And over the past few weeks, it’s become a flashpoint between the leading contenders.
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it → become → contenders
At press conferences late last month, Brad Bradford proposed a revamp of Toronto’s budget.
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Bradford → propose → budget
He pitched turning the city’s water division into a corporate utility, like Toronto Hydro.
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He → pitch → Hydro
The move, he said, would allow the city to reduce residents’ water bills.
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city → say → bills
Major capital projects, which are currently funded using money taken from those bills, would instead be paid for through debt financing.
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which → fund → financing
He said dividends from the new corporate utility, meanwhile, would help pay for another campaign promise: a cut to the city’s municipal land transfer tax.
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dividends → say → tax
Bradford has said he believes he could accomplish the water utility change in 2027.
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he → say → 2027
Incumbent Olivia Chow has accused Bradford of wanting to privatize Toronto’s water.
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Chow → accuse → water
It’s a move, she said, that could risk dirtying some of North America’s cleanest drinking water.
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that → ’ → water
She even got environmental titan David Suzuki involved.
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Suzuki → get → ?
Bradford has repeatedly rejected those claims and accused Chow of fear-mongering.
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Bradford → reject → mongering
“I would resign my seat if Toronto Water was ever privatized,” he said in the pair’s final head-to-head debate.
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he → resign → debate
As for dirtying the water, “you know that’s not true …
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that → dirty → water
You have just engaged in all these wild accusations, misinformation.”
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You → engage → accusations
It’s a lot, it’s complicated and it’s all being debated in the midst of a dead-heat electoral race.
The Star has talked to legal and government finance experts, who have reviewed Bradford’s proposals.
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who → ’ → proposals
They say the ideas are ambitious and worth debating.
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ideas → say → ?
They also say that without a business plan, they’re high risk.
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they → say → plan
There are also some promises being made that would require, they note, stars to align that aren’t all within a mayor’s control.
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that → be → control
Will Toronto’s water be ‘privatized’?
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water → privatize → ?
Currently, the city’s water system is a municipal government department, the head of which reports directly to the city manager and mayor.
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head → report → manager
Major infrastructure decisions and rates are decided by city council.
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decisions → decide → council
Bradford’s proposal would change that.
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proposal → change → that
It would create a corporation in charge of Toronto’s water.
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It → create → water
“The Ontario government has passed legislation necessary to do it.
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government → pass → it
The door is wide open and available,” Bradford said.
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Bradford → say → ?
“So why hasn’t Toronto walked through it?”
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Toronto → walk → it
Generally, a corporate water utility is like a publicly owned company where the government owns the shares and any revenue goes back into maintaining pipes and plants.
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revenue → own → pipes
In contrast, privatization would mean selling the system or its operations to private companies, whose primary goal is to generate profits for outside investors.
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goal → mean → investors
Bradford has said privatization “will never happen” under his plan and has promised to create bylaws to ban it.
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privatization → say → it
Critics point out that longer-term questions of privatization might no longer be strictly in Toronto’s hands, if a large degree of control is shifted to a board overseen by the province.
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degree → point → province
Last year, the province brought in new legislation called the Water and Wastewater Public Corporations Act.
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province → bring → legislation
It’s intended to create a public corporation model for water and wastewater services so lower-tier municipalities, many with small or mid-sized water entities, can consolidate their networks into an arm’s-length regional corporation.
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municipalities → intend → corporation
The purpose is to shift capital borrowing onto the corporation’s balance sheet rather than the municipality’s, protecting local credit ratings and freeing up debt capacity for other projects.
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purpose → shift → projects
One sentence in particular in the law has raised eyebrows: that “no shares of the corporation are held by a person other than a municipality, the Province of Ontario, the Government of Canada or an agent of any of them.”
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shares → raise → them
Bradford has said the law “expressly prohibits” privatization, referring to this line.
Joel Bakan, a longtime law professor at the University of British Columbia, sees it differently.
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Bakan → say → it
He notes that the regulations don’t define what can be designated as “an agent.”
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what → note → agent
What qualifies as “an agent” could be a private company, a public-private partnership like Metrolinx or the Canada Infrastructure Bank, which facilitates private investment in infrastructure projects, Bakan said.
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Bakan → qualify → projects
(The office of the minister of municipal affairs and housing, Rob Flack, who would oversee these utilities, did not respond to questions asking for clarification Friday.)
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who → oversee → clarification
Echoing other lawyers the Star consulted, Bakan said that while the law calls these entities public corporations, it does not explicitly outlaw private-sector participation or ownership structures.
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it → echo → participation
In other words, Bill 98 limits who can own shares but doesn’t guarantee lasting public ownership.
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who → limit → ownership
…and 35 more, not listed.