Item - 2016.EX16.2

The Executive Committee recommends:

1.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to engage the public on the City of Toronto's long-term financial direction, such engagement to include information, consultation and dialogue to seek input and advice on establishing a robust fiscal framework that includes expenditure management strategies, meaningful governance and oversight of City programs and agencies, prudent management of financial and physical City assets, and adequate revenue generation from existing and new sources to achieve desired public services on a sustainable basis.

2.  City Council approve up to $500,000 for a consultation plan to take place over the balance of 2016 and spring 2017 to support the establishment of a long-term financial plan.

3.  City Council approve an increase of $250,000 gross at $0 net to the 2016 Non-Program Expenditure Budget to be funded from the Innovation Reserve for the delivery of Phase 1 of the long-term financial direction consultation process.

4.  City Council authorize the City Manager and the Deputy City Manager and Chief Financial Officer to include up to $250,000 gross at $0 net in the 2017 Non-Program Operating Budget submission, to be funded from the Innovation Reserve, for the delivery of Phase 2 of the consultation plan, as required.

City Council at its June 6, 2016 meeting requested that the City Manager report to the June 28, 2016 Executive Committee with a proposed consultation plan on the long-term financial direction. This report responds to that request.

The public engagement strategy will seek input to support Council's decision-making and objectives for service excellence, value for residents and businesses, and accountable financial oversight. It will employ a range of methodologies in keeping with the complexity, urgency and critical nature of the topic and the diversity of participants and perspectives.

The City Manager and the Deputy City Manager and Chief Financial Officer propose engaging with the public and stakeholders from Fall 2016 through Spring of 2017, to gather input and advice on how to ensure Toronto is a modern, mature government with the appropriate fiscal resources in place to support a City of its size, complexity and aspirations. Participants will be provided with information about the City's long-term financial direction, budget and budget process and Council's strategies and plans in order to support an informed dialogue.

The engagement strategy will support public learning, and multiple opportunities to participate and provide input, and processes that encourage public discussion among participants and stakeholders with diverse opinions and perspectives. The strategy is built on best practices for public engagement including clarity of scope and methodologies that are purposeful, appropriate, accessible, transparent and accountable.

The consultation will be coordinated by the City Manager's Office and the Deputy City Manager and Chief Financial Officer in two phases, building towards a plan which incorporates the many components of the long-term financial direction.

Phase 1 (Fall 2016)

- Opportunities to learn about the City's financial framework, encourage exploration of the issues through dialogue and debate.

- Seek advice to guide decision-making on City revenues, expenditures and assets to support a multi-year revenue strategy, Expenditures Management Plan and maximize the use of assets in supporting service delivery;

- Identification of issues where there is significant public support, common interests, and where differences of opinion exists.

Phase 2 (Spring 2017)

- Build on the findings of Phase 1 seeking in-depth advice on key issues or areas requiring additional study, or where critical differences or divides exist.

- Consultations focused on the City's long-term financial direction, as well as strengthening the City's financial management and oversight of City programs and agencies and supporting Council in setting priorities and outcomes in order to deliver its strategic agenda.

- Engagement report with public input themed to the elements outlined in the long-term financial direction report and findings which support the implementation of a sustainable, coordinated, long-term financial strategy.

Details about the engagement process and findings, the City Manager's reports, and raw data will be posted to the City's website and Open Data page.