Item - 2016.BU18.1

The Budget Committee:

 1.  Requested the Deputy City Manager and Chief Financial Officer to submit to Executive Committee at its meeting of February 9, 2016 a corporate report outlining the 2016-2025 Capital Budget and Plan, as recommended by the Budget Committee, including the following amendments: 

a.  City Council:

1.  transfer the balance of the Ward 38 Section 37 funds arising from 1-18 Lee Centre Drive for public art to the Public Art Reserve ( XQ4002) to reimburse for the art delivered to the designated location; and

2. amend the Economic Development and Culture Capital Budget to add a project for public art in local parks in Scarborough Centre for $0.150 million for purchase and installation of public art in local parks in Scarborough Centre, including the purchase and placement of the art pieces known as "the cube", "the couple", "the rock" and "the man" funded from the Public Art Reserve (XQ4002).

b.  City Council amend the 2016 Preliminary Capital Budget for Parks, Forestry and Recreation to include a change in location in the Parks 2016 splash pad capital budget from Cathedral Bluffs park (Ward 36) to Greenbrae Park (Ward 38).

c.  City Council increase the total project cost for the McCowan Park New Pathway Project of $100,000 in the 2016 Preliminary Capital Budget for Parks, Forestry and Recreation by $90,000,  funded by Section 37 Reserve Funds, to reflect the City Council decision on September 30, 2015 that adopted Part 9 of Item MM9.12.

d.  City Council increase the 2016 Preliminary Capital Budget for Parks, Forestry and Recreation by $0.650 million for upgrades to the former McCowan Road landfill site (now known as McCowan Road Park) including grading, tree planting, re-naturalization, asphalt paths and walking trails, with funding coming from the City's Solid Waste Management Landfill Perpetual Care Reserve Fund. 

e.  City Council:

1. increase  the 2016-2025 Preliminary Capital Budget for Facilities, Real Estate, Environment and Energy (FREEE) by $7.95 million, $1.75 million in 2016 and $6.2 million commitments in 2017 funded by recoverable debt; and

2.  include future year commitments of $13.2 million of which $7 million is an estimate in the 2016-2025 Preliminary Capital Budget and Plan for Facilities, Real Estate, Environment and Energy (FREEE) and an additional $6.2 million is requested, resulting in a zero gross and net impact.

f.  City Council:

1. authorize the Deputy City Manager and Chief Financial Officer to adjust the following Capital Budgets to fund the seven 2015 Participatory Budgeting (PB) pilot projects detailed below and in Attachment 2 of the report (December 30, 2015) from the City Manager [BU18.1ab]:

a.  increase the Parks, Forestry and Recreation 2016 Preliminary Capital Budget by $370,000 gross, $0 debt for the following projects:

-Oakridge Park Lighting at a cost of $90,000 gross, $0 debt to be funded from Account XR2205, Parkland Acquisition - East District Local Development;

-Prairie Drive Park Package at a cost of $60,000 gross, $0 debt to be funded from Account XR2205, Parkland Acquisition - East District Local Development;

-Lighting in Rustic Park at a cost of $75,000 gross, $0 debt to be funded from Account XR2203, Parkland Acquisition – West District Local Development;

-Shade for Maple Leaf Playground at a cost of $75,000 gross, $0 debt to be funded from Account XR2203, Parkland Acquisition – West District Local Development; and,

-Don Valley Fitness Park, Bellbury Park at a cost of $70,000 gross, $0 debt to be funded from Account XR2207, Parkland Acquisition – West District Local Development.

b.  increase the Transportation Services 2016 Preliminary Capital Budget by $65,000 gross, $0 debt for the following projects:

-Brian Village Gateway at a cost of $50,000 gross, $0 debt to be funded from Account XR1410 Public Realm Reserve Fund; and,

-Bike Lockers near Don Mills Station at a cost of $15,000 gross, $0 debt to be funded from Account XR1410 Public Realm Reserve Fund.

   2.  authorize the City Manager to extend the 2015 Participatory Budgeting pilot for two (2) additional years in the three (3) areas of the 2015 pilot: Ward 33, Ward 12 and Ward 35.

   3.  authorize the Deputy City Manager and Chief Financial Officer to fund up to $250,000 annually for each pilot area, for a total annual cost of $750,000, from the following capital funding sources and to report annually on the appropriate capital budget adjustments:

a.  Capital Financing Reserve Fund;

b.  Section 37 funds that are ready to be spent within the pilot timeline;

c.  Other applicable capital funding sources that meet the intent of PB including the City's Parkland Reserve Fund, Public Realm funding, and Neighbourhood Improvement Area capital funding in the City's Facilities 2016-2025 Capital Budget and Plan.

 4.  request the City Manager to report back in 2018 on the results of the Participatory Budgeting pilot including an evaluation and options in future years.

2. Requested the Deputy City Manager and Chief Financial Officer to submit to Executive Committee at its meeting of February 9, 2016 a corporate report outlining the 2016 Operating Budget, as recommended by the Budget Committee, including the following amendments:

a.  City Council increase the 2016 Preliminary Operating Budget by a total of $33.717 million gross and $28.757 million net, with associated increases in the total staff complement of  202.4 positions and service levels based on the approval of the following new and enhanced services specified in the table below:

and that the 2016 Preliminary Operating Budgets, staff complement and service levels of the specified Programs and Agencies be amended accordingly.

b.  City Council offset the net increase of $28.757 million in Recommendation 2a by the following adjustments to the 2016 Preliminary Operating Budget:

1.  increase the 2016 Non-Program Revenue Budget by $15.500 million, with revenues to be realized from the following:

a.    a one-time special dividend of $5 million from the Toronto Parking Authority;

b.   a one-time special dividend of $5 million from the Toronto Port Lands Corporation; and

c.  an increase of $5.5 million in Payments in Lieu of Taxes by reducing the appeal provision based on actual experience;

2.  reduce the Toronto Police Services' 2016 Preliminary Operating Budget by $3 million gross and net; and further request Toronto Police Services to explore opportunities to find savings from freezing discretionary expenditures, including but not limited to business travel; conferences, consulting contracts; purchase of equipment, furniture, supplies; advertising, promotion and production of materials except where it is critically required for service delivery;

3.  reduce the Toronto Transit Commission's 2016 Preliminary Operating Budget by $5 million gross and net; and further request the Toronto Transit Commission to explore opportunities to find savings from freezing discretionary expenditures, including but not limited to business travel; conferences, consulting contracts; purchase of equipment, furniture, supplies; advertising, promotion and production of materials except where it is critically required for service delivery;

4.  reduce the 2016 Preliminary Operating Budget by a total of $1.249 million for all City Agencies, excluding the Toronto Police Service and the Toronto Transit Commission, and $9.954 million for City Programs with savings to be realized from a spending freeze on discretionary expenditures, including but not limited to business travel; conferences, consulting contracts; purchase of equipment, furniture, supplies; advertising, promotion and production of materials except where it is critically required for service delivery; and that the City Manager be delegated the authority to allocate these reductions to the Agencies and City Programs, having regard for whether an Agency or City Program has met the 2016 -1% budget target;

5.  amend the Shelter, Support and Housing Administration's 2016 Preliminary Operating Budget to reflect a $12.5 million budgeted contribution from the Social Housing Stabilization Reserve to fund the poverty reduction and housing task force initiatives as listed in Recommendation 2a above;

6.  amend the Toronto Employment and Social Service's 2016 Preliminary Operating Budget by $4.6 million gross and net based on forgoing the 2016 contribution to the National Child Benefits Supplement Reserve, thereby accelerating the planned phase-out of the reserve by the year 2019, as opposed to the year 2020.

c.  City Council offset the funding for the inflationary increase to the Urban Health Fund of $0.057 million gross and $0.0014 million net by increasing the reduction to City Programs and Agencies (excluding Toronto Transit Commission and Toronto Police Services) for savings to be realized from a spending freeze on discretionary spending.

d.  City Council amend the 2016 Children's Services Operating budget by reducing the expenditure savings from $173,400 to $115,600 for one year, for the 'Closure of under-enrolled room at Parkside Child Care Centre and amend the wording to 'Temporary Closure (8 months) of Parkside Preschool Child Care Program; and offset the $57,800 by a reduction in the Administration or System Management sections of the Children's Services Operating budget.

e.  City Council increase the 2016 Preliminary Operating Budget for Children's Services of $18.246 million gross and $0 net to reflect the 2016 Provincial funding announcement, with the following adjustments:

1.  an increase in the Wage Enhancement program of $20.528 million to be flowed to child care operators that increases funding for the existing Wage Subsidy program;

2. a decrease in core service and special purpose funding of $2.282 million, reflecting  the phase-out of transitional grant funding that supported the implementation to Full Day Kindergarten, which is now considered to be fully implemented.

f.  City Council increase the 2016 Preliminary Operating Budget for Economic Development and Culture by $0.114 million gross and $0 net to fund one new permanent position to meet increased demand for the Business Improvement Area (BIA) Capital Cost-Sharing Program, and that the $0.114 million gross be funded by Recoveries from Capital Projects.

g.  City Council:

1.  approve an annual grant of up to $0.250 million to Toronto Parks and Tree Foundation (TPTF), with continuation subject to raising $2 in donations from private and public sector for every $1 of city grant, from the 2016 funding of $1.664 million proposed in Recommendation 2a above towards meeting the City's tree canopy goal; and

2. direct the General Manager, Parks, Forestry and Recreation to enter into an agreement with Toronto Parks and Tree Foundation with terms and conditions satisfactory to the City Solicitor.

h.  City Council direct Toronto Paramedic Services to annually make up to 3 end-of-life ambulances intended for auction available for acquisition at no cost to not-for-profit agencies working abroad for humanitarian purposes, at a net cost of $20,000.

i.  City Council amend City of Toronto Municipal Code Chapter 441, Fees and Charges to maintain Taxi Licensing Fees at 2015 rates, retroactive to January 1, 2016 and until such time as the Ground Transportation Review report is considered by City Council; and

1.  include in the 2016 Preliminary Operating Budget for Municipal Licensing and Standards a reduction in Taxi Licensing Fee revenues of $0.222 million, offset from an equivalent expenditure reduction within the Business Licensing and Permitting Service; and that the Executive Director, Municipal Licensing and Standards include any necessary budget adjustment or reallocations within the Taxi and Livery Licensing activity as part of the Ground Transportation Review report to be submitted to Licensing and Standards Committee in April 2016; and

2.  direct that any Taxi Licensing Fees paid at a 2016 rate that was automatically increased by inflation on January 1, 2016 be credited the difference from the 2015 rate following the outcome of the Ground Transportation Review.

j.  City Council increase, as a one-time increase of $254,400 gross and $0 net in the 2016 Policy, Planning, Finance and Administration Division's operating budget within the Major Capital Infrastructure Coordination (MCIC) Office to advance the City's technical review of reports and studies submitted by Metrolinx in support of the Regional Express Rail (RER) program, with the full amount to be recovered from Metrolinx.

k.  City Council consider as part of the 2016 Budget process the addition of 1 temporary position in the City Manager’s Office 2016 Operating Budget to implement the pilot extension, at an annual cost of $138,000, as described in Appendix 2 – Items referred to the Budget Process – New and Enhanced Detailed List to the Presentation (December 15, 2015) from the City Manager and the Deputy City Manager and Chief Financial Officer.

l.  City Council establish a Directors education and training program for Members of Council, to be obtained through a university-affiliated program, and that City Council:

1. deem Directors training an eligible expense under Constituency Services and Office Budget Policy with funding for the training to be funded from the Council General Expenses Budget;

2. limit the annual funding to a maximum of 18 Members of Council;

3. deem annual association membership fees to Directors organizations as an eligible expense under the Constituency Services and Office Budget Policy;

4. require Members of Council to pay up to 25% of the cost of the training;

5. determine that funding is provided on a first-come first-served basis.

m.  City Council approve the following adjustments to the Solid Waste Rebates for single family and residential units above commercial customers, which are equivalent to a reduction of $1 per bag per month:

1.  Adjust the Medium Bin Rebate from $199.76 to $181.76;

2.  Adjust the Large Bin Rebate from $144.41 to $108.41;

3.  Adjust the Extra Large Bin Rebate from $110.85 to $56.85; and

4.  Adjust the Bag Only Rebate from $227.01 to $215.01.

n.  City Council direct that the Small Bin Rebate remain unchanged from 2015 at $227.01.

o. City Council:

1.  authorize that, effective April 1, 2016, an administration fee be charged for processing each Municipal Land Transfer Tax transaction, to fully recover the City's costs to process a transaction, with the fee to be set at $75.00 per transaction, excluding HST (HST is payable on the transaction fee); and

2.  amend City of Toronto Municipal Code Chapter 441, Fees and Charges to add the new Municipal Land Transfer Tax transaction administration fee, and grant for the introduction of the necessary bill.

p.  City Council approve a 1.3 percent residential tax rate increase that will generate $34.347 million in total property tax revenues, thereby balancing the 2016 Tax Supported Operating Budget.

and the following report requests:

q.  City Council request the General Manager, Children's Services report to the June meeting of Community Development and Recreation Committee on the feasibility and funding impacts of establishing an infant/toddler/preschool program at Parkside to create a more viable operating model that meets the needs of the community, and is consistent with the direction of the Ministry of Education.

r.  City Council direct the General Manager, Economic Development and Culture and the Deputy City Manager and Chief Financial Officer to report on a uniform and cost effective strategy for obtaining licencing agreements for the showing of movies at City of Toronto events both indoors and outdoors.

s.  City Council direct the General Manager, Long Term Care Homes and Services, in consultation with the Deputy City Manager and Chief Financial Officer and the Toronto Office of Partnerships, to report to the Community Development and Recreation Committee with a sustainable funding and program delivery strategy for religiously appropriate meals in City of Toronto Long Term Care facilities, for consideration as part of the 2017 Budget Process, such that they conform to orders by the Inspection Report under the Long Term Care Homes Act and meet the goals of the 2016-2020 Toronto Long Term Care Homes and Service Plan.  Such a process should include but not be restricted to meeting with key stakeholders, such as the Multi-faith Alliance, community representatives and faith leaders as well as private sector donors and other potential partners.

t.  City Council request that as part of City Council's request to the Director, Office of Emergency Management to report back to the Executive Committee on a strategy to help establish and support Local Emergency Response Working groups (EX7.5), consideration be given to making up to $1,000 per Ward available through the Corporate Extreme Weather Reserve up to a total of $44,000 for the establishment of Local Emergency Response Working groups.

u.  City Council direct the General Manager, Solid Waste Management Services to report to the Public Works and Infrastructure Committee in Fall 2016 on the consideration and required implementation plan to phase out the Extra Large Bin.

v.  City Council direct the Deputy City Manager and Chief Financial Officer, in consultation with the General Manager, Economic Development, and Culture, to report back to Budget Committee in the second quarter of 2016 on the current and expected future cost of the Tax Increment Equivalent Grant (TIEG) program, the estimated benefit to the City, a plan for regular reporting of the collective budget cost of Tax Increment Equivalent Grant program agreements, and appropriate options for optimizing the program cost, such report to include the number of TIEGs currently enacted, the phase out year of each TIEG agreement and the total forgone revenue from all TIEG agreements for 2016, 2017, 2018, 2019 and 2020.

w.  City Council direct the Deputy City Manager and Chief Financial Officer to review and consider for the Toronto Public Library Capital Budget adequate funding in 2017 to reduce the State of Good Repair backlog, so as to prevent this from growing to $122.993 million or 14% of the total asset value over the next 10 years.

x.  City Council direct the Deputy City Manager and Chief Financial Officer to report to Executive Committee in the second quarter of 2016 with an assessment of the remaining ways that the City's Municipal Land Transfer Tax (MLTT) is different from the Provincial Land Transfer Tax, including the revenue impact of these differences, and on the advisability and feasibility of being fully harmonized.

y.  City Council direct the City Manager, in consultation with the City Solicitor and the Executive Director, Financial Planning, to report on non-City of Toronto Act legislative changes that could realize savings and benefits to the City as identified by Legal Services in their Budget Briefing Note dated September 15, 2015.

z.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to consider, as part of the current real estate review, the feasibility of directing funds from the sale of any surplus assets that are identified, towards a future City Building Fund, in order to address the City's unfunded capital projects backlog.

aa.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to commission an external consultant's updated analysis of the City of Toronto Act revenue potential using the guidelines of the 2007 Hemson report, updated to include the impact of HST on collection and that the report add a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of obtaining permission and collecting a municipal sales tax and an income tax, and a range of best practice municipal funding models from North American cities that utilize diversified revenue models; and that the cost of the report, estimated at $125,000, be funded from the Corporate Studies Account (Corporate Finance) within the Non-Program Corporate Expenditures Budget.