2019 Capital and Operating Budgets

an increase of $2.036 million gross and $2.036 million net and associated increases in the staff complement of 1.5 positions and service levels with an incremental net increase of $0.100 million net in 2020 to fund the following new and/or enhanced service priorities not currently included in the 2019 Staff Recommended Operating Budget, and as summarized in Table 1 below: 1. an increase to Economic Development and Culture's 2019 Staff Recommended Operating Budget by $1.150 million gross and net to provide a down payment on the next phase of the City's Arts and Culture Investment Strategy pending completion and report back on the outcome of the benchmarking review and public consultation on priorities for arts, heritage and creative industries and that the recommended funding be allocated as follows: a. Toronto Arts Council - $0.421 million; b. Local Arts Service Organizations - $0.112 million; c. Youth Arts Incubation Program - $0.300 million; d. Museum Maintenance Services - $0.112 million; e. Film Sector Development - $0.055 million; and f. StreetARToronto - $0.150 million; 2. an increase to Shelter, Support and Housing Administration's 2019 Staff Recommended Operating Budget by $119,759 gross and net to fund the acquisition and installation of menstrual hygiene product dispensers in all shelters, respite sites, women's drop-ins as well as the 39 Strong Neighbourhood Community centers across the City; 3. a one-time increase to Social Development, Finance and Administration's 2019 Staff Recommended Operating Budget by $300,000 gross and net to provide grant funding to the Centre for Connected Communities for the Scarborough Works Youth Employment Plan for 2019, and that ongoing funding for this program be referred to the Youth Service Delivery review for consideration; 4. an increase to the 2019 Staff Recommended City Council General Budget by $17,330 gross and net to supplement funding for the City's Muslim Fellowship Program for 2019; 5. a conversion of 4 permanent positions, bringing the total recommended staff complement for the Office of the Auditor General to 36 permanent positions; 6. an increase to Toronto Public Health's 2019 Staff Recommended Operating Budget by $300,000 gross and $300,000 net to fund the student nutrition program expansion in independent schools effective September 1, 2019 to coincide with the beginning of the 2019/2020 school year with an incremental net increase of $303,000 net in 2020; and 7. an increase to the Toronto Police Service Board's 2019 Staff Recommended Operating Budget by $149,200 gross and net and staff complement by 1.5 positions and reclassify an existing position to better support the Board's governance role and meet new demands. Table 1 Increases to the 2019 Staff Recommended Operating Budget 2019 2020 2021 $ $ $ Program ('000s) Gross Net Positions Net Positions Net Positions Economic Development & Culture Toronto Arts Council 421.0 421.0 Local Arts Service Organizations 112.0 112.0 Youth Arts Incubation Program 300.0 300.0 Museum Maintenance Services 112.0 112.0 Film Sector Development 55.0 55.0 StreetARToronto 150.0 150.0 Shelter, Support & Housing Administration Installation of Menstrual Hygiene Product Dispensers in Shelters, 24-hour Respite Sites and Community Centres 119.8 119.8 Social Development, Finance & Administration Scarborough Works Youth Employment Plan 300.0 300.0 (300.0) City Council Muslim Fellowship Program Grant 17.3 17.3 Toronto Public Health Student Nutrition Plan Expansion in Independent Schools 300.0 300.0 303.0 Toronto Police Services Board Additional Positions to Support the Board's Governance Role 149.2 149.2 1.5 97.0 Sub-Total 2,036.3 2,036.3 1.5 100.0 ii. that the above net increase to the 2019 Staff Recommended Operating Budget of $2.036 million net be offset by the following recommended expenditure reductions to the 2019 Staff Recommended Operating Budget totalling $2.036 million gross and net resulting in an incremental reduction of $130,600 in 2020, and as detailed in Table 2 below: 1. a reduction to the Integrity Commissioner's Office 2019 Operating Budget by $190,000 gross and net to reverse the new and enhanced funding request; 2. a reduction to the Office of the Ombudsman's 2019 Operating Budget by $167,200 gross and net and 2 positions to reverse the new and enhanced funding request; 3. a reduction to the Office of the Lobbyist Registrar's 2019 Operating Budget by $255,100 gross and net and 2 positions to reverse the new and enhanced funding request; and 4. a reduction in the 2019 Staff Recommended Capital and Corporate Financing Budget to reflect a decrease in the 2019 Capital From Current Contribution by $1,424,000. Table 2 Expenditure Decreases to the 2019 Staff Recommended Operating Budget 2019 2020 2021 $ $ $ Program ('000s) Gross Net Positions Net Positions Net Positions Integrity Commissioner's Office Enhancement to Legal and Investigative Services Budget (190.0) (190.0) (4.1) (4.5) Office of the Ombudsman Enhancement to Intake, Complaints Analysis & Investigative Capacity (167.2) (167.2) (2.0) (61.3) (4.9) Office of the Lobbyist Registrar Enhanced Statutory Education & Outreach Requirements (95.5) (95.5) (1.0) (29.6) (2.7) Enhanced Statutory Investigation & Legal Requirements (159.6) (159.6) (1.0) (35.6) (4.2) Non-Program Expenditures Adjustment to Capital From Current to Offset New Investment Costs (1,424.0) (1,424.0) Sub-Total (2,036.3) (2,036.3) (4.0) (130.6) (16.3) b. City Council increase the 2019-2028 Staff Recommended Capital Budget and Plan for TO Live by adding a new capital project known as the 2019 Signage Replacement Project, with total project cost of $1.900 million and cash flow of $1.900 million in 2019, fully funded from the Facility Fee Reserve Fund (XR3030) through sponsorship proceeds; c. City Council approve the recommended 2019 Toronto Transit Commission Conventional Operating Budget as detailed in the letter (January 30, 2019) from the Head of Commission Services, Toronto Transit Commission titled "2019 Toronto Transit Commission and Wheel-Trans Operating Budgets", with gross expenditures of $1.911 billion, revenues of $1.289 billion and net subsidy requirement of $621.9 million, reflecting an additional $25.3 million operating subsidy over the 2018 budgeted level; d. City Council approve the recommended 2019 Wheel-Trans Budget as detailed in the letter (January 30, 2019) from the Head of Commission Services, Toronto Transit Commission titled "2019 Toronto Transit Commission and Wheel-Trans Operating Budgets", with gross expenditures of $149.0 million, revenues of $8.1 million and net subsidy requirement of $140.9 million, reflecting a reduction of $3.3 million from the 2018 budgeted level; e. City Council approve a variable increase to the Transportation Services managed Lane Occupancy fee to recover incremental costs of required additional service hours to maintain service standards resulting from lane occupancy permits; f. City Council approve a 2019 year-end workforce complement of 15,951 positions as described in Appendix G to the Attachment to the letter (January 30, 2019) from the Head of Commission Services, Toronto Transit Commission titled "2019 Toronto Transit Commission and Wheel-Trans Operating Budgets"; g. City Council approve the Toronto Police Service's revised 2019 net operating budget request of $1,026.8 million, a 3.0 percent increase over the 2018 approved budget; h. City Council approve a 2019 net Operating Budget request of $46.7 million, a zero increase from the 2018 net budget, for the Toronto Police Service - Parking Enforcement Unit; i. City Council approve the Toronto Police Service's 2019-2028 Capital Program with a 2019 net request of $29.6 million (excluding cash flow carry forwards from 2018), and a net total of $218.0 million for the 10 year period 2019-2028, as detailed in the Attachment to the Letter (January 30, 2019) from the Toronto Police Services Board titled "Toronto Police Service 2019-2028 Capital Program Request; j. City Council establish a budget of $7,000,000 gross, $0 net, for the Housing Secretariat through the Affordable Housing Office, funded from the Capital Revolving Reserve Fund for Affordable Housing Office (XR1058), to be utilized as below, with the future year requests subject to Council approval through the annual budget process: i. funding of $352,500 for three (3) temporary positions including salary, benefits and equipment for the Housing Secretariat Office to manage the overall implementation of the Housing Now Initiative, with future year staffing requests subject to Council approval through the annual budget process; ii. increase the 2019 Staff Recommended Operating Budget for City Planning by $195,000 gross, $0 net, for two (2) new temporary positions for four years, including salary, benefits and equipment to support expedited delivery of the 11 Properties identified in Appendix 3 to the report (January 11, 2019) from the City Manager, with future year staffing requests subject to Council approval through the annual budget process; iii. increase the 2019 Staff Recommended Operating Budget for CreateTO by $292,500 gross, $0 net, for two (2) temporary positions for four years, including salary, benefits and equipment, to support expedited delivery of the 11 Properties identified in Appendix 3 to the report (January 11, 2019) from the City Manager, with future year staffing requests subject to Council approval through the annual budget process; iv. increase the 2019 Staff Recommended Operating Budget for the Affordable Housing Office by $500,000 gross, $0 net, funded from the Non-Profit Capacity Fund, with future year impacts subject to Council approval through the annual budget process; and v. increase the 2019 Staff Recommended Operating Budget for the Affordable Housing Office by the balance of the $7,000,000 budgeted above in 2019, or $5,660,000 whichever is higher, to undertake environmental studies and remediation, market analyses, planning and other consultant studies to support expedited delivery of the 11 Properties identified in Appendix 3 to the report (January 11, 2019) from the City Manager, with future year impacts subject to Council approval through the annual budget process; k. City Council adopt the following remuneration rates for Adjudicative Boards effective April 1, 2019 as follows: i. full-day per diem of $600 and half-day remuneration (3.5 hours or less) of $400 for members of the Compliance Audit Committee and the Toronto Local Appeal Body, such rates to apply equally to hearings, business meetings and training sessions; ii. full-day per diem of $460 and half-day remuneration (3.5 hours or less) of $275 for members of the Administrative Penalty Tribunal, Committee of Adjustment, Dangerous Dogs Review Tribunal, Property Standards Committee, Rooming House Licensing Commissioner and Deputy Commissioner, Sign Variance Committee, and Toronto Licensing Tribunal, such rates to apply equally to hearings, business meetings or training sessions; iii. a stipend of $1,500 per year for each public member who is not a chair of a tribunal or tribunal panel, pro-rated on an annual basis from the time of appointment; iv. stipends for chairs, pro-rated on an annual basis from the time of appointment, as follows: - Administrative Penalty Tribunal - $25,000 - Committee of Adjustment - $2,500 for each panel chair - Compliance Audit Committee - $2,500 - Dangerous Dogs Review Tribunal - $2,500 - Property Standards Committee - $2,500 for each panel chair - Rooming House Licensing Commissioner - $2,500 - Sign Variance Committee - $2,500 - Toronto Licensing Tribunal - $25,000; and v. Members will receive a full-day per diem rate for any hearing cancelled by the City with less than 48 hours' notice of the hearing date; l. City Council remove the annual limit on remuneration for the Rooming House Licensing Commissioner and Deputy Commissioner; and the following additional requests: m. City Council direct the Chief Financial Officer and Treasurer to undertake the following key capital strategies: i. reassess the City's 10-year Capital Budget and Plan's expenditure and funding sources in time for the 2020 Budget process to ensure that the timing of capital project cash flow estimates and associated funding are aligned to actual project timelines, activities and capacity to deliver; ii. continue efforts to update and improve the City's asset management policies, standards and practices and report back together with Council's consideration of the City's Asset Management policy for approval by July 2019, as required by Provincial legislation; iii. develop a methodology be developed to integrate official, service and master planning with the capital planning and budgeting process and that criteria be established to support the setting of State of Good Repair, Service Improvement and Growth capital project priorities by City Council, to be phased in over the term of Council; and iv. develop for implementation the following strategies to increase the City's funding capacity, beginning with the 2020 Budget process: 1. redirect a portion of the Municipal Land Transfer Tax revenue from funding ongoing service delivery to capital project funding; 2. maximize the use of Development Charges funding for growth related capital projects; 3. leverage City asset value and reinvest proceeds from the sale of City assets to fund capital priorities; and 4. partner with Provincial and Federal government and the private sector to maximize funding opportunities. n. City Council authorize the Mayor and the City Manager to enter into intergovernmental agreements, including any amendments to existing and future agreements, as may be required: i. in order for the City to receive funding to address the financial impacts of increased migrant arrivals, including refugee/asylum claimants and to allocate any such funding, and such agreements to be on terms and conditions satisfactory to the City Manager and in a form acceptable to the City Solicitor; and ii. to share information related to the impacts of increased migrant arrivals, including refugee/asylum claimants, such agreements to be on terms and conditions satisfactory to the City Manager and in a form acceptable to the City Solicitor. o. City Council request the General Manager, Shelter, Support, and Housing Administration to conduct consultation with operators of city-funded shelters, respite and drop-in centres, program participants, community stakeholders and menstrual equity advocates such as the Period Purse, on the access, distribution, the real costs of menstrual products and the feasibility of providing such products free of charge to low-income menstruators and to report back to the Economic and Community Development Committee at their meeting on May 27, 2019; p. City Council request the City Manager to present to the Budget Committee in 2019 on the Participatory Budgeting Pilot Evaluation; q. City Council request the City Manager to post online a toolkit of participatory budgeting resources and information developed during the Pilot to support City Divisions and Members of Council in their use of participatory budgeting for their Ward and divisional decision-making; r. City Council request the City Manager to include participatory budgeting information in the City's civic engagement training courses to enhance public participation in municipal decision-making, including input on capital infrastructure investments; s. City Council request the General Manager, Transportation Services include following items be included in the review of winter maintenance requested by Mayor Tory: i. cost and considerations for the delivery of enhanced snow clearing on 1. sidewalks on residential streets in every neighbourhood in Toronto; 2. pathways in Parks; and 3. enforcement of parking that obstructs Toronto Transit Commission and bike lanes; and ii. the cost of increasing the amount of snow removal City-wide; t. City Council direct the Chief Financial Officer and Treasurer, in consultation with the Deputy City Manager, Community and Social Services, to include in the 2021 Capital Plan submission, the impact of increased development charges on Toronto Community Housing's portion of the Leslie Nymark revitalization; u. City Council request the Executive Director, Social Development, Finance and Administration consider the following in the Poverty Reduction Strategy 2.0: i. an evaluation of additional youth spaces and/or youth hubs; ii. an evaluation of the current Toronto Public Library Open Hours program; and iii. the amount of the base budget as a result of the strategy by 2035; v. City Council request the Chief Financial Officer and Treasurer to work with City Divisions and Agencies to identify and include in future annual budget process documents the cost, cost reductions and revenue increases resulting from the Auditor General's reports and recommendations; w. City Council request the Auditor General to include in future Auditor General's Annual Report, beginning in 2020, savings achieved by City Divisions and Agencies resulting from the implementation of the Auditor General's reports and recommendations; x. City Council request the Chief Planner and Executive Director, City Planning to report to the Budget Committee on the following for consideration prior to the 2020 Budget Process: i. the amount of Section 37 funds (cash contributions) secured for affordable housing and affordable housing initiatives City-wide over the past 5 years (2014-2018); y. City Council request the General Manager, Economic Development and Culture to report to the Budget Committee on the following for consideration prior to the 2020 Budget Process: i. the metrics and tools that can be used to measure the impact on reducing vacant storefronts of eliminating the vacant commercial and industrial tax rebate program; z. City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the General Manager, Toronto Water and the Chief Planner and Executive Director, City Planning to report to the Budget Committee on the following for consideration prior to the 2020 Budget Process: i. budget allocated for implementation of Toronto's Ravine Strategy; aa. City Council request the City Manager, in consultation with the Chief Executive Officer, Toronto Transit Commission to report to the Budget Committee on the following for consideration prior to the 2020 Budget Process: i. the number of requests the Toronto Transit Commission and the City of Toronto have made to the Provincial and Federal Governments for operating and capital investment into Toronto's transit system; and ii. the current and projected funds available from other levels of government in the 10-year capital budget, the time-periods for which the funding is available, and any additional funding requests that should be made to the Provincial and Federal Governments; ab. City Council request the General Manager, Transportation Services, in consultation with the City Solicitor, to report to the Budget Committee for consideration as part of the 2020 Budget Process, on the Lane Occupancy Permit Fees, in all areas, with a focus on rates better reflecting market rates, the potential for above market rates and use of rates as an incentive to limit the term of lane occupancy; ac. City Council request the General Manager, Shelter Support and Housing Administration to report prior to the 2020 Budget Process, on options for the expansion of the Rent Bank and Trusteeship programs; and ad. City Council request the Director, Environment and Energy to consider, as part of the next implementation plan for TransformTO, how to reflect the updated Intergovernmental Panel on Climate Change carbon reduction targets and ensure future budget requests are consistent with those targets. 2. Requested City Council to direct that the following confidential materials remain confidential: - Confidential Attachment to 2019 Staff Recommended Operating and Capital Budget Notes - City Clerk's Office - Confidential Attachment to 2019 Staff Recommended Operating and Capital Budget Notes - Toronto Public Health as they relate to personal matters about identifiable individuals, including municipal or local board employees - Confidential Attachment to 2019 Staff Recommended Operating and Capital Budget Notes - Information and Technology as it involves the security of property belonging to the City or one of its agencies and corporations - Confidential Attachment 1 to Item BU3.4h - CreateTO 2019 Budget Request as it relates to personal matters about identifiable persons and contains financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value - Confidential Attachments 1, 2 and 3 to Item BU3.4k - Toronto Public Health 2019 Operating Budget Request as it relates to personal matters about identifiable persons and labour relations or employee negotiations.