Capital Variance Report for the Year Ended December 31, 2018

Rate Supported Programs reported capital expenditures of $795.4 million, representing 67.7 percent of their collective 2018 approved Capital Budget of $1.174 billion. Table 1: Summary of Capital Spending 2018 Approved Budget 2018 Actual Expenditure ($M) ($M) % City Operations 2,063 1,189 57.6% Agencies 2,515 1,610 65.2% Subtotal - Tax Supported 4,578 2,799 61.1% Rate Supported 1,174 795 67.7% TOTAL 5,752 3,594 62.5% *2018 Approved Budget includes $1.656 billion 2017 Carry Forward Funding The report also provides details on the 140 completed capital projects that have a combined budget of $204.9 million that were completed in the fourth quarter of 2018 and are ready to be closed. They have been completed with a total realized underspending of $27.0 million. The permanent underspending which has associated funding of $0.5 million in Federal Subsidy, $2.6 million in Capital from Current, $2.3 million in debt, $4.9 million in reserves/reserve funds, $16.6 million in Recoverable Debt and $0.1 million in other internal/external funds will be returned to their original Council approved funding sources. In 2018, a total of 184 capital projects were completed with a combined capital budget of $366.4 million and an actual combined expenditure of $323.4 million, resulting in a total underspending of $43.0 million returned to the original funding sources. In 2018, 18 of 31 Programs/Agencies have spending rate lower than 70 percent of their total approved Capital Budget. Among them Toronto Transit Commission, Transportation Services, Facilities Management, Real Estate, Environmental and Energy and Waterfront Revitalization Initiative have the highest approved budget and the highest unspent amount and highlighted below: Toronto Transit Commission The 2018 approved Capital Budget for Toronto Transit Commission totals $2.288 billion includes Toronto Transit Commission Base Projects, Toronto York Spadina Subway Extension, Scarborough Subway Extension and Transit Studies for Relief Line and Waterfront Transit. Toronto Transit Commission base projects have a spending rate of 76.5 percent while Toronto York Spadina Subway Extension, Scarborough Subway Extension and Transit Studies have spending rate of 38.0 percent, 63.5 percent and 15.3 percent respectively. The low spending rate for Toronto York Spadina Subway Extension is due to deferral of property settlements, holdback releases, contingencies and claims resolutions, and for Scarborough Subway Extension is due to revised City acquisition plan while Transit Studies are new initiatives supporting future transit expansions as part of the Public Transit Infrastructure Fund program. Transportation Services Transportation Services have a total 2018 Capital Budget of $565.9 million and a year-end spending of $313.9 million or 55.5 percent of its approved capital budget. Most of the $252.0 million year-end under-spending is in capital projects that require third party coordination and/or funding, community consultation, issues with site conditions and/or are development/transit dependent. Facilities Management, Real Estate, Environment and Energy The Facilities Management, Real Estate, Environment and Energy Program has spent $188.2 million or 57.7 percent of the total 2018 approved Capital Budget. Most of the $137.8 million year-end under-spending is due to coordination of legal agreements, insufficient funding, client issues, coordination of building requirements across multiple stakeholders, coordination with other projects and delays in Request for Quotation/Request for Proposal process. Waterfront Revitalization Initiative The Waterfront Revitalization Initiative Program spent $60.3 million or 28.8 percent of total approved Capital Budget. $149.0 million remained unspent primarily due to underspending in the Portland Flood Protection Project and the Cherry Street Stormwater Lakefilling Project caused by site conditions and winter shut-down. Further details on the progress of all approved capital projects for each City Program and Agency can be found in Appendix 4 of this report.