Budget Committee
The full agenda, as filed
All 5 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
BU12.1adopted
Capital Variance Report for the Nine Months Ended September 30, 2019
The purpose of this report is to provide City Council with the City of Toronto capital spending for the nine month period ended September 30, 2019, as well as projected expenditures to December 31, 2019. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2019 Approved Capital Budget that have no impact on 2019 approved debt. As illustrated in Table 1 below, City's 2019 capital expenditure was $2.237 billion or 39.3 percent of the 2019 capital budget of $5.689 billion for the period ended September 30, 2019 and is projecting to expend $3.945 billion or 69.3 percent by December 31, 2019. Table 1 - Capital Variance Summary 2019 Approved Budget* Actual Expenditures - January to September Projected Expenditures - January to December $M $M Percent $M Percent City Operations 1,968 679 34.5 percent 1,269 64.5 percent Agencies 2,592 1,002 38.7 percent 1,699 65.6 percent Subtotal - Tax Supported 4,560 1,682 36.9 percent 2,968 65.1 percent Rate Supported 1,129 555 49.2 percent 977 86.5 percent TOTAL 5,689 2,237 39.3 percent 3,945 69.3 percent *Note: Includes 2018 carry forward funding and 2019 in-year adjustments The Capital spending pattern for the first nine month typically ranges between 32 percent and 37 percent of the total Council Approved Capital Budget. Total City projected spend of 69.3 percent by year-end is comprised of a Tax Supported Programs spending rate of 65.1 percent and a Rate Supported Programs spending rate of 86.5 percent. 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. The report also details the 6 completed capital projects that have a combined budget of $8.3 million that are ready to be closed. They have been completed under budget, realizing underspending of $1.6 million.
The Budget Committee recommends that: 1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (November 29, 2019) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 4 that result in no incremental impact on debt financing.
BU12.2adopted
Operating Variance Report for the Nine Months Ended September 30, 2019
The purpose of this report is to provide City Council with the Operating Variance for the nine months ended September 30, 2019 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2019 Approved Operating Budget that have no impact on the City's 2019 Approved Net Operating Budget. The following table summarizes the financial position of the City's Tax Supported Operations as of September 30, 2019 and the projection at year-end: Table 1 - Tax Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2019 Q3 YTD 2019 Year-End Projection Budget Actual Var Budget Actual Var City Operations 1,659.6 1,605.9 53.8 2,289.0 2,243.2 45.8 Agencies 1,555.0 1,545.3 9.7 2,142.1 2,138.2 3.8 Corporate Accounts (4.8) (193.1) 188.2 (75.2) (240.1) 165.0 Total Variance 3,209.8 2,958.1 251.7 4,355.9 4,141.3 214.6 Less: Toronto Building* (9.0) (29.8) 20.8 (16.9) (49.7) 32.9 Adjusted Variance 3,218.8 2,987.9 230.9 4,372.8 4,191.0 181.7 Percent of Gross Budget 2.4 percent 1.3 percent * In accordance with the Building Code Act, any surplus from Toronto Building must be contributed to the Building Code Act Service Improvement Reserve Fund. Year-to-Date and Year-End Spending Results: As noted in Table 1 above, for the nine months ended September 30, 2019 Tax Supported Operations experienced a favourable net variance of $251.7 million or 7.8 percent of planned expenditures. The key factors contributing to the favourable year-to-date variance are: - Year-to-date net under expenditure in City Operations is primarily due to lower than planned salary and benefits while sustaining current service levels, as well as higher than planned revenue in Fire Services, Municipal Licensing and Standards, and Toronto Building. Favourable year-to-date variance was partially offset by over spending in Shelter, Support and Housing Administration. - Favourable net expenditures in agencies driven by under expenditures in TO Live and Toronto Transit Commission, as well as higher cost recoveries and miscellaneous revenue for the Toronto Police Service. - Favourable revenue from Interest/Investment Earnings and Municipal Land Transfer Tax, as well as lower than planned Debt Charges. For year-end, the City is projecting a net favourable variance of $181.7 million or 1.9 percent of the 2019 Gross Operating Budget of $13,471 million, adjusted for Toronto Building. The favourable variance is partially offset by Shelter, Support & Housing Administration due to continued high demand for Hostel Services. Excluding the one-time capital gain realized during the transition of investment portfolios in the Corporate Accounts (Interest/Investment Earnings) as well under expenditures for internal loans, the City is projecting a net favourable adjusted variance of $71.6 million or 0.5 percent of the 2019 Gross Operating Budget. An overview of the key variance drivers can be found in the "Comments" section of this report as well as in a detailed summary provided in Appendix E. Rate Supported Programs: Rate Supported Programs reported a favourable year-to-date variance of $64.9 million. The favourable variance is attributed to gross under expenditures in salary and benefits while maintaining service levels, earlier than planned receipt of revenue as well as higher consumption volumes, and one-time capital gain from the sale of property. At year-end, a favourable projected variance is anticipated to be $96.3 million that is primarily driven by gross under spending in Toronto Water and higher revenues from Solid Waste Management. Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance. Table 2 - Year-To-Date Rate Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2019 Q3 YTD 2019 Year-End Projection Budget Actual Var Budget Actual Var Solid Waste Management Services (5.6) (23.0) 17.4 0.0 (51.6) 51.6 Toronto Parking Authority (49.6) (58.5) 8.9 (66.5) (73.3) 6.8 Toronto Water (1.1) (39.7) 38.6 0.0 (37.9) 37.9 Total Variance (56.4) (121.3) 64.9 (66.5) (162.8) 96.3
The Budget Committee recommends that: 1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (November 20, 2019) from the Chief Financial Officer and Treasurer to amend the 2019 Approved Operating Budget, such adjustments to have no impact on the 2019 Approved Net Operating Budget of the City.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to amend the 2019 Approved Operating Budget, such adjustments to have no impact on the 2019 Approved Net Operating Budget of the City.
BU12.3adopted
This report provides information on reserve and reserve fund balances as at September 30, 2019. The transfers made into and out of reserve and reserve funds are based on amounts approved by Council during the 2019 or prior year budget processes, or on an ad hoc basis throughout the fiscal year. The tables and appendices reflect information by major reserve and reserve fund category. The reported balances include Council approved loans, granted under various City programs, which must be repaid to the reserves or reserve funds. It is important to note that 82 percent ($5.6 billion) of the $6.8 billion of Reserve and Reserve Funds, as at September 30, 2019, represent obligatory and Council directed reserve funds. $851.9 million, of the remaining $1.2 billion, is committed to offset capital costs and pressures on rate-based activities. The remaining reserve and reserve fund balances of $322.6 million are available for various unanticipated costs and to stabilize various funding sources including the tax base. The adequacy review of the major reserve and reserve fund balances conducted by an external consultant is expected to be delivered in Fourth Quarter of 2019.
The Budget Committee recommends that: 1. Executive Committee receive the report (November 22, 2019) from the Chief Financial Officer and Treasurer for information.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. Executive Committee receive this report for information.
BU12.4adopted
Information and Technology 2019-2028 Capital Plan Adjustments and Accelerations/Deferrals
The purpose of this report is to amend Information and Technology's 2019 Council Approved Capital Budget and 2020-2028 Capital Plan. The amendments will have a zero gross and net debt impact. It will better align 2019 and future cash flows with Information and Technology's capital project delivery schedule and program requirements supporting modernization and outcomes to improve the City's service delivery. These changes do not affect individual project deliverables, schedules and/or scope.
The Budget Committee recommends that: 1. City Council authorize the deferral and acceleration of funds in Information and Technology's 2019 Council Approved Capital Budget and 2020-2028 Capital Plan in the amount of $3.463 million as detailed in Schedule Attachment 1, "Appendix 1 - IT Capital Budget Accelerations/Deferrals" to the report (November 21, 2019) from the Chief Technology Officer, Information and Technology with a zero gross and net debt impact.
Staff recommendation as filed
The Chief Technology Officer, Information and Technology recommends that: 1. City Council authorize the deferral and acceleration of funds in Information and Technology's 2019 Council Approved Capital Budget and 2020-2028 Capital Plan in the amount of $3.463M as detailed in Schedule Attachment 1, "Appendix 1 - IT Capital Budget Accelerations/Deferrals" to the report from the Chief Technology Officer, with a zero gross and net debt impact.
BU12.5adopted
Budget Subcommittees and Public Presentations on the 2020 Budget
City Council, at its meeting on July 16, 17 and 18, 2019, directed that the Budget Committee Public Presentation meetings be held on January 20 and 21, 2020 (ST3.1). It is important that the 2020 Budget Process is widely accessible, and that the public knows well in advance when and where they may make presentations to the Budget Committee. I am therefore recommending that in order to hear from the greatest number of people, that two Budget Subcommittees be established to hear public presentations in different locations across the City. The Subcommittees will report to the Budget Committee on their activities as part of the 2020 Budget Process.
The Budget Committee: 1. Established two subcommittees to hear the public deputations on the 2020 Capital and Operating Budgets at City Hall, North York Civic Centre, Scarborough Civic Centre and Etobicoke Civic Centre, and made appointments to the Subcommittees as follows: a. Budget Subcommittee for City Hall and Etobicoke Civic Centre Consultations, with the membership of: Councillor Gary Crawford (Chair) Councillor Mike Layton Councillor Frances Nunziata b. Budget Subcommittee for Scarborough Civic Centre and North York Civic Centre Consultations, with the membership of: Councillor Brad Bradford (Chair) Councillor Shelley Carroll Councillor Jennifer McKelvie 2. Directed the City Clerk to schedule and give public notice of the meetings of the Subcommittees as follows: Name of Subcommittee Meeting Dates, Locations and Times Budget Subcommittee for City Hall and Etobicoke Civic Centre Consultations January 20, 2020 City Hall 9:30 a.m. to 5:00 p.m.; and 6:00 p.m. onwards January 21, 2020 Etobicoke Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards Budget Subcommittee for Scarborough Civic Centre and North York Civic Centre Consultations January 20, 2020 Scarborough Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards January 21, 2020 North York Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards
Staff recommendation as filed
Councillor Gary Crawford recommends that the Budget Committee: 1. Establish two subcommittees to hear the public deputations on the 2020 Capital and Operating Budgets at City Hall, North York Civic Centre, Scarborough Civic Centre and Etobicoke Civic Centre, and make appointments to the Subcommittees as follows: a. Budget Subcommittee for City Hall and Etobicoke Civic Centre Consultation, with the membership of: Councillor Gary Crawford (Chair) Councillor Frances Nunziata Councillor Mike Layton b. Budget Subcommittee for Scarborough Civic Centre and North York Civic Centre Consultation, with the membership of: Councillor Brad Bradford (Chair) Councillor Jennifer McKelvie Councillor Shelley Carroll 2. Direct the City Clerk to schedule and give public notice of the meetings of the Subcommittees as follows: Name of Subcommittee Meeting Dates, Locations and Times Budget Subcommittee for City Hall and Etobicoke Civic Centre Consultation January 20, 2020 City Hall 9:30 a.m. to 5:00 p.m.; and 6:00 p.m. onwards January 21, 2020 Etobicoke Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards Budget Subcommittee for Scarborough Civic Centre and North York Civic Centre January 20, 2020 Scarborough Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards January 21, 2020 North York Civic Centre 3:00 p.m. to 5:00 p.m.; and 6:00 p.m. onwards