Item - 2020.EX15.7
Tracking Status
- City Council adopted this item on July 28, 2020 without amendments.
- This item was considered by the Executive Committee on July 21, 2020 and adopted without amendment. It will be considered by City Council on July 28, 2020.
EX15.7 - Capital Variance Report for the Five Months Ended May 31, 2020
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on July 28 and 29, 2020, adopted the following:
1. City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 2 to the report (July 7, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
City Council Decision Advice and Other Information
City Council considered Items EX15.7, EX15.8 and CC23.3 together.
The City Manager and the Chief Financial Officer and Treasurer gave a verbal presentation to City Council.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149214.pdf
Appendix 1 - 2020 Capital Variance and Projection Summary for the Five Months Ended May 31, 2020
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149215.pdf
Appendix 2 - In-Year Adjustments for the Five Months Ended May 31, 2020
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149216.pdf
Appendix 3 Capital Variance Dashboard by Program and Agency
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149217.pdf
Motions (City Council)
EX15.7 - Capital Variance Report for the Five Months Ended May 31, 2020
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 2 to the report (July 7, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.
Origin
Summary
The purpose of this report is to provide City Council with the City of Toronto capital spending for the five month period ended May 31, 2020, as well as projected expenditures to December 31, 2020. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2020 Approved Capital Budget and Plan that have no impact on 2020 approved debt.
As illustrated in Table 1 below, City's 2020 capital expenditure was $1.032 billion or 22.3 percent of the 2020 capital budget of $4.635 billion for the period ended May 31, 2020 and is projecting to expend $3.844 billion or 82.9 percent by December 31, 2020
Table 1 - Capital Variance Summary
|
2020 Approved Budget* |
Actual Expenditures - January to May |
Projected Expenditures - January to December |
||
|
$M |
$M |
Percent |
$M |
Percent |
City Operations |
1,926 |
375 |
19.5 percent |
1,571 |
81.5 percent |
Agencies |
1,348 |
384 |
28.5 percent |
1,139 |
84.5 percent |
Subtotal - Tax Supported |
3,274 |
759 |
23.2 percent |
2,710 |
82.8 percent |
Rate Supported |
1,361 |
274 |
20.1 percent |
1,134 |
83.3 percent |
TOTAL |
4,635 |
1,032 |
22.3 percent |
3,844 |
82.9 percent |
*Note: Includes 2019 carry forward funding and 2020 in-year adjustments
The Capital spending pattern for the first quarter typically ranges between 5.4 percent and 13.1 percent of the total Council Approved Capital Budget compared to 22.3 percent spend as of five months. Total City projected spend of 82.9percent by year-end is comprised of a Tax Supported Programs spending rate of 82.8 percent and a Rate Supported Programs spending rate of 83.3 percent.
Projected underspending by year-end totals $791 million or 17.1 percent of the 2020 Capital Budget. Approximately half of the projected year-end variance reflects underspending attributed to COVID-19 impacts.
The projected year-end spending rates presented in this report are based on the submissions from each Program and Agency, and as such, the preparation of this report has been based on this information.
Background Information
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149214.pdf
Appendix 1 - 2020 Capital Variance and Projection Summary for the Five Months Ended May 31, 2020
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149215.pdf
Appendix 2 - In-Year Adjustments for the Five Months Ended May 31, 2020
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149216.pdf
Appendix 3 Capital Variance Dashboard by Program and Agency
https://www.toronto.ca/legdocs/mmis/2020/ex/bgrd/backgroundfile-149217.pdf