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.
BU8.1adopted
Toronto Community Housing Corporation is undertaking a comprehensive $63.9 million installation of Combined Heat and Power generators in thirty-nine (39) Toronto Community Housing Corporation buildings throughout the City of Toronto. It will create a resilient network of sustainable buildings that will act as a safe haven to shelter residents in place as well as offer shelter to the local community when power is not accessible from the electricity system with most major systems within the buildings remaining operational during a power outage. Through the City's Sustainable Energy Plan Financing program, Toronto Community Housing Corporation has requested a low-interest repayable loan of $38.0 million to fund 59 percent of the project. The remaining $25.9 million will be funded by an $8.9 million incentive from the Independent Electricity System Operator and $17.0 million from Toronto Community Housing Corporation's capital budget. The purpose of this report is to seek Council approval to increase the 2019-2028 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy by $28.0 million for a new capital project with 2020 cash flow funded from debt repayable by the Toronto Community Housing Corporation, utilizing energy savings generated from the proposed energy retrofit project for loan repayment. The remaining $10.0 million will be disbursed to Toronto Community Housing Corporation in 2019 utilizing available 2019 Council Approved TransformTO recoverable debt capital budget. The project requires approval in advance of the 2020 budget process in order for Toronto Community Housing Corporation to proceed with the project in 2019. This initiative aligns with a number of the City of Toronto's Resiliency Strategy Goals including Home Resilience, Vertical Resilience, and Leading a Resilient City, all goals that support protecting the most vulnerable residents from the impacts of climate change. It also supports TransformTO directives to reduce greenhouse gas emissions in the City as a whole by 80 percent by 2050.
The Budget Committee recommends to the Executive Committee that: 1. City Council amend the 2019-2028 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy program to add a new project with total project cost and cash flow in 2020 of $28.0 million funded from recoverable debt for the purpose of providing a 2.6 percent interest bearing loan to Toronto Community Housing Corporation to be repaid to the City over a term of 20 years. 2. City Council authorize the Deputy City Manager, Corporate Services to enter into an agreement with Toronto Community Housing Corporation for a $38.0 million Sustainable Energy Plan Financing loan on terms and conditions satisfactory to the Deputy City Manager, Corporate Services and in a form satisfactory to the City Solicitor. 3. City Council authorize the Deputy City Manager, Corporate Services to release funds to Toronto Community Housing Corporation in multiple installments, each contingent on the completion of significant pre-established milestones.
Staff recommendation as filed
The Deputy City Manager, Corporate Services recommends that: 1. City Council amend the 2019-2028 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy program to add a new project with total project cost and cash flow in 2020 of $28.0 million funded from recoverable debt for the purpose of providing a 2.6 percent interest bearing loan to Toronto Community Housing Corporation to be repaid to the City over a term of 20 years. 2. City Council authorize the Deputy City Manager, Corporate Services to enter into an agreement with Toronto Community Housing Corporation for a $38.0 million Sustainable Energy Plan Financing loan on terms and conditions satisfactory to the Deputy City Manager, Corporate Services and in a form satisfactory to the City Solicitor. 3. City Council authorize the Deputy City Manager, Corporate Services to release funds to Toronto Community Housing Corporation in multiple installments, each contingent on the completion of significant pre-established milestones.
BU8.2adopted
2018 Development Charge Reserve Fund Statement
This report provides a statement of the Development Charge Reserve Funds for the year ended December 31, 2018, as required by the Development Charges Act, 1997.
The Budget Committee recommends to the Executive Committee that: 1. Executive Committee receive the report (August 21, 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.
BU8.3adopted
Capital Variance Report for the Six Months Ended June 30, 2019
The purpose of this report is to provide City Council with the City of Toronto capital spending for the six month period ended June 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 that have no impact on 2019 approved debt. As illustrated in Table 1 below, City's 2019 capital expenditure was $1.326 billion or 22.9 percent of the 2019 capital budget of $5.788 billion for the period ended June 30, 2019 and is projecting to expend $4.220 billion or 72.9 percent by December 31, 2019. Table 1 - Capital Variance Summary 2019 Approved Budget Actual Expenditures - January to June Projected Expenditures - January to December $M $M % $M % City Operations 2,070 358 17.3% 1,305 63.1% Agencies 2,592 654 25.2% 1,917 74.0% Subtotal - Tax Supported 4,662 1,012 21.7% 3,222 69.1% Rate Supported 1,126 315 27.9% 997 88.5% TOTAL 5,788 1,326 22.9% 4,220 72.9% The spending pattern for the first half of the year is typically around 20 percent of the total Council Approved Capital Budget. Total City projected spend of 72.9 percent by year-end is comprised of a Tax Supported Programs spending rate of 69.1 percent and a Rate Supported Programs spending rate of 88.5 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 45 completed capital projects that have a combined budget of $143.4 million that are ready to be closed. They have been completed under budget, realizing underspending of $8.6 million.
The Budget Committee recommends to the Executive Committee that: 1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (August 22, 2019) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 4 that result in no incremental impact on debt financing.
BU8.4adopted
Operating Variance Report for the Six Months Ended June 30, 2019
The purpose of this report is to provide City Council with the Operating Variance for the six months ended June 30, 2019 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2019 Approved Operating Budget that have no impact on the City's 2019 Approved Net Operating Budget. The following table summarizes the financial position of the City's Tax Supported Operations as of June 30, 2019 and the projection at year-end: Table 1 - Tax Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2019 Q2 YTD 2019 Year-End Projection Budget Actual Var Budget Actual Var City Operations 1,166.1 1,138.3 27.8 2,287.7 2,272.5 15.4 Agencies 1,032.8 1,022.7 10.1 2,098.5 2,100.3 (1.9) Corporate Accounts 223.3 72.7 150.6 (73.2) (172.0) 98.8 Total Variance 2,422.2 2,233.8 188.5 4,313.0 4,200.8 112.3 Less: Toronto Building* (1.1) (18.7) 17.6 (16.9) (41.6) 24.7 Adjusted Variance 2,423.3 2,252.4 170.8 4,329.9 4,242.4 87.6 % of Gross Budget 3.0% 0.8% * 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 six months ended June 30, 2019 Tax Supported Operations experienced a favourable net variance of $188.5 million or 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, 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. - Lower than planned gross expenditures in Toronto Zoo and Toronto Transit Commission. - 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 $112.3 million or 3 percent of the 2019 Approved Operating Budget that is partially offset by Shelter, Support and Housing Administration due to continued high demand for Hostel Services. 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 $47.3 million. The favourable variance is attributed to gross under expenditures in salary and benefits, earlier than planned receipt of revenue, and one-time capital gain from the sale of property. At year-end, a favourable projected variance is anticipated to be $32.6 million that is primarily driven by gross under spending in Toronto Water. Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing operations. Table 2 - Year-To-Date Rate Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2019 Q2 YTD 2019 Year-End Projection Budget Actual Var Budget Actual Var Solid Waste Management Services 4.0 (12.8) 16.8 0.0 (1.1) 1.1 Toronto Parking Authority (31.9) (39.9) 8.1 (66.5) (69.0) 2.4 Toronto Water 17.8 (4.5) 22.4 0.0 (29.0) 29.0 Total Variance (10.0) (57.3) 47.3 (66.5) (99.1) 32.6
The Budget Committee recommends to the Executive Committee that: 1. City Council approve the transfer of $0.064 million from Policy, Planning, Finance and Administration's Vehicle Reserve (XQ1401) to City Clerk's Vehicle Reserve (XQ1401) to finalize the transfer of internal mail function from Policy, Planning, Finance and Administration to City Clerk's related to courier services. 2. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (August 26, 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. 3. City Council direct that the confidential information contained in Confidential Attachment 1 to the report (August 26, 2019) from the Chief Financial Officer and Treasurer remain confidential in its entirety, as it involves the security of property belonging to the City of Toronto.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve the transfer of $0.064 million from Policy, Planning, Finance and Administration's Vehicle Reserve (XQ1401) to City Clerk's (Clerk's) Vehicle Reserve (XQ1401) to finalize the transfer of internal mail function from Policy, Planning, Finance and Administration to Clerk's related to courier services. 2. 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. 3. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it involves the security of property belonging to the City of Toronto.
BU8.5adopted
Reserve and Reserve Fund Balances Report - June 30, 2019
This report provides information on reserve and reserve fund balances as of June 30, 2019 as directed by Council. The transfers made into and out of reserve and reserve funds are based on amounts approved as part of the 2019 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 82 percent ($5.2 billion) of the $6.3 billion of Reserve and Reserve Funds, as at June 30, 2019, represent obligatory or previously Council directed reserve funds. $811 million, of the remaining $1.1 billion, is committed to offset capital costs and pressures on rate-based activities. The remaining reserve and reserve fund balances of $294.5 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 quarter four of 2019.
The Budget Committee recommends to the Executive Committee that: 1. Executive Committee receive the report (August 21, 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.
BU8.6adopted
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 and will better align 2019 and future cash flows with Information and Technology's capital project delivery schedule and program requirements. These changes do not affect individual project deliverables, schedules and/or scope.
The Budget Committee recommends to the Executive Committee 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 $642,558, as detailed in Schedule A to the report (August 22, 2019) from the Acting Chief Information Officer, with a zero gross and net debt impact.
Staff recommendation as filed
The Acting Chief Information Officer 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 $642,558, as detailed in, Schedule A - 2019 Third Quarter Information and Technology Capital Plan Accelerations/Deferrals, to the report from the Acting Chief Information Officer, with a zero gross and net debt impact.
BU8.7adopted
The purpose of this report is to request authority from City Council to amend the 2019 Council-Approved Capital Budget and 2020-2028 Capital Plan for Parks, Forestry and Recreation by adjusting project costs and cash flows contained within the 10-Year Capital Plan. These adjustments will align cash flows for capital project delivery schedules and program requirements and as a result, will have no impact to the timing of debt requirements. Reallocations to cash flows and project costs are also requested where recent project bids exceed the current approved cash flow or alternatively to advance projects into 2019 that are ready to proceed.
The Budget Committee recommends to the Executive Committee that: 1. City Council authorize the deferral and acceleration of projects in Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and future year commitments in the amount of $10.811 million, as included in Appendix 1 to the report (August 19, 2019) from the General Manager, Parks, Forestry and Recreation, with no debt impact. 2. City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and future year commitments in the amount of $2.143 million, as included in Appendix 2 to the report (August 19, 2019) from the General Manager, Parks, Forestry and Recreation, with no debt impact.
Staff recommendation as filed
The General Manager, Parks, Forestry and Recreation recommends that: 1. City Council authorize the deferral and acceleration of projects in Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and future year commitments in the amount of $10.811 million, as included in Appendix 1 to this report, with no debt impact. 2. City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2019 Council Approved Capital Budget and future year commitments in the amount of $2.143 million, as included in Appendix 2 to this report, with no debt impact.
BU8.8adopted
Solid Waste Management Services 2019 Capital Budget and 2020-2028 Capital Plan Adjustments
This report requests City Council's authority to amend Solid Waste Management Services' Approved 2019 Capital Budget and 2020-2028 Capital Plan by adjusting project cost and cash flows contained within the Budget and Plan, respectively, to align forecasted project accelerations and deferrals. Additional reallocations to project cash flows and project costs are requested where recent project bids or estimates exceed the current approved cash flow. These reallocations will allow Solid Waste Management Services to continue to deliver projects within its capital plan. The adjustments will have a zero dollar impact on the 2019 Capital Budget and 2020-2028 Capital Plan and will align the budget and plan with Solid Waste Management Services' capital project delivery schedule and project requirements.
The Budget Committee recommends to the Executive Committee that: 1. City Council authorize the reallocation of project costs and cash flows in Solid Waste Management Services' Approved 2019 Capital Budget and 2020-2028 Capital Plan in the amount of $4.109 million from projects that have been awarded under budget or delayed to those requiring additional funding in the amount as presented in Schedule A to the report (August 22, 2019) from the General Manager, Solid Waste Management Services with a zero budget impact.
Staff recommendation as filed
The General Manager of Solid Waste Management Services recommends that: 1. City Council authorize the reallocation of project costs and cash flows in Solid Waste Management Services' Approved 2019 Capital Budget and 2020-2028 Capital Plan in the amount of $4.109 million from projects that have been awarded under budget or delayed to those requiring additional funding in the amount as presented in Schedule A, with a zero Budget impact.
BU8.9adopted
Transportation Services 2019 Capital Budget and 2020-2028 Capital Plan Adjustments
This report requests City Council's authority to amend Transportation Services' Approved 2019 Capital Budget and 2020-2028 Capital Plan by reallocating cash flows within the 2019 Budget and ten year Capital Plan. These reallocations will have a zero budget impact to the Transportation Services' Approved 2019-2028 Capital Budget and Plan and will align program requirements and project delivery schedules resulting in improved spending rates.
The Budget Committee recommends to the Executive Committee that: 1. City Council amend the Transportation Services' Approved 2019 Capital Budget to reallocate funds in the amount of $1.235 million gross for funding of projects with a zero budget impact, as presented in Attachment 1 to the report (August 22, 2019) from the General Manager, Transportation Services. 2. City Council amend the Transportation Services' Approved 2019-2028 Capital Budget and Plan to reallocate cash flows in the amount of $96.185 million gross from 2019 to 2020 and beyond with a zero budget impact to the approved ten year budget and plan, as presented in Attachment 2 to the report (August 22, 2019) from the General Manager, Transportation Services.
Staff recommendation as filed
The General Manager, Transportation Services recommends that: 1. City Council amend the Transportation Services' Approved 2019 Capital Budget to reallocate funds in the amount of $1.235 million gross for funding of projects with a zero budget impact, as presented in Attachment 1 of the report. 2. City Council amend the Transportation Services' Approved 2019-2028 Capital Budget and Plan to reallocate cash flows in the amount of $96.185 million gross from 2019 to 2020 and beyond with a zero budget impact to the approved ten year budget and plan, as presented in Attachment 2 of the report.
BU8.10amended
Over the last several weeks we have seen a spike in gun violence in Toronto that is deeply troubling and absolutely unacceptable. The Government of Canada, the Government of Ontario, and the City of Toronto are all committed to stopping gun violence. That commitment includes ensuring that our police officers have the resources they need to keep neighbourhoods safe. One of my principal priorities as Mayor has been to work with other governments in order to deliver on our priorities and get results for the people of Toronto. That is why I brought all three levels of government together to provide $4.5 million to the Toronto Police Service to help fund additional initiatives to address the current violence. As you know by now, Chief Saunders has outlined, as appropriate, how those resources will be deployed. The other governments agreed to provide funding to support immediate police efforts to keep communities safe and to help redouble efforts to prevent criminal activity and combat the activities of street gangs. By way of this letter, I am asking the committee to approve a $1.5 million contribution to the Toronto Police Service's budget (our share of the $4.5 million total) in order to assist Chief Mark Saunders in the deployment of additional resources to help reduce further violent incidents. This additional funding is an important step in addressing a need to keep our streets safe. As Mayor I am continuing to work with my counterparts at the federal and provincial governments to obtain additional resources for the purposes of investing in communities to address the roots of violence and I continue, as agreed by City Council, to advocate for changes to our laws to strengthen penalties for those caught engaging in gun violence or gun trafficking. I look forward to working collaboratively with many of you during this term and beyond to continue to develop productive public policy tools that can reduce gun violence in our city.
The Budget Committee recommends to the Executive Committee that: 1. City Council increase the 2019 Operating Budget for the Toronto Police Service by $4.5 million gross and $0 net to fund the Project Community Space program, with increased gross expenditures offset by $3.0 million in added revenue from a combination of $3.0 million in increased Federal and Provincial funding and a one-time draw of $1.5 million from the City's Tax Stabilization Reserve. 2. City Council request the City Manager to report back during the 2020 Budget Process on a requirement that any funding increases to the Toronto Police Services budget to address crime must be matched with funding of twice that amount to programs and services that address the root causes of violence and poverty reduction. 3. City Council request the City Manager to report back during the 2020 Budget Process on opportunities for partnerships with existing agencies to fund programs and services that address the root causes of violence and poverty reduction. 4. City Council, in light of the recent spate of gun violence, request the Federal Government to reconsider City Council's request in Item 2018.CC44.14 "Immediate Steps to Address Gun Violence" to fund the unfunded applications under the National Crime Prevention Grant, totalling $26.2 million over the next 5 years, and City Council request the City Clerk to forward this request to all Toronto Members of Parliament.
Staff recommendation as filed
Mayor John Tory recommends that: 1. City Council increase the 2019 Operating Budget for the Toronto Police Service by $4.5 million gross and $0 net to fund the Project Community Space program, with increased gross expenditures offset by $3.0 million in added revenue from a combination of $3.0 million in increased Federal and Provincial funding and a one-time draw of $1.5 million from the City's Tax Stabilization Reserve.