Budget Committee
The full agenda, as filed
All 9 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.
BU7.1not yet heard
Revenue Options Assessment Update
The purpose of the report is to recommend that item BU 7.1 Revenue Options Assessment Update be withdrawn from the agenda for the Budget Committee meeting on June 17, 2019.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. Item BU 7.1 be withdrawn from the agenda for the Budget Committee meeting on June 17, 2019.
BU7.2not yet heard
Capital Variance Report for the Year Ended December 31, 2018
The purpose of this report is to provide City Council with the City of Toronto capital performance for the year ended December 31, 2018. Actual capital expenditures for 2018 totalled $3.594 billion or 63.0 percent of 2018 approved Capital Budget of $5.752 billion (see Table 1). For the year-ended December 31, 2018, Tax Supported Programs and Agencies reported capital expenditures of $2.799 billion representing 61.1 percent of their collective 2018 approved Capital Budget of $4.578 billion. 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.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council receive this report and attached Appendices for information
BU7.3not yet heard
Operating Variance Report for the Year Ended December 31, 2018
This is to advise that the report entitled "Operating Variance Report for the Year Ended December 31, 2018" will be on the agenda of the Budget Committee meeting on June 17, 2019.
BU7.4not yet heard
Reserve and Reserve Fund Balances Report - December 31, 2018
This report provides information on reserve and reserve fund balances as at December 31, 2018, based on Council approved transfers to, and draws from, made during the year. The transfers made into and out of reserve and reserve funds are based on amounts approved as part of the 2018 or prior year budget processes, or approved by Council 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 the vast majority of the City's reserve and reserve fund balances have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending. The City has engaged an external consultant to perform an adequacy review of the major reserves and reserve funds which is expected to be delivered in 2019.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. Budget Committee receive this report for information.
BU7.5not yet heard
Capital Variance Report for the Four Months Ended April 30, 2019
The purpose of this report is to provide City Council with the City of Toronto capital spending for the four month period ended April 30, 2019, as well as projected actual expenditures to December 31, 2019. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2019 Approved Capital Budget and additional carry-forward from 2018 that have no impact on approved debt. As illustrated in Table 1 below, 2019 the City's capital expenditure was $748.3 million or 13.1 percent of the 2019 capital budget of $5,793 billion and is projecting to expend $4,589 billion or 79.0 percent by December 31, 2019. Table 1: Capital Variance Summary 2019 Approved Budget Actual Expenditures - 4M YTD 2019 Approved Budget Projected Expenditures - January to December $M $M % $M $M % City Operations 2,074 212 10.2% 2,074 1,555 75.0% Agencies 2,593 393 15.5% 2,533 2,056 78.8% Subtotal - Tax Supported 4,607 605 13.1% 4,607 3,551 77.1% Rate Supported 1,126 144 12.7% 1,126 977 86.7% TOTAL 5,793 748 13.1% 5,733 4,589 79.0% The spending pattern for the first quarter is typically within 10 percent of the total Council Approved Capital Budget. Tax Supported Programs project a spending rate of 77.1 percent while Rate Supported Programs project a spending rate of 86.7 percent by year-end. 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 46 completed capital projects that have a combined budget of $66.861 million that are ready to be closed. They have been completed under budget, realizing underspending of $6.501 million. The permanent underspending which has associated funding of $0.468 million in capital from current, $0.339 million in debt, $4.114 million in reserves/reserve funds, $0.264 million in Recoverable Debt, $0.115 million in Development Charges and $1.2 million in other Revenue will be returned to their original funding sources.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. 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. 2. Council approve additional 2018 carry forward funding for TTC and Go Transit as detailed in Appendix 6 3. Council receive for information the list of 30 completed capital projects/sub-projects to be closed as detailed in Appendix 2 that results in a total combined project budget an underspending of $4.498 million.
BU7.6not yet heard
Operating Variance Report for the Four Months Ended April 30, 2019
This is to advise that the report entitled "Operating Variance Report for the Four Months Ended April 30, 2019" will be on the agenda of the Budget Committee meeting on June 17, 2019.
BU7.7not yet heard
This report requests City Council's authority to amend Children's Services' Approved 2019 Capital Budget and 2020-2028 Capital Plan by increasing total project costs for two projects by $7.500 million, funded from the Child Care Capital Reserve Fund (XR1103). These amendments are required in order to proceed with the tender process for the construction of two child care centres, as scope changes to the Mount Dennis project and third party costing indicates the need to increase the approved project for the Toronto Early Learning and Child Care Services' Mount Dennis Child Care Centre at 1234 Weston Road in Ward 5, and St. Barnabas Catholic School Child Care Centre at 30 Washburn Way in Ward 23.
Staff recommendation as filed
The Interim General Manager, Children's Services recommends that: 1. City Council authorize an in-year budget adjustment to the 2019 Capital Budget for Children's Services by increasing the project cost for the Toronto Early Learning and Child Care Services' Mount Dennis Child Care Centre (CCS035-01) by $7.000 million, increasing the project cost from $11.000 million to $18.000 million, funded through the Child Care Capital Reserve Fund (XR1103), required to support the consolidation of the Trimbee Early Learning Centre; to support the addition of 26 child care spaces to the planned Mount Dennis location; and to fund inflationary impacts on the cost of construction. 2. City Council authorize an amendment to the budgeted cash flows for the completion of the Toronto Early Learning and Child Care Services' Mount Dennis Child Care Centre project to reflect the following requirements: 2019 - $2.000 million, 2020 - $10.000 million, and 2021 - $2.991 million. 3. City Council authorize an in-year budget adjustment to the 2019 Capital Budget for Children's Services by increasing the project cost for the St. Barnabas Catholic School Child Care Centre (CCS027-01) by $0.500 million, increasing the project cost from $2.600 million to $3.100 million, funded through the Child Care Capital Reserve Fund (XR1103), required to fund the inflationary impacts on the cost of construction. 4. City Council authorize an amendment to the budgeted cash flows for the completion of the St. Barnabas Catholic School project to reflect the following requirements: 2019 - $1.000 million, and 2020 - $1.923 million.
BU7.8not yet heard
Transportation Services 2019 Capital Budget and 2019-2028 Adjustments
This report requests City Council's authority to amend Transportation Services' approved 2019 Capital Budget and 2019-2028 Capital Plan by reallocating cash flows within the 2019 Budget. In addition, the report requests authority to amend Transportation Services' 2019 Capital Budget and 2019-2028 Plan by creating a new Future of King Street capital project with 2019 total project costs of $1.5 million gross and $0 debt with cash flows of $1 million in 2019 and $0.5 million in 2020, fully funded from the Public Realm Reserve Account. These adjustments will align program requirements and project delivery schedules resulting in improved spending rates.
Staff recommendation as filed
The General Manager, Transportation Services recommends that: 1. City Council amend the Transportation Services' approved 2019 Capital Budget by reallocating funding of $1 million between projects, as presented in Attachment 1 of the report from the General Manager, Transportation Services, with a zero budget impact. 2. City Council amend the 2019-2028 approved Capital Budget and Plan for Transportation Services by creating a new Future of King Street project with total project costs of $1.5 million gross and $0 debt, with committed cash flows of $1 million in 2019 and $0.5 million in 2020, fully funded by the Public Realm Reserve Fund.
BU7.9not yet heard
This report requests City Council's authority to amend the Toronto Public Library 2019 Council Approved Capital Budget and 2020-2028 Capital Plan by adjusting cash flows contained within the 10-Year Capital Plan, respectively, to align forecasted project accelerations and deferrals. The adjustments will have a zero debt impact on the 2019 Capital Budget and 2020-2028 Capital Plan and will align the 2019 Capital Budget to Toronto Public Library's capital project delivery schedule and program requirements.
Staff recommendation as filed
The City Librarian recommends that: 1. City Council authorize the acceleration and deferral of cash flows within the projects in Toronto Public Library's 2019 Council Approved Capital Budget and future year commitments in the amount of $1.078 million, as included in Attachment 1 "Accelerations/Deferrals - Toronto Public Library 2019 Capital Budget and 2020-2028 Capital Plan Adjustments", with zero gross and debt budget impact.