TORONTO

Mayor John Tory refuses to say how much interest taxpayers will have to pay for a provincial loan to balance the 2015 budget.

Tory told reporters Tuesday residents will have to put up “a couple of dollars” to finance a multimillion-dollar line of credit, but wouldn’t comment on specific costs to finance the debt.

He stressed that the loan is the “right thing to do” to fill an $86-million funding gap left when the province cut a social housing grant.

“The cost of financing will be a couple of dollars for people over the period that this represents,” Tory said.

“What it will do is allow those very same households to experience increased investment in services in period of this support and at the same time avoid huge tax increases.”

The city’s proposed 2015 budget was unveiled last week with an $86-million shortfall. The provincial Liberals refused to provide an outright grant, instead offering a $200-million line of credit secured by city lands and subject to interest.

Tory needs the loan to balance the budget, which provides service enhancements to the TTC and a promised 2.25% tax increase.

NDP MPP Cheri DiNovo said the Liberal government should restore the social housing funds. She slammed the government for sinking an additional $86 million — the exact amount of the city funding gap — into the troubled MaRs science incubator building in December.

“To send it into the MaRs boondoggle building, and take it away from the housing that people really need, is a pretty cynical approach,” she said.

DiNovo said she thinks Tory is trying behind the scenes to squeeze money out of the province to fill the gap, but stressed it will cost more than “a couple of dollars” to finance any loan from the province.

Ironically, Tory met with Premier Kathleen Wynne at the MaRs building Tuesday afternoon for a discussion with other GTA mayors.

Finance ministry spokesman Kelsey Ingram said the province stands by its decision to offer the line of credit to the city, adding that since 2003 Ontario has invested $600 million in affordable housing in Toronto.

“Ontario is committed to working with the City of Toronto and all our partners to make sure we are doing everything we can for families in need of housing,” she said in an e-mail to the Toronto Sun.

This year’s $86-million funding gap is projected to grow to $129 million in 2016.

Asked how he will deal with the problem next year, Tory said he has asked city officials to find 2% savings from every department.

shawn.jeffords@sunmedia.ca