All Canadian municipal watchers have an interest in who will be elected Mayor of Toronto.

As the largest municipality in the country, Toronto plays a key role in policy for local governments, leadership in intergovernmental affairs, and is often an early signaler of social issues and changes.

Perhaps most of all, Toronto has the clout to stand up to the federal government, and to its provincial ruler—the Legislature of Ontario. Or, perhaps, the Premier of Ontario.

The fact is that Toronto is larger than several provincial governments, has a budget bigger than any other city and again several provinces, and generates the highest volume of media reporting. What goes on in Toronto impacts municipalities from coast to coast to coast.

That is why it has been somewhat disappointing to observe the current race for mayor of Toronto. The half-dozen leading candidates are getting most of the media coverage and public comments. The remaining 96 candidates (there are 102 people running for the Chief Magistrate's position) are rarely mentioned so it is difficult to figure out their platforms.

The major issue really comes down to finances. That drives every other issue. How is the city going to raise more money, pay for more services, repair more potholes, increase transit services, assist the homeless, build more housing, and achieve a whole slate of other pressing responsibilities.

It is a daunting task. And with the recently expanded powers of a 'strong mayor', the budget will be drawn up by the mayor and his/her staff. It will be a remarkable opportunity to really imprint someone's vision on the city.

What seems to be missing in the debate is a realistic platform plank for increasing desperately needed revenue. The city is facing something like a $1 billion deficit. There is only so much tinkering you can do with increased parking fees, raiding reserve funds and playing around with the books.

Systemic change is needed.

Taxes are going to have to go up. That's what nobody seems to be saying very clearly.

But the larger issue is still, and yes, I have been riding this horse for many years, is that municipalities in Canada are unable to meet their obligations with the property tax as their main source of funding.

When Stephen Harper cut the GST from 7% to 5%, it may have been good politics, but it was lousy public policy.

I have long argued that we should reinstate that 2% and the revenue should be equally split between provinces and territories for health care, and Canadian municipalities for infrastructure and capital projects.

That 2% today is estimated to generate about $20 billion a year—or $10 billion in new, sustainable, and fairly predictable funding going to our towns and cities. That would have an enormous impact on the finances of our municipalities.

That is the kind of structural change that municipalities must fight for, and Toronto must be a leading voice in that push. Toronto has a pile of seats that any federal or provincial government needs to win an election. Let's face it, size does matter sometimes.

Canada has a horrible system for municipal finances. It is time for courageous leaders to step forward and fight fight fight. Toronto's mayor needs to be a leader not just for the city of Toronto, but for all Canadian municipalities.