Item - 2016.EX16.20

City Council on July 12, 13, 14 and 15, 2016, adopted the following:

1.  City Council adopt the confidential recommendations and confidential instructions to staff contained in Confidential Attachment 1 to the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer.

2.  City Council authorize the payment of funds required to carry out the confidential instructions contained in Confidential Attachment 1 to the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer.

3.  City Council authorize the public release of Confidential Attachment 1 to the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer.

The following confidential recommendations in Confidential Attachment 1 to the report (June 10, 2016) from the Deputy City Manager and Chief Financial Officer were adopted by City Council and are now public:

1.  City Council authorize the City Manager to establish a program for affected Toronto Paramedic Services and Toronto Fire Services employees (Union and Non-Union employees) on the following terms and conditions, at an estimated total cost of $5.3 million, which was accrued in the 2015 financial statements:

a.  the City to provide payment (either directly to the Canada Revenue Agency or to the Toronto Paramedic Services / Toronto Fire Services employee) for the tax and interest owing for the tax years 2013 to 2015 inclusive arising as a result of the Canada Revenue Agency's decision that parking access at all Toronto Paramedic Services and Toronto Fire Services work locations is a taxable benefit;

b.  the City to pay the tax (i.e., the grossed-up amount) for any payments made to or on behalf of Toronto Paramedic Services and Toronto Fire Services employees in accordance with Part 1.a. above in order to offset the effect of such payments being recognized as a taxable benefit to Toronto Paramedic Services and Toronto Fire Services employees in the 2016 tax year;

c.  the City's Unions must agree to a Memorandum of Agreement providing that unionized employees will reimburse the City if any objections are filed and such objections are successful in reducing or eliminating the taxable benefit for the years 2013 to 2015, inclusive; and

d.  the City to be reimbursed for any amount paid by the City to an affected Toronto Paramedic Services and Toronto Fire Services employee or on an affected Toronto Paramedic Services and Toronto Fire Services employee's behalf, should an objection result in a reduction of the employee's tax obligation for the years 2013 to 2015, inclusive.

Confidential Attachment 1 to the (June 10, 2016) from the Deputy City Manager and Chief Financial Officer is now public and can be accessed under Background Information (City Council).