Item - 2011.EX10.2

Tracking Status

EX10.2 - User Fee Policy

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on September 26 and 27, 2011, adopted the following:

 

1.         City Council adopt the User Fee Policy set out in Appendix 1 to the report (September 9, 2011) from the City Manager and Deputy City Manager and Chief Financial Officer (the "User Fee Policy") and approve the requirement that all City Programs and local boards of the City, as defined in the User Fee Policy (a "Local Board"), comply with the principles, rules and procedures established therein.

 

2.         City Council direct the City Manager to update the User Fee Policy in Part 1 above using Toronto's adopted Equity Lens and gender and racial equity analysis, in order to ensure that, in the development and implementation of the Policy, City staff take into consideration access and equity issues that impact Toronto's diverse residents and in order to remove and prevent barriers faced by residents in Toronto's diverse communities.

 

3.         City Council amend the User Fee Policy – Guidelines and Procedures set out in Appendix 2 to the report (September 9, 2011) from the City Manager and the Deputy City Manager and Chief Financial Officer by adding to the second bullet point in the section headed "Waiving User Fees", the words "but not limited to", so that the bullet point now reads as follows:

 

           Granting relief from full cost recovery promotes or advances economic or social benefits, specific City policy goals and objectives, including, but not limited to:

 

a.         Supporting non-profit organizations in the development of projects or activities with clear societal benefits; and,

b.         Intergovernmental events that benefits society as a whole."

 

4.         City Council adopt a by-law pursuant to section 263 of the City of Toronto Act, 2006, providing that a user fee of a Local Board for a service or activity offered to the general public, with the exception of the Toronto Transit Commission (the "TTC"), not come into force until it is approved by City Council, a condition of such approval being compliance with the User Fee Policy.

 

5.         City Council direct that the relationship frameworks with each of the Local Boards be amended to reflect Part 4 above.

 

6.         City Council direct those Local Boards with market driven user fees that change frequently throughout the year so as to respond to market conditions, to report to the Executive Committee by December 31, 2011 with a list of such fees and seeking authority from Council to specifically exempt such fees from requiring Council approval.

  

7.         Authority be granted to the Deputy City Manager and Chief Financial Officer to annually determine, in accordance with the User Fee Policy, the automatic annual inflationary adjustment to be applied to each user fee for which Council has approved an automatic annual inflationary adjustment, and that Chapters 441 and 442 of the City of Toronto Municipal Code be amended accordingly.

 

8.         City Council grant authority to introduce the necessary bills to give effect to this Council decision.

Background Information (Committee)

Communications (City Council)

(September 22, 2011) E-mail from Hamish Wilson (CC.New.EX10.2.1)

Motions (City Council)

1 - Motion to Defer Item moved by Councillor Shelley Carroll (Lost)

That consideration of this Item be deferred to the next regular meeting of City Council on October 24 and 25, 2011 to allow Local Boards to be notified of Council's intention to amend their relationship frameworks.

Vote (Defer Item) Sep-27-2011 6:15 PM

Result: Lost Majority Required - EX10.2 - Carroll - Defer the item
Total members that voted Yes: 15 Members that voted Yes are Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 25 Members that voted No are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, John Parker (Chair), James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson
Total members that were Absent: 5 Members that were absent are Maria Augimeri, Josh Colle, Chin Lee, Josh Matlow, Ron Moeser

2 - Motion to Amend Motion moved by Councillor Joe Mihevc (Out of Order)

That motion 1 by Councillor Carroll be amended by adding the words "and further that the City Manager and the Deputy City Manager and Chief Financial Officer be requested to amend the User Fee Policy to give greater priority to access and equity values" so that it reads as follows:

 

            That consideration of this Item be deferred to the next regular meeting of City Council on October 24 and 25, 2011 to allow Local Boards to be notified of Council's intention to amend their relationship frameworks and further that the City Manager and the Deputy City Manager and Chief Financial Officer be requested to amend the User Fee Policy to give greater priority to access and equity values.

Ruling by Deputy Speaker John Parker
Deputy Speaker Parker ruled motion 2 by Councillor Mihevc out of order as the motion was both an amendment and a deferral of the item, and both actions cannot be taken in the same motion.


3 - Motion to Amend Item (Additional) moved by Councillor Kristyn Wong-Tam (Carried)

That City Council direct the City Manager to update the User Fee Policy using Toronto's adopted Equity Lens and gender and racial equity analysis, in order to ensure that, in the development and implementation of the Policy, City staff take into consideration access and equity issues that impact Toronto's diverse residents and in order to remove and prevent barriers faced by residents in Toronto's diverse communities.

Vote (Amend Item (Additional)) Sep-27-2011 7:09 PM

Result: Carried Majority Required - EX10.2 - Wong-Tam - motion 3
Total members that voted Yes: 24 Members that voted Yes are Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 18 Members that voted No are Paul Ainslie, Michelle Berardinetti, Gary Crawford, Vincent Crisanti, Mike Del Grande, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, John Parker (Chair), Jaye Robinson
Total members that were Absent: 3 Members that were absent are Josh Colle, Ron Moeser, James Pasternak

4 - Motion to Amend Item moved by Councillor Mike Layton (Carried)

That City Council amend page 11 of the staff report and page 21 of Appendix 2 "City of Toronto User Fee Policy - Guidelines and Procedures" to the report (September 9, 2011) from the City Manager and the Deputy City Manager and Chief Financial Officer in the section "Waiving User Fees:" as follows:

 

By adding the words to the second bullet point "but not limited to" so that the section now reads:

 

Granting relief from full cost recovery promotes or advances economic or social benefits, specific City policy goals and objectives, including, but not limited to:

 

a.         Supporting non-profit organizations in the development of projects or activities with clear societal benefits; and,

b.         Intergovernmental events that benefits society as a whole.

Vote (Amend Item) Sep-27-2011 7:11 PM

Result: Carried Majority Required - EX10.2 - Layton - motion 4
Total members that voted Yes: 26 Members that voted Yes are Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Josh Colle, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, John Parker (Chair), Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 17 Members that voted No are Paul Ainslie, Michelle Berardinetti, Gary Crawford, Vincent Crisanti, Mike Del Grande, Doug Ford, Rob Ford, Doug Holyday, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, David Shiner, Karen Stintz
Total members that were Absent: 2 Members that were absent are Ron Moeser, James Pasternak

5a - Motion to Amend Item moved by Councillor Janet Davis (Lost)

That:

 

1.         Executive Committee Recommendation 1 be amended by deleting the words "and local boards of the City" so that the recommendation now reads:

 

1.         City Council adopt the User Fee Policy set out in Appendix 1 to the report (September 9, 2011) from the City Manager and Deputy City Manager and Chief Financial Officer (the "User Fee Policy") and approve the requirement that all City Programs, as defined in the User Fee Policy (a "Local Board"), comply with the principles, rules and procedures established therein.

 

2.         City Council refer Executive Committee Recommendations 2, 3 and 4 respecting local boards to the City Manager and Deputy City Manager and Chief Financial Officer and direct the City Manager and the Deputy City Manager and Chief Financial Officer to consult with each of the Local Boards on the proposed User Fee Policy and amendments to the Relationship Frameworks and report on the results of those consultations to City Council at its October 24 and 25, 2011 meeting.

Vote (Amend Item) Sep-27-2011 7:12 PM

Result: Lost Majority Required - EX10.2 - Davis - motion 5a
Total members that voted Yes: 17 Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 26 Members that voted No are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, John Parker (Chair), Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson
Total members that were Absent: 2 Members that were absent are Ron Moeser, James Pasternak

5b - Motion to Amend Item (Additional) moved by Councillor Janet Davis (Lost)

That City Council direct the City Manager to review and consider the User Fee Policy as part of the Recreation Service Plan.

Vote (Amend Item (Additional)) Sep-27-2011 7:12 PM

Result: Lost Majority Required - EX10.2 - Davis - motion 5b
Total members that voted Yes: 21 Members that voted Yes are Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 22 Members that voted No are Paul Ainslie, Michelle Berardinetti, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Norman Kelly, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, John Parker (Chair), Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson
Total members that were Absent: 2 Members that were absent are Ron Moeser, James Pasternak

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Sep-27-2011 7:13 PM

Result: Carried Majority Required - EX10.2 - Adopt the item as amended
Total members that voted Yes: 33 Members that voted Yes are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Doug Ford, Rob Ford, Mark Grimes, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, Cesar Palacio, John Parker (Chair), Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 9 Members that voted No are Maria Augimeri, Janet Davis, Glenn De Baeremaeker, John Filion, Paula Fletcher, Mary Fragedakis, Pam McConnell, Gord Perks, Anthony Perruzza
Total members that were Absent: 3 Members that were absent are Norman Kelly, Ron Moeser, James Pasternak

Motion to Extend Speaking Time (Carried)

Deputy Speaker Parker proposed that Councillor Mihevc's speaking time be extended so that he could complete his remarks.

Vote (Extend Speaking Time) Sep-27-2011 6:38 PM

Result: Carried Majority Required - EX10.2 - Extend Councillor Mihevc's speaking time
Total members that voted Yes: 26 Members that voted Yes are Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Frank Di Giorgio, Doug Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Cesar Palacio, John Parker (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Karen Stintz, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Mark Grimes
Total members that were Absent: 18 Members that were absent are Paul Ainslie, Michelle Berardinetti, Josh Colle, Janet Davis, Mike Del Grande, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mike Layton, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan

Motion to Extend Speaking Time (Carried)

Deputy Speaker Parker proposed that Councillor Perks' speaking time be extended so that he could complete his remarks.

Vote (Extend Speaking Time) Sep-27-2011 6:48 PM

Result: Carried Majority Required - Ex10.2 - Extend Councillor Perks' speaking time
Total members that voted Yes: 26 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Paula Fletcher, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata, Cesar Palacio, John Parker (Chair), James Pasternak, Anthony Perruzza, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Mark Grimes
Total members that were Absent: 18 Members that were absent are Michelle Berardinetti, Josh Colle, Vincent Crisanti, Mike Del Grande, Sarah Doucette, John Filion, Doug Ford, Rob Ford, Mary Fragedakis, Mike Layton, Josh Matlow, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Gord Perks, Jaye Robinson, David Shiner, Michael Thompson

Motion to Extend Speaking Time (Carried)

Deputy Speaker Parker proposed that Councillor Davis' speaking time be extended so that she could complete her remarks.

Vote (Extend Speaking Time) Sep-27-2011 7:01 PM

Result: Carried Majority Required - EX10.2 - Extend Councillor Davis' speaking time
Total members that voted Yes: 25 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Doug Holyday, Mike Layton, Chin Lee, Giorgio Mammoliti, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata, John Parker (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 1 Members that voted No are Mark Grimes
Total members that were Absent: 19 Members that were absent are Michelle Berardinetti, Josh Colle, Vincent Crisanti, Mike Del Grande, John Filion, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Norman Kelly, Gloria Lindsay Luby, Josh Matlow, Ron Moeser, Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Karen Stintz, Adam Vaughan

EX10.2 - User Fee Policy

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.         City Council adopt the User Fee Policy set out in Appendix 1 to the report (September 9, 2011) from the City Manager and Deputy City Manager and Chief Financial Officer (the "User Fee Policy") and approve the requirement that all City Programs and local boards of the City, as defined in the User Fee Policy (a "Local Board"), comply with the principles, rules and procedures established therein.

 

2.         City Council adopt a by-law pursuant to section 263 of the City of Toronto Act, 2006, providing that a user fee of a Local Board for a service or activity offered to the general public, with the exception of the Toronto Transit Commission (the "TTC"), not come into force until it is approved by City Council, a condition of such approval being compliance with the User Fee Policy.

 

3.         City Council direct that the relationship frameworks with each of the Local Boards be amended to reflect Recommendation 2 above.

 

4.         City Council direct those Local Boards with market driven user fees that change frequently throughout the year so as to respond to market conditions, to report to the Executive Committee by December 31, 2011 with a list of such fees and seeking authority from Council to specifically exempt such fees from requiring Council approval.

 

5.         Authority be granted to the Deputy City Manager and Chief Financial Officer to annually determine, in accordance with the User Fee Policy, the automatic annual inflationary adjustment to be applied to each user fee for which Council has approved an automatic annual inflationary adjustment, and that Chapters 441 and 442 of the City of Toronto Municipal Code be amended accordingly.

 

6.         City Council grant authority to introduce the necessary bills to give effect to these recommendations.

Origin

(September 9, 2011) Report from the City Manager and the Deputy City Manager and Chief Financial Officer

Summary

This report responds to City Council's request that the City Manager undertake a comprehensive user fee review to develop a user fee policy and framework that will ensure consistency in establishing and administering the City's user fees program.

 

The recommended User Fee Policy attached herewith as Appendix 1, sets out a consistent and transparent approach for establishing and managing user fees.  The fundamental principle of the recommended Policy is that user fees should be utilized to finance those City services and goods that provide a direct benefit(s) to specific users and that user fees should be set to recover the full cost of those services to the extent that there is no conflict with City policy objectives and other legislative requirements.  Services that benefit the entire community should be funded by property taxes.

 

While the central principle is to promote equity by recovering the cost of services from those who receive direct benefits from the service, the User Fee Policy is cognizant of the need to protect citizens who, through inability to pay, would be denied access to services.  Accordingly, exceptions to full cost recovery and general criteria for waiving fees in accordance with City policy objectives have been included in the guiding principles of the Policy.  The Policy requires periodic review and update of user fees based on factors such as inflation, other cost increases, service level changes and delivery methods, and the need to ensure that user fee revenues do not exceed the cost of providing the respective services.  Furthermore, the Policy is designed to ensure a consistent, transparent approach for setting user fees in compliance with best practices and addresses the need for public consultation. 

Background Information

Speakers

Councillor Mike Layton
Councillor Adam Vaughan
Councillor Sarah Doucette
Councillor Joe Mihevc
Councillor Ana Bailão
Councillor Shelley Carroll
Councillor Gary Crawford
Councillor Janet Davis
Councillor Mary-Margaret McMahon
Councillor Pam McConnell
Councillor Mary Fragedakis
Councillor Gord Perks
Councillor Kristyn Wong-Tam
Councillor Josh Matlow

Motions

Motion to Adopt Item moved by Councillor Doug Holyday (Carried)
Source: Toronto City Clerk at www.toronto.ca/council