Capital Variance Report for the Six Months Ended June 30, 2020

Table 1: Capital Variance Summary 2020 Approved Budget* Actual Expenditures - January to June Projected Expenditures - January to December $M $M % $M % City Operations 1,925 501 26.0% 1,580 82.1% Agencies 1,352 462 34.2% 1,188 87.9% Tax Supported 3,277 963 29.4% 2,768 84.5% Rate Supported Programs: 1,361 377 27.7% 1,166 85.7% TOTAL 4,637 1,340 28.9% 3,934 84.8% *Note: Includes 2019 carry forward funding and 2020 in-year adjustments The Capital spending pattern for the first six month typically ranges between 15% and 22% of the total Council Approved Capital Budget, with the 2020 experience of 28.9% comparing favourably to past experience. Total City projected spend of 84.8% by year-end is comprised of a Tax Supported Programs spending rate of 84.5% and a Rate Supported Programs spending rate of 85.7%. Projected underspending by year-end totals $703 million or 15.2% of the 2020 Capital Budget. Approximately half of the projected year-end variance reflects underspending attributed to COVID-19 impacts. - At the onset of COVID-19, due to the uncertainty of the financial impact and the amount of financial assistance from other levels of government, capital projects funded by Capital from Current (CFC) were slowed to enable potential offsets to COVID-19 financial impacts. - Given the continued uncertainty regarding the allocation that Toronto will receive of future phase Safe Restart Agreement funding, CFC funded capital projects will continued to be slowed to the end of the year. Impacted capital projects will be reassessed as part of the 2021 budget process. The projected year-end spending rates presented in this report are based on the submissions from each Program and Agency, and as such, the preparation of this report has been based on this information.