In the 1994 municipal elections, he was elected to the
Metro Toronto council from ward 14 Scarborough Wexford, defeating
Michael Thompson. He emerged as one of the most right-wing members of the council, most noted for his attempt to eliminate all funding for
multiculturalism programs during a mock council. Kelly took this stance as he views multicultural programs to further segregate rather than integrate diverse members of the Canadian community. The
National Post newspaper once endorsed him, perhaps somewhat in jest, as "a solid anti-communist. Toronto needs his representation as a bulwark against the left." He also became one of the earliest advocates for merging the City of Toronto with five of its suburbs, an idea he pushed as Chair of the Intergovernmental Affairs Committee. When the "megacity" was created, he was elected to the new Toronto city council. In the
2000 municipal election, redistricting merged Kelly and Mike Tzekas' wards, leading to a bitter election battle between the two, which Kelly easily won. A firm ally of the new city's first mayor,
Mel Lastman, his relations with Lastman's successor,
David Miller, were less friendly. Kelly was one of five Councillors removed from the
Toronto Transit Commission board by council in March 2012 because of his support of mayor Rob Ford's subway plan as opposed to council's preferred LRT plan. ==Deputy mayor of Toronto==