Item - 2011.BU9.1

The Budget Committee recommends to the Executive Committee that:

I.          City Council approve the 2011 Budget Committee Recommended Tax Supported Operating Budget of $9.381 billion gross and $3.579 billion net as detailed in Appendix 1, comprised of the following:

i.          a Base Budget of $9.364 billion gross and $3.575 billion net to maintain existing services and service levels; and

ii.          an investment in strategic new and enhanced service priorities of $16.629 million gross and $4.357 million net.

II.        City Council approve the introduction of new user fees and charges, and changes to the rates of existing user fees and charges included in the 2011 Budget Committee Recommended Operating Budgets of City Programs and Agencies which will generate incremental revenues totalling $5.194 million.

III.       City Council approve the use of the remaining 2009 Operating Surplus of $77.531 million and the 2010 Operating Surplus of $268.0 million for a total of $345.531 million to fund the 2011 Operating Budget.

IV.       Council approve the reduction of 2011 Non Program provisions for performance pay and cost of living adjustments in order to fund the City’s $7.4 million share of cancellation of the TTC 2011 fare increase.

V.        City Council approve the Recommendations for City Programs and Agencies detailed in Appendix 3 of the report.

Program Recommendations:

Citizen Centred Services - A

311 Toronto

1.         City Council approve the 2011 Recommended Operating Budget for 311 Toronto of $19.138 million gross and $9.671 million net, comprised of the following services:

2.         The information contained in confidential attachment 1 remain confidential until the outcome of Council's decision has been communicated to the unions and affected staff.

Affordable Housing Office

3.         City Council approve the 2011 Recommended Operating Budget for the Affordable Housing Office of $2.874 million gross and $1.267 million net, comprised of the following services:

Children’s Services

4.         City Council approve the 2011 Recommended Operating Budget for Children’s Services of $387.538 million gross and $73.909 million net, comprised of the following services:

5.         City Council authorize the General Manager of Children's Services to enter into contracts with the boards of education that will allow the Program to provide subsidy to children attending school board-operated or school board-contracted before and after school programs that are part of the Province's Early Learning Program for 4 and 5 year olds, with such contracts being similar to those that Children's Services has with other service providers in the child care system.

6.         City Council confirm the change in scope and purpose of the Health and Safety grant program to include assistance to third party child care providers for infrastructure retrofits required to accommodate the new Provincial Early Learning Program, as well as grants that support health and safety upgrades and playground retrofits that help the third party providers maintain their facilities in accordance with the requirements of the Day Nursery Act.

Court Services

7.         City Council approve the 2011 Recommended Operating Budget for Court Services of $54.267 million gross and $(12.209) million net revenue, comprised of the following services:

Economic Development and Culture

8.         City Council approve the 2011 Recommended Operating Budget for Economic Development And Culture of $35.336 million gross and $25.922 million net, comprised of the following services:

Emergency Medical Services

9.         City Council approve the 2011 Recommended Operating Budget for Emergency Medical Services of $170.774 million gross and $66.011 million net, comprised of the following services:

Long-Term Care Homes and Services

10.       City Council approve the 2011 Recommended Operating Budget for Long-Term Care Homes and Services of $223.830 million gross and $46.367 million net, comprised of the following services:

11.       City Council approve the new Behavioural Support Bed Service at Cummer Lodge ($0.526 million gross, $0 net), subject to receipt of Provincial/LHIN funding.

Parks, Forestry and Recreation

12.       City Council approve the 2011 Recommended Operating Budget for Parks, Forestry and Recreation of $375.709 million gross and $275.197 million net, comprised of the following services:

subject to:

a.         extending an existing bilateral funding agreement for the Toronto Newcomer Initiative which is 100% funded by Citizenship and Immigration Canada which will result in a one-time increase of $0.450 million gross and $0 net.

13.       The General Manager of Parks, Forestry and Recreation review and report to the Budget Committee through the Community Development and Recreation Committee by June 2011 future impacts of capital projects on operating budgets within Parks, Forestry and Recreation's 10-Year Capital Plan as well as capital projects from the Waterfront Revitalization Initiative, and continue to consider alternative models for service delivery, to mitigate future operating budget impacts.

14.       The General Manager of Parks, Forestry and Recreation report to the Budget Committee through the Community Development and Recreation Committee by June 2011 on a strategy for converting the Welcome Policy program from a "course-based" to a "dollar-based" allocation system that will result in equitable allocation of Welcome Policy resources.

Shelter, Support and Housing Administration

15.       City Council approve the 2011 Recommended Operating Budget for Shelter, Support and Housing Administration of $916.804 million gross and $291.948 million net, comprised of the following services:

16.       City Council request that the Minister of Municipal Affairs and Housing disclose how the funding the Province receives annually from the Federal government for social housing costs has been used.

17.       City Council request that the Federal government reinvest the funds from expiring federal social housing agreements back into social housing to ensure the continued viability of the existing social housing stock.

Social Development, Finance & Administration

18.        City Council approve the 2011 Recommended Operating Budget for Social Development, Finance and Administration of $24.900 million gross and $12.791 million net, comprised of the following services:

subject to:

a.         extending an existing bilateral funding agreement for the Toronto Newcomer Initiative which is 100% funded by Citizenship and Immigration Canada which will result in a one-time increase of $0.450 million gross and $0 net.

19.       The Director of the Toronto Office of Partnerships, in consultation with the appropriate City staff, to develop appropriate policies which will increase the City's capacity for revenue generation, including sponsorships and naming rights, and submit a report to the Executive Committee in March.

Toronto Employment and Social Services

20.       City Council approve the 2011 Recommended Operating Budget for Toronto Employment and Social Services of $1,207.484 million gross and $200.222 million net, comprised of the following services:

21.       Operating savings of $0.516 million per year resulting from approval of the TESS Office Relocation capital project be contributed to Reserve Funds as follows:

a.         $0.516 million per year be contributed to the Social Assistance Stabilization Reserve Fund from 2012 to 2017; and

b.         $0.516 million per year be contributed to the Land Acquisition Reserve Fund from 2018 to 2030.

Citizen Centred Services - B

City Planning

22.       City Council approve the 2011 Recommended Operating Budget for City Planning of $36.517 million gross and $12.494 million net, comprised of the following service:

23.       The information contained in Confidential Attachment 1 remains confidential until the outcome of Council’s decision has been communicated to the Unions and affected staff.

24.       The Deputy City Manager responsible for City Planning report back to the Budget Committee in 2011 on the results of the detailed review of development application costs and an approach to increasing community planning and development application process fees in the future to allow for full cost recovery of all City costs related to the processing of community planning and development applications.

25.       Staff be requested to set a fee in 2012 for the demolition of heritage properties.

Fire Services

26.       City Council approve the 2011 Recommended Operating Budget for Toronto Fire Services of $371.466 million gross and $356.036 million net, comprised of the following services:

27.       The Fire Chief report back to the Budget Committee prior to the 2012 Budget process on the adequacy of Fire Services' fleet reserve contribution, the current status of the existing fleet and the projected necessary annual contribution level to provide sustainable emergency response.

Municipal Licensing and Standards

28.       City Council approve the 2011 Recommended Operating Budget for Municipal Licensing and Standards of $49.627 million gross and $21.593 million net, comprised of the following services:

Policy, Planning, Finance and Administration, Toronto Environment Office, and Waterfront Secretariat

29.       City Council approve the 2011 Recommended Operating Budget for Policy, Planning, Finance and Administration (PPFA), Toronto Environment Office (TEO) and Waterfront Secretariat of $37.263 million gross and $15.318 million net, comprised of the following services:

Technical Services

30.       City Council approve the 2011 Recommended Operating Budget for Technical Services of $67.560 million gross and $10.462 million net, comprised of the following services:

Toronto Building

31.       City Council approve the 2011 Recommended Operating Budget for Toronto Building of $46.710 million gross and ($10.778) million net revenue, comprised of the following service:

Transportation Services

32.       City Council approve the 2011 Recommended Operating Budget for Transportation Services of $291.074 million gross and $173.452 million net, comprised of the following services:

33.       The General Manager of Transportation Services be directed to immediately review reductions for the use of paid duty police officers for road construction, road/traffic operations, and for street event activities except where pay duty police officers are required by the Highway Traffic Act, or in the opinion of the General Manager of Transportation Services the safety of road users, City Staff, or private contractors would be compromised.

34.       The General Manager of Transportation Services be directed to report by late spring 2011 on new guidelines for the use of pay duty officers for activities relating to the public right of way.

INTERNAL SERVICES

Facilities Management and Real Estate

35.       City Council approve the 2011 Recommended Operating Budget for Facilities Management and Real Estate of $169.703 million gross and $53.787 million net, comprised of the following services:

36.       The information contained in confidential attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Fleet Services

37.       City Council approve the 2011 Recommended Operating Budget for Fleet Services of $48.010 million gross and $0.0 million net, comprised of the following services:

Information and Technology

38.       City Council approve the 2011 Recommended Operating Budget for Information and Technology of $91.070 million gross and $63.025 million net, comprised of the following services:

Office of the Chief Financial Officer

39.       City Council approve the 2011 Recommended Operating Budget for The Office of the Chief Financial Officer of $15.322 million gross and $8.740 million net, comprised of the following services:

Office of the Treasurer

40.       City Council approve the 2011 Recommended Operating Budget for The Office of the Treasurer of $74.696 million gross and $29.634 million net, comprised of the following services:

41.       The Chief Financial Officer be requested to inform the Agencies to comply with the CRA directive to taxable benefits as defined by the recent Revenue Canada Compliance Audit.

City Manager’s Office

42.       City Council approve the 2011 Recommended Operating Budget for the City Manager's Office of $42.473 million gross and $36.195 million net, comprised of the following services:

43.       The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

OTHER CITY PROGRAMS

City Clerk’s Office

44.       City Council approve the 2011 Recommended Operating Budget for the City Clerk's Office of $49.475 million gross and $30.494 million net, comprised of the following services:

City Council

45.       City Council approve the 2011 Recommended Operating Budget for City Council of $18.990 million gross and net, comprised of the following services:

subject to reducing the Councillors' Consumer Price Index increase by $106,000.

Legal Services

46.       City Council approve the 2011 Recommended Operating Budget for Legal Services of $41.111 million gross and $19.223 million net, comprised of the following services:

Mayor’s Office

47.       City Council approve the 2011 Recommended Operating Budget for the Mayor's Office of $2.000 million gross and net, comprised of the following service:

subject to reducing the Mayor's Consumer Price Index increase by $4,000.

Accountability Offices

48.       City Council approve the 2011 Recommended Operating Budget for the Accountability Offices of $6.811 million gross and net, comprised of the following offices:

AGENCIES

Arena Boards of Management

49.       City Council approve the 2011 Recommended Operating Budget for the Arena Boards of Management of $6.537 million gross and $(0.005) million net revenue, comprised of the following services:

Association of Community Centres

50.       City Council approve the 2011 Recommended Operating Budget for The Association of Community Centres of $7.427 million gross and $7.226 million net, comprised of the following services:

51.       The City Manager's office, along with the Executive Director of Social Development and Administration and Director of Financial Planning, update the AOCC governance review (2003) to assess the ongoing financial and program viability of the AOCCs and report to the Community Development and Recreation Committee on the recommended changes in  2011.

Exhibition Place

52.       City Council approve the 2011 Recommended Operating Budget for Exhibition Place of $64.250 million gross and $0.025 million net, comprised of the following services:

Heritage Toronto

53.       City Council approve the 2011 Recommended Operating Budget for Heritage Toronto of $0.845 million gross and $0.346 million net, comprised of the following service:

54.       City Council approve acceptance of a three year grant from the Interaction Multi-Cultural Funding provincial program and related spending conditional upon receipt of such funding during 2011-2013, and, if such financing is not forthcoming or for an amount other than that reflected in the Recommended Operating Budget for Heritage Toronto, direct that the budget be adjusted to meet the Recommended Net Budget target.

Parking Tag Enforcement and Operations

55.       City Council approve the 2011 Recommended Operating Budget for Parking Enforcement and Operations of $55.149 million gross and $(21.918) million net revenue, comprised of the following services:

Theatres

56.       City Council approve the 2011 Recommended Operating Budget for Theatres of $26.946 million gross and $3.299 million net, comprised of the following services:

57.       St. Lawrence Centre for the Arts make a 2011 payment of $40,000  toward retiring part of its loan with the City which will be held interest-free and that City Council authorize the remaining loan balance of $121,004.88, which represents half the original loan to be written off.

Toronto and Region Conservation Authority

58.       City Council approve the 2011 Recommended Operating Budget for Toronto and Region Conservation Authority of $36.170 million gross and $7.477 million net, of which $4.207 million is a contribution from Toronto Water and $3.206 million is tax-supported, which is comprised of the following services:

59.       The information contained in Confidential Attachment 1 remains confidential until the outcome of Council’s decision has been communicated to affected staff.

Toronto Atmospheric Fund

60.       City Council approve the 2011 Recommended Operating Budget for Toronto Atmospheric Fund of $2.236 million gross and $0 million net, comprised of the following service:

61.       The Toronto Atmospheric Fund provide a quarterly variance report through 2011 to monitor investment income performance and third party fundraising activities.

Toronto Police Service

62.       City Council approve the 2011 Recommended Operating Budget for Toronto Police Service of $974.253 million gross and $905.880 million net, comprised of the following service:

subject to:

a.         $9.0 million in corporate savings arising from the reductions identified by the Toronto Police Services Board for the 2011 Recommended Operating Budget for Toronto Police Service.

63.       The Toronto Police Services Board be requested to examine the feasibility of a formal review of required civilian and police complement.

64.       The City Manager report to the Budget Committee, prior to the 2012 Budget process, on the feasibility of contracting out caretaking services for all Toronto Police Service facilities, as recommended by the Chair, Toronto Police Services Board, in the report entitled "Toronto Police Service – Feasibility of Contracting out Caretaking Services for All Police Facilities".

Toronto Police Services Board

65.       City Council approve the 2011 Recommended Operating Budget for Toronto Police Services Board of $2.958 million gross and $2.348 million net, comprised of the following service:

Toronto Public Health

66.       City Council approve the 2011 Recommended Operating Budget for Toronto Public Health of $232.494 million gross and $44.491 million net, comprised of the following services:

subject to:

a.         extending an existing bilateral funding agreement for the Toronto Newcomer Initiative which is 100% funded by Citizenship and Immigration Canada which will result in a one-time increase of $0.550 million gross and $0 net.

b.         using a portion of the $0.110 million net in savings arising from the cancellation of the 2011 consumer price index increase for Mayor and Councillors to fund the following for 2011:

i.          $0.348 million gross and $0.087 million net on a one-time basis for Bed Bug Control with 75 percent cost-sharing of $0.261 million from the Province.

c.         a one-time addition to the Toronto Public Health 2011 Recommended Operating Budget of $175,800 gross and $0.0 net that is fully funded by the Ministry of Health and Long-Term Care to support the Needle Exchange Program with funding to be spent no later than March 31, 2011.

67.       The City's share of $0.090 million for the Children in Need of Treatment (CINOT) in 2011 and beyond continue to be funded from within TPH's 100% City-funded Dental services as approved by City Council in 2010.

Toronto Public Library

68.       City Council approve the 2011 Recommended Operating Budget for Toronto Public Library of $183.875 million gross and $170.442 million net, comprised of the following services:

Toronto Transit Commission

69.      City Council approve the 2011 Recommended Operating Budget for Toronto Transit Commission Conventional Service of $1.436 billion gross and $429.111 million net, comprised of the following service:

subject to:

a.         reversing the proposed service changes for 7 routes with under-utilized time periods, as well as an augmentation of the service changes to the remaining 41 routes with under-utilized time periods, resulting in service efficiency savings of $4.7 million.

b.         $3.2 million in net reductions and a decrease of 75 positions to offset $3.0 million in added expenses arising from a reversal of service efficiency changes proposed at the TTC meeting on February 2, 2011.  These proposals result in a net decrease of $0.200 million to the TTC Operating Budget.

c.         $8.0 million in specific budget reductions originally unallocated, identified as follows:

i.          $7.0 million increase in revenues resulting from higher average fare; and

ii.         $1.0 million decrease to overtime expenditures.

70.       The TTC reduce its budgeted complement by 10 to account for the additional Special Constable positions that were not reduced in 2010 and report to the Budget Committee as part of the 2011 Operating Budget process on the impact on the TTC's 2011 Operating Budget of the recent TPS decisions on Special Constables and associated cost savings to be expected from changes in the TTC transit security function.

71.       The Chief General Manager of the Toronto Transit Commission and the Deputy City Manager and Chief Financial Officer continue discussions on partnering with the Province for permanent sustainable funding in order to return the TTC’s provincial funding component to the 50% level of the mid-1990’s.

72.       The Chief General Manager of the Toronto Transit Commission report to the Budget Committee in Spring 2011, with a five-year plan of the TTC Conventional Service, driven by ridership and TTC service delivery plans that would include various options for a multi-year fare strategy.

73.       City Council approve the 2011 Recommended Operating Budget for Wheel-Trans of $96.622 million gross and $91.011 million net, comprised of the following service:

74.       The Chief General Manager of the Toronto Transit Commission report to the Budget Committee in Spring 2011, with a five-year plan of the Wheel-Trans service, driven by ridership and TTC service delivery plans that would include various options for a multi-year fare strategy.

Toronto Zoo

75.       City Council approve the 2011 Recommended Operating Budget for Toronto Zoo of $46.216 million gross and $11.388 million net, comprised of the following services:

Yonge-Dundas Square

76.       City Council approve the 2011 Recommended Operating Budget for Yonge-Dundas Square of $1.887 million gross and $0.515 million net, comprised of the following service:

NON-LEVY OPERATIONS

Toronto Parking Authority

77.       City Council approve the 2011 Recommended Operating Budget for the Toronto Parking Authority of $70.895 million gross and ($56.403) million net, comprised of the following services:

CORPORATE ACCOUNTS

Community Partnership and Investment Program

78.       City Council approve the 2011 Recommended Operating Budget for Community Partnership and Investment Programs of $47.254 million gross and $47.174 million net, comprised of the following services:

subject to using a portion of the $0.110 million in savings arising from the cancellation of the 2011 consumer price index increase for Mayor and Councillors to fund the following for 2011:

a.         $0.023 million increase in gross and net within the Community Partnership and Investment Program to fund inflationary food costs for the existing 75 Student Nutrition Programs.

Capital and Corporate Financing/Non-Program Budget

79.       City Council approve the 2011 Recommended Operating Budget for Capital and Corporate Financing/Non-Program of $1,338.175 million gross and $24.420 million net, comprised of the following:

Non-Program Expenditure Budget

80.       The Non-Program Expenditure Budget be increased by $0.200 million gross and net to offset the $0.200 million in net savings identified in the Toronto Transit Commission's 2011 Recommended Operating Budget as approved by the Commission at its meeting of February 7, 2011.

VI.       City Council receive the reports, transmittals and communications that are on file with the City Clerk’s Office (including Appendix 4 of the report) as considered by the Budget Committee at its 2011 budget review meetings.