to catch up on."

The man seen as the top contender for the mayor's job is former Ontario Liberal cabinet minister George Smitherman, who is expected to formally announce his candidacy early in the new year.

A possible, though undeclared candidate, is John Tory, the former Ontario Progressive Conservative leader.

Rossi was Tory's campaign manager during his run for mayor in 2003.

City Coun. Georgio Mammoliti has also said he intends a run.

In an open letter, Liberal Leader Michael Ignatieff said he was sorry to see Rossi leave but "Torontonians should be proud [the mayoral race has attracted] talented people such as yourself who want to lead."

Rossi has been credited with turning around the Liberals' dismal fundraising record of recent years. In the first half of 2009, the party raised more money than it did in all of the previous year.