Budget Committee
The full agenda, as filed
All 10 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.
BU19.1adopted
2021 Rate Supported Budget - 2021 Water and Wastewater Consumption Rates and Service Fees
This report presents the recommended 2021 water and wastewater consumption rates and service fees arising from the concurrent adoption by City Council of the 2021 Toronto Water Operating and Capital Budgets. In order to support the recovery from the impact of COVID -19, this report recommends a 1.5 percent water and wastewater consumption rate increase, effective January 1, 2021, and inflationary fee increases for certain existing water and wastewater service fees, reflecting cost recovery for these services. The recommended 2021 water and wastewater consumption rates and service fees will allow the Toronto Water Program to remain fully self-funded and financially stable, with both operating and capital needs being met without excessive year-over-year fluctuations in pricing over the long term.
The Budget Committee recommends to the Executive Committee that: Rates and Fees 1. City Council adopt: a. effective January 1, 2021, a 1.5 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown below and in Appendix B to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water: Table 1 - Rate Increase to Combined Water and Wastewater Consumption Rates Charged to Metered Consumers Annual Consumption Paid on or before the due date, $/m3 Paid after the due date, $/m3 Block 1 - All consumers of water, including the first 5,000 cubic metres per year consumed by Industrial users ("Block 1 rate") 4.1346 4.3522 Block 2 - Industrial process - use water consumption over 5,000 cubic metres per year, representing a 30 percent reduction from the Block 1 Rate ("Block 2 rate') 2.8941 3.0464 b. effective January 1, 2021, an increase of 1.5 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix B to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water; and c. effective January 1, 2021 the water and wastewater service fees, as set out in Appendix C to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water. 2. With respect to assistance for low-income seniors and low-income disabled persons, City Council: a. effective January 1, 2021, set the water rebate for eligible low-income seniors and low-income disabled persons at a rate of $1.2404 /m3, representing a 30% reduction from the Block 1 rate (paid on or before the due date). 3. City Council amend Municipal Code Chapter 441 - Fees and Charges, Municipal Code, Chapter 849 - Water and Sewage Services and Utility Bill, Municipal Code Chapter 851 - Water Supply, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations. 4. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer & Treasurer and the General Manager, Toronto Water. Operating and Capital Budgets 5. City Council approve the 2021 Operating Budget for Toronto Water of $468.824 million gross, $1,415.336 million revenue and $946.512 million net capital from current contribution for the following services: Service: Gross ($000s) Revenue ($000s) Capital from Current Contribution ($000s) Water Treatment and Supply 195,791.0 619,109.7 423,318.7 Wastewater Collection and Treatment 229,905.6 785,617.5 555,711.9 Stormwater Management 43,127.5 10,609.2 -32,518.3 Total Program Budget 468,824.0 1,415,336.3 946,512.3 6. City Council approve the 2021 staff complement for Toronto Water of 1,841.3 positions comprised of 116.0 capital position and 1,725.3 operating positions. 7. City Council approve 2021 Capital Budget for Toronto Water with cash flows and future year commitments totalling $7.597 billion as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water. 8. City Council approve the 2022-2030 Capital Plan for Toronto Water totalling $7.188 billion in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water. 9. City Council request that all sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2021 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs. Service Levels 10. City Council approve the 2021 service levels for Toronto Water as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Toronto Water, titled "Recommended 2021 Service Levels - Toronto Water".
Staff recommendation as filed
Rates and Fees The Chief Financial Officer and Treasurer and the General Manager, Toronto Water recommend that: 1. City Council adopt: a. effective January 1, 2021, a 1.5 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown below and in Appendix B to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water: Table 1 - Rate Increase to Combined Water and Wastewater Consumption Rates Charged to Metered Consumers Annual Consumption Paid on or before the due date, $/m3 Paid after the due date, $/m3 Block 1 - All consumers of water, including the first 5,000 cubic metres per year consumed by Industrial users ("Block 1 rate") 4.1346 4.3522 Block 2 - Industrial process - use water consumption over 5,000 cubic metres per year, representing a 30 percent reduction from the Block 1 Rate ("Block 2 rate') 2.8941 3.0464 b. effective January 1, 2021, an increase of 1.5 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix B to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water; and c. effective January 1, 2021 the water and wastewater service fees, as set out in Appendix C to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water. 2. With respect to assistance for low-income seniors and low-income disabled persons: a. effective January 1, 2021, the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.2404 /m3, representing a 30% reduction from the Block 1 rate (paid on or before the due date). 3. City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code, Chapter 849 - Water and Sewage Services and Utility Bill, Municipal Code Chapter 851 - Water Supply, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations. 4. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer & Treasurer and the General Manager, Toronto Water. Operating and Capital Budgets The City Manager and Chief Financial Officer and Treasurer recommend that: 5. City Council approve the 2021 Operating Budget for Toronto Water of $468.824 million gross, $1,415.336 million revenue and $946.512 million net capital from current contribution for the following services: Service: Gross ($000s) Revenue ($000s) Capital from Current Contribution ($000s) Water Treatment & Supply 195,791.0 619,109.7 423,318.7 Wastewater Collection & Treatment 229,905.6 785,617.5 555,711.9 Stormwater Management 43,127.5 10,609.2 -32,518.3 Total Program Budget 468,824.0 1,415,336.3 946,512.3 6. City Council approve the 2021 staff complement for Toronto Water of 1,841.3 positions comprised of 116.0 capital position and 1,725.3 operating positions. 7. City Council approve 2021 Capital Budget for Toronto Water with cash flows and future year commitments totalling $7.597 billion as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water. 8. City Council approve the 2022-2030 Capital Plan for Toronto Water totalling $7.188 billion in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water. 9. City Council request that all sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2021 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs. Service Levels The General Manager, Toronto Water recommends that: 10. City Council approve the 2021 service levels for Toronto Water as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Toronto Water, titled "Recommended 2021 Service Levels - Toronto Water".
BU19.2amended
This report outlines the recommended 2021 Solid Waste Management Services Rates and Fees arising from the adoption of the 2021 Solid Waste Management Services Operating and Capital Budgets. The recommended rate and fee increases will vary based on customer group and are highlighted in Table 1. Table 1 highlights the recommended key Solid Waste Management Services Rates and Fees effective January 1, 2021. Table 1 - 2021 Recommended Rates and Fees Increases (Effective January 1, 2021) Customer Group Percent Rate Increase Comments Multi-Residential 1.50 percent Mitigate impact in response to COVID-19 Single Family and Residential Units Above Commercial (RUAC) 1.50 percent Mitigate impact in response to COVID-19 Bag Tags, Bin Purchase 1.50 percent Mitigate impact in response to COVID-19 Commercial, Divisions, Agencies and Corporations, Schools 1.50 percent Mitigate impact in response to COVID-19 Blended Rate 1.50 percent The recommended blended 1.5 percent increase in Solid Waste Management Services Rates will continue to provide and maintain Council Approved service levels unchanged from the prior year and fund the 2021 Capital Budget and 10-Year Capital Plan. This is in line with the City's Economic Support and Recovery plan to assist residence and business in the City of Toronto recover from the impact of Covid-19. The 1.5 percent utility rate increase for 2021 is recommended to maintain the contribution to Waste Management Reserve fund to finance future capital investments, and to address affordability concerns resulting from the pandemic , which results in a loss of approximately $3.334 million (gross) in previously anticipated revenues when compared to the planned 2.7 percent blended rate increase for 2021. The 2021 Operating Budget is $361.973 million, representing an increase of $1.236 million or 0.3 percent over the 2020 Operating Budget as well as a $17.137 million contribution to the Waste Management Reserve Fund, all of which are offset by total revenues of $379.110 million. The marginal increase in operating expenditures is attributable to contractual inflation increases and an increase in debt principal and interest payments to fund the 10-year Capital Budget and Plan as well as other balancing action taken by staff. The 2021 Capital Budget is $69.079 million including carry-forwards, which is comprised of $51.374 million in new 2021 funding and $17.705 million in funding carried forward from 2020 into 2021. The 2021 Capital Budget and Plan remains generally unchanged from last year focusing on the following key capital objectives and priorities for Solid Waste Management Services: - To safely and efficiently collect materials from 875,000 homes, business and public spaces by implementing Council's direction on health and safety by installing telematics solutions on vehicles in support of Vision Zero 2.0; - To manage 900,000 plus tonnes of material in an environmentally and fiscally sustainable manner by accelerating the development of the 3rd Anaerobic Digester; - To continue investigating long-term disposal options including landfill capacity development and energy from waste as well as site contract renegotiations and strategically using alternate landfill sites; and - To continue to develop and invest in renewable energy such as Renewable Natural Gas facilities.
The Budget Committee recommends to Executive Committee that: Rates and Fees 1. City Council adopt, effective January 1, 2021, the Solid Waste Management Services Rates and Fees as set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services. 2. City Council amend Municipal Code Chapter 441 - Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to these Recommendations. 3. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer, and General Manager Solid Waste Management Services. 4. City Council direct the General Manager of Solid Waste Management Services to develop and submit the 2022 and 2023 budgets as outlined in Appendix B to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, representing a 3 percent increase in 2022 and a 3 percent increase in 2023 to be applicable to all Solid Waste Management Services Rates and Fees in order to support the Divisions long term capital plan. 5. City Council direct the General Manager, Solid Waste Management Services to review, as part of the work of the Province's transition to extended producer responsibility programs and the amended Food and Organic Waste Policy Statement, the currently accepted items in the City's existing diversion programs with a primary focus on materials in the Green Bin stream and report back to Council with recommendations on items to remain or exclude from the list of accepted items using a triple bottom line approach which considers financial, environmental and social considerations. 6. City Council direct the General Manager, Solid Waste Management Services to review the current installment of waste collection bins in Parks and open spaces and as a pilot project determine how the quality of recyclable materials generated in Blue Bin recycling can be improved and the quantities of litter disposed of in landfill can be reduced through the expansion of Green Bin organics and the adjustment of waste bin types, quantities and placement within in Parks. 7. City Council request financial support from the Province of Ontario to fully-recover transition costs the City may incur as a result of the Province's anticipated adoption and implementation of measures under the Resource Recovery and Circular Economy Act, 2016 that will implement a new Extended Producer Responsibility model for Ontario, including but not limited to increased service contract costs, specialized professional services support, additional communications, promotion and education support. 8. City Council authorize the General Manager, Solid Waste Management Services, to establish and manage a First Nations Engagement Grant Fund for the Green Lane Landfill Renewable Energy Study Project funded through the capital program for qualifying local First Nations to retain, on a verified basis, technical services such as energy, environmental and/or similar consultants to assist with the engagement process. 9. City Council authorize the General Manager, Solid Waste Management Services, and/or designate, to negotiate and enter into an amending agreement with the City's current mattress recycling contractor for a term up to December 31, 2026, with specific requirements that allow for increased mattress recycling volumes and maintain or exceed existing capture rates for recoverable materials, and on any other terms satisfactory to the General Manager, Solid Waste Management Services, and each in a form satisfactory to the City Solicitor, in support of efforts to increase diversion of these materials from landfill. 10. City Council direct that all the rates, fees and charges set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, adopted by Council in Recommendation 1 and 2 above, continue in full force and effect until such time as they are amended or repealed by City Council. Operating and Capital Budgets 11. City Council approve the 2021 Operating Budget for Solid Waste Management Services of $361.973 million gross, $379.110 million revenue and $17.137 million net for the following services: Service: Gross ($000s) Revenue ($000s) Capital from Current Contribution ($000s) City Beautification 37,288.4 6,498.9 -30,789.5 Residual Management 39,954.9 10,566.9 -29,388.0 Solid Waste Collection and Transfer 126,552.3 331,810.2 205,257.9 Solid Waste Education and Enforcement 3,854.1 0.3 -3,853.8 Solid Waste Processing and Transport 154,323.6 30,234.0 -124,089.6 Total Program Budget 361,973.3 379,110.3 17,137.0 12. City Council approve the 2021 staff complement for Solid Waste Management Services of 1,125.3 positions comprised of 47.6 capital position and 1,077.7 operating positions. 13. City Council approve the 2021 technical adjustments to user fees, market rate user fee changes, and other fee changes above the inflationary adjusted rate Solid Waste Management Services identified in Appendix 9 to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services, for inclusion in the Municipal Code Chapter 441 "Fees and Charges". 14. City Council approve the 2021 Capital Budget for Solid Waste Management Services with cash flows and future year commitments totaling $549.159 million as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services. 15. City Council approve the 2022-2030 Capital Plan for Solid Waste Management Services totalling $188.295 million in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services. Service Levels 16. City Council approve the 2021 service levels for Solid Waste Management Services as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Solid Waste Management Services, titled "Recommended 2021 Service Levels - Solid Waste Management Services".
Staff recommendation as filed
Rates and Fees The Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services recommend that: 1. City Council adopt effective January 1, 2021, the Solid Waste Management Services Rates and Fees as set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services. 2. City Council authorize that the necessary amendments be made to the Municipal Code Chapter 441 - Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to these Recommendations. 3. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer, and General Manager Solid Waste Management Services. 4. City Council direct the General Manager of Solid Waste Management Services to develop and submit the 2022 and 2023 budgets as outlined in Appendix B to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, representing a 3 percent increase in 2022 and a 3 percent increase in 2023 to be applicable to all Solid Waste Management Services Rates and Fees in order to support the Divisions long term capital plan. 5. City Council direct the General Manager, Solid Waste Management Services to review, as part of the work of the Province's transition to extended producer responsibility programs and the amended Food and Organic Waste Policy Statement, the currently accepted items in the City's existing diversion programs with a primary focus on materials in the Green Bin stream and report back to Council with recommendations on items to remain or exclude from the list of accepted items using a triple bottom line approach which considers financial, environmental and social considerations. 6. City Council direct the General Manager, Solid Waste Management Services to review the current installment of waste collection bins in Parks and open spaces and as a pilot project determine how the quality of recyclable materials generated in Blue Bin recycling can be improved and the quantities of litter disposed of in landfill can be reduced through the expansion of Green Bin organics and the adjustment of waste bin types, quantities and placement within in Parks. 7. City Council request financial support from the Province of Ontario to fully-recover transition costs the City may incur as a result of the Province's anticipated adoption and implementation of measures under the Resource Recovery and Circular Economy Act, 2016 that will implement a new Extended Producer Responsibility model for Ontario, including but not limited to increased service contract costs, specialized professional services support, additional communications, promotion and education support. 8. City Council authorize the General Manager, Solid Waste Management Services, to establish and manage a First Nations Engagement Grant Fund for the Green Lane Landfill Renewable Energy Study Project funded through the capital program for qualifying local First Nations to retain, on a verified basis, technical services such as energy, environmental and/or similar consultants to assist with the engagement process. 9. City Council authorize the General Manager, Solid Waste Management Services, and/or designate, to negotiate and enter into an amending agreement with the City's current mattress recycling contractor for a term up to December 31, 2026, with specific requirements that allow for increased mattress recycling volumes and maintain or exceed existing capture rates for recoverable materials, and on any other terms satisfactory to the General Manager, Solid Waste Management Services, and each in a form satisfactory to the City Solicitor, in support of efforts to increase diversion of these materials from landfill. 10. City Council direct that all the rates, fees and charges set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, adopted by Council in Recommendation 1 and 2 above, continue in full force and effect until such time as they are amended or repealed by City Council. Operating and Capital Budgets The City Manager and Chief Financial Officer and Treasurer recommend that: 11. City Council approve the 2021 Operating Budget for Solid Waste Management Services of $361.973 million gross, $379.110 million revenue and $17.137 million net for the following services: Service: Gross ($000s) Revenue ($000s) Capital from Current Contribution ($000s) City Beautification 37,288.4 6,498.9 -30,789.5 Residual Management 39,954.9 10,566.9 -29,388.0 Solid Waste Collection & Transfer 126,552.3 331,810.2 205,257.9 Solid Waste Education & Enforcement 3,854.1 0.3 -3,853.8 Solid Waste Processing & Transport 154,323.6 30,234.0 -124,089.6 Total Program Budget 361,973.3 379,110.3 17,137.0 12. City Council approve the 2021 staff complement for Solid Waste Management Services of 1,125.3 positions comprised of 47.6 capital position and 1,077.7 operating positions. 13. City Council approve the 2021 technical adjustments to user fees, market rate user fee changes, and other fee changes above the inflationary adjusted rate Solid Waste Management Services identified in Appendix 9 to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services, for inclusion in the Municipal Code Chapter 441 "Fees and Charges". 14. City Council approve 2021 Capital Budget for Solid Waste Management Services with cash flows and future year commitments totaling $549.159 million as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services. 15. City Council approve the 2022-2030 Capital Plan for Solid Waste Management Services totalling $188.295 million in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services. Service Levels The General Manager of Solid Waste Management Services recommends that 16. City Council approve the 2021 service levels for Solid Waste Management Services as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Solid Waste Management Services, titled "Recommended 2021 Service Levels - Solid Waste Management Services".
BU19.3amended
2021 Rate Supported Budgets - Toronto Parking Authority
The City Manager and the Chief Financial Officer and Treasurer have submitted recommendations for the 2020 Recommended Operating Budget and 2021-2030 Recommended Capital Budget and Plan for Toronto Parking Authority.
The Budget Committee recommends to the Executive Committee that: Operating and Capital Budgets 1. City Council approve the 2021 Operating Budget for Toronto Parking Authority of $95.7 million gross, $93.5 million revenue and $2.2 million net for the following services: Service: Gross ($000s) Revenue ($000s) Net ($000s) On-Street Parking 10,636.4 30,832.0 (20,195.6) Off-Street Parking 75,441.2 55,245.6 20,195.6 Bike Share Program 9,646.5 7,409.5 2,237.0 Total Program Budget 95,724.1 93,487.1 2,237.0 2. Absent of any Federal and Povincial support for 2021, City Council direct the Toronto Parking Authority to draw from prior year retained earnings to offset any 2021 net pressure. 3. City Council approve the 2021 staff complement for Toronto Parking Authority of 326.5 operating positions. 4. City Council approve the Capital Budget for Toronto Parking Authority with cash flows and future year commitments totaling $172.1 million as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Parking Authority. 5. City Council approve the 2022-2030 Capital Plan for Toronto Parking Authority totaling $62.3 million in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Parking Authority. 6. City Council direct the Chief Financial Officer and Treasurer, in consultation with the President of the Toronto Parking Authority to report to the Budget Committee on an updated Income Sharing Renewal Agreement no later than December 31, 2021. 7. City Council increase the penalty amount from $30.00 to $75.00 for the offences in Sections 950-601C(1), 950-601C(2), 950-601C(3), 950-601F(1), 950-601G(1), 950-601G(2) and 950-601O of City of Toronto Municipal Code Chapter 950, Traffic and Parking, with an implementation date of June 1, 2021. 8. City Council amend City of Toronto Municipal Code Chapter 610, Penalties, Administration of, generally as set out in Attachment 2 to the report (October 20, 2020) from the Acting President, Toronto Parking Authority. 9. City Council direct that Confidential Attachments 1 and 2 to the report (October 19, 2020) from the Acting President, Toronto Parking Authority, remain confidential in their entirety as they pertain to personal matters about identifiable individuals, including municipal or local board employees, labour relations or employee negotiations, and the security of property belonging to the City or one of its agencies or corporations. Service Levels 10. City Council approve the 2021 service levels for Toronto Parking Authority as outlined in Appendix 1 to the report (November 6, 2020) from the Acting President, Toronto Parking Authority, titled " Recommended 2021 Service Levels - Toronto Parking Authority".
Staff recommendation as filed
Operating and Capital Budgets The City Manager and Chief Financial Officer and Treasurer recommend that: 1. City Council approve the 2021 Operating Budget for Toronto Parking Authority of $95.7 million gross, $93.5 million revenue and $2.2 million net for the following services: Service: Gross ($000s) Revenue ($000s) Net ($000s) On-Street Parking 10,636.4 30,832.0 (20,195.6) Off-Street Parking 75,441.2 55,245.6 20,195.6 Bike Share Program 9,646.5 7,409.5 2,237.0 Total Program Budget 95,724.1 93,487.1 2,237.0 2. Absent of any federal and provincial support for 2021, that the Toronto Parking Authority draw from prior year retained earnings to offset any 2021 net pressure. 3. City Council approve the 2021 staff complement for Toronto Parking Authority of 326.5 operating positions. 4. City Council approve 2021 Capital Budget for Toronto Parking Authority with cash flows and future year commitments totaling $172.1 million as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Parking Authority. 5. City Council approve the 2022-2030 Capital Plan for Toronto Parking Authority totaling $62.3 million in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Parking Authority. 6. City Council direct the Chief Financial Officer and Treasurer, in consultation with the President of the Toronto Parking Authority to report to the Budget Committee on an updated Income Sharing Renewal Agreement no later than December 31, 2021. Service Levels The Acting President, Toronto Parking Authority recommends that: 7. City Council approve the 2021 service levels for Toronto Parking Authority as outlined in Appendix 1 to the report (November 6, 2020) from the Acting President, Toronto Parking Authority, titled "Recommended 2021 Service Levels - Toronto Parking Authority". 8. City Council direct that Confidential Attachments 1 and 2 to the report (October 19, 2020) from the Acting President, Toronto Parking Authority, remain confidential in their entirety as they pertain to personal matters about identifiable individuals, including municipal or local board employees, and labour relations or employee negotiations, and the security of property belonging to the City or one of its agencies or corporations.
BU19.4amended
Municipal Land Transfer Tax Rebate for First-Time Home Buyers
City Council on June 29 and 30, 2020, referred Item EX14.5 to the November 17, 2020 meeting of the Budget Committee for further consideration. City Council directed the Chief Financial Officer and Treasurer to report to the April 1, 2020 City Council Meeting on opportunities to provide First-Time Home Buyer with greater relief from the Municipal Land Transfer Tax. This includes the maximum price eligibility threshold of $400,000 to reflect increased home prices in Toronto. The rebate offsets the tax on up to $400,000 of the purchase price.
The Budget Committee recommends that: 1. The Executive Committee receive the report (June 8, 2020) from the Chief Financial Officer and Treasurer for information.
Staff recommendation as filed
The Executive Committee recommends that: 1. City Council receive the report (June 8, 2020) from the Chief Financial Officer and Treasurer for information.
BU19.5adopted
This report requests authority from City Council to amend the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan by adjusting project costs and future year cash flow commitments contained within the 10-Year Capital Plan. These adjustments will align cash flows with capital project delivery schedules, multi-year contracts, and program requirements. Amendments to cash flows and project costs are also requested to reflect the expanded scope of work resulting from the design process; to achieve net zero for a new building as directed through Council; to initiate design work; for projects that are experiencing unforeseen site conditions; or alternatively to advance projects into 2020 that are ready to proceed. The recommended in-year adjustments, as presented in this report, will have no incremental debt impact on the Parks, Forestry and Recreation's 2020-2029 Council Approved Capital Budget and Plan.
The Budget Committee recommends to the Executive Committee that: 1. City Council authorize the reallocation of cash flows in the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, for the deferral and acceleration of cash flow in the amount of $4.571 million, as included in Appendix 1 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation. 2. City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and future year commitments in the amount of $1.619 million, as included in Appendix 2 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact. 3. City Council authorize amendments to create five (5) new sub-projects with a total project cost of $1.633 million and cash flow commitments of $0.113 million in 2020, $0.820 million in 2021 and $0.700 million in 2022, within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, as included in Appendix 3 to report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact. 4. City Council approve an increase in project cost to Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the North East Scarborough New Community Centre sub-project, as part of the Community Centre project, in the amount of $20.200 million, from $37.000 million to $57.200 million, with future year cash flow commitments of $13.400 million in 2023 and $6.800 million in 2024, with $18.800 million funded by Development Charges (XR2114), $0.700 million from the City-Wide Parkland Development Cash-in-lieu Reserve Fund (XR2211), and $0.700 million from the East District Parkland Development Cash-in-lieu Reserve Fund (XR2205), to meet the increased scope and implementation of Net Zero for City buildings.
Staff recommendation as filed
The General Manager, Parks, Forestry and Recreation recommends that: 1. City Council authorize the reallocation of cash flows in the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, for the deferral and acceleration of cash flow in the amount of $4.571 million, as included in Appendix 1 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation. 2. City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and future year commitments in the amount of $1.619 million, as included in Appendix 2 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact. 3. City Council authorize amendments to create five (5) new sub-projects with a total project cost of $1.633 million and cash flow commitments of $0.113 million in 2020, $0.820 million in 2021 and $0.700 million in 2022, within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, as included in Appendix 3 to report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact. 4. City Council approve an increase in project cost to Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the North East Scarborough New Community Centre sub-project, as part of the Community Centre project, in the amount of $20.200 million, from $37.000 million to $57.200 million, with future year cash flow commitments of $13.400 million in 2023 and $6.800 million in 2024, with $18.800 million funded by Development Charges (XR2114), $0.700 million from the City-Wide Parkland Development Cash-in-lieu Reserve Fund (XR2211), and $0.700 million from the East District Parkland Development Cash-in-lieu Reserve Fund (XR2205), to meet the increased scope and implementation of Net Zero for City buildings.
BU19.6adopted
Capital Variance Report for the Twelve Months Ended December 31, 2019
The purpose of this report is to provide City Council with the City of Toronto capital spending for the year ended December 30, 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. Actual capital expenditures for 2019 totalled $3.772 billion or 66.7 percent of 2019 approved Capital Budget of $5.655 billion. Tax Supported Programs and Agencies reported capital expenditures of $2.780 billion representing 61.4 percent of their collective 2019 approved Capital Budget of $4.526 billion. Rate Supported Programs reported capital expenditures of $991.8 million, representing 87.8 percent of their collective 2019 approved Capital Budget of $1.129 billion. Table 1 - Capital Variance Summary 2019 Approved Budget 2019 Actual Expenditure ($M) ($M) Percent City Operations 1,981 1,285 64.9 percent Agencies 2,545 1,495 58.8 percent Subtotal - Tax Supported 4,526 2,780 61.4 percent Rate Supported 1,129 992 87.8 percent TOTAL 5,655 3,772 66.7 percent *2019 Approved Budget includes $1.909 billion 2018 Carry Forward Funding The report also details the 233 completed capital projects that have a combined budget of $269.5 million that are ready to be closed. They have been completed under budget, realizing underspending of $17.8 million. The permanent underspending which has associated funding of $0.5 million in Federal Subsidy, $1.5 million in Capital from Current, $6.0 million in debt, $9.5 million in reserves/reserve funds and $0.3 million in Recoverable Debt will be returned to their original Council approved funding sources.
The Budget Committee recommends to the Executive Committee that: 1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 5 to the report (November 10, 2020) 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 receive this report and attached Appendices for information 2. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 5 to the report (November 10, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
BU19.7adopted
Operating Variance Report for the Year Ended December 31, 2019
The purpose of this report is to provide Council with the City of Toronto's Operating Variance results for the year ended December 31, 2019 and the disposition of the 2019 year-end operating surplus. As of December 31, 2019 the City experienced a favourable variance of $431.1 million net with $213.8 million in surplus ultimately available for allocation when accounting for the following: - A significant one-time surplus of $106.0 million resulting from the merger of City pensions to be dedicated to the underfunded Employee Benefits Reserve Fund; - $30.9 million in Toronto Building surplus that the city is obligated to contribute towards the Building Reserve; - $40.4 million in planned contributions to underfunded liabilities and reserve funds as detailed in Table 3; and - $40.0 million in Capital Financing Reserve commitments consistent with the capital financing strategy. Table 1 summarizes the financial position of the City's Tax Supported Operations at year-end. Table 1 - Tax Supported Operating Variance Summary ($ Millions) Variance ($M) Favourable / (Unfavourable) 2019 Year-End Results Budget Actual Variance City Operations 2,289.0 2,237.7 51.3 Agencies 2,099.2 2,089.0 10.2 Corporate Accounts (75.2) (444.8) 369.6 Total Variance 4,313.0 3,881.9 431.1 Less: Toronto Building 30.9 Less: Pension Merger 106.0 Less: Planned Contributions to Underfunded Liabilities / Reserves 40.4 Less: Capital Financing Reserve Commitments 40.0 Adjusted Variance 213.8 Percent of Gross Budget 1.8 percent As noted in Table 1 above, for the year ended December 31, 2019 Tax Supported Operations experienced a favourable net variance of $431.1 million. The key factors contributing to the favourable year-end variance are: - Favourable net expenditures in City Operations ($51.3 million) is primarily due to lower than planned salary and benefits while sustaining current service levels, which was partially offset by higher demand in the shelter system and overspending in winter maintenance as a result of this year's winter storms; - Favourable net expenditures in Agencies ($10.2 million) driven by under expenditures in Toronto Public Health, Toronto Transit Commission, and Toronto Police Service primarily due to lower than planned salary and benefits while sustaining current service levels and lower than anticipated expenses on automotive parts; and - Favourable net expenditures in Corporate accounts ($369.6 million) from higher than budgeted revenues from the OMERS pension surplus, Interest/Investment Earnings and Municipal Land Transfer Tax, as well as lower than planned Debt Charges. Rate Supported Programs: Rate Supported Programs reported a favourable year-end variance of $111.4 million. The favourable variance is attributed to gross under expenditures in salary and benefits while maintaining service levels, underspending in contracted services, and timing of maintenance expenses. Revenues also experienced a favourable variance due to receipt of Ontario Stewardship Funding, and one-time capital gain from the sale of property and overall increase in new water and sewer service connections due to higher construction activity, and private water agreements. Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance. Table 2 - Rate Supported Net Variance Summary ($ Millions) Variance ($M) Favourable / (Unfavourable) 2019 Year-End Budget Actual Variance Solid Waste Management Services (0.0) (56.8) 56.8 Toronto Parking Authority (66.5) (76.3) 9.8 Toronto Water 0.0 (44.7) 44.7 Total Variance (66.5) (177.9) 111.4
The Budget Committee recommends to the Executive Committee that: 1. City Council approve a one-time amendment to the City's annual surplus allocation policy of contributing 75 percent of operating surplus to the Capital Financing Reserve to enable alternative surplus allocation requirements. 2. City Council approve the surplus allocation as detailed in Table 3 of this report including a $213.751 million allocation to the Tax Rate Stabilization Reserve to be used to offset COVID financial impacts in the event adequate Federal/Provincial funding support is not forthcoming. 3. City Council approve the withdrawal from the Sony Centre Stabilization Reserve Fund (XQ2031) of $0.167 million and Toronto Centre for the Arts Stabilization Reserve Fund (XQ1060) of $0.167 million to partially mitigate the 2019 year-end deficit of TO Live.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve a one-time amendment to the City's annual surplus allocation policy of contributing 75 percent of operating surplus to the Capital Financing Reserve to enable alternative surplus allocation requirements. 2. City Council approve the surplus allocation as detailed in Table 3 of this report including a $213.751 million allocation to the Tax Rate Stabilization Reserve to be used to offset COVID financial impacts in the event adequate Federal/Provincial funding support is not forthcoming. 3. City Council approve the withdrawal from the Sony Centre Stabilization Reserve Fund (XQ2031) of $0.167 million and Toronto Centre for the Arts Stabilization Reserve Fund (XQ1060) of $0.167 million to partially mitigate the 2019 year-end deficit of TO Live.
BU19.8adopted
Capital Variance Report for the Nine Months Ended September 30, 2020
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, 2020, as well as projected expenditures to December 31, 2020. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2020 Approved Capital Budget and Plan that have no impact on 2020 approved debt. As illustrated in Table 1 below, City's 2020 capital expenditure was $2.261 billion or 47.6 percent of the 2020 capital budget of $4.749 billion for the period ended September 30, 2020 and is projecting to expend $3.832 billion or 80.7 percent by December 31, 2020. Table 1 - Capital Variance Summary 2020 Approved Budget* Actual Expenditures - January to September Projected Expenditures - January to December $M $M Percent $M Percent City Operations 2,027 862 42.5 percent 1,509 74.4 percent Agencies 1,354 705 52.1 percent 1,177 87.0 percent Tax Supported 3,381 1,567 46.3 percent 2,686 79.4 percent Rate Supported Programs: 1,368 694 50.8 percent 1,146 83.8 percent TOTAL 4,749 2,261 47.6 percent 3,832 80.7 percent *Note: Includes 2019 carry forward funding and 2020 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, with the 2020 experience of 47.6 percent comparing favourably to past experience. Total City projected spend of 80.7 percent by year-end is comprised of a Tax Supported Programs spending rate of 79.4 percent and a Rate Supported Programs spending rate of 83.8 percent. Projected underspending by year-end totals $917.2 million or 19.3 percent of the 2020 Capital Budget. Part of the reason is due to COVID-19 continues to have an impact on the 2020 capital budget spending. - 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 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, Capital from Current 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.
The Budget Committee recommends to the Executive Committee that: 1. City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (November 10, 2020) 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 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (November 10, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
BU19.9adopted
Operating Variance Report for the Nine Months Ended September 30, 2020
The purpose of this report is to provide City Council with the Operating Variance for the nine months ended September 30, 2020 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2020 Approved Operating Budget that have no impact on the City's 2020 Approved Net Operating Budget. Since mid-March, the City of Toronto, consistent with other major Canadian and Greater Toronto and Hamilton Area municipalities has been experiencing significant financial impacts, both in the form of added costs and revenue losses as a direct result of the COVID-19 pandemic. COVID-19 related financial impacts are anticipated to total $1.716 billion by year-end for the City of Toronto, prior to offsets achieved through a series of implemented mitigation strategies that focus on spending and workforce restraints ($533.8 million); and phase 1 Safe Restart Agreement funding confirmed in August ($669 million), reducing the year-end shortfall to a projected $514.1 million. - COVID-19 related financial impacts predominantly reflect revenue losses, which account for approximately 80% of total COVID-19 impacts; - Mitigation strategies are expected to collectively generate $533.8 million in total offset by year-end, comprised of $499.7 million in savings from workforce restraints, spending constraints and cost avoidance; $34.1 million in added offsets available from budget variance; and included the elimination of inflationary general salary increases for Non-Union staff, Mayor and Council; and - On August 12, 2020 Safe Restart Agreement funding allocations for the City of Toronto as part of the phase 1 funding were identified totalling $669 million as follows: - Municipal Transit Funding Phase 1 - $404.1 million allocated to Toronto proportionately based on ridership; - Social Services Relief Fund Phase 2 - $118.7 million allocated to Toronto in addition to the $39 million previously received as part of Phase 1 funding; and - Municipal Operating Funding Phase 1 - $145.7 million allocated to Toronto proportionately based on households. The table below details the anticipated 2020 City-wide COVID-19 related financial impacts; projected offset from mitigations strategies and phase 1 Safe Restart Funding; and the resulting financial position that is reflected in the year-end variance projections: Table 1 - 2020 Projected COVID-19 Financial Impacts Description ($Millions) Year-End Projections Comments Impacts Savings / Offset* Phase 1 Safe Restart Funding Net Impacts City Tax Supported Programs 1,636.1 (533.8) (668.5) 433.8 Reflected in Table 2 Toronto Parking Authority 66.8 66.8 Reflected in Table 3 Toronto Community Housing 13.5 13.5 Not Reflected in City Variance Reporting Total Projected 2020 Year-End Shortfall 1,716.4 (533.8) (668.5) 514.1 Prior to Safe Restart Phase 2 Funding *Year-to-date savings of $13.0M (Toronto Parking Authority) and $1.3M (Toronto Community Housing Corporation) are reflected in impacts and factored in Year-End projections Tax Supported Programs: The following table summarizes the anticipated year-end COVID-19 financial Impacts; projected offset from mitigations strategies and phase 1 initial Safe Restart funding; and the resulting financial position of the City's Tax Supported Operations as of September 30, 2020 and the projection at year-end: Toronto Parking Authority and Toronto Community Housing variance information is not reflected in table below, which details Tax Supported Programs only. Table 2 - Tax Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2020 9M YTD 2020 Year-End Projection Budget Actual Var Budget Actual Var Forecast COVID-19 Financial Impacts 4,440.6 6,076.7 (1,636.1) Implemented Mitigation Strategies reflected in Year-End Projection N/A (533.8) 533.8 Tax Supported Operating Variance Summary Including Mitigation Savings City Operations 1,730.7 1,718.6 12.1 2,458.4 2,450.4 8.0 Agencies 1,410.8 1,687.0 (276.2) 2,166.6 2,829.5 (662.9) Corporate Accounts (425.5) (255.5) (170.0) (200.6) 98.9 (299.5) Total Variance 2,716.0 3,150.2 (434.2) 4,424.5 5,378.9 (954.4) Toronto Building (11.0) (17.2) 6.2 (16.1) (45.3) 29.2 Total Variance-Excluding Toronto Building 2,727.0 3,167.4 (440.3) 4,440.6 5,424.2 (983.6) Safe Restart Funding - Transit Operations 404.1 404.1 Safe Restart Funding - Municipal Operations 145.7 145.7 Safe Restart Funding - Social Services Relief Fund (Reflected in City Operations above as part of SSHA's Year-End Projection) $118.7 million in Funding Reflected in City Operations Adjusted Variance 4,440.6 4,874.4 (433.8) Percent of Gross Budget -5.8 Percent -3.7 Percent Year-to-Date and Year-End Spending Results: As noted in Table 2 above, for the nine months ended September 30, 2020 Tax Supported Operations experienced an unfavourable net variance of $440.3 million or 5.8 percent of planned expenditures. This is mainly driven by COVID-19 related cost and revenue impacts experienced beginning from mid-March onwards. The impact on the year-to-date results are reflected in the following areas: - Toronto Transit Commission - Conventional Service ($272.9 million unfavourable) primarily due to significant loss of ridership revenue from the impact of COVID-19. Ridership losses peaked at 86 percent below budget in late April and are currently projected to be 55 percent below budget through the fall. This was partially offset by the implementation of cost containment strategies and matching service capacity to demand. - Shelter Support and Housing Administration ($22.7 million unfavourable) primarily due to unplanned COVID-19 related expenditures related to new physical distancing measures implemented in the City's shelter system offset by Safe Restart funding; as well as underachieved revenues in Hostels and the Social Housing Service. - Transportation Services ($14.7 million unfavourable) due to lower capital recoveries, right-of-way permit & inspection fees; utility cut revenue linked to COVID-19 related contract delays. For year-end, the City is projecting $1.636 billion in COVID-19 related financial impacts, reduced by $533.8 million in savings and offsets ($499.7 million in mitigation strategies/cost avoidance and $34.1 million in offsets from budget variance) and $668.5 million in phase 1 Safe Restart funding for a net unfavourable variance of $433.8 million or 3.7 percent of the 2020 Gross Operating Budget, adjusted for Toronto Building and excluding impacts to Rate supported programs and Toronto Community Housing Corporation impacts. - The unfavourable variance is primarily driven by COVID-19 financial impacts, resulting in increased emergency social support costs such as Shelter, Seniors Services and Long Term Care, as well as lost revenue in City Services such as TTC, Zoo, Exhibition Place, and Corporate revenues such as Municipal Land Transfer Tax and Municipal Accommodation Tax. As noted, the projected year-end pressure resulting from COVID-19 related financial impacts has been lessened through a series of mitigation strategies and other offsets, these include: $499.7 million in projected savings generated through mitigation strategies and cost avoidance as detailed below: - Workforce restraints including redeployment of staff to critical and essential service areas; implementing emergency and seasonal / part-time staff layoffs; the implementation of a hiring slowdown; and savings generated from labour negotiations. - Spending restraints such as reducing discretionary spending; and reviewing all services for criticality (prioritize critical, essential and priority services). - Cost avoidance arising from expenditure management and tracking and forecasting COVID-19 related savings. An additional $34.1 million in offsets are available from budget variance experienced within MLTT revenues from January 1 to March 31 that will be used to reduce COVID-19 related MLTT financial impacts. Based on these initiatives, the City has achieved $415.5 million in offsets within its Tax-Supported programs as of October 25, 2020 and expects to generate a total of $533.8 million in offset by year-end. Rate Supported Programs: Rate Supported Programs reported a favourable year-to-date variance of $0.8 million. The favourable variance is attributed to lower than budgeted expenditures from Toronto Water and Solid Waste Management Services which is mostly offset from lower than planned revenue in Toronto Parking Authority. At year-end, an unfavourable projected variance is anticipated to be $42.1 million, again primarily driven by significantly lower revenues from Toronto Parking Authority which is reflected in the City-wide COVID-19 financial impacts that are projected to total $514.1 million in 2020, when adjusting for savings and initial Safe Restart funding. Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance. Table 2 - Rate Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2020 9M YTD 2020 Year-End Projection Budget Actual Var Budget Actual Var Solid Waste Management Services (14.6) (29.6) 15.1 0.0 (3.8) 3.8 Toronto Parking Authority (53.6) (7.5) (46.1) (70.1) (3.3) (66.8) Toronto Water (11.2) (43.0) 31.8 0.0 (21.0) 21.0 Total Variance (79.4) (80.1) 0.8 (70.1) (28.0) (42.1) Additional COVID-19 Related Impacts: In addition to COVID-19 impacts to the City's Tax and Rate supported programs that are reflected in City variance report, further impacts have been experienced with the Toronto Community Housing Corporation (TCHC). City and TCHC finance staff have been working collaboratively to track and project COVID-19 financial impacts. The TCHC is estimating that impacts will total $13.5 million by year-end. In total, it is projected that the City will experience $1.716 billion in COVID-19 financial impacts ($1.636 billion - Tax Supported Programs; $66.8 million - Toronto Parking Authority; and $13.5 million - Toronto Community Housing Corporation) prior to savings and offsets that collectively total $533.8 million; and phase 1 Safe Restart Funding of $668.5, reducing the year-end shortfall to a projected $514.1 million. Safe Restart Agreement: On July 27, 2020 the Ontario government in partnership with the federal government announced $4 billion in financial support for Ontario's 444 municipalities as part of the Safe Restart Agreement and on August 12, 2020 the City of Toronto was provided with initial phase funding allocations under the agreement totalling $668.5 million as follows: - Municipal Transit Funding Phase 1 - $404.1 million allocated to Toronto proportionately based on ridership. - Social Services Relief Fund Phase 2 - $118.7 million allocated to Toronto in addition to the $39 million previously received as part of Phase 1 funding. - Municipal Operating Funding Phase 1 - $145.7 million allocated to Toronto proportionately based on households. $668.5 million in new funding will be applied to projected 2020 year-end funding shortfall. - It is estimated that the remaining 2020 funding shortfall for the City following phase 1 Safe Restart funding will be $514.1 million. - Future phase funding of up to $2.129 billion will be allocated to municipalities by the Province on a needs basis between municipal transit needs ($1.334 billion), municipal operating needs ($695.0 million) and Public Health ($100.0 million). - Needs based applications have/will be submitted under the Safe Restart Program to obtain further funding to offset remaining COVID-19 financial impacts within Transit Operations, Public Health and Municipal Operations.
The Budget Committee recommends to the Executive Committee that: 1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (November 10, 2020) from the Chief Financial Officer and Treasurer, to amend the 2020 Approved Operating Budget, such adjustments to have no impact on the 2020 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 the report (November 10, 2020) from the Chief Financial Officer and Treasurer, to amend the 2020 Approved Operating Budget, such adjustments to have no impact on the 2020 Approved Net Operating Budget of the City.
BU19.10adopted
This report summarizes the changes impacting the City of Toronto (the City)'s obligatory reserve funds (deferred revenues), reserves, and Council-directed reserve funds as at September 30, 2020. The City's deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds are subject to annual changes based on funding contributions, transfers, and drawdowns, which are authorized by legislation, third-party agreements, and Council's approvals. The tables and appendices reflect information by major category. As at September 30, 2020, the City recognized $7,239.9 million of deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds, which consist of the following balances: - Committed funds for legislated, contractually bound or Council-directed activities ($6,166.7 million); - Committed funds to offset capital costs and pressures on rate-based activities ($751.3 million); and - Uncommitted and available funds for the City to respond to various unanticipated costs and to stabilize various funding sources, including the tax base ($321.9 million). The reported balances include Council approved reserve and reserve fund loans that were granted to various agencies, City programs, and external parties, which must be repaid to the respective deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds.
The Budget Committee recommends that: 1. Budget Committee received the report (November 2, 2020) from the Chief Financial Officer and Treasurer for information.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. Budget Committee receive this report for information.