Toronto clamps down on FIFA World Cup spending over funding fight with Ontario
Provincial contribution includes items city doesn't need, says Mayor Olivia Chow
Toronto will clamp down on FIFA World Cup spending unless it can find savings on its hosting duties or secure more money from other levels of government.
Councillors voted for the measure at a meeting this week as a funding dispute between the city and province spilled out into the open. They say they'll hold off on major procurements or any large contracts that would push the cost over $340 million.
That's in a bid to address a $40-million shortfall the city says has been created because a substantial amount of funding pledged by the province will be used up for various services not all of which the city needs, the mayor says.
"The list that is in there, I don't believe is all completely necessary," Olivia Chow said.
In June 2022, FIFA awarded Toronto the right to host five first round games plus one playoff round match during the 2026 World Cup. The remaining games will be hosted by Vancouver, Mexico and the United States.
Toronto anticipated it would host just five games, estimating a cost of $300 million. It has since climbed to $380 million, about $200 million of which is being provided by the federal and provincial governments. Last year, city staff said that the price shot up because of a variety of factors including inflation, security costs and the city being awarded six games instead of five.
A city report released Tuesday says the provincial contribution would come through a combination of direct funding and services including policing, transportation and health care. But the province has also added in the cost of "beautification" of GO stations and other measures, which have drawn the ire of some city councillors.
Chow surprised by extent of funding shortfall
The city's early agreement with the province stipulated that Ontario's contributions would take into account services it provided for the games. But Chow says she was surprised by the extent of those services and their estimated costs.
"There's a lot of negotiation that needs to take place," she told councillors. "But in the meantime, (let's) make sure we don't spend money that we may not be able to get."
Coun. Brad Bradford said the city and mayor should have done more work to prevent the funding shortfall. Cost escalation on the project continues to be a serious concern, he said.
"$40 million is a pretty significant gap," he said. "I'd be very concerned that that rolls back on the taxpayers of Toronto, who really can't afford it right now."
Deputy Mayor Mike Colle was blunt in his assessment of what he sees as needless additional fees added by the province.
"We're going to charge you for cleaning the Metrolinx washrooms, and we'll take that off the $97 million," he said of the province's position.
"They're doing nothing," he added at city council. "They're basically not doing the leg work that we're doing. The grunt work is being done behind the scenes by the City of Toronto staff and the (FIFA) Secretariat, and so please. You know, I just wish the people at the province would grow up."
Ontario says funding details have been clear
A spokesperson for Ontario's Minister of Sport, Neil Lumsden, said the province's position on funding has been clear since it made its initial commitment. The $97 million it will contribute includes funding for provincial services.
"This has been consistently communicated to the City's FIFA Secretariat and should not come as a surprise," Wesley Austin said in a statement.
It's unclear what will happen if the city doesn't come up with the cash.
Toronto is set to host the 2026 FIFA World Cup matches in just over a year, but the city and province haven't signed a finalized contract. City staff told councillors that the federal contribution has been "locked in" with a formal agreement.
Earlier this week, Finance Minister Peter Bethlenfalvy said the province will not be providing any more funding.
"Ontario will be there to support and stand by its commitment," he said, adding that the province has been "crystal clear" about only contributing the initial amount without any additional funding.
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With files from Sara Jabakhanji