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Toronto City Council · 2025-02-11 · 2025.CC27.2

The filed record

Response to Ontario Regulation 286/09 Budget Matters - Expenses

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The decision

2025-02-11 · Toronto City Council · adopted

As filed

City Council on February 11, 2025, adopted the following: 1. City Council authorize City staff to publish, on the City website, information related to Ontario Regulation 286/09 "Budget Matters - Expenses" in future fiscal periods and thereby satisfy legislative reporting requirements.

On the agenda

As the city filed it

The City of Toronto's (City) annual balanced budget is prepared using the cash basis of accounting. This method allows the City to focus on the funds required to support operating expenses in the fiscal year and to acquire capital assets. Ontario Regulation 286/09 "Budget Matters - Expenses" (Regulation) permits exclusion of non-cash accounting expenses from the City's annual budget such as amortization expenses, post-employment benefits expenses, and solid waste landfill closure and post-closure expenses.

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The Regulation further requires the City to provide: An estimate of the change in accumulated surplus as a result of the exclusion of the above expenses, and An analysis of the estimated impact of the exclusion of these expenses on future tangible capital asset funding requirements. Total expenses excluded from the 2025 budget is estimated to be $1.84 billion. These expenses will be recorded in the City's financial statements and reduce the accumulated surplus balance. The accumulated surplus represents the City's net investment in its tangible capital assets. The City's processes for capital requirements, through the City's Ten-Year Capital Budget and Plan, provide transparency in current and future year funding required for tangible capital assets.

Staff recommended

The Chief Financial Officer and Treasurer recommends that: 1. City Council authorize City Staff to publish, on the City website, information related to Ontario Regulation 286/09 "Budget Matters - Expenses" in future fiscal periods and thereby, satisfy legislative reporting requirements.

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