Item - 2018.EX32.2

The Executive Committee:

1.  Receive the report (March 5, 2018) from the City Manager and the Interim Chief Financial Officer for information.

A wide variety of programs exist across the City that provide socio-economic benefits to the City through some form of financial assistance to residents, not-for-profit organizations and businesses.  Some of these programs are mandated by legislation while others are at the discretion of City Council. These programs support City Council's public policy goals and priorities. However, in many cases, discounts, exemptions and deferrals effectively result in foregone revenues. They are often unbudgeted expenditures which are not readily visible to City Council and taxpayers. 

The purpose of this report is to provide greater transparency and better inform committee and City Council of the nature and importance of these programs, the take-up rates, the social benefits and the opportunity cost in terms of reduced revenues.

Benefiting organizations such as charities, not-for-profits, ethno-cultural community groups, veterans' groups, and philanthropic groups have long provided high-quality and valued services to the public.  In many instances, the services provided by these organizations offset the need for the City to directly deliver these services. 

Fee waivers, rebates, discounts, and tax deferrals and exemptions are a common and long-standing practice across multiple program and policy areas. The estimated annual value of these concessions is $475 million. However, this does not mean that additional revenues of this magnitude would be available if City Council was to eliminate these concessions. For example, elimination of the Welcome Policy Subsidy is unlikely to generate the estimated foregone revenue as many welcome policy recipients who cannot afford access may instead forgo the service rather than pay the full fee.