Agenda

The City Manager and the Deputy City Manager, Cluster B recommends that:

1.  City Council approve the concepts for the SmartTrack stations outlined in Attachment 1 as the basis for completing station design work, and authorize the City to act as co-proponents with Metrolinx for, and together commence, the Transit Project Assessment Process (TPAP) for the SmartTrack stations, which will consider the following station-specific design elements:

a.  St. Clair-Old Weston SmartTrack station will be coordinated with the ongoing work on the St. Clair Avenue West Transportation Master Plan, and all efforts made to advance aspects of that Master Plan concurrently with the station;

 
b.  King-Liberty SmartTrack station will include the consideration of strong connections for pedestrians and cyclists directly into Liberty Village, provision for the King High Line crossing and other enhancements to cycling infrastructure in and through the area;

 
c.  East Harbour SmartTrack station will be fully integrated into the broader Unilever Precinct planning process to support the development of this area as a major employment area;

 
d.  Gerrard-Carlaw SmartTrack station will include entrances that optimize connections with the planned Relief Line station, other transit lines and the broader station area;

 
e.  Lawrence-Kennedy SmartTrack station will feature direct access from the Lawrence Avenue overpass, and will allow for the continued operation of Line 3 until the opening of the Scarborough Subway Extension while optimizing connections to areas of potential future development north of Lawrence Avenue; and

 
f.  Finch-Kennedy SmartTrack station will be integrated with a road-under-rail grade separation being constructed as part of Regional Express Rail, feature direct access from station entrances on Finch Avenue, include new local access roads at the north end of the station to provide for passenger pick up/drop off and consideration of improved access from areas south of the station.

 
2.  City Council request that Metrolinx include strong connections to Bloor Street and all provisions required to improve the network of pedestrian/cycling pathways along the GO corridor that were initiated through the Davenport Diamond Grade Separation project as part of the Transit Project Assessment Process (TPAP) or addenda for the Bloor-Lansdowne GO Regional Express Rail station.

 
3.  City Council request that Metrolinx work in partnership with the Deputy City Manager, Cluster B to advance the Spadina-Front GO Regional Express Rail station, the Rail Deck Park proposal and other aligned capital projects in the rail corridor, and request consideration of a decking structure in the planning, design and engineering work for the Spadina-Front GO Regional Express Rail station, including but not limited to the station's Transit Project Assessment Process (TPAP) or addenda.

 
4.  City Council approve an at-grade Eglinton West Light Rail Transit extension concept for the Toronto Segment between Mount Dennis Station and Renforth Station (at Commerce Boulevard), including:

a.  Ten stops as described in Attachment 2 to the report (November 17, 2017); and

 
b.  No further consideration of grade separations at Eglinton Flats (i.e. Jane Street and Scarlett Road), Royal York Road, Islington Avenue, Martin Grove Road, and Kipling Avenue.

 
5.  City Council request Metrolinx to engage in discussions with the City on required resources to support timely implementation of the Metrolinx Regional Express Rail program and authorize the City Manager and any other relevant City officials to execute an agreement with Metrolinx to have Metrolinx fund:

a.  Dedicated City staff resources in support of Regional Express Rail implementation in Toronto; and

 
b.  The City's Property Acquisition Unit to provide property acquisition services for transit expansion initiatives to Metrolinx, including the Light Rail Transit and Regional Express Rail programs in Toronto.

 
6.  City Council forward the City's submission on Metrolinx's draft Regional Transportation Plan as outlined in Attachment 5 to the report (November 17, 2017) to Metrolinx and the Ministry of Transportation.

In July 2016, City Council conditionally approved the SmartTrack concept, based on initial business cases included in the report EX16.1 Developing Toronto's Transit Network Plan to 2031. The SmartTrack concept includes two components. The first component is an integrated SmartTrack/Regional Express Rail (RER) service on the Kitchener and Stouffville/Lakeshore East GO corridors with service frequencies of 6-10 minute peak service and 15-minute off-peak service at fourteen stations, which includes six new SmartTrack stations. The second component is an extension of the Eglinton West Light Rail Transit (LRT) line from Mount Dennis Station to Renforth (at Commerce Boulevard) with between 8 and 12 stops. The potential for a further extension of the Light Rail Transit to Toronto Pearson International Airport is also under review.

In November 2016, City Council committed funding to advance the planning and design of the SmartTrack concept to a Class 3 cost estimate (approximately 15-30 percent design), at which time City Council will decide whether to commit funding to procurement and construction of SmartTrack. The staged decision-making process for SmartTrack is outlined in the "Stage Gate Process" agreed to by the City and the Province in the report EX19.1 Transit Network Plan Update and Financial Strategy. This report provides recommendations to advance both components of the SmartTrack project.

SmartTrack/Regional Express Rail Integration

The planning and design of the six new SmartTrack stations to be incorporated into the overall SmartTrack/Regional Express Rail integration concept have been further advanced to address the City's policy and planning objectives. Attachment 1 includes the emerging station concepts that have resulted from stakeholder and community consultation and collaboration with Metrolinx. The concepts in Attachment 1 will inform the Environmental Project Reports for each station. The report recommends City Council approve the concepts for the new SmartTrack and GO Regional Express Rail stations, and authorize the City to act as co-proponents with Metrolinx in the Transit Project Assessment Process (TPAP) for the SmartTrack stations, which will commence in the first quarter 2018. This recommendation allows the SmartTrack stations to proceed to the next stage of work. Staff will report to City Council in the second quarter of 2018 to seek authority to proceed to procurement and construction of the new stations. A Class 3 cost estimate and updated funding and financing strategy for the stations will be included in the next report. 

Eglinton West Light Rail Transit Extension

The Eglinton West Light Rail Transit extension includes two components which are currently in different stages of development. The extension from Mount Dennis Station to Renforth (at Commerce Boulevard), which is the segment located in Toronto (i.e., the "Toronto Segment"), is the furthest advanced. In 2016, City Council requested staff to undertake further analysis of potential stop locations included in the approved 2010 Environmental Assessment (EA)/Transit Project Assessment Process (TPAP), and to also review potential grade separations for the Toronto Segment. The results of this analysis are outlined in Attachment 2. It is recommended that City Council approve a 10-stop at-grade Light Rail Transit concept for the Toronto Segment of the project and no longer consider grade separations as staff finalize the alignment for the full Light Rail Transit extension.

The City is supporting Metrolinx in its study of a potential extension of the Light Rail Transit from Renforth to Toronto Pearson International Airport (i.e., the "Airport Segment") in partnership with the City of Mississauga and the Greater Toronto Airport Authority (GTAA). Further direction on potential alignment options for the Airport Segment is required to finalize the full alignment of the Light Rail Transit project. The City has also initiated a comprehensive traffic modelling study in the Martin Grove Road area to address traffic management concerns. The outcomes of this study may result in further refinement of the Light Rail Transit alignment west of Martin Grove Road. Further public and stakeholder consultation will be undertaken as this work develops. A final alignment for the Light Rail Transit will be recommended to City Council in the second quarter of 2018, at which time staff will seek authority to amend the approved Environment Assessment/Transit Project Assessment Process in partnership with Metrolinx.

Regional Express Rail

Attachment 3 of the report provides an update from Metrolinx on the implementation of Metrolinx's Regional Express Rail program, which is foundational to the SmartTrack/Regional Express Rail integration concept described above. Regional Express Rail is a transformational program to provide increased service on core portions of the GO Rail network. This report recommends City Council request Metrolinx to engage in discussions with the City on required resources to support timely implementation of the Regional Express Rail program and authorize the City Manager to execute an agreement with Metrolinx to have Metrolinx fund City positions to provide services in support of Regional Express Rail implementation in Toronto.

Regional Transportation Plan

In September 2017, Metrolinx released the Draft 2041 Regional Transportation Plan (the "Draft Plan") for public consultation. The City is working closely with Metrolinx to ensure the elements of the Draft Plan align with the City's transit and transportation policies and priorities. The City and Toronto Transit Commission are key partners in delivering improved mobility outcomes in the region and should be considered a key partner in the next iteration of the Draft Plan. The City has prepared a submission to Metrolinx in response to the Draft Plan which is included as Attachment 5. This report requests City Council forward the contents of the submission to Metrolinx and the Ministry of Transportation. Metrolinx will be reporting back to their Board in December 2017 with a Draft Final Plan.

There are no financial implications resulting from the implementation of the recommendations in this report.

In November 2016, City Council approved funding for SmartTrack preliminary planning and design work to be incurred to Stage Gate 5 in the SmartTrack Stage Gate Process. Preliminary costs include costs associated with the planning, design, property acquisition, enabling works (including investigative and planning work for utility relocations), Alternative Financing and Procurement (AFP) and Transit Project Assessment Process preparation. Stage Gate 5 in the process represents the completion of the required preliminary planning and design work to achieve a Class 3 cost estimate for the project. The approved budget includes $71 million for planning, design and other predevelopment expenditures related to the six SmartTrack stations and the Eglinton West Light Rail Transit. No additional funding for the project is required at this time.

An updated SmartTrack funding and financing strategy will be provided to Council for its consideration in the second quarter of 2018, once Class 3 cost estimates are available for the SmartTrack/Regional Express Rail integration concept. Class 3 cost estimates for the full Eglinton West Light Rail Transit extension will be available in the first quarter of 2019. A preliminary funding and financing strategy for SmartTrack was included in the report EX19.1.

The City is seeking Metrolinx financial support to fund required staff positions to support Regional Express Rail implementation in Toronto.  If Council authorizes the City to execute an agreement with Metrolinx, any financial impact to the City that may arise will be reported to Council as required.

The Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Deputy City Manager, Cluster B, the Deputy City Manager, Cluster A, the Deputy City Manager, Internal Corporate Services and the Acting Chief Financial Officer recommend that:

1.  City Council authorize the Deputy City Manager, Cluster B, the Deputy City Manager, Cluster A, the Deputy City Manager, Internal Corporate Services and the Acting Chief Financial Officer, in consultation with City Solicitor to:

i.  advance the Stage Two Work Plan for Rail Deck Park in 2018 and 2019 as described in this report, and

ii.  utilize the City-owned lands in the rail corridor only in a manner consistent with the future establishment of a comprehensive park and open space development in the rail corridor area.

2.  City Council request Metrolinx to work in partnership with the Deputy City Manager, Cluster B, to advance the Spadina-Front GO station, the Rail Deck Park proposal and other aligned capital projects in the rail corridor, and request consideration of a decking structure in the planning, design and engineering work for the Spadina-Front GO station, including but not limited to the station's Transit Project Assessment Process ("TPAP") or addenda.

3.  City Council authorize the Deputy City Manager, Cluster B, the Deputy City Manager, Cluster A and the Acting Chief Financial Officer to advance the development of a growth-focused financial strategy for Rail Deck Park based on the following principles:

a.  a portion of Section 42 cash-in-lieu of parkland ("Section 42 CIL") contributions and other growth-related funds previously collected from development activity in Downtown Toronto will be applied towards project costs in a way that does not negatively impact on any parkland revenues generated for other areas of the city, and in accordance with existing allocation policies;

b.  incremental revenues from future rate increases to existing and/or new growth-related revenue tools, including Section 42 Cash-in-Lieu of parkland contributions, Section 37 contributions, Development Charges, and appropriate value capture tools, will be applied in such a manner that benefits all projects including the Rail Deck Park project and other parkland priorities across the city;

c.  commercial contributions will be sought that reflect the proportional benefit for properties and businesses in areas surrounding the project site resulting from the investment in Rail Deck Park;

d.  Federal and/or Provincial contributions will be sought through upcoming intergovernmental negotiations taking into account an assessment of potential economic and fiscal impacts; and

e.  a phased approach for implementation and construction of Rail Deck Park will be established consistent with projected revenues and contributions anticipated through Recommendations 3 a, b, c, and d.

4.  City Council direct the Deputy City Manager, Cluster B and the Acting Chief Financial Officer to proactively consult with the development and business communities concerning the principles of the financial strategy, including potential funding options, and any additional options to improve the development review process emanating from the End to End Review.

5.  City Council direct the Acting Chief Financial Officer to:

a.  engage land development, capital market and legal expertise in assessing the appropriate financing strategy for the project as required; and

b.  report back to Council with the implementation of this recommended strategy once the cost for securing the use and/or ownership of necessary properties is known and capital cost estimates have been refined in order for Council to confirm its definitive commitment to the project.

6.  City Council direct the Acting Chief Financial Officer to include eligible components of the Rail Deck Park project costs in the City's development charges by-law review currently underway.

7. City Council request the Province of Ontario to amend the Development Charges Act, 1997 ("DCA"), and to make any necessary regulation in order to:

a. exempt the Rail Deck Park project from the use of the service level cap;

b. include Rail Deck Park in the list of services not subject to a 10 percent reduction; and

c. deem any potential Federal/Provincial contributions towards the project to be used to benefit existing development.

8.  City Council request the Acting Chief Planner and Executive Director, City Planning, the General Manager of Parks, Forestry and Recreation and the Director, Toronto Office of Partnerships and other staff as appropriate to:

a.  undertake a public and stakeholder engagement process to inform early-stage design, including the formation of a Community Stakeholder Advisory Group;

b.  undertake a public ideas competition;

c.  develop a fundraising strategy and evaluate the potential for sponsorship and donations to support the project; and

d.  evaluate governance options for long-term programming, operations, and maintenance for Rail Deck Park.

This report provides an update on the implementation strategy for the "Rail Deck Park" project approved by Council in October 2016. The scope of the proposed project is a 20 acre decking structure and park facility to be constructed in the Union Station Rail Corridor between Bathurst Street and Blue Jays Way.

This report provides summary information for the following areas:

-  Context and rationale for the project;

-  Emerging scope, phasing and order of magnitude costing;

-  Update on a "growth-focused" financial strategy;

-  Update on real estate matters; and

-  Recommendations for stage two of the project.

A separate report entitled "Rail Deck Park - City-Initiated Official Plan Amendment - Final Report" from the Acting Director, Community Planning, Toronto and East York (TE28.7) with recommendations to establish the land use designation for the area over the rail corridor as Parks and Open Space Areas was unanimously adopted by Toronto and East York Community Council on November 14, 2017.

1. Opportunity to Support Growth and Provide City-Wide Benefits

Rail Deck Park is a once-in-a-generation opportunity for a major new park that supports future development in Downtown Toronto while also providing city-wide benefits.

Over the past decade, there has been a fundamental shift in the amount of growth experienced across the city. Development intensity has been particularly acute in the core of the city where population grew by roughly three times the rate of the preceding ten years (40 per cent compared to 13 per cent).

The creation of new parks has not kept pace with this level of growth. Only two new parks provided in the Downtown area over the past 10 years have been greater than 3 hectares in size. The City is challenged in acquiring significant new parkland in a competitive real estate market. Typical land acquisition costs for free and unencumbered properties in the western area of Downtown Toronto range between $95 and $115 million per acre.

Significant Downtown population growth is expected to continue for the foreseeable future, with current projections showing that 140,000 to 180,000 units could be added through 2041.

If this growth is to continue, there is a need for significant new infrastructure, including parkland, to ensure the quality of life, health, and sustainability of Downtown neighbourhoods. If this cannot be achieved, it may be necessary for the City to reconsider the pace and amount of future development in the Downtown.

The rail corridor area is the last remaining site suitable for a major park (over 3 hectares) to support growth in the Downtown and serve as a city-wide asset.

Rail Deck Park will be the largest downtown park outside of the Don Valley. The proposed decking structure will support a fully functional park that, at full build-out, will comprise a total area of approximately 8.3 hectares or 20 acres, excluding the Metrolinx property at the corner of Front Street and Spadina Avenue. Inclusion of the Metrolinx-owned property increases the potential park area to approximately 8.8 hectares or 21 acres (refer to Figure 2 in the Comments section.)

A park of this scale is a city-wide asset that offers unique programming and design opportunities not available in smaller parks, such as a mix of recreation, natural areas, and cultural uses. It will unite surrounding visitor attractions (Rogers Centre, Ripley's Aquarium, Fort York) into a major destination district and enhance regional connectivity by integrating with the planned GO Regional Express Rail network.

Rail Deck Park also has the potential to strengthen Toronto's global image and competitive position by creating an iconic new public space that exemplifies livability, cultural vibrancy, social inclusiveness, environmental resiliency, and civic pride.

2. Design Concept and Costing Reflects Complexity of Building in the Rail Corridor

During the first stage of work, the City of Toronto engaged with Build Toronto to undertake a preliminary engineering and costing study for the decking structure to support Rail Deck Park. Reports and appendices from the study will be posted online on the City's project website at www.toronto.ca/raildeckpark prior to the November Executive Committee meeting.

The total preliminary cost estimate for the Rail Deck Park project (8.3 hectares; 20 acres) is $1.665 billion (2017 constant dollars) or approximately $83 million per acre. Project costs in this report represent order of magnitude (Class 4) estimates based on early-stage design concepts and the best information currently available for site conditions.

The cost estimate includes over $600 million in contingencies and allowances, as well as additional track-level work, reflecting the unique complexity and uncertainty of early-stage planning in the rail corridor. Cost estimates are subject to substantial refinement, including areas of potential savings, as the work proceeds through subsequent stages. Cost estimates do not include escalation or financing costs as detailed cash flows are not yet known.

Design and construction of the Rail Deck Park will be subject to multiple approvals and requirements for building in the rail corridor. The project will need to be coordinated with other major capital works. Cooperation with Metrolinx on aligned projects is critical to determining the ultimate scope, timelines, and cost of Rail Deck Park.

Implementation and construction of Rail Deck Park can be phased based on the availability of potential funding to be identified through financial strategy as well as various programming and design considerations.

A priority phase one option has been identified, extending from Spadina Avenue to the current location of the "Puente de Luez" pedestrian bridge, comprising an area of approximately 3.9 ha (9.5 acres) with a total cost of $872 million. The phase one area would create a large, contiguous park space to provide for a range of recreation and culture uses and support future expansion to the east and west (refer to Figure 7 of the Comments section).

3. Supported by a Growth-Focused Financial Strategy

Rail Deck Park is an investment to support future growth in Toronto. Therefore, the financial strategy will place an emphasis on incremental growth-related funding tools and revenues in such a manner that benefits all parkland priorities across the City, including Rail Deck Park.

Among these tools are Section 42 cash-in-lieu of parkland dedication ("Section 42 CIL") funds, which are collected from new development with the sole purpose of acquiring and developing parkland in the city. A separate report currently before Council ("Review of the City's Alternative Parkland Dedication Rate under Section 42 of the Planning Act") describes the ongoing challenges that the City faces in using these funds for acquisition purposes in high growth areas and presents options for updating Section 42 Cash-in-Lieu of parkland dedication policies to better align with current development intensities.

Changes to the calculation of Section 42 Cash-in-Lieu of parkland dedication would provide potentially significant funding capacity for Rail Deck Park and enhance funding available for parkland priorities elsewhere in the Downtown and across the city. Updating the Section 42 Cash-in-Lieu of parkland dedication policies is a first and important step towards advancing the financial strategy for Rail Deck Park.

The financial strategy is also evaluating contributions from other revenue tools including Section 37 funds, development charges, and area-specific "value uplift capture” tools. This report recommends that eligible components of the project be included in the City's development charges bylaw review currently underway, and that Council request amendments to the Development Charges Act, 1997 to maximize the availability of development charges to support the project.

Additional funding sources to be explored as the project proceeds include sponsorships, donations, and contributions from other orders of government.

A financial strategy will be brought forward for Council consideration after refining project timelines and cost estimates, advancing changes to the existing growth focused tools (Section 42 Cash-in-Lieu of parkland dedication and Development Charges), further analysis of other funding tools, discussions with government partners regarding joint funding opportunities, and consultation with land development and capital market experts.

4. Securing the Rail Corridor Properties for Public Benefit

Almost three quarters of new park projects in Toronto involve the acquisition or conveyance of lands owned by third parties. These transactions can be highly complex.

A comprehensive legal review of current ownership confirms that there are four primary property owners in the Rail Deck Park project area: Metrolinx, the City of Toronto, Canadian National Railway Company ("CN") and The Toronto Terminals Railway Company Limited ("TTR"). All lands in the rail corridor were originally acquired for public purposes rather than private development.

Representations have been made in public by private parties claiming "development rights" over the rail corridor. However, as of the date of this report, the owners registered on title for these properties are Canadian National Railway Company and The Toronto Terminals Railway Company Limited.

City staff will be available to provide information concerning real estate matters to Executive Committee and City Council as required.

5. Advancing Planning and Design for Rail Deck Park

The project can be advanced through a "stage gate" capital planning process, providing Council with specific decision points about advancing the project as scope, timelines and costs are clarified. If Council adopts the recommendations in this report it will be authorizing staff to undertake a stage two ("due diligence and concept development") work plan in 2018 and 2019.

The purpose of the proposed stage two work plan is to address various technical, financial and real estate matters that are required prior to undertaking an Environmental Assessment process, putting forward a detailed financial strategy, and advancing a more detailed level of design.

Coordination will be required with Metrolinx and engineering experts to address various technical issues related to capital construction in the rail corridor. Alignment and partnership between the City and Metrolinx is critical to the delivery of Rail Deck Park, the Spadina-Front GO station and other capital projects in the rail corridor.

During stage two, the project team will continue to engage with members of the public to develop early-stage programming and design considerations for the project. Among the actions described for stage two are (i) formation of a Stakeholder Advisory Group representing community members and stakeholder groups; (ii) design work required to inform and frame a future International Design Competition; (iii) development of a fundraising strategy and; (iv) evaluation of governance options for the long-term operation and maintenance of Rail Deck Park.

A report on stage two outcomes will be brought forward to Council in 2019.

There are no direct financial implications resulting from the implementation of the recommendations in this report.

The preliminary capital cost of Rail Deck Park, inclusive of a preliminary assumption for land and/or air rights acquisition costs, is currently estimated at $1.665 billion (2017 constant dollars). This estimate is based on Class 4 (1 to 5 per cent level of design) and does not include escalation, financing costs, or the pricing of risk. The capital cost will be refined as further design and site investigation is completed.

The project follows the Council-approved "stage gate" capital planning process. The work undertaken to date confirms the conceptual feasibility of the project (Stage 1) and recommends advancing to "due diligence and concept development" (Stage 2) involving engineering/technical studies to support an environmental assessment, design, engagement and legal/real estate consultant costs.

Investment in major parks and public realm projects can generate economic benefits. Potential impacts can include direct, indirect and induced spending associated with capital construction and ongoing operations, contributions to the visitor economy and real estate value uplift.

Funding for engineering and technical studies to support design, as well as engagement, legal and real estate consultant costs is partially contained within the Corporate Initiatives Capital project CCI102 Rail Deck Park, approved by Council in October 2016 with total project costs of $2.423 million and cash flows of $78,000 in 2016 and $2.345 million in 2017. Additional approval will be requested as part of the Corporate Initiatives 2018 Capital Budget and Plan submission seeking an additional $6.4 million in total project costs for Rail Deck Environmental Assessment support with cash flows of $2.2 million in 2018, $2.6 million in 2019, and $400 thousand in each of 2020 to 2023.

Once the cost for securing the use and/or ownership of necessary properties is known, and the capital cost estimates have been refined, staff will report back on updated project details, including a recommended funding and financing strategy, for Council's consideration and the opportunity to confirm its commitment to proceed with the project.

The General Manager, Parks, Forestry and Recreation and the Acting Chief Planner and Executive Director, City Planning recommend that:

1.  The Executive Committee direct the General Manager of Parks, Forestry and Recreation and the Acting Chief Planner and Executive Director, City Planning to report back on the Final Parkland Strategy in the second quarter of 2018.

The Parks Plan (2012-2017) was approved by City Council at its meeting in May 2013 and among other recommendations, directed an update to the strategy for the acquisition of parkland to continue to prioritize underserved areas and address City priorities.

This report provides an overview of the Parkland Strategy (Strategy) focusing on the preliminary analysis undertaken to improve the assessment and decision-making on the allocation of parkland across the City. The report also outlines the alignment of this Strategy with key City Planning initiatives including the Rail Deck Park Implementation Plan and the Review of the City's Alternative Parkland Dedication under Section 42 of the Planning Act.  Included in this report is a Parkland Strategy Preliminary Report Primer (Attachment 1), providing a high level summary of a Phase 1 Report prepared by O2 Planning & Design Inc.

The Parkland Strategy is a 20-year plan for the enhancement of Toronto's park system through the creation of new parks and the expansion and improved access to existing parks.  The Parkland Strategy will build on current practice providing new approaches and tools to support decision making on the acquisition and reinvestment in our City's park system. 

This report proposes an updated methodology to measure and assess parkland provision, using the baseline of residential population against the hectares of parkland available across the City. Included in this analysis is Toronto's ravine system and large parks such as the Rouge. 

The methodology has determined that the City-wide parkland provision average is 28 m2 per person, including 36 m2 per person in Etobicoke York; 29 m2 per person in North York; 45 m2 per person in Scarborough; and 21 m2 per person in Toronto and East York (see Table 2). Comparison of city-wide parkland provision (see Table 3) with that of six other large North American cities shows that Toronto is comparable to Vancouver, is higher than San Francisco and lower than Los Angeles.  Comparison of parkland provision in each city's densest core shows Toronto is lower than New York, Chicago and Houston (all cities that have protected/invested in large parks in their downtown areas).  The updated methodology has also assessed how future growth and employment population further decreases parkland provision city-wide.

This preliminary analysis of city-wide parkland supply and distribution will be used to build an understanding of the scope, scale and location of parkland need across Toronto.  The next phase of work of the Parkland Strategy will consider acquisition, reinvestment and functionality of the parks system. It will also assess the options for potential updates to the Alternative Parkland Dedication Rate. This will be integrated into an implementation, policy and investment framework to be presented in the Parkland Strategy Final Report, due back in second quarter 2018.

The Parkland Strategy is necessary and foundational work that will support concurrent City initiatives and guide long-term planning for new parks, expansions and improved access to existing parks throughout the City.  It will provide a comprehensive analysis of the availability and function of parkland and provide new approaches and tools to support decision-making and the prioritization of parkland investment across Toronto for the next 20 years.  Finally, it will act as Toronto's parks plan, satisfying the new requirement in the Planning Act that municipal organizations study the need for parkland through preparation of a parks plan prior to adopting any changes to the Alternative Parkland Dedication Rate.

There is no financial impact arising from the recommendations in this report.

The Acting Chief Financial Officer has reviewed this report and concurs with the financial impact.

The Acting Chief Planner and Executive Director, City Planning Division and the General Manager, Parks, Forestry and Recreation recommend that:

1. The Executive Committee direct the Acting Chief Planner and Executive Director, City Planning in consultation with the General Manager, Parks Forestry and Recreation, to update the Alternative Parkland Dedication Rate for cash-in-lieu of parkland for Secondary Plan areas including, but not limited to the Yonge-Eglinton Secondary Plan Area and the TOcore Downtown Plan Area having consideration for the approaches for the cash-in-lieu of parkland rate options presented in this report (November 20, 2017).

2.  The Executive Committee direct the General Manager, Parks Forestry and Recreation to include the Alternative Parkland Dedication Rate cash-in-lieu options presented in this report in the Phase 2 analysis and implementation plan of the City-wide Parkland Strategy.

3.  The Executive Committee direct the Acting Chief Planner and Executive Director, City Planning to use the findings of the Review of the City's Alternative Parkland Dedication Rate under Section 42 of the Planning Act, in the review of the Official Plan's Parks and Open Space policies.

4.  The Executive Committee direct the Acting Chief Planner and Executive Director, City Planning and the General Manager, Parks Forestry and Recreation, to conduct consultation with the development industry and other relevant stakeholders on the proposed options and report back to Planning and Growth Management Committee on the recommended City-wide official plan amendment.

As enabled by Section 42 of the Planning Act, Toronto’s planning tool for acquiring new parkland is through land dedications or cash-in-lieu of parkland as a condition of development or redevelopment.  In Parkland Acquisition Priority Areas, the City requires land dedications or cash-in-lieu payments based on the Alternative Parkland Dedication Rate (alternative rate). 

The alternative rate is over 10 years old and has not kept pace with development intensity.  Since the rate was approved by the Ontario Municipal Board in 2005, city-wide average residential densities have increased by 205 percent by project and the average units per hectare by project have increased by 254 percent.  This intensity generates increased parkland demand.  Parkland need has also changed as over 83% of growth across Toronto is in vertical communities. An  increasing number of parks users access parkland daily, as it serves as an extension of their outdoor living space,  including the use of this space by employees, farmers' markets, cultural festivals, dog walkers and others.  Growth is paying for a diminishing share of the cost to meet the need generated by higher density development. This report identifies the need to update the alternative rate. 

The existing alternative rate includes a series of site caps that stipulate a maximum land dedication or payment of cash-in-lieu based on site size.  Over 90 percent of development across the city's Centres is on sites which limits the parkland requirement maximum to10 percent of the site or equivalent value. 

Many of Toronto's high growth areas are characterized by a small parcel fabric less than 0.5ha (1.2 acres) reflective of infill development.  On smaller sites, the City often accepts cash-in-lieu of parkland rather than a land dedication.  The challenge that exists is that in the city's Centres and high growth areas cash-in-lieu contributions commonly hit the 10 percent value cap at densities that  represent a fraction of what development is proposing, thus significantly reducing the City's ability to acquire land for parks.  The current cash-in-lieu rate also does not match parkland demand that is generated by development as it is calculated only on a percentage of the site value and not density.

A new alternative rate policy that increases cash-in-lieu payments on new growth to better reflect the intensity of development and increase in demand for parks can benefit all areas of the city.  Funds secured through Section 42 are used to deliver local and city-wide parks and parks development, enabling the City to achieve its broader parks objectives.

This report, prepared in consultation with Parks, Forestry and Recreation sets out the analysis to support an update to the cash-in-lieu component of the alternative rate in order to be responsive to the realities of the land market and intensity of development in Toronto.  Staff initiated a review of the alternative rate to assess the efficacy of the current rate and also to determine the thresholds for change when impacts on development feasibility and housing affordability are considered. 

Staff recommend that the rate options presented in this report and its appendices inform the City-wide Parkland Strategy and form the basis for a review of the City's policies and alternative rate in the Official Plan.  Furthermore, staff recommend this report inform area-specific alternative rates for the Parks Plans nearing completion in the Yonge-Eglinton Secondary Plan Area and in the TOcore Downtown Plan area.  The Port Lands Planning framework has incorporated a version of one of the rate options which has been tailored to reflect the specific development profile of that area.

There are no financial impacts resulting from the adoption of this report.

The Deputy City Manager, Internal Corporate Services recommends that:

1.  City Council approve the municipal code chapter amendments in substantially the form as set out in Appendix A to the report (November 15, 2017), effective January 1, 2018, subject to such stylistic or technical amendments as may be required by the City Solicitor.

2.  City Council approve the amendments to the shareholder directions for Build Toronto and the Toronto Port Lands Company in substantially the form as set out in Appendix B and Appendix C to the report (November 15, 2017), effective January 1, 2018, subject to such technical amendments as may be required by the City Solicitor.

3.  City Council direct the City Solicitor to prepare and introduce any required amendments to the Municipal Code regulations for the Toronto Realty Agency (currently Chapter 215) and take any other necessary steps to give effect to the re-naming of the Toronto Realty Agency by the Toronto Realty Agency Board.

4.  City Council authorize the City Solicitor to introduce the necessary bills to give effect to City Council's decisions in this report.

City Staff are recommending amendments to certain municipal code chapters and shareholder directions of two corporations, Build Toronto and Toronto Port Lands Company, to centralize real estate authorities and decision making on a City-wide basis (excluding Toronto Community Housing Corporation and Toronto Hydro).  A framework for centralizing City-wide real estate authorities was adopted by City Council on October 2, 3 and 4, 2017. City Council directed staff to report back in the fourth quarter of 2017 on the specific amendments required to implement the framework, including:

-Amendments to Shareholder Directions for Build Toronto and Toronto Port Lands Company, in order to establish appropriate authority for the Toronto Realty Agency over Build Toronto Inc. ("Build Toronto") and the Toronto Port Lands Company ("TPLC") and their respective holding subsidiaries and activities, and to effectively implement the new real estate model approved by City Council in May 2017; and

 
-Amendments to Municipal Code Chapters and delegated authorities for certain Agencies and Divisions including Toronto Transit Commission ("TTC"), Toronto Parking Authority ("TPA") and Board of Governors of Exhibition Place ("Exhibition Place"), Toronto Public Library ("TPL") and Parks Forestry and Recreation ("PF&R") to ensure that all real estate transactions are directed through the City's new real estate service delivery model and delegated authority approval process, effective January 1, 2018.
 

The new real estate model (consisting of the Toronto Realty Agency, plus the Real Estate Services and Facilities Management Divisions under the Deputy City Manager of Internal Corporate Services) will work in an integrated fashion to deliver real estate services to all City programs and execute the best solutions for the City as a whole. This includes driving major City-building and revitalization projects, unlocking value for City priorities (e.g. community, social, economic, and environmental opportunities), and delivering creative solutions to programs, residents and visitors of the city. All program commitments from Build Toronto and Toronto Port Lands Company will be maintained under the new real estate model and managed by the Toronto Realty Agency, such as targets for affordable housing and dividend commitments. New targets will be established as part of a City-wide real estate strategy that will be submitted to Council in 2019 with input from Divisions, City Councillors and other City stakeholders.

Once the City-wide real estate service delivery model is launched on January 1, 2018, the new Toronto Realty Agency and the Deputy City Manager, Internal Corporate Services, will collaborate to plan and execute real estate solutions in an integrated manner, while working closely with City Divisions, Agencies and Corporations. City Staff are also establishing a new name and brand for the Toronto Realty Agency through engagement with various stakeholders and will bring forward the naming and branding strategy to City Council in early 2018.

There is no financial impact resulting from the approval of this report.

The Toronto Realty Agency (TRA) Operating Budget will align with the City's 2018 Budget process, including recommendation by the interim Agency Board of Toronto Realty Agency's 2018 Operating Budget to be considered by City Council. Interim Budget estimates for 2018 are included in the City-wide 2018 Interim Estimate staff report to be presented to City Council for consideration.

With future real estate projects carried out by the Toronto Realty Agency, it is a pre-condition to the exercise of any delegated authority that all required funding be available in a Council approved Budget, or funding be available from third party sources.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Acting Chief Financial Officer recommends that:

1.  City Council approve the Statement of Investment Policies and Procedures attached as Attachment 1 to the report (November 15, 2017).

This report recommends a revised Investment Policy for Council's consideration.  The proposed Policy responds to amendments made by the Province through Ontario Regulation 360/15 ("the Regulation"), under the City of Toronto Act, 2006 that allow the City to invest its general and sinking funds, according to the "Prudent Investor" standard. This standard commonly guides pension and endowment fund investing in Ontario and other jurisdictions. Under this standard, the City will have considerably greater flexibility in the types of investments that it can make but the City must, according to the new regulation, "exercise the care, skill, diligence and judgement that a prudent investor would exercise" in making these investments.

This authority will come into effect on January 1, 2018.  Prior to that date, the City is required to complete the following two steps:

1.  establish an Investment Board (which was the subject of a report that was adopted by Council at its meeting held on March 28 and 29, 2017) to which Council delegates its investment powers; and

2.  approve an Investment Policy that will direct the Board's activities by establishing the City's requirements with respect to:

a.  Return on Investment;

b.  Risk Tolerance; and

c.  Liquidity.

At its May 16, 2017 meeting, Executive Committee directed staff to consult with the Investment Board regarding the proposed Investment Policy prepared by staff.

Staff have considered changes recommended by the Board and incorporated them into a revised Policy that is attached to this report.

The Board is required by regulation to develop an Investment Plan and strategy to be used to implement the Investment Policy.  Their Plan will define the methods and means that the Board will use to manage the City's investment portfolios within the parameters of the Policy.

It is anticipated that the greater breadth of potential investments available to the Investment Board will allow it to realize improved returns over the longer-term while also reducing overall portfolio risk.

However, as outlined in this report, there will be a transition period during which the investment portfolio will gradually make greater use of the broader range of investment opportunities that become available. Although portfolio risk will ultimately be reduced, the potential for volatility in short-term returns will still exist. Therefore, it is staff's expectation that implementation of the proposed Investment Policy will have a modest positive budget impact in the short term. Staff will report, as part of the 2018 Budget process, on expected budget income for 2018 and beyond.

The proposed Policy directs the Board to provide Council with a semi-annual report that provides information about the make-up and performance of the City's portfolio of investments as well as its compliance with the Policy.

The Deputy City Manager, Internal Corporate Services recommends that:

1.  City Council direct the Deputy City Manager, Internal Corporate Services to negotiate with Enwave Energy Corporation, based on the principles in Attachment 1, the terms for a Joint-Development Agreement for the purpose of developing Low-Carbon Thermal Energy Networks, and report back to Council in the first quarter of 2018

2.  City Council direct the Deputy City Manager, Internal Corporate Services to undertake a business case study in consultation with the City Manager, to determine an appropriate governance and operational framework for a partnership with Enwave and to report back to Council in the first quarter of 2018.

3.  City Council direct the Deputy City Manager, Internal Corporate Services to work with Enwave and key City divisions, agencies and corporations on the development of a portfolio of near-term opportunities, including applying for grants, entering into contribution agreements for grants if successful, and other due-diligence related activities.

In June 2017, the Executive Committee directed the Deputy City Manager, Internal Corporate Services (then Chief Corporate Officer) to lead the negotiation of the necessary agreements for a business arrangement with Enwave Energy Corporation ("Enwave") for the development of Low-Carbon Thermal Energy Networks ("LCTEN").

The key objectives that have been identified include:

- Reduce greenhouse gas emissions, and improve energy resilience;
- Achieve speed to market, scalability, and ability to fund projects identified for development; - including attracting grants from external parties;
- Foster economic development, City building, and new revenue opportunities;
- Mitigate risks associated with project development and operation; and
- Create balance between long term project development and the capability to initiate projects that are ready for development now.
 

The City is considering several potential organizational and governance models. The initial step is to enter into a Joint Develop Agreement with Enwave that will lead to the definition of the preferred governance and operational framework to be implemented. Negotiations with Enwave are ongoing and we will report back to Council in the first quarter of 2018.

The next steps are:

- The City and Enwave negotiate the terms a joint-development agreement (non-binding until approved by Council), consistent with the principles outlined in Attachment 1 for consideration and approval by Council in the first quarter of 2018.
- The City prepare a business case study to determine an appropriate governance and operational framework for a partnership with Enwave and to report back to Council in the first quarter of 2018.
- The City and Enwave continue due-diligence on near-term Low-Carbon Thermal Energy Networks development opportunities in specific geographic nodes.

Implementing the recommendations in this report will result in costs to the City of $0.300 million, which will be used to increase the value of existing contracts for outside counsel and third-party business advisory services. The funding for this is included in the 2017-2026 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy (FREEE) under the Community Energy Planning capital project (CCA705-01).

Future business cases will be prepared for each development opportunity as part of the due-diligence activities. Enwave's contribution is expected to be primarily capital, while the City's financial contribution to individual projects may include the provision in-kind contributions, capital in the form of grants from other levels of government, leases/access to City assets, and other arrangements.

Decisions to connect City buildings to low-carbon thermal energy networks will be made independently on business terms.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The City Manager recommends that:  

1.  City Council direct that the consolidation of the City's three civic theatre boards be finalized effective December 31, 2017, as follows:

a.  merge the Boards of Directors of the St. Lawrence Centre for the Arts, the Toronto Centre for the Arts and Civic Theatres Toronto into the Board of Directors of The Hummingbird (Sony) Centre for the Performing Arts;

b.  amend the objects and mandate of the Board of Directors of The Hummingbird (Sony) Centre for the Performing Arts to incorporate the mandate, powers and delegated authorities for Civic Theatres Toronto in its entirety as set out in Item EX7.15, as approved by City Council at its meeting of July 7, 8 and 9, 2015;

c.  dissolve the Boards of Directors of the St. Lawrence Centre for the Arts, the Toronto Centre for the Arts and Civic Theatres Toronto and rescind the appointments of the members to those boards; and

d.  change the name of the Board of Directors of the Hummingbird (Sony) Centre for the Performing Arts to the "Board of Directors of Civic Theatres Toronto".

2.  City Council authorize the City Solicitor to introduce the necessary bills to give effect to the recommendations in this report, including the repeal and/or amendment of Municipal Code Chapter 11, Arts Centres, of the former City of Toronto, By-law No. 177-81, as amended, of the former Municipality of Metropolitan Toronto and Toronto Municipal Code Chapter 23, Civic Theatres. 

The purpose of this report is to seek City Council approval to finalize the consolidation of Civic Theatres Toronto (CTT) in accordance with City Council's direction of July 2015, to take effect on December 31, 2017 in the manner recommended by the Board of Directors of Civic Theatres Toronto on October 26, 2017, and to enable Civic Theatres Toronto to use the Hummingbird (Sony) Centre for the Performing Arts' (Sony Centre) existing charitable registration.

The Civic Theatres Toronto Board's recommendations are based on legal advice received by the Civic Theatres Toronto Board that it use the Sony Centre corporate structure to become Civic Theatres Toronto in order to use its charitable status. 

There is no direct financial impact to the City.  There are financial impacts for Civic Theatres Toronto (CTT) in two specific areas.  By adopting the corporate structure of a registered charity through consolidation of the civic theatres under the governance of the Hummingbird (Sony) Centre for the Performing Arts with a name change, Civic Theatres Toronto would avoid the expense and time delay associated with seeking a new charitable registration number or other tax-exempt status with the Canada Revenue Agency.  Charitable status would also enable Civic Theatres Toronto to enhance its revenues from grants and donations and to recover and retain GST/HST paid/received in the course of its activities, which is estimated to contribute over $250,000 to its budget annually depending on the level of activity.

The Acting Chief Financial Officer has reviewed and agrees with this financial impact statement.

This report is to advise that the City Manager will be submitting a report on the Board of Toronto Hydro Corporation's review of its executive compensation policy to the November 29, 2017 meeting of Executive Committee.

City Council directed Toronto Hydro Corporation, at Toronto Hydro Corporation's Annual General Meeting in July 2016 (2016.EX16.10), to review its executive compensation policy against the guiding principles adopted by City Council in August 2014 (2014.EX44.8). City Council specifically requested the review include a comparator analysis for each senior executive position, to establish the median base salary using industry comparators in the public sector (excluding private sector comparators), and to ensure incentive pay does not exceed 25 percent of base salary.

The City Manager was informed that the Board of Toronto Hydro Corporation would be approving their report at their meeting of November 23, 2017 and would then formally submit it to the City before the November 29, 2017 meeting of the Executive Committee. Once the report is received, the City Manager will forward it to Executive Committee.

The Deputy City Manager, Internal Corporate Services recommends that:

1.  City Council approve the use of patron screening at Toronto City Hall as described in Confidential Attachment 1.

2.  City Council approve the review and enhancement of the vehicle mitigation measures as described in Confidential Attachment 1.

3.  City Council approve the installation of a physical measure to provide a delineation of public and reserved space at Toronto City Hall in Committee Rooms 1 and 2.

4.  City Council approve the installation of a physical security measure in the Council Chamber as described in Confidential Attachment 1.

5.  City Council authorize the Deputy City Manager, Internal Corporate Services to enact adjustments to the "Enhanced" security level based upon changes to the Domestic Terrorism Threat Level or upon advice from law enforcement.

6.  City Council direct that Confidential Attachments 1, 2, 3, and 4, remain confidential in their entirety, as they contain information that involves the security of property belonging to the City or one of its agencies or corporations.

This report proposes changes to the current "Enhanced" level of security at Toronto City Hall for approval by City Council. These proposals are based upon assessments from the Toronto Police Service and Public Safety Canada, best practices, and benchmarking. The primary goals of these proposals are to maintain an accessible, safe, and secure Toronto City Hall while providing a reasonable level of protection from foreseeable threats.

The recommendations in this report will result in an incremental annual Operating impact of $0.774 million for additional security staffing and is included in the 2018 Operating Budget submission for the Facilities, Real Estate, Environment and Energy (FREEE) for Council consideration.  Further details on the need for this funding are contained in Confidential Attachment 1.

The recommendations in this report will also require an additional $0.500 million in one-time capital funding, included in Facilities, Real Estate, Environment and Energy's 2018 Capital Budget submission for Council consideration.  Further details on this need for this funding are contained in Confidential Attachment 1 as well.

Any other costs associated with the recommendations within the report are accommodated for within Facilities, Real Estate, Environment and Energy's 2018 Operating Budget or 2018-2027 Capital Budget and Plan.  Any incremental costs, outside of what has been already identified, that are the result of the recommendations in this report will be included in future year Budget submissions for Council consideration.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The City Manager recommends that:

1.  City Council adopt the Toronto Action Plan to Confront Anti-Black Racism as outlined in Attachment A.
 

2.  City Council adopt the 2018 Annual Work Priorities for year one implementation as outlined in Appendix B.

 
3.  City Council refer the new and enhanced request of $0.460 million gross and net for 5.0 positions and $0.535 million gross and net for community partnership initiatives, for a total of $0.995 million gross and net, and included in the 2018 Operating Budget Submissions for Social Development, Finance and Administration for consideration with other City priorities through the 2018 and future-year budget process.
 

4.  City Council request the Executive Director, Social Development, Finance and Administration, the Acting Director, Equity, Diversity, and Human Rights; and the Executive Director, Human Resources to form the City Steering Committee to lead the internal City systems change work of the Toronto Action Plan to Confront Anti-Black Racism and to align this work with other equity-based initiatives to ensure combined impact.
 

5.  City Council approve the establishment of the Anti-Black Racism Partnership and Accountability Circle comprised of diverse Torontonians of African descent to support the implementation of the Toronto Action Plan to Confront Anti-Black Racism in effective, collaborative and accountable ways.

 
6.  Subject to the adoption of Recommendation 5, City Council request the Executive Director, Social Development, Finance and Administration, the Acting Director, Equity, Diversity, and Human Rights; and the Executive Director, Human Resources, in collaboration with the Anti-Black Racism Partnership and Accountability Circle to report annually on the progress of implementation and the next year's work priorities.

 
7.  City Council forward the Toronto Action Plan to Confront Anti-Black Racism as outlined in Appendix A to the Board of Health, Toronto Library Board, Toronto Police Board, and Toronto Community Housing Corporation Board for their consideration.
 

8.  City Council forward Toronto Action Plan to Confront Anti-Black Racism as outlined in Appendix A to the Premier of Ontario and the Minister of Children and Youth Services for consideration on program and funding alignments.

Toronto is the most diverse city in the world. However, studies continue to show that anti-Black racism still exists in this city, affecting the life chances of more than 200,000 people of African descent who call Toronto home.  

Anti-Black racism is policies and practices embedded in Canadian institutions that reflect and reinforce beliefs, attitudes, prejudice, stereotyping and/or discrimination that is directed at people of African descent and is rooted in their unique history and experience of enslavement and colonization here in Canada.

The legacy of anti-Black racism lies in the current social, economic, and political marginalization of Torontonians of African descent. It is experienced as a lack of opportunity, poor health and mental health outcomes, poor education outcomes, higher rates of precarious employment and unemployment, significant poverty, and overrepresentation in the criminal justice, mental health, and child welfare systems. 

To begin confronting anti-Black racism in Toronto, the City of Toronto partnered with Black leaders and organizations to create and implement a four-phase process. Phase one was the development and launch of the Toronto For All campaign in November 2016, naming and challenging anti-Black racism for public education. Phase two was the review of 41 years' worth of research and recommendations about addressing anti-Black racism in Toronto. This review created the foundation for 41 Community Conversations in phase three to determine how best to take meaningful action going forward. Conversations ran from January to March 2017. Black Torontonians reviewed a draft action plan at a citywide workshop in May 2017 and provided feedback. In Phase four, City staff and subject matter experts from across Toronto's Black communities worked together to create work plans and to identify resource requirements to begin implementation.

The Toronto Action Plan to Confront Anti-Black Racism is the result of this collaborative effort between the City of Toronto and Torontonians of African descent to take corrective action. 

This five-year plan leverages the talents, knowledge, and experiences of Black residents and Black organizations as partners in making municipal services, spaces and policies fully inclusive and accessible to Torontonians of African descent in both intent and in practice. The Action Plan includes 22 recommendations and 80 actions to address five issue areas: children and youth development; health and community services; job and income supports; policing and the justice system; and community engagement and Black leadership. This report recommends adoption and implementation of the Toronto Action Plan to Confront Anti-Black Racism.

This report recommends adopting the Toronto Action Plan to Confront Anti-Black Racism for implementation over a five-year term, beginning in 2018. Implementation will be based on five annual work plans, starting in Year One (2018), and a corresponding progress report. Annual work priorities will be implemented through a mix of initiatives that can be completed within existing resources and initiatives that may require additional funding.

In Year One (2018), a range of City divisions will lead initiatives, monitor progress and publicly report on key deliverables driven by four priorities: (1) Creating Culture Change at the City; (2) Investing in Black Children and Youth; (3) Connecting Black Torontonians to Civic Decision-Making; and (4) Improving Customer Service. Implementation across these priorities requires the establishment of a Confronting Anti-Black Racism Unit within Social Development, Finance and Administration, supported by Equity Diversity and Human Rights, and Human Resources. Five positions are proposed to focus on the key community development, staff learning, policy change and youth development work of the Action Plan. These new staffing resources require strong Anti-Black Racism Analysis and specific expertise to effectively implement the Action Plan. The Confronting Anti-Black Racism Unit will deploy expertise and resources to a range of City divisions and the Toronto Police Service to implement initiatives of the Action Plan.

Funding to support Year One implementation is $0.460 million gross and net for 5.0 positions to implement the Action Plan to Confront Anti-Black Racism, and $0.535 million gross and net for community partnership initiatives, for a total of $0.995 million gross and net, included as a New Service Priority in the 2018 Operating Budget Submission for Social Development, Finance and Administration. This new and enhanced priority will be referred to the 2018 budget process for consideration.

The Chief Financial Officer has reviewed this report and agrees with the financial impact information.

1.  City Council adopt the TO Prosperity 2018 Annual Work Plan for implementation as outlined in Attachment B and forward the initiatives with financial impacts to the City Manager for consideration as part of the 2018 Budget process.

2.  City Council request the Executive Director, Social Development, Finance and Administration to work with relevant City divisions and agencies and report back on the development of a City of Toronto Community Benefits Framework that includes:

a.  a comprehensive inventory of existing City processes and practices that leverage community benefits outcomes, including analyses of best practices, challenges, gaps, and opportunities;

b.  ways to maximize community benefits outcomes from large-scale private development proposals, through the enhancement of existing City practices and processes, or the leveraging of untapped opportunities.

3.  City Council direct the Executive Director, Human Resources, the Director, Purchasing and Materials Management Division and the Executive Director, Social Development, Finance and Administration, working in consultation with relevant stakeholders, and contingent on Council approval of resource requirements described in the 2018 operating budget proposal, to pilot-test standards in City contracts and procurement documents related to (i) advance notice of scheduling, and (ii) equitable hiring, and to report back to Executive Committee by the fourth quarter of 2019 on the feasibility of adopting these standards into City contracts and on their impacts for workers, vendors, and City operations.

4.  City Council direct the City Solicitor and the Executive Director, Human Resources, to report to the Employment and Labour Relations Committee on impacts of the Fair Workplaces, Better Jobs Act for the City's employment relationships and labour agreements, within six months of Royal Assent of a new Provincial Act.

5.  City Council convey to the Province its support of the vision, objectives and recommendations of the Income Security: A Roadmap for Change report prepared by the Province's Income Security Reform Working Group, First Nations Income Security Reform Working Group and Urban Indigenous Table on Income Security Reform, and summarized in Attachment E of this report.

In 2015, City Council unanimously approved TO Prosperity: Toronto Poverty Reduction Strategy. Designed as a 20-year strategy, TO Prosperity contains 17 recommendations divided in six core areas: housing stability, service access, transit equity, food access, quality jobs and livable incomes, and systemic change. Each recommendation is linked to a set of actions to be carried out over a four-year period. Annual work plans identify initiatives that advance the implementation of actions. Every year, staff report on the completion of ongoing initiatives and present a plan for the following year.

After a brief discussion of new Census and City data on poverty in Toronto, this report provides an overview of key developments in the core areas of the Poverty Reduction Strategy; topics include actions at the federal and provincial levels, progress on the 2017 Work Plan, highlights of the 2018 Work Plan, the first year of the Lived Experience Advisory Group (LEAG), and the launching of an Equity Responsive Budgeting Tool.

The report also examines two emerging processes with significant potential to reduce poverty reduction in Toronto, namely: City policies and programs aimed at leveraging the City's economic powers to drive inclusive economic development; and a report recently submitted to the Provincial government, by three Provincial Working Groups, recommending a 10-year roadmap to structural reform of Ontario's income security system, Income Security: A Roadmap for Change report.

The 2018 Poverty Reduction Strategy Work Plan includes 48 initiatives that will be implemented within existing resources and 25 initiatives that have a combined financial impact of $58.3 million (gross) and $11.4 million (net). The $58.3 million (gross) includes new provincial funding for the child care system and a new request for the Toronto Urban Health Fund expansion, which is a new addition to the 2015-2018 Poverty Reduction Strategy Term Action Plan. The $11.4 million (net) includes the City's 2018 contribution towards its 20 percent share of the Child Care Growth Strategy, the low-income transit pass, and student nutrition programs. These new and enhanced priorities have been referred to the 2018 Budget process for consideration with other City priorities.

City Council, at its meeting of July 4, 5, 6 and 7 2017, adopted Item EX26.2 and directed the Deputy City Manager and Chief Financial Officer and the Deputy City Manager, Cluster A to report on an interim operating and capital funding model for Toronto Community Housing Corporation (TCHC) to address its current and short-term operating and capital funding shortfalls projected for 2018 and 2019, as part of the 2018 budget process. Funding of $160 million requested by Toronto Community Housing Corporation as an interim funding model is under consideration for the 2018 budget. The additional funding will enable Toronto Community Housing Corporation to address its state of good repair backlog and prevent permanent unit closures. City staff will report back in 2019 on a permanent funding model for Toronto Community Housing Corporation.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Director, Affordable Housing Office, the Deputy City Manager, Internal Corporate Services, and the Interim Chief Financial Officer recommend that:

1.  City Council authorize the Director, Affordable Housing Office, to submit a request to the Ministry of Housing for funding through the Federal/Provincial Social Infrastructure Fund - Investment in Affordable Housing for Ontario Program - Rental Component in the amount of $3,000,000 to be used by the City to fund the acquisition ($2,700,000) and rehabilitation ($300,000) of 9 Huntley Street.

2.  City Council authorize the Director, Affordable Housing Office, in consultation with the Deputy City Manager, Internal Corporate Services, to provide capital funding from the Land Acquisition Reserve Fund (XR1012) in an amount not to exceed $2,200,280 to fund the acquisition, including applicable closing costs, of 9 Huntley Street.

3.  City Council authorize the Deputy City Manager, Internal Corporate Services to negotiate, in consultation with the Director, Affordable Housing Office, the acquisition of the property known municipally as 9 Huntley Street with Casey House Hospice Inc. for a purchase price of $4,675,000 and authorize the City to enter into an agreement of purchase and sale (the "Agreement") substantially on the terms outlined in Appendix "A" to this report and on such other or amended terms and conditions as may be acceptable to the Deputy City Manager, Internal Corporate Services, in consultation with the Director, Affordable Housing Office, and in a form satisfactory to the City Solicitor.

4.  City Council authorize severally each of the Deputy City Manager, Internal Corporate Services, and the Director of Real Estate Services to execute the Agreement and any ancillary agreements and documents under the Agreement on behalf of the City.

5.  City Council authorize the Deputy City Manager, Internal Corporate Services to administer and manage the purchase of 9 Huntley Street from Casey House Hospice Inc., in consultation with the Director, Affordable Housing Office, including the provision of any consents, approvals, waivers and notices, provided that she may, at any time, refer consideration of any such matters (including their content) to City Council for its consideration and direction.

6.  City Council authorize the City Solicitor to complete the contemplated purchase transaction on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as the City Solicitor considers reasonable.

7.  City Council authorize the Deputy City Manager, Internal Corporate Services, in consultation with the Director, Affordable Housing Office, to negotiate an Offer to Lease with Fife House Foundation Inc., including any amendments in relation to such agreement not materially inconsistent with the terms and conditions described in Appendix B, as approved by Council, and in a form satisfactory to the City Solicitor.

8.  City Council authorize the City to accept an Offer to Lease from Fife House Foundation Inc., or a related corporation formed for the purposes of this transaction, for a term of 20 years, for the property municipally known as 9 Huntley Street, substantially on the terms and conditions outlined in Appendix "B", and on such other or amended terms and conditions acceptable to the Deputy City Manager, Internal Corporate Services, or her/his designate, and in a form satisfactory to the City Solicitor.

9.  City Council authorize severally the Deputy City Manager, Internal Corporate Services and the Director of Real Estate Services to accept the Offer to Lease on behalf of the City and to execute the lease on behalf of the City.

10.  City Council authorize the City Solicitor to complete the Offer to Lease, the lease, deliver any notices, pay expenses and amend the commencement, due diligence and other dates to such earlier or later date(s), on such terms and conditions, as the City Solicitor may, from time to time, determine.

11.  City Council authorize the Deputy City Manager, Internal Corporate Services, or her or his designate, to administer and manage the lease agreement, including the provision of any consents, approvals, notices and notices of termination provided that the Deputy City Manager, Internal Corporate Services may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

12.  City Council authorize the Director, Affordable Housing Office to negotiate and execute, on behalf of the City, the agreements and security required by the Province to obtain the funding set out in Recommendation No. 1 above on such terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

13.  City Council authorize the Director, Affordable Housing Office to assign the agreements and security for the federal/provincial funding obtained by the City to Fife House Foundation Inc., on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor.

14.  City Council authorize the Director, Affordable Housing Office to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by Fife House Foundation Inc., or a related corporation or its mortgagee(s)  where and when required during the term of the municipal housing facility agreement.

15.  City Council authorize that the development at 9 Huntley Street be exempt from the payment of development charges and be exempt from the payment of planning and park dedication fees and building permits under existing City policy.

17.  City Council authorize the City Solicitor to execute, on behalf of the City, any postponement, confirmation of status, discharge or consent documents relating to the security given to secure the Contribution Agreement entered into with the City of Toronto, or the assignee of the municipal capital facility agreement, for the construction of operation of affordable rental housing at 9 Huntley Street as required by normal business practices.

18. City Council authorize the Director, Affordable Housing Office to execute tri-partite agreements with leasehold mortgagees and any ancillary agreements and documents on behalf of the City.

19.  City Council approve an increase in the 2017 Approved Capital Budget for Shelter, Support and Housing Administration by a one-time basis by $500,000 gross, $0 net, fully funded by Section 37 (Planning Act Reserve Funds) community benefits from 43, 49, 51 Gerrard Street West and 695 Bay Street (source account XR3026-3700691) by adding a new capital project called "9 Huntley Street Acquisition", for the purposes of providing funds to Fife House Foundation Inc., for capital improvements to 9 Huntley Street.

20.  City Council authorize the Director, Affordable Housing Office to provide the $500,000 referred to in Recommendation 19 to Fife House Foundation Inc., subject to the Fife House Foundation Inc., signing an assignment of the municipal capital facility agreement, governing the use of the funds and the financial reporting requirements.

In July, 2017 City Council directed City staff to conduct the necessary due diligence for the City to purchase 9 Huntley Street from Casey House and to report to Council on the possibility of the City acquiring the property to support homeless persons living with HIV/AIDS.

This report provides the results of that work and recommends that the City purchase the property at the below market rate of $4,675,000 and any closing costs identified by Real Estate Services estimated at $225,280. To support the purchase, the report recommends funding from the federal-provincial Investment in Affordable Housing (2014 Extension) program and the City’s Land Acquisition Reserve Fund (LARF) (XR 1012).

The report also recommends that the City enter into a 20-year lease with Fife House for a nominal sum to provide transitional housing for 20 vulnerable men who have HIV/AIDS and who are chronically homeless or at risk, and who are accessing the emergency shelters.

This new Fife House program will stabilize the housing of these individuals, improve health outcomes and reduce the use of emergency services.

This report recommends the capital funding required to purchase 9 Huntley Street and the City Incentives and capital funding required to support the modernization of the property.

The acquisition cost is $4,675,000 plus the estimated closing costs of $225,280. Of this amount $2,700,000 will come from the Federal-Provincial Social Infrastructure Fund - Investment in Affordable Housing for Ontario Program and $2,200,280 from the Land Acquisition Reserve Fund (XR1012).

In addition, the rehabilitation costs will be supported by $300,000 from the balance of the $3,000,000 in the Social Infrastructure Fund - Investment in Affordable Housing for Ontario Program (SIF-IAH-E)  being requested, $500,000 in Section 37 funds and $716,800 in City Incentives. The total City funding, incentives and the federal-provincial funding is $6,417,088 as outlined in the table below. Fife House will contribute the balance of the rehabilitation costs.

It is recommended that 9 Huntley Street be leased to Fife House for a period of 20 years. All operating and maintenance costs, and any applicable taxes, charges, expenses and outlays arising from the use and occupancy of the Leased Premises, will be covered by Fife House, resulting in no further cost to the City. In accordance with the City's Policy on City-owned space provided at below market rent, the total undiscounted opportunity cost of this lease is estimated at $2,500 to $3,000 per month for a total opportunity cost of between $600,000 and $720,000.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Director, Affordable Housing Office, and the General Manager, Shelter, Support and Housing Administration recommend that:  

1.  City Council authorize the Director, Affordable Housing Office, to request the Ministry of Housing to issue a Conditional Letter of Commitment for funding through the Home For Good Program in the amount of $5,250,000 to be used by Margaret's Housing and Community Support Services Inc., or a related corporation, for the development of the affordable housing units at 13-15 and 17-19 Winchester Street.

2.  City Council authorize the Director, Affordable Housing Office, to submit a request to the Ministry of Housing for funding through the Home For Good Program in the amount of $5,250,000 to be used by Margaret's Housing and Community Support Services Inc., or a related corporation for the development of the affordable housing units at 13-15 and 17-19 Winchester Street.

3.  City Council authorize the Director, Affordable Housing Office, to provide capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR1116) to Margaret's Housing and Community Support Services Inc., or a related corporation, in an amount not to exceed $2,500,000 to fund the expenses of modernization of 13-15 and 17-19 Winchester Street.

4.  City Council authorize the General Manager, Shelter, Support and Housing Administration, to provide as required such Service Manager consents pursuant to the Housing Services Act as may be necessary to carry out the recommendations in this report.

5.  City Council authorize the Director, Affordable Housing Office, in consultation with Shelter, Support and Housing Administration to:

a.  negotiate, enter into, and execute on behalf of the City, a municipal housing facility agreement, the City's "Contribution Agreement", with Margaret's Housing and Community Support Services Inc., or a related corporation, to secure the financial assistance, being provided and to set out the terms of the development and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor; and

b.  execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by Margaret's Housing and Community Support Services Inc., or a related corporation or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal.

6.  City Council authorize the City Solicitor to execute, on behalf of the City, any postponement, confirmation of status, discharge or consent documents relating to the security given to secure the Contribution Agreement entered into with Margaret's Housing and Community Support Services Inc., or a related corporation, for the construction of operation of affordable rental housing at 13-15 and 17-19 Winchester Street as required by normal business practices.

7.  City Council exempt the 35 new affordable housing units to be developed at 13-15 and 17-19 Winchester Street from taxation for municipal and school purposes for the term of the municipal capital facility agreement.

8.  City Council authorize that the development on the Winchester Properties be exempt from the payment of development charges and be exempt from the payment of planning and park dedication fees and building permits under existing City policy.

9.  City Council authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to make the necessary budget adjustments to the 2018 City Operating Budget for Shelter, Support and Housing Administration, to utilize and spend (net $0) affordable housing funding from the capital and operating allocation from the Home For Good Program, with future year requests subject to Council approval through the annual budget process.

10.  City Council delegate authority to the General Manager, Shelter, Support and Housing Administration, in consultation with the Director, Affordable Housing Office, to approve the Affordability Payment Schedule and any updates required under the Home for Good Program.

This report provides the results of the due diligence conducted by the Affordable Housing Office and Margaret's Housing and Community Support Services Inc. (Margaret's) to complete the modernization of the buildings at 13-15 and 17-19 Winchester Street (the "Winchester Properties") to be leased from Toronto Community Housing Corporation (TCHC) into 35 new self-contained apartments.

This report also recommends the capital and operating funding necessary to proceed with the interior demolition and modernization.  Funding recommended includes capital and operating funding from the provincial Home For Good (HFG) program, and City funding sources. Margaret's will also make a financial contribution.

The projected capital cost to undertake and complete the modernization of the Winchester Properties is $12,085,391.

The capital funding includes: $5,250,000 of provincial Home For Good Program funding; $3,878,520 of City funding for capital grants by way of forgivable loans and incentives comprised of: $200,000 from the Capital Revolving Fund (CRF) for Affordable Housing (XR 1058) in pre-development funding, $2,500,000 from the Development Charges Reserve Fund for Subsidized Housing (DCRF) (XR2116) and $1,178,520 in City Incentives; Canada Mortgage and Housing Administration SEED funding of $50,000; an HST rebate of $856,871; and financing to be secured by Margaret's in the amount of $2,050,000. The funding requested in this report is outlined below: 

Note:  The capital component of the Home For Good program will be delivered as monthly affordability payments over 20 years once the project is completed, projected to be in 2019.

Tenants will be assessed for eligibility and provided with other assistance available through the Home For Good program (i.e., housing allowances and comprehensive staff supports).  The funding will start when the construction is completed and occupancy permitted.

In keeping with City policy to achieve affordable rents, this report also recommends City Council exempt 35 affordable rental housing units at 13-15 and 17-19 Winchester Street from property taxes for 25 years.

The value of the annual property tax exemption is estimated at $21,761 at current 2017 rates.  The net present value over the 25 year-term is estimated at $378,924, captured under the City Incentives in the table above and summarized in greater detail below:

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information. 

The Director, Affordable Housing Office, the General Manager, Shelter, Support and Housing Administration and the Executive Director, Social Development, Finance and Administration recommend that:

1.  City Council authorize the Director, Affordable Housing Office, to enter into an administration agreement and/or related agreement(s) with the Ministry of Housing, Ministry of Community and Social Services or any other provincial entity necessary for the receipt and expenditure of funding under the Anti-Human Trafficking Community Supports Fund and the Investment in Affordable Housing (IAH) Program on such terms and conditions as are satisfactory to the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration, and in a form approved by the City Solicitor.

2.  City Council authorize the Director, Affordable Housing Office, in consultation with the General Manager, Shelter, Support and Housing Administration to undertake the Anti-Human Trafficking Community Supports Fund and Investment in Affordable Housing Program administration in accordance with the related administration agreements, including appropriate measures as the program proceeds to adjust program parameters, recipients, and year-end funding among program components as required to ensure full and effective use of available Federal/Provincial funds.

3.  Subject to the adoption of Recommendations 1 and 2 above, City Council authorize the Director, Affordable Housing Office in consultation with General Manager, Shelter, Support and Housing Administration to enter into agreements with the provincial government, other City divisions, community agencies, private entities and/or individuals to deliver the Anti-Human Trafficking Community Supports Fund and Investment in Affordable Housing program, in accordance with the terms and conditions of the Province's guidelines and the approved allocations on terms and conditions satisfactory to the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration in a form approved by the City Solicitor.

4.  Subject to the adoption of Recommendation 3 City Council authorize the Director, Affordable Housing Office to:

a.  negotiate, enter into, and execute on behalf of the City, as necessary, a municipal housing facility agreement, a City "Contribution Agreement", or other agreements with Covenant House Toronto satisfactory to the Director, Affordable Housing Office, subject to receipt by the City of a business case for the repair and renovation of the property or properties and a program delivery plan, to secure the financial assistance being provided and to set out the terms of the project or projects and operation of the new affordable rental housing, on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form approved by the City Solicitor; and

b.  execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by Covenant House Toronto or its mortgagee(s) to complete construction and conventional financing and subsequent refinancing, where and when required during the term of the municipal housing facility agreement.

5.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

6.  City Council authorize the General Manager, Shelter, Support and Housing Administration and the Director, Affordable Housing Office, to make the necessary budget adjustments to the 2018 City Operating Budgets for Shelter, Support and Housing Administration and the Affordable Housing Office, to utilize and spend (net $0) affordable housing funding from the capital and operating allocations of the Investment in Affordable Housing Program and the Anti-Human Trafficking Community Support Fund, with future year requests subject to Council approval through the annual budget process.

7.  City Council authorize the General Manager, Shelter, Support and Housing Administration to make the necessary budget adjustments to the 2018 City Operating Budget for Shelter, Support and Housing Administration and to enter into the appropriate agreements with the provincial government, other City divisions, community agencies, private entities and/or individuals to allocate the Investment in Affordable Housing Program rent supplements.

This report seeks City Council approval to participate in and allocate funds to Covenant House Toronto from the new provincial Anti-Human Trafficking Community Supports Fund and the federal/provincial Investment in Affordable Housing Program.

Toronto is one of the principal destinations in Canada where individuals are being trafficked and sexually exploited. On any given night, there are approximately 2,000 homeless youth in Toronto vulnerable to being trafficked. To address this concern, the City in partnership with Covenant House Toronto applied to the Province to undertake new initiatives to provide supports, transitional housing and rent supplements for eligible women and girls who are survivors of sexual exploitation and human trafficking.

The Ministry of Community and Social Services has confirmed Toronto’s Community Supports Fund allocation of $885,000 to the City to support Covenant House in providing support services for individuals being trafficked. The City also applied for $885,000 in capital funds to provide transitional housing and $297,000 to provide rent supplement support for women who are survivors of sexual exploitation and human trafficking. An announcement with respect to the capital and rent supplement funding is anticipated shortly.

The City Anti-Human Trafficking Working Group, comprised of 21 City services, will continue to collaborate with other orders of government and several community partners to identify ways to strengthen the protection of its residents and communities from human traffickers and to determine ways how City staff can effectively respond to the needs of trafficked persons.

The City of Toronto has been allocated $885,000 through the new Anti-Human Trafficking Community Supports Fund for support services. The City anticipates receiving an additional $885,000 through the Investment in Affordable Housing program for capital repairs and renovations and $297,000 through the Investment in Affordable Housing program operating component for rent supplements. The new funding allocations for Toronto from these programs are outlined in the chart below.

* Based on the City's application to the Province.

No new funding commitments are required from City sources to support the initiative in this report as all costs are to be recovered through provincial funding. If municipal tax relief is required, staff will bring forward a site-specific Municipal Housing Capital Facilities bylaw to Council. The net present value of tax relief will be provided in the financial implications section of this report.

This report authorizes the General Manager, Shelter, Support and Housing Administration and the Director, Affordable Housing Office, to make the necessary budget adjustments to the 2018 City Operating Budgets for Shelter, Support and Housing Administration and the Affordable Housing Office, to utilize and spend (net $0) federal-provincial affordable housing funding outlined in this report. Future year requests will be processed through the annual budget process.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Director, Affordable Housing Office recommends that:

1.  City Council approve allocation up to $625,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 25 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 4 and 6 Tippett Road, under the terms of the City's Home Ownership Assistance Program.

2.  City Council approve allocation up to $300,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 12 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 80 Dale Avenue, under the terms of the City's Home Ownership Assistance Program.

3.  City Council approve allocation up to $500,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 20 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 383-425 Old Weston Road, under the terms of the City's Home Ownership Assistance Program.

4.  City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, and any security, financing or other documents required with Malibu Investments Inc., or a related corporation, Habitat for Humanity Greater Toronto Area, or a related corporation, 80 Dale Avenue Ltd., or a related corporation and any other party deemed necessary to facilitate the funding detailed in this report (November 14, 2017), on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Chief Financial Officer, and in a form approved by the City Solicitor.

5.  City Council grant authority to the City Solicitor to execute any documents required to postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

6.  City Council authorize the Director, Affordable Housing Office to designate the President, or other position of 80 Dale Avenue Ltd. and the President of Malibu Investments Inc. to execute on behalf of the City the loan agreements with eligible purchasers.

This report recommends affordable home ownership program funding for up to 57 new homes to be built by non-profit and private sector developers at two Build Toronto sites and one private site in various locations in the City:

The affordable housing plans for the Build Toronto sites were developed in collaboration with Build Toronto and the respective developers who will be acquiring the properties from Build Toronto. The affordable housing plan for 4 and 6 Tippett Road was developed in collaboration with the developer under the policies in the Tippett Road Area Regeneration Study.

Financial contributions for the 57 affordable new homes will take the form of down payment assistance loans to assist eligible purchasers moving from rental housing into homeownership. The loans will be funded from the federal/provincial Investment in Affordable Housing Program, the City’s Home Ownership Assistance Program using Development Charges Reserve Fund for Subsidized Housing funds, and the developers.

This report recommends that City Council allocate funding from the Development Charges Reserve Funds for Subsidized Housing (XR2116) for up to 57 homes, in the form of down payment assistance loans, as summarized in the chart below:

It is recommended that $25,000 for each of the homes be provided through the City's Home Ownership Assistance Program (HOAP) for a total of up to $1,425,000 for the three developments. The Home Ownership Assistance Program is funded from the Development Charges Reserves Fund for Subsidized Housing (XR2116) and funds are provided as down-payment assistance loans for eligible low to moderate income purchasers.

Federal/provincial funding is planned from the Investment in Affordable Housing Program (IAH) Homeownership Component. Council has delegated decisions to the Director, Affordable Housing Office, to make allocations from the Investment in Affordable Housing Program. The Director proposes to provide up to $1,981,000 for up to 57 affordable ownership homes. Similar to the Home Ownership Assistance Program, Investment in Affordable Housing Program funds are delivered as down-payment assistance loans to eligible purchasers.

The two programs combined deepen the home's affordability and make home ownership more accessible for lower to moderate income renter households. The combined funding will be registered on title of the affordable homes as no-payment, no interest second mortgage loans.

A change to the terms of the City's Home Ownership Assistance Program was approved by City Council in December 2015 so that the down payment assistance is no longer forgivable, unless the value of the home goes down more than the value of the loan. Under both the Home Ownership Assistance and Investment in Affordable Housing programs, loans will be repaid to the City with a share of appreciation in the value of the home when the original purchaser sells or refinances their home. The funds are then returned to the relevant City accounts and reused under the programs to support new affordable housing initiatives.

The uncommitted balance in the Development Charges Reserve Fund for Subsidized Housing (XR2116) is sufficient to support the recommendations of this report. There is also sufficient IAH funding available.

The funding for affordable housing projects is cash-flowed through the Operating Budget for Shelter, Support and Housing Administration. Future year operating budget submissions will include the necessary Investment in Affordable Housing Program and DCRF funding for the advancement of the projects based on project implementation schedules and construction timelines.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Director, Affordable Housing Office recommends that:

1.  City Council approve allocation up to $625,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 25 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 4 and 6 Tippett Road, under the terms of the City's Home Ownership Assistance Program.

2.  City Council approve allocation up to $300,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 12 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 80 Dale Avenue, under the terms of the City's Home Ownership Assistance Program.

3.  City Council approve allocation up to $500,000 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 20 down payment assistance loans of $25,000 each, to eligible purchasers of housing to be developed on the property currently known as 383-425 Old Weston Road, under the terms of the City's Home Ownership Assistance Program.

4.  City Council authorize the Director, Affordable Housing Office, to negotiate, enter into and execute, on behalf of the City, all affordable housing funding agreements, and any security, financing or other documents required with Malibu Investments Inc., or a related corporation, Habitat for Humanity Greater Toronto Area, or a related corporation, 80 Dale Avenue Ltd., or a related corporation and any other party deemed necessary to facilitate the funding detailed in this report, on terms and conditions satisfactory to the Director, Affordable Housing Office, in consultation with the Chief Financial Officer, and in a form approved by the City Solicitor.

5.  City Council grant authority to the City Solicitor to execute any documents required to postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

6.  City Council authorize the Director, Affordable Housing Office to designate the President, or other position of 80 Dale Avenue Ltd. and the President of Malibu Investments Inc. to execute on behalf of the City the loan agreements with eligible purchasers.

7.  City Council authorize the City to enter into an agreement with Habitat for Humanity Greater Toronto Area, Build Toronto, Glenspring Developments Inc., and any other party deemed necessary, to secure the purchase of a prepared block of land on which Habitat intends to build up to 20 homes (the "Habitat Property").

8.  City Council authorize the City to be a party to the agreement of purchase and sale contemplated to be entered into for the Habitat Property as a contingent transferee, in order to ensure the benefit of the Habitat Property is secured for the intended purposes, in the event Habitat for Humanity Greater Toronto Area or its assignee is not able to complete the transactions.

9.  City Council authorize the City to assign its interests in the Habitat Property to another not for profit housing provider, chosen by the Director, Affordable Housing Office, if Habitat is unable to complete the transaction, to give effect to the intended purpose of the Habitat Property as affordable housing, or to an arm's length purchaser at fair market value if no agreement can be made with a suitable not for profit, on terms and conditions determined by the Director, Affordable Housing Office and in a form approved by the City Solicitor prior to the closing date with Glenspring Developments Inc., with the intention that there are no financial consequences to the City having been a party to the agreements of purchase and sale for the Habitat Property.

10.  City Council authorize the net proceeds of the assignment of the agreement of purchase and sale for the Habitat Property at fair market value be paid to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) after payment of all expenses incurred in making the assignment of any Habitat Property.

11.  City Council authorize the Director, Affordable Housing Office to negotiate and execute on behalf of the City, the agreement referred to Recommendation 7 above as well as any documents, agreements, or security required to give effect to Council's decision on terms and conditions determined by the Director, Affordable Housing Office and in a form approved by the City Solicitor.

12.  City Council authorize and direct the City Solicitor to execute the agreements of purchase and sale for the Habitat Property, together with any documents or agreement relating to the release of the City's interest to Habitat, an assignment or a re-sale transaction that may occur as a result of entering into that agreement, or to amend and to waive any terms and conditions on behalf of the City, on such terms as the City Solicitor considers reasonable.

This report recommends affordable home ownership program funding for up to 57 new homes to be built by non-profit and private sector developers at two Build Toronto sites and one private site in various locations in the City:

The affordable housing plans for the Build Toronto sites were developed in collaboration with Build Toronto and the respective developers who will be acquiring the properties from Build Toronto. The affordable housing plan for 4 and 6 Tippett Road was developed in collaboration with the developer under the policies in the Tippett Road Area Regeneration Study.

Financial contributions for the 57 affordable new homes will take the form of down payment assistance loans to assist eligible purchasers moving from rental housing into

home ownership. The loans will be funded from the federal/provincial Investment in Affordable Housing Program, the City’s Home Ownership Assistance Program using Development Charges Reserve Fund for Subsidized Housing funds, and the developers.

This report recommends that City Council allocate funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116) for up to 57 homes, in the form of down payment assistance loans, as summarized in the chart below:

It is recommended that $25,000 for each of the homes be provided through the City's Home Ownership Assistance Program (HOAP) for a total of up to $1,425,000 for the three developments. The Home Ownership Assistance Program is funded from the Development Charges Reserve Fund for Subsidized Housing (XR2116) and funds are provided as down-payment assistance loans for eligible low to moderate income purchasers.

Federal/provincial funding is planned from the Investment in Affordable Housing Program (IAH) Homeownership Component. Council has delegated decisions to the Director, Affordable Housing Office, to make allocations from the Investment in Affordable Housing Program. The Director proposes to provide up to $2,321,000 for up to 57 affordable ownership homes. Similar to the Home Ownership Assistance Program, the Investment in Affordable Housing Program funds are delivered as down-payment assistance loans to eligible purchasers.

The two programs combined deepen the home's affordability and make home ownership more accessible for lower to moderate income renter households. The combined funding will be registered on title of the affordable homes as no-payment, no interest second mortgage loans.

A change to the terms of the City's Home Ownership Assistance Program was approved by City Council in December 2015 so that the down payment assistance is no longer forgivable, unless the value of the home goes down more than the value of the loan. Under both the Home Ownership Assistance Program and Investment in Affordable Housing Program programs, loans will be repaid to the City with a share of appreciation in the value of the home when the original purchaser sells or refinances their home. The funds are then returned to the relevant City accounts and reused under the programs to support new affordable housing initiatives.

The uncommitted balance in the Development Charges Reserve Fund for Subsidized Housing (XR2116) is sufficient to support the recommendations of this report. There is also sufficient Investment in Affordable Housing Program funding available.

The funding for affordable housing projects is cash-flowed through the Operating Budget for Shelter, Support and Housing Administration. Future year operating budget submissions will include the necessary Investment in Affordable Housing Program and DCRF funding for the advancement of the projects based on project implementation schedules and construction timelines.

The Interim Chief Financial Officer has reviewed this report and agrees with the financial impact information. 

The Acting Chief Financial Officer and the Deputy City Manager, Cluster A recommend that:

1.  City Council approve the policy objectives and key eligibility criteria for the creation of a new property class for Creative Co-Location Facilities, as outlined in Appendix A of this report.

2.  City Council request the Province to create a new property tax class for Creative Co-Location Facilities based on the policy objectives and key eligibility criteria set out in this report and that such property class be created as a property class for which municipalities be permitted to establish more detailed local criteria and property-specific by-laws, effective for the 2018 taxation year retroactive to January 1, 2018, and further, the Minister of Finance be requested to allow municipalities to set the tax rate for this new Property Tax Class.

3.  City Council direct the Acting Chief Financial Officer to include, as part of the 2018 tax rate and tax ratio setting process, the Creative Co-Location Facilities tax class, subject to the necessary regulations being approved and filed by the Province before such provision takes effect, with a report to Executive Committee at its meeting of February 6, 2018 as part of the "2018 Tax Rates and Related Matters" report.

4.  City Council direct the General Manager, Economic Development and Culture, in consultation with the Acting Chief Financial Officer and the City Solicitor, to establish detailed eligibility criteria for inclusion of properties in the proposed Creative Co-Location Facilities tax class, together with a process to approve inclusion of such properties in this tax class, and a process to address appeals related to the City's eligibility criteria, with a report to Executive Committee at its meeting of February 6, 2018.

The most recent Provincial property reassessment has resulted in significant assessment increases for many property owners.  Some of these large increases were due to incorrect assessments (e.g. 401 Richmond Street West, downtown Yonge Street retail), which assessments have since been significantly reduced by the Municipal Property Assessment Corporation (MPAC).

Rapidly increasing land values resulting in significant property tax increases is a city-wide issue facing many properties beyond arts and culture facilities.  Similar concerns have been raised respecting organic food growers/retailers (Kensington Market), music venues, and main street retail on a broader scale (e.g. along the Eglinton corridor). 

For this reason, staff will be coming forward with potential options for mitigating tax increases which could include the re-instatement of the tax increase capping protection program for those properties in the commercial, industrial and multi-residential property classes that have previously reached their full Current Value Assessment (CVA) level of taxation and are no longer protected from large re-assessment related tax increases. This proposed policy option together with others will be reported to Executive Committee at its meeting of February 6, 2018, through the "2018 Tax Rates and Related Matters" report to be considered concurrently with the City's 2018 Capital and Operating Budgets.

Notwithstanding this, City Council has previously requested the Province to explore opportunities to support not-for-profit arts and culture organizations and incubators, including through property assessment tools.  The Ontario Minister of Finance has most recently extended his willingness to work with the City to establish a new property class for arts and culture facilities.

To seize on this opportunity, this report presents the City's policy objectives and proposed key eligibility criteria for the recommended new property class for Council approval as a first and required step in this process.  Upon receipt of this formal submission, Ministry staff will work with City staff in developing a regulatory framework for the creation of this class.  If adopted by the Province, the regulatory framework will provide flexibility for the City to design its own eligibility criteria beyond the broad parameters established by the Province.

This report recommends that the Province implement a new property tax class for Creative Co-Location Facilities and that the City adopt policies that detail eligibility criteria and set the level of tax relief.

A new tax class, with a new starting transition tax ratio recommended by the City and set by the Province, may result in small tax shifts between properties within a tax class, and between tax classes, which would be observed in the 2019 taxation year.

As no properties will be returned on the tax roll for use for 2018 taxes, there will be no impact to the 2018 taxes levied as a result of this report.  However, if the City receives the requested authority, subsequent to transfer of eligible properties into the new class in early 2018, Municipal Property Assessment Corporation will prepare supplementary assessments, which will result in adjustment of taxes for such properties, resulting in such properties paying taxes for 2018 as though they were in the new class for the entire year.  These supplementary assessments and resultant taxes will result in a reduction of taxes in 2018.  The amount of reduced taxes will depend on the number of properties included in the new class, their assessments, and any mitigation that might otherwise be in place regarding capping.

Staff will be reporting to Executive Committee at its meeting of February 6, 2018, on 2018 tax rates and policy matters, including consideration of potential measures to mitigate tax increases, which could include the re-instatement of the tax increase capping protection program for all properties in the commercial, industrial and multi-residential property classes, so as to protect these properties from experiencing large reassessment-related tax increases.  Foregone revenue from capping is recovered within the class by 'clawing-back' a portion of tax decreases from properties that would otherwise experience tax decreases through Current Value Assessment reassessment.

The Budget Committee recommends that:

1.  City Council consider the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water concurrently with the 2018-2027 Toronto Water Capital Plan and the 2018 Toronto Water Operating Budget.

Rates and Fees

2.  City Council adopt:

a.  Effective January 1, 2018, the combined water and wastewater consumption rates charged to metered consumers as shown below and in Appendix B attached to the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water; 

b.  Effective January 1, 2018, an increase of 5 percent to the water and wastewater consumption rates charged to flat rate consumers, as set out in Appendix B to the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water;

c.  Effective January 1, 2018, the water and wastewater service fees, as set out in Appendix C to the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water; and

d.  Effective January 1, 2018, the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.1410/m3, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3.  City Council direct that all the rates, fees and charges set out in Appendices B and C to the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water, and the water rate rebate, adopted by Council in recommendation 2 above, continue in full force and effect until such time as they are amended or repealed by Council.

4.  City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code Chapter 849 - Water and Sewage Services and Utility Bill, and Municipal Code Chapter 681 - Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations.

5.  City Council grant authority to the City Solicitor to introduce any necessary Bills required to implement these recommendations, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Acting Chief Financial Officer and General Manager, Toronto Water.

6.  City Council authorize and direct the appropriate City officials to take the necessary actions to give effect thereto.

Capital Budget

7.  City Council approve the 2018 Recommended Capital Budget for Toronto Water with a total project cost of $1.842 billion, and 2018 cash flow of $ 964.089 million and future year commitments of $ 5.157 billion comprised of the following:

a.  New Cash Flow Funds for:

i.  335 new / change in scope sub-projects with a 2018 total project cost of $1.842 billion that requires cash flow reduction of $146.796 million in 2018 and future year cash flow commitments of $433.544 million for 2019; $434.355 million for 2020; $370.877 million for 2021; $259.002 million for 2022; $182.901 million for 2023; $88.646 million for 2024; $40.737 million for 2025; $107.083 million for 2026; and $71.985 million for 2027;

ii.  286 previously approved sub-projects with a 2018 cash flow of $1.012 billion; and future year cash flow commitments of $811.796 million for 2019; $616.290 million for 2020; $442.761 million for 2021; $357.754 million for 2022; $320.691 million for 2023; $280.639 million for 2024; $244.423 million for 2025; and $93.968 million for 2026;

b.  2017 approved cash flow for 183 previously approved sub-projects with carry forward funding from 2017 into 2018 totalling $98.868 million.

8.  City Council approve the 2019 - 2027 Recommended Capital Plan for Toronto Water totalling $6.702 billion in project estimates, comprised of $202.994 million for 2019; $411.500 million for 2020; $558.996 million for 2021; $618.112 million for 2022; $795.058 million for 2023; $874.430 million for 2024; $992.793 million for 2025; $1.072 billion for 2026 and $1.176 billion in 2027.

9.  City Council consider the operating costs of $1.496 million net in 2018; $0.984 million net in 2019; $1.494 million net in 2020; $0.848 million net in 2021; $2.203 million net in 2022; $0.050 million net in 2023; and $1.0 million net in 2025, resulting from the approval of the 2018 Recommended Capital Budget for inclusion in the 2018 and future year operating budgets.

10.  City Council approve 3 new temporary capital positions for the delivery of 2018 capital projects and that the duration for each temporary position not exceed the life and funding of its respective projects / sub-projects.

11.  All sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2018 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

12.  City Council consider the 2018 - 2027 Recommended Capital Budget and Plan - Toronto Water concurrently with the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water.

Operating Budget

13.  City Council approve the 2018 Recommended Operating Budget for Toronto Water  of $446.383 million gross, and $842.594 million net in capital-from-current contribution for the following services:

14.  City Council approve the 2018 service levels for Toronto Water as outlined on pages 18, 21, and 24 of this report, and associated staff complement of  1,761.65 positions, comprising 56.35 capital positions and 1,705.3 operating positions.

 
15.  City Council consider the 2018 Staff Recommended Operating Budget - Toronto Water concurrently with the report (October 27, 2017) from the Acting Chief Financial Officer and the General Manager, Toronto Water.

The Budget Committee submits its recommendations on the 2018 Rate Supported Budgets - Toronto Water and 2018 Water and Wastewater Consumption Rates and Service Fees.

The Budget Committee recommends that:

Rates and Fees

1.  City Council adopt the Solid Waste Management Services Rates and Fees in 2018 as set out in Appendix A to the report (October 31, 2017) from the General Manager, Solid Waste Management Services and the Acting Chief Financial Officer, to become effective on January 1, 2018.

2.  City Council consider the report (October 31, 2017) from the General Manager, Solid Waste Management Services and the Acting Chief Financial Officer concurrently with the 2018 Recommended Capital Budget, 2018-2027 Recommended Capital Plan and the 2018 Recommended Operating Budget of the Solid Waste Management Services Division.

3.  City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations.

4.  City Council grant authority to the City Solicitor to introduce any necessary Bills required to implement these Recommendations, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Acting Chief Financial Officer and General Manager, Solid Waste Management Services.

5.  City Council direct that all the rates, fees and charges set out in Appendices A to the report (October 31, 2017) from the General Manager, Solid Waste Management Services and the Acting Chief Financial Officer, adopted by Council in Recommendation 1 above, continue in full force and effect until such time as they are amended or repealed by Council.

Capital Budget

6.  City Council approve the 2018 Recommended Capital Budget for Solid Waste Management Services with a total project cost of $56.857 million, and 2018 cash flow of $114.406 million and future year commitments of $149.404 million comprised of the following:

a.  New Cash Flow Funds for:

i.  36 new / change in scope sub-projects with a 2018 total project cost of $56.857 million that requires cash flow of $8.516 million in 2018 and future year cash flow commitments of $9.597 million for 2019; $15.135 million for 2020; $5.195 million for 2021; $4.930 million for 2022; $3.561 million for 2023; $3.241 million for 2024; $3.241 million for 2025; $0.441 million for 2026 and $3 million for 2027;

ii.  25 previously approved sub-projects with a 2018 cash flow of $84.285 million; and future year cash flow commitments of $47.445 million for 2019; $18.022 million for 2020; $12.580 million for 2021; $14.001 million for 2022; $3.515 million for 2023; $1 million for 2024; $1million for 2025; and $3.5 million for 2026;

b.  2017 approved cash flow for 18 previously approved sub-projects with carry forward funding from 2017 into 2018 totalling $21.605 million.

7.  City Council approve the 2019 - 2027 Recommended Capital Plan for Solid Waste Management Services totalling $384.671 million in project estimates, comprised of $23.792 million for 2019; $28.801 million for 2020; $32.442 million for 2021; $39.853 million for 2022; $53.918 million for 2023; $48.932 million for 2024; $42.128 million for 2025; $54.237 million for 2026 and $60.568 million in 2027.

8.  City Council consider the operating costs of $2.044 million net in 2018; $(0.961) million net in 2019; $0.095 million net in 2020; $0.105 million net in 2021; $(0.019) million net in 2022; $(0.022) million for 2023; $(0.026) million for 2024; $(0.029) million for 2025; $0.046 million for 2026 and $0.046 million in 2027, resulting from the approval of the 2018 Recommended Capital Budget for inclusion in the 2018 and future year operating budgets.

9.  City Council approve 3 new temporary capital positions for the delivery of 2018 capital projects and that the duration for each temporary position not exceed the life and funding of its respective projects / sub-projects.

10.  City Council consider the 2018 - 2027 Recommended Capital Budget and Plan - Solid Waste Management Services concurrently with the report (October 31, 2017) from the General Manager, Solid Waste Management Services and the Acting Chief Financial Officer.

Operating Budget

11.  City Council approve the 2018 Recommended Operating Budget for Solid Waste Management Services of $382.163 million gross, $23.026 million capital contribution for the following services:

12.  City Council approve the 2018 service levels for Solid Waste Management Services as outlined on pages 15, 18, 21, 24, and 27 of this report, and associated staff complement of 1,116.74 positions, comprising 34.53 capital positions and 1,082.21 operating positions.

13.  City Council approve the fee changes for Solid Waste Management Services identified in Appendix 7, for inclusion in the Municipal Code Chapter 441 "Fees and Charges".

14.  City Council consider the 2018 Recommended Operating Budget - Solid Waste Management Services concurrently with the report (October 31, 2017) from the General Manager, Solid Waste Management Services and the Acting Chief Financial Officer.

15.  City Council direct that Solid Waste Management Services and the Financial Planning Division report to Budget Committee on a multi-year rate strategy for the 2019 Budget Process.

The Budget Committee submits its recommendations on the 2018 Rate Supported Budgets - Solid Waste Management Services and Recommended 2018 Solid Waste Rates and Fees.

The Budget Committee recommends that:

Capital Budget

1.  City Council approve the 2018 Recommended Capital Budget for Toronto Parking Authority with a total project cost of $78.501 million, and 2018 cash flow of $57.241 million and future year commitments of $21.260 million comprised of the following:

a.  New Cash Flow Funds for:

i.  34 new / change in scope sub-projects with a 2018 total project cost of $78.501 million that requires cash flow of $57.241 million in 2018 and future year cash flow commitment of $21.260 million for 2019;

b.  2017 approved cash flow for 28 previously approved sub-projects with carry forward funding from 2017 into 2018 totalling $11.265 million.

2.  City Council approve the 2019 - 2027 Recommended Capital Plan for Toronto Parking Authority totalling $433.869 million in project estimates, comprised of $96.579 million for 2019; $87.1 million for 2020; $57.450 million for 2021; $61.9 million for 2022; $35.7 million for 2023; $46.6 million for 2024; $29.5 million for 2025; $32.8 million for 2026, and $7.5 million in 2027.

3.  City Council consider the operating savings of $0.866 million net in 2019; $1.664 million net in 2020; $1.570 million net in 2021; $1.0 million net in 2022; $1.085 million net in 2023; 0.581 million net in 2024, $0.791 million net in 2025; $0.462 million net in 2026; and $0.525 million net in 2027 resulting from the approval of the 2018 Recommended Capital Budget for inclusion in the 2018 and future year operating budgets.

4.  All sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2018 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

Operating Budget

5.  City Council approve the 2018 Recommended Operating Budget for Toronto Parking Authority of $99.662 million gross, and ($66.538 million net) for the following services:

6.  City Council approve the 2018 service levels for Toronto Parking Authority as outlined on pages 15, 17, and 19 of the 2018 Staff Recommended Operating Budget Notes - Toronto Parking Authority, and associated staff complement of 328.5 operating positions.
 

7.  City Council direct the Acting President, Toronto Parking Authority to report back to the Executive Committee, through the Budget Committee, with a comprehensive strategy to address the funding for the Bike Share Program on a longer term basis, to inform the 2019 and future year Budget processes by March 31, 2018.

The Budget Committee submits its recommendations on the 2018 Rate Supported Budgets - Toronto Parking Authority.

The Acting Chief Financial Officer recommends that:

1.  City Council approve the 2018 Interim Operating Estimates totalling $2.658 billion as detailed by City Program and Agency in Appendix 1 attached.

2.  City Council approve the 2018 Interim Capital Estimates totalling $1.102 billion in gross expenditures and $394.588 million in debt funding as detailed by City Program and Agency in Appendix 2 attached, with the balance financed by Provincial and Federal funding of $235.708 million; Reserve/Reserve Funds funding of $218.762 million; Development Charges funding of $81.783 million and Third Party and Other funding of $171.357 million.

The 2018 Tax supported Operating and Capital Budgets are scheduled for Council approval on February 12 and 13, 2018. The purpose of this report is to establish the 2018 Interim Operating and Capital Estimates in order to enable City Programs and Agencies to have the necessary spending authority to carry out their ongoing operations and to continue work on previously approved capital projects until the 2018 Operating and Capital Budgets are approved by City Council.

The 2018 Tax Supported Interim Operating Estimates are $2.658 billion gross and require cash outflow funding of $2.269 billion. The 2018 Tax Supported Interim Capital Estimates total $1.102 billion and require debenture financing of $394.588 million.

As shown in Table 1, the 2018 Interim Operating Estimates total $2.658 billion in gross spending authority requiring estimated cash outflows of $2.269 billion.  Cash outflows for City Operations total $1.356 billion, for Corporate Accounts $370.305 million and for City Agencies $542.674 million. The latter estimates includes the Toronto Transit Commission (TTC) for which approximately 70 percent of its expenditures are funded from its own receipts. Also, it should be noted that 2018 Operating Interim Estimates include a provision for new Toronto Realty Agency that will become operational on January 1, 2018.

Table 1: 2018 Interim Operating Estimates

The 2018 Interim Capital Estimates include previously approved capital projects, approved  cash flow funding commitments and carry forward funding required to complete capital work undelivered in 2017. The 2018 Interim Capital Estimates total $1.102 billion and are summarized in Table 2 below.

Table 2: 2018 Interim Capital Estimates

These expenditures will be funded as follows:

1. $394.588 million in debt funding,

2. $235.708 million in Provincial/Federal funding,

3. $218.762 million in Reserve/Reserve funding,

4. $81.783 million in Development Charges funding, and

5. $171.357 million in Third Party and Other funding

The Treasurer recommends that:

1. City Council authorize that the 2018 interim levy for all property classes be based on 50 percent of the total 2017 taxes billed for each property, adjusted, as necessary, to reflect any additional taxes added to the previous year's taxes as a result of assessment added to the tax roll.

2. City Council authorize that the interim levy apply to assessments added to the tax roll for 2017 that were not on the assessment roll when the by-law was passed.

3. City Council authorize that:

a. the interim bill payment due dates for property tax accounts paid on the eleven (11) instalment pre-authorized tax payment plan be: February 15, March 15, April 16, May 15, and June 15, 2018;

b. the interim bill payment due date for the two (2) instalment pre-authorized tax payment plan be March 1, 2018; and

c. the interim bill payment due dates for all other property tax accounts on the regular instalment option or on the six (6) instalment pre-authorized tax payment plan be: March 1, April 3, and May 1, 2018.

4. City Council grant authority to introduce the necessary bill in Council on December 5, 6, and 7, 2017, providing for the levying and collection of the 2018 interim taxes prior to the adoption of the estimates for 2018, which by-law, when enacted, will be effective as of January 1, 2018.

This report requests Council authority to adopt the necessary by-law to levy interim property taxes for all property classes for 2018 and to prescribe applicable interim bill payment due dates. The 2018 interim levy will raise approximately $2.07 billion for City purposes, and will provide for the cash requirements of the City until such time as the 2018 Operating Budget and 2018 final property tax levy are approved by Council.

This is an annual report which is procedural in nature. Enacting a by-law that establishes an interim tax levy will permit the City to raise the property tax revenues needed to fund its early- to mid-2018 operations until such time as the 2018 Operating Budget and 2018 final tax levy are approved by Council. The interim levy is expected to raise approximately $3.14 billion, consisting of a municipal share of $2.07 billion and an education share of $1.07 billion.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Acting Chief Financial Officer recommends that:

1.  City Council adopt the revised purpose and the revised Criteria Sheet for the 'Tax Rate Stabilization Reserve' account, as provided in Appendix 1, and amend Schedule 3 of Chapter 227 to reflect the revised purpose.

2.  City Council direct the following accounts, which have zero balances, be closed and deleted from the Schedules to Chapter 227 as set out in the table to follow.

3.  City Council authorize the transfer of the balances of the following pre-2004 Parkland Acquisition/Development Reserve Fund Accounts in column 1 to the corresponding 2004 Parkland Acquisition/Development Reserve Fund accounts in column 2 and direct the accounts in column 1 to be closed and deleted from Schedule 10 of Chapter 227.

4.  City Council authorize the transfer of the balances of the following Donations Reserve Accounts within the Museum Account Group in column 1 to the corresponding Museum - General Account (column 2) within the same Museum Account Group, and direct the accounts in column 1 be closed and deleted from Schedule 5 of Chapter 227.

5.  City Council authorize the necessary amendments to Chapter 227 in accordance with Recommendations 1 to 4 and direct the City Solicitor to introduce any necessary bills to give effect to the recommendations of this report.

This report seeks Council approval to implement a number of administrative amendments to City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds ("Chapter 227").  These amendments include refining the criteria of an existing account and deleting accounts which are no longer required.

There are no financial implications associated with the adoption of the recommendations of this report.

The Acting Chief Financial Officer recommends that:

1.  City Council approve in-year budget adjustments to the 2017-2026 Approved Capital Budget and Plan that result in no incremental impact on debt funding.

2.  City Council receive for information the list of 180 completed capital projects/sub-projects to be closed as detailed in Appendix 2 that results in a total combined project budget savings of $22.069 million.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the nine month period ended September 30, 2017, as well as projected actual expenditures to December 31, 2017. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2017 Approved Capital Budget.

The report also details the 180 completed capital projects with a combined budget of $206.066 million that are ready to be closed. They have been completed under budget, realizing savings of $22.208 million. The permanent underspending which includes $6.603 million in debt funding, $12.171 million in reserves/reserve funds funding, $2.025 million in Capital from Current funding, $0.311 million in Development Charges funding and $1.098 million in other Revenue will be returned to their original funding sources.

Table 1: Nine months and Year-End Projected Spending Rate

The spending pattern for the first nine months is typically within 40 percent of the total Council Approved Capital Budget. As detailed by City Program and Agency in Appendix 1, total expenditures for the first nine months of 2017 is $1.682 billion or 31.9 percent of the 2017 Council Approved Budget, which is slightly lower than prior years, as compared to 33.2 percent in the third quarter of 2016, 37.0 percent in the third quarter of 2015 and 35.7 percent in the third quarter of 2014. 

The projected expenditure to year-end is expected to reach $3.681 billion or 69.8 percent of the total 2017 Approved Capital Budget. 14 of the 33 City Programs and Agencies have year-end projected spending rate in excess of 70 percent: Tax Supported Programs project a spending rate of 68.3 percent while Rate Supported Programs project spending rate of 75.4 percent by year-end. 

Figure 1 below compares the actual year-end spending rate from 2012 to 2016 average with the projected year-end spending rate for 2017. 

Figure 1: 2012 - 2017 Capital Spending Rate

(See Figure 1 titled 2012 - 2017 Capital Spending Rate

in the Summary Section of the report dated November 20, 2017

from the Acting Chief Financial Officer)

The 2017 Capital Budget of $5.273 billion represents the highest Capital Budget the City has had for its Tax and Rate Supported Programs. This level of funding reflects an Approved Capital Budget of $3.708 billion plus a combined 2016 carry forward funding and 2017 in-year budget adjustments of $1.565 billion. As a result of increased Capital Budgets, the spending as a percentage of the Budget is proportionally lower. 

The projected year-end spending rates are based on the submissions from the City Operation Divisions and Agencies, and as such, we have accordingly relied on the advice in preparing this report. Both the Approved Capital Budget (including carry forward funding) and actual capital expenditures have been steadily trending upwards over the last 5 years: from $2.400 billion in 2012 to $2.855 billion in 2016 and projected to reach $3.681 billion by the end of 2017. While the projected year-end spending rate of 69.8 percent for 2017 is consistent with the year-end spending rate projected at the third quarter in prior years, it is higher compared to actual year-end spending rate of 60.2 percent for 2016 and 68.3 percent for 2015 as well as past five years' average spending rate of 62.4 percent.

Table 2 below outlines capital spending for Tax and Rate Supported Programs for the nine months ended September 30, 2017 as well as projected spending to year-end.

Table 2: Nine Month Variance and Projection to Year-End

Total expenditures for Tax and Rate Supported Programs and Agencies for the third quarter of 2017 are $1.682 billion representing 31.9 percent of their combined 2017 Approved Capital Budgets. Actual spending at the end of the nine month period is in line with previous years. Projected expenditures are anticipated to reach $3.681 billion or 69.8 percent by year-end.

Appendix 1 summarizes the first three quarters of spending and year-end projected spending rates by City Program and Agency.

Table 3 below outlines the savings from projects that have been completed in the first three quarters of 2017

Table 3: Completed Projects for the first nine months of 2017

A capital project is considered fully closed when all its subsidiary projects/subprojects are completed. 326 capital projects was completed in the first nine months of 2017 with a combined budget of $646.606 million. They have been completed under budget, realizing savings of $44.854 million. The savings which includes $17.367 million in debt funding, $18.483 million in reserves/reserve funds funding, $2.873 million in Capital from Current funding, $0.397 million in Development Charges funding, $4.468 million in recoverable debt and $1.266 million in other Revenue will be returned to their original funding sources.

The Acting Chief Financial Officer recommends that:

1.  City Council approve the budget adjustments detailed in Appendix F to amend the 2017 Approved Operating Budget between Programs that have no impact to the 2017 Approved Net Operating Budget of the City.

2.  City Programs and Agencies projecting year-end over-spending continue to identify and undertake mitigation strategies to address projected year-end over-expenditures.

The purpose of this report is to provide City Council with the operating variance for the nine month period ended September 30, 2017 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2017 Approved Operating Budget between Programs that have no impact on the City's 2017 Approved Net Operating Budget.

The following table summarizes the financial position of Tax Supported Operations as of the third fiscal quarter and projection at year-end:

Figure 1: Tax Supported Operating Net Variance Summary ($ Millions)

In accordance with the Building Code Act, the surplus from Toronto Building must be contributed to the Building Code Act Service Improvement Reserve Fund to create and maintain systems and processes which enable service delivery timelines and reporting requirements of the Province's Bill 124, Building Code Statute Law Amendment Act, and 2002 Legislation to be met.

It is important to note, Children's Services year-end under-expenditure of $12.000 million net is related to Provincial / Federal growth funding to provide 825 new child care subsidies to support growth as directed by City Council on July 4, 2017 (EX26.30). A corresponding in-year adjustment is included in the Appendix F of the report for a one-time contribution to the Child Care Expansion Reserve Fund.

Year-to-Date Spending Results:

As noted in Figure 1 above, for the nine month period ended September 30, 2017, Tax Supported Operations reported a favourable net variance of $248.103 million or 8.3 percent and are projecting a year-end surplus of $141.822 million or 3.5 percent.

The year-to-date net under-spending was primarily driven by:

- Over-achieved Municipal Land Transfer Tax revenue due to higher than anticipated real estate market activity ($93.809 million net).
 

- Under-expenditure by the Toronto Transit Commission of $80.356 million net primarily as a result of lower departmental material expenditures, labour costs, and accident claims of $67.755 million net within Conventional Service, and fewer customer journeys than planned within Wheel Trans of $12.601 million net.
 

- Under-spending by Transportation Services driven by lower contract costs and decreased salt usage in the winter maintenance program ($18.103 million net).
 

- Over-achieved revenue in Toronto Building primarily due to the increasing number of building permit applications ($16.792 million net).
 

- Increased revenue from Supplementary Taxes due to a change in the historical supplementary roll delivery date compared to plan ($15.936 million net).
 

Favourable variances in other Programs and Agencies are primarily due to under-spending in salaries and benefits as a result of vacant positions. The majority of the vacant positions are expected to be filled by year-end, while other new vacant positions may occur throughout the system. More detailed explanations at the Program / Agency level can be found in the complement section of this report.

Year-End Spending Projections:

Based on this current trend, the City is projecting a net favourable year-end variance of $141.822 million or 3.5 percent. The key drivers for the expected year-end net position are largely due to the following:

- Higher than budgeted Municipal Land Transfer Tax revenue as a result of higher than expected sales revenue ($85.000 million net).
 

- Toronto Transit Commission - Conventional Service's under-spending of $35.076 million net is mainly related to labour expenses, employee benefits, PRESTO fees, lower diesel fuel consumption, utilities, depreciation, which are partially offset by passenger revenue increase due to the current trend of customers switching from pass-based fare media to single-ride fare media, and not requiring the budgeted reserve draw of $14.000 million. While, Wheel - Trans Service favourable variance of $14.259 million net is attributed to fewer customer journeys than budgeted. As a whole, Toronto Transit Commission is projecting a favourable year-end variance of $49.335 million net.
 

Consistent with the City's financial management practices and policies, Programs and Agencies projecting an unfavourable year-end variance are required to identify and implement mitigation strategies where possible to address any projected shortfalls.

It is important to note that the City's projected year-end under-spending of $141.822 million is primarily attributed to the projected higher Municipal Land Transfer Tax revenues of $85.000 million. After isolating Toronto Building projected net revenue, Municipal Land Transfer Tax over-achieved revenue accounts for 66 percent of the total City's favourable variance for year-end.

Rate Supported Programs:

As noted in Figure 2 below, for the nine month period ended September 30, 2017, Rate Supported Operations reported a favourable net variance of $14.431 million or 34.3 percent and are projecting a year-end surplus of $2.886 million.

Figure 2: Rate Supported Net Variance Summary ($ Millions)

The key year-to-date net under-spending in Rate Supported Program was driven by:

The negative variance in Solid Waste Management Services of $2.628 million net or 30.4 percent is primarily due to over-spending on contracted services, inter-divisional charges for fleet maintenance, debt service charges as well as earlier than planned reserve contributions.
 

The negative revenue in Toronto Parking Authority of $0.306 million net or 0.7 percent is primarily due to lower than planned off-street parking revenues and loss of sponsorship revenue in the Bike Share Program.

 
The positive revenue in Toronto Water of $17.365 million net is primarily due to advance postings of sale of water and industrial waste agreement revenues, as well as an overall increase in the volume demand for new sewer service connections and private water agreements.
 

Complement:

Figure 3: 2017 Year-To-Date Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies.

As of September 30, 2017, the City recorded an operating vacancy rate of 1.0 percent after gapping for an approved complement of 50,910.6 operating positions. The year-to-date vacancy rate for capital positions was 20.6 percent for an approved complement of 3,599.5 positions.

Figure 4: 2017 Year-End Projected Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies.

The year-end operating vacancy rate after gapping is projected to be 0.2 percent for an approved complement of 50,912.6 operating positions. The forecasted vacancy rate for capital positions is projected to be 10.9 percent for an approved complement of 3,461.5 positions.

A detailed overview of the third quarter complement is provided in the Approved Complement Section of this report.

Tax Supported Programs and Agencies reported an under-expenditure of $181.405 million or 2.4 percent gross and $248.103 million or 8.3 percent net at the end of the third quarter. By year-end, Tax Supported Programs and Agencies are forecasting a favourable gross-expenditure variance of $193.438 million or 1.8 percent, and a net favourable variance of $141.822 million or 3.5 percent. Figure 5 below provides further analysis of year-end projected variance on net expenditures:

Figure 5: Net Expenditures as Reported Over/ (Under) ($ Millions)

- In total Tax Supported Operations is projecting a favourable year-end variance of $141.822 million. After allocating the projected year-end net revenue of $12.508 million to the Building Code Act Service Improvement Reserve Fund, and $12.000 million to Child Care Expansion Reserve Fund, the adjusted, favourable variance, is projected to be $117.314 million at year-end.
 

- It is important to note that a large portion of the projected year-end under-spending is attributed to higher than budgeted Municipal Land Transfer Tax revenue. After excluding Toronto Building, Children's Services, City Planning, Municipal Land Transfer Tax, the year-end under-spending from the rest of City Programs / Agencies is projected to be only $25.611 million or 0.2 percent of the City's Tax Supported gross budget.

The Budget Committee recommends to the Executive Committee that:

1.  City Council approve the budget adjustments detailed in Appendix F to the report (November 20, 2017) from the Acting Chief Financial Officer to amend the 2017 Approved Operating Budget between Programs that have no impact to the 2017 Approved Net Operating Budget of the City.

2.  City Programs and Agencies projecting year-end over-spending continue to identify and undertake mitigation strategies to address projected year-end over-expenditures.

The purpose of this report is to provide City Council with the operating variance for the nine month period ended September 30, 2017 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2017 Approved Operating Budget between Programs that have no impact on the City's 2017 Approved Net Operating Budget.

The following table summarizes the financial position of Tax Supported Operations as of the third fiscal quarter and projection at year-end:

Figure 1: Tax Supported Operating Net Variance Summary ($ Millions)

In accordance with the Building Code Act, the surplus from Toronto Building must be contributed to the Building Code Act Service Improvement Reserve Fund to create and maintain systems and processes which enable service delivery timelines and reporting requirements of the Province's Bill 124, Building Code Statute Law Amendment Act, and 2002 Legislation to be met.

It is important to note, Children's Services year-end under-expenditure of $12.000 million net is related to Provincial / Federal growth funding to provide 825 new child care subsidies to support growth as directed by City Council on July 4, 2017 (EX26.30). A corresponding in-year adjustment is included in the Appendix F of the report for a one-time contribution to the Child Care Expansion Reserve Fund.

Year-to-Date Spending Results:

As noted in Figure 1 above, for the nine month period ended September 30, 2017, Tax Supported Operations reported a favourable net variance of $248.103 million or 8.3 percent and are projecting a year-end surplus of $141.822 million or 3.5 percent.

The year-to-date net under-spending was primarily driven by:

- Over-achieved Municipal Land Transfer Tax revenue due to higher than anticipated real estate market activity ($93.809 million net).
 

- Under-expenditure by the Toronto Transit Commission of $80.356 million net primarily as a result of lower departmental material expenditures, labour costs, and accident claims of $67.755 million net within Conventional Service, and fewer customer journeys than planned within Wheel Trans of $12.601 million net.
 

- Under-spending by Transportation Services driven by lower contract costs and decreased salt usage in the winter maintenance program ($18.103 million net).
 

- Over-achieved revenue in Toronto Building primarily due to the increasing number of building permit applications ($16.792 million net).
 

- Increased revenue from Supplementary Taxes due to a change in the historical supplementary roll delivery date compared to plan ($15.936 million net).
 

Favourable variances in other Programs and Agencies are primarily due to under-spending in salaries and benefits as a result of vacant positions. The majority of the vacant positions are expected to be filled by year-end, while other new vacant positions may occur throughout the system. More detailed explanations at the Program / Agency level can be found in the complement section of this report.

Year-End Spending Projections:

Based on this current trend, the City is projecting a net favourable year-end variance of $141.822 million or 3.5 percent. The key drivers for the expected year-end net position are largely due to the following:

- Higher than budgeted Municipal Land Transfer Tax revenue as a result of higher than expected sales revenue ($85.000 million net).
 

- Toronto Transit Commission - Conventional Service's under-spending of $35.076 million net is mainly related to labour expenses, employee benefits, PRESTO fees, lower diesel fuel consumption, utilities, depreciation, which are partially offset by passenger revenue increase due to the current trend of customers switching from pass-based fare media to single-ride fare media, and not requiring the budgeted reserve draw of $14.000 million. While, Wheel - Trans Service favourable variance of $14.259 million net is attributed to fewer customer journeys than budgeted. As a whole, Toronto Transit Commission is projecting a favourable year-end variance of $49.335 million net.
 

Consistent with the City's financial management practices and policies, Programs and Agencies projecting an unfavourable year-end variance are required to identify and implement mitigation strategies where possible to address any projected shortfalls.

It is important to note that the City's projected year-end under-spending of $141.822 million is primarily attributed to the projected higher Municipal Land Transfer Tax revenues of $85.000 million. After isolating Toronto Building projected net revenue, Municipal Land Transfer Tax over-achieved revenue accounts for 66 percent of the total City's favourable variance for year-end.

Rate Supported Programs:

As noted in Figure 2 below, for the nine month period ended September 30, 2017, Rate Supported Operations reported a favourable net variance of $14.431 million or 34.3 percent and are projecting a year-end surplus of $2.886 million.

Figure 2: Rate Supported Net Variance Summary ($ Millions)

The key year-to-date net under-spending in Rate Supported Program was driven by:

The negative variance in Solid Waste Management Services of $2.628 million net or 30.4 percent is primarily due to over-spending on contracted services, inter-divisional charges for fleet maintenance, debt service charges as well as earlier than planned reserve contributions.
 

The negative revenue in Toronto Parking Authority of $0.306 million net or 0.7 percent is primarily due to lower than planned off-street parking revenues and loss of sponsorship revenue in the Bike Share Program.

 
The positive revenue in Toronto Water of $17.365 million net is primarily due to advance postings of sale of water and industrial waste agreement revenues, as well as an overall increase in the volume demand for new sewer service connections and private water agreements.
 

Complement:

Figure 3: 2017 Year-To-Date Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies.

As of September 30, 2017, the City recorded an operating vacancy rate of 1.0 percent after gapping for an approved complement of 50,910.6 operating positions. The year-to-date vacancy rate for capital positions was 20.6 percent for an approved complement of 3,599.5 positions.

Figure 4: 2017 Year-End Projected Vacancy Rate

*Vacancy after Gapping % is based on operating positions only.

**Corporate Accounts are largely driven by Parking Enforcement Unit vacancies.

The year-end operating vacancy rate after gapping is projected to be 0.2 percent for an approved complement of 50,912.6 operating positions. The forecasted vacancy rate for capital positions is projected to be 10.9 percent for an approved complement of 3,461.5 positions.

A detailed overview of the third quarter complement is provided in the Approved Complement Section of this report.

The Treasurer recommends that: 

1.  Budget Committee receive this report for information.

This report provides information on reserve and reserve fund balances as at September 30, 2017, indicating activity during the first nine months of 2017, and projected year-end balances. The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

There are no financial implications contained in this report.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that: 

1.  Executive Committee receive the report (November 13, 2017) from the Treasurer for information.

This report provides information on reserve and reserve fund balances as at September 30, 2017, indicating activity during the first nine months of 2017, and projected year-end balances. The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

The City Manager and the Acting Chief Financial Officer recommend that:

1.  City Council receive this report for information.

This report provides a summary of the anticipated impacts of the legislative proposals and amendments to Ontario's Employment Standards Act, 2000 and Labour Relations Act, 1995 as currently proposed by the provincial government in the Fair Workplaces, Better Jobs Act, 2017 (Bill 148) and the impact of these proposed changes on the City's 2018 and 2019 budget. The changes proposed to the Employment Standards Act, 2000 include a minimum wage increase from the current rate of $11.60 per hour (effective October 1, 2017) to $14.00 per hour in 2018, and $15.00 per hour in 2019.

Generally, the wages that the City pays to its employees are above the increased minimum wage levels that are proposed in Bill 148 and, therefore, those changes will not have any immediate budgetary impacts for any City divisions and Association of Community Centres (AOCCs), with the exception of Parks, Forestry and Recreation (PF&R), where there will be budgetary impacts.

The table below is summarizing the total impact from the proposed minimum wage change for City Programs and Agencies:

Parks, Forestry and Recreation

There will be an immediate impact to the Parks, Forestry and Recreation budget as follows:

*Cost does not include the impact of making any adjustments that may be made to the union wage schedules impacted by the implementation of the proposed minimum wage increases.

The above costs represent the difference between the 2018 and 2019 anticipated expenditures with a minimum wage of $11.60 (current minimum wage as of October 1, 2017) and the anticipated expenditures in 2018 and 2019, following the application of the new minimum wage ($14.00 as of January 1, 2018 and $15.00 as of January 1, 2019).

Children's Services

Children's Services pays fees or per diems on behalf of clients in receipt of fee subsidies to child care operators with which it has a purchase of service agreement. 

There will be an increase in actual costs and in per diems paid by the City for those operators paying below the proposed new minimum wage, as follows:

Additional Bill 148 Proposals

In addition, based on the information available at this time, staff have attempted to determine preliminary cost impacts for some of the other changes proposed in Bill 148:

 * Toronto Community Housing Corporation has an additional impact in 2019 of $0.055 million.

** Toronto Police has an additional impact in 2019 of $0.001 million.

There is limited information available about these proposals and the interpretation of each of the changes is continuing to evolve. As such, the above costs are very preliminary estimates. The total cost for City Programs of the above changes would represent approximately 0.7 percent of the City's salary and benefit costs.

Attachment 1 provides a summary of the preliminary costs for the City and its Agencies.

As part of the 2018 budget process, staff are working to identify sufficient funding to set aside as a provision to cover the net costs to the City for the potential increase in salaries and benefits that may arise from the proposed minimum wage increase for 2018 based on these preliminary estimates.

The Acting Chief Financial Officer has reviewed this report and concurs with the information identified in the financial impact statement section.

The Budget Committee recommends to the Executive Committee that:

1.  City Council receive the report (November 17, 2017) from the City Manager and the Acting Chief Financial Officer for information.

This report provides a summary of the anticipated impacts of the legislative proposals and amendments to Ontario's Employment Standards Act, 2000 and Labour Relations Act, 1995 as currently proposed by the provincial government in the Fair Workplaces, Better Jobs Act, 2017 (Bill 148) and the impact of these proposed changes on the City's 2018 and 2019 budget. The changes proposed to the Employment Standards Act, 2000 include a minimum wage increase from the current rate of $11.60 per hour (effective October 1, 2017) to $14.00 per hour in 2018, and $15.00 per hour in 2019.

The General Manager, Economic Development and Culture recommends that:  

1.  City Council approve an increase to the 2017 Approved Operating Budget of the Economic Development and Culture Division in the amount of $0.200 million gross, and $0 net, fully funded by a transfer from the Construction Hoarding Sign Fee Reserve Fund (XR1219); and be allocated as follows:

- $0.100 million to 2017 Toronto Arts Council operating program; and

- $0.100 million to 2017 Toronto Arts Council grant program.

2.  City Council direct the General Manager of Economic Development and Culture to report back to Council in 2018 on the community impact of the Arts in the Parks program delivered by the Toronto Arts Council and its partners.

The purpose of this report is to seek City Council approval to transfer funds in the amount of $0.200 million from the Construction Hoarding Sign Fee Reserve Fund (XR1219) to the 2017 Economic Development and Culture operating budget in order to allocate it to the Toronto Arts Council (TAC).

The allocation of funding will be directed in the amount of $0.100 million towards the 2017 Toronto Arts Council operating program to pay for park permit fees; and $0.100 million towards the Toronto Arts Council grants program to support artists selected to perform in City of Toronto parks.

If approved, funds in the amount of $0.200 million from the Construction Hoarding Sign Fee Reserve Fund (XR1219) will be transferred to the 2017 Economic Development and Culture operating budget, for a net $0 impact.  Of that amount, $0.100 million will be allocated to the 2017 Toronto Arts Council operating program and the other $0.100 million will be allocated to the Toronto Arts Council grant program.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that:  

1.  City Council approve an increase to the 2017 Approved Operating Budget of the Economic Development and Culture Division in the amount of $0.200 million gross, and $0 net, fully funded by a transfer from the Construction Hoarding Sign Fee Reserve Fund (XR1219); and be allocated as follows:

- $0.100 million to 2017 Toronto Arts Council operating program; and

- $0.100 million to 2017 Toronto Arts Council grant program.

2.  City Council direct the General Manager, Economic Development and Culture to report back to Council in 2018 on the community impact of the Arts in the Parks program delivered by the Toronto Arts Council and its partners.

The purpose of this report is to seek City Council approval to transfer funds in the amount of $0.200 million from the Construction Hoarding Sign Fee Reserve Fund (XR1219) to the 2017 Economic Development and Culture operating budget in order to allocate it to the Toronto Arts Council (TAC).

The allocation of funding will be directed in the amount of $0.100 million towards the 2017 Toronto Arts Council operating program to pay for park permit fees; and $0.100 million towards the Toronto Arts Council grants program to support artists selected to perform in City of Toronto parks.

The Deputy City Manager, Internal Corporate Services recommends that:

1.  City Council authorize the deferral and acceleration of funds in the Facilities, Real Estate, Environment and Energy (FREEE) 2017 Council Approved Capital Budget and 2018- 2026 Capital Plan in the amount of $1.735 million, as illustrated in Schedule A (attached), with zero gross and net debt impact.

The purpose of this report is to amend the Facilities, Real Estate, Environment and Energy (FREEE) 2017 Council Approved Capital Budget and 2018-2026 Capital Plan.  The amendments will have zero gross and net debt impact and will better align 2017 and future cash flows with Facilities, Real Estate, Environment and Energy program requirements.

The approval of this report will authorize the deferral and acceleration of funds in the 2017 Council Approved Capital Budget and 2018 - 2026 Capital Plan for Facilities, Real Estate, Environment and Energy (FREEE) in the amount of $1.735 million, as detailed in Schedule A (attached) for State of Good Repair (SOGR) projects. This amendment will have a zero gross and net debt impact.

There are no additional costs to the City as a result of the approval of this report.  The recommended adjustments will align the 2017 Council Approved Capital Budget with Facilities, Real Estate, Environment and Energy's Capital program requirements for 2017 and beyond.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that:

1.  City Council authorize the deferral and acceleration of funds in the Facilities, Real Estate, Environment and Energy (FREEE) 2017 Council Approved Capital Budget and 2018- 2026 Capital Plan in the amount of $1.735 million, as illustrated in Schedule A to the report (October 24, 2017) from the Deputy City Manager, Internal Corporate Services, with zero gross and net debt impact.

The purpose of this report is to amend the Facilities, Real Estate, Environment and Energy (FREEE) 2017 Council Approved Capital Budget and 2018-2026 Capital Plan.  The amendments will have zero gross and net debt impact and will better align 2017 and future cash flows with Facilities, Real Estate, Environment and Energy program requirements.

The General Manager, Fleet Services Division recommends that:

1.  City Council authorize the acceleration and deferral of funds in Fleet Services Division's 2017 Council Approved Capital Budget and 2018-2026 Capital Plan in the amount of $4.150 million, as illustrated in Appendix A (attached), with zero gross and net debt impact.

The purpose of this report is to amend the Fleet Services Division (FSD) 2017 Council Approved Capital Budget and 2018-2027 Capital Plan. The amendments will have zero gross and net debt impact and will better align 2017 and future cash flows with Fleet Services Division program requirements.

The approval of this report will authorize the acceleration and deferral of funds in the 2017 Approved Capital Budget and 2018-2026 Capital Plan for Fleet Services Division in the amount of $4.150 million as outlined in Appendix A for vehicle replacement projects.  This amendment will have zero gross and net debt impact.

There are no additional costs to the City as a result of the approval of this report.  The recommended adjustments will align the 2017 Council Approved Capital Budget with Fleet Services Division's Capital program requirements for 2017 and beyond.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that:

1.  City Council authorize the acceleration and deferral of funds in Fleet Services Division's2017 Council Approved Capital Budget and 2018-2026 Capital Plan in the amount of $4.150 million, as illustrated in Appendix A to the report (October 25, 2017) from the General Manager, Fleet Services Division, with zero gross and net debt impact.

 The purpose of this report is to amend the Fleet Services Division (FSD) 2017 Council Approved Capital Budget and 2018-2027 Capital Plan. The amendments will have zero gross and net debt impact and will better align 2017 and future cash flows with Fleet Services Division program requirements.

The General Manager, Transportation Services, recommends that:

1.  City Council approve the following fees applicable to Street Event applications and permits, effective January 1, 2018 and January 1, 2019, respectively, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C - Schedule 2 and Chapter 743, to include any necessary descriptions:

a.  Business Improvement Area Signature Events of Attachment 1 to this report at $625 per permit as of January 1, 2018 and $1250 as of January 1, 2019;

 
b.  Business Improvement Area One Day Events of Attachment 1 to this report at $100 per application per event and a permit fee of $125 as of January 1, 2018 and $250 as of January 1, 2019; and

 
c.  Business Improvement Area Sidewalk, Boulevard and/or Curb Lane of Attachment 1 to this report at $25 per application per event and a permit fee of $100 per day as of January 1, 2018.
 

2.  City Council direct the Chief Financial Officer to annually determine, in accordance with the City's User Fee Policy, the automatic annual inflationary adjustment to be applied to the street event fees and that Chapters 441 and 442 of the City of Toronto Municipal Code be amended accordingly. Inflationary increases for the fees listed in items 1. a. and 1. b. to commence January 1, 2020.

City Council, at its meeting of February 15 and 16, 2017, requested the General Manager, Transportation Services to conduct further consultation with the Business Improvement Areas on the impact of the Street Event Fee increases in the 2017 Transportation Services Operating Budget.

As a result of the consultation, staff are recommending the new fees be implemented through a two-year phased-in approach. The new Business Improvement Area fees would see a 75 percent and 50 percent reduction applied to the approved fees, as shown in Attachment 1 of this report. The proposed 75 percent reduction would be introduced January 1, 2018 and the 50 percent reduction in January 1, 2019. This approach would allow the Business Improvement Areas to better plan for their upcoming operating budgets.

Adoption of the recommendations in this report would result in the loss of approximately $50,000 of potential revenue in 2018 and $35,000 in 2019, based on the fees approved through the 2017 Budget process.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that:

1. City Council approve the following additional sub-category applicable to Street Event applications and permits, effective January 1, 2018 and January 1, 2019, respectively and amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C- Schedule 2 and Chapter 743, to include any necessary descriptions:

BIA Signature Events with Attendance of 100,000 or Less: Business Improvement Area applicants for signature events with attendance of 100,000 or less which require full of partial road closures/occupation of Major Arterial, Minor Arterial and Collector roads for 2 or more consecutive days (four days maximum) at $200 per application per event and $313 per permit as of January 1, 2018 and $625 per permit as of January 1, 2019.

2.  City Council approve the following fees applicable to Street Event applications and permits, effective January 1, 2018 and January 1, 2019, respectively, and amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C - Schedule 2 and Chapter 743, to include any necessary descriptions:

a.  Business Improvement Area Signature Events of Attachment 1 to the report (October 27, 2017) from the General Manager, Transportation Services, at $625 per permit as of January 1, 2018 and $1250 as of January 1, 2019;

 
b.  Business Improvement Area One Day Events of Attachment 1 to the report (October 27, 2017) from the General Manager, Transportation Services, at $100 per application per event and a permit fee of $125 as of January 1, 2018 and $250 as of January 1, 2019; and

 
c.  Business Improvement Area Sidewalk, Boulevard and/or Curb Lane of Attachment 1 to the report (October 27, 2017) from the General Manager, Transportation Services, at $25 per application per event and a permit fee of $100 per day as of January 1, 2018. 

3.  City Council direct the Chief Financial Officer to annually determine, in accordance with the City's User Fee Policy, the automatic annual inflationary adjustment to be applied to the street event fees and that Chapters 441 and 442 of the City of Toronto Municipal Code be amended accordingly. Inflationary increases for the fees listed in recommendations: 1, 2.a., and 2.b. to commence January 1, 2020.

City Council, at its meeting of February 15 and 16, 2017, requested the General Manager, Transportation Services to conduct further consultation with the Business Improvement Areas on the impact of the Street Event Fee increases in the 2017 Transportation Services Operating Budget.

As a result of the consultation, staff are recommending the new fees be implemented through a two-year phased-in approach. The new Business Improvement Area fees would see a 75 percent and 50 percent reduction applied to the approved fees, as shown in Attachment 1 of this report. The proposed 75 percent reduction would be introduced January 1, 2018 and the 50 percent reduction in January 1, 2019. This approach would allow the Business Improvement Areas to better plan for their upcoming operating budgets.

The General Manager, Transportation Services recommends that:

1.  City Council authorize the reallocation of funds within Transportation Services' Approved 2017 Capital Budget in the amount of $7.300 million, for funding of projects, as presented in Attachments 1, with a zero budget impact.

This report requests City Council's authority to amend Transportation Services' Approved 2017 Capital Budget by adjusting cash flows contained within the 2017 Budget to align with project delivery schedule and program requirements. These reallocations will allow Transportation Services to continue to deliver projects within its Capital Plan. The adjustments will have a zero dollar impact on the 2017 Transportation Services' Approved Capital Budget and result in improved spending rates.

There are no additional costs to the City as a result of the approval of this report.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

As part an approach to actively manage capital budgets, a review of Transportation Services capital accounts was completed, analyzing projected year-end spend rates.  As a result of this review, funding from programs that are currently estimated to be underspent by year-end should be reallocated to program areas with increased funding requirements or ability to spend.

The purpose of this report is to provide additional background on the request to increase the funding for the Transportation Services 2017 City Bridge Rehabilitation program in the amount of $7.300 million, resulting in a total budget of $42.791 million in 2017.

The need for additional funding for the City Bridge Rehabilitation program in 2017 is partly attributed to increased costs for state of good repair bridge work and partly attributed to a proactive advancement of future year design and program management assignments for future state of good repair bridge and culvert work.

Additional funding requested by the City Bridge Rehabilitation program would be offset by funding for programs that are currently estimated to be underspent by year-end.

There are no additional costs to the City as a result of the approval of this report.

The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Budget Committee recommends to the Executive Committee that:

1.  City Council authorize the reallocation of funds within Transportation Services' Approved 2017 Capital Budget in the amount of $7.300 million, for funding of projects, as presented in Attachments 1 to the report (October 27, 2017) from the General Manager, Transportation Services, with a zero budget impact.

This report requests City Council's authority to amend Transportation Services' Approved 2017 Capital Budget by adjusting cash flows contained within the 2017 Budget to align with project delivery schedule and program requirements. These reallocations will allow Transportation Services to continue to deliver projects within its Capital Plan. The adjustments will have a zero dollar impact on the 2017 Transportation Services' Approved Capital Budget and result in improved spending rates.

The Acting Chief Financial Officer recommends that:

1.  City Council direct that the 2016 Operating Budget surpluses totalling $43,265 from three Arenas (William H. Bolton, North Toronto Memorial and Ted Reeve) be paid to the City of Toronto and be used, in part, to fund the 2016 Operating Budget deficits of $199,490 for four Arenas (George Bell, Forest Hill Memorial, McCormick, and Moss Park), resulting in an operating net deficit balance of $156,225 to be funded by the City, as illustrated in Appendix A, column (g), of the report;

2.  City Council direct that the funding provision for the 2016 Arena Boards Operating Budget net deficit of $26,325 be made through the 2017 Final Year-End Operating Variance Report, as calculated in the attached Appendix A - 2016 Program Summary.

This report recommends settlements with the eight Arena Boards of Management (Arenas) of their 2016 operating surpluses and deficits based on the audited financial statements for the year-ended December 31, 2016, with operating surpluses payable to the City and operating deficits funded by the City upon Council's approval.

For 2016, the Arena Boards of Management adjusted actual was a deficit of $185,636 or $195,501 over the budgeted surplus of $9,865.  The net settlement for the year 2016 requires that surplus funds of $43,265 from Bolton Arena, North Toronto Memorial Arena and Ted Reeve Arena be paid to the City and be used to partially fund the operating deficits totalling of $199,490 from George Bell Arena, Forest Hill Arena, McCormick Arena and Moss Park Arena. (See Appendix A) The funding requirement for this overall deficit is $156,225, as shown below. The net deficit at Leaside Gardens Arena will be added to the outstanding second pad loan balance for future repayment by the arena, according to the loan agreement between Leaside Gardens and the City.  

The total net deficit of $156,225 for the 7 Boards (other than Leaside) will be partially funded by the $129,900 which was reported as a pre-audit preliminary provision, in the 2016 Final Year-End Operating Variance Report.  The balance of $26,325 must be funded from the 2017 year-end results, which will occur through the 2017 Final Year-End Operating Variance Report.

The City will recover Leaside Arena's 2016 operating deficit of $29,411 over time, as the agreement for the loan to build Leaside Arena's second pad requires that any operating deficit during the life of the loan be rolled into the outstanding balance for repayment.

The Budget Committee recommends to the Executive Committee that:

1.  City Council direct that the 2016 Operating Budget surpluses totalling $43,265 from three Arenas (William H. Bolton, North Toronto Memorial and Red Reeve) be paid to the City of Toronto and be used, in part, to fund the 2016 Operating Budget deficits of $199,490 for four Arenas (George Bell, Forest Hill Memorial, McCormick, and Moss Park), resulting in an operating net deficit balance of $156,225 to be funded by the City, as illustrated in Appendix A, column (g), of the report (November 13, 2017) from the Acting Chief Financial Officer.

2.  City Council direct that the funding provision for the 2016 Arena Boards Operating Budget net deficit of $26,325 be made through the 2017 Final Year-End Operating Variance Report, as calculated in the attached Appendix A to the report (November 13, 2017) from the Acting Chief Financial Officer - 2016 Program Summary.

3.  City Council request that the Acting Chief Financial Officer, in consultation with the General Manager, Parks, Forestry and Recreation, to report back to Budget Committee on alternative ways to address potential operating deficits at Leaside Memorial Gardens Arena that arise as a result of unplanned major capital repair or replacement projects, instead of these deficits being recovered by being added to and amortized over the remaining term of the loan with the City.

This report recommends settlements with the eight Arena Boards of Management (Arenas) of their 2016 operating surpluses and deficits based on the audited financial statements for the year-ended December 31, 2016, with operating surpluses payable to the City and operating deficits funded by the City upon Council's approval.

The Acting Chief Financial Officer recommends that:

1.  City Council approve reductions to the following underspent debt funded capital projects in the 2017 Capital Budget for the Sony Centre totalling $0.799 million:

 
a.  East Side Restoration project (CHU009-01; $0.076 million)
b.  Exterior Wall project (CHU008-01; $0.648 million)
c.  Stage Floor Replacement project (CHU010-06; $0.075 million)
 

2.  City Council approve an increase to the capital budget for the Fire Curtain Replacement project (CHU010-05) by $0.075 million from $0.261 million to $0.336 million, and the addition of three new capital projects as follows, fully funded by debt reallocated in recommendation 1:

 
a.  LED Auditorium Lighting for $0.245 million;
b.  Concession Stands for $0.240 million; and
c.  Automated Rigging Hoists for $0.239 million.

The purpose of this report is to transmit to City Council the request from the Board of Directors of The Hummingbird (Sony) Centre for the Performing Arts to apply permanent underspending from three projects in their 2017 Capital Budget to three new projects and one overspent project. These changes will deliver an energy cost savings initiative, AODA compliance for the theatre's concession stands, a fire curtain replacement, and rigging hoist automation projects.

This recommendations in this report request changes to the 2017 Council Approved Sony Centre Capital Budget to apply permanent underspent debt funding from 3 projects to meet additional costs in one approved project and add 3 new capital projects to address other needs.  The installation of LED lighting in the Sony Centre auditorium will reduce the current hydro budget from the current $0.400 million annually, but due to the complexity of the lighting systems and the nature of the space, an advance estimate of savings is not possible.  No other new financial impacts will arise from the approval of this report which requests the reallocation of debt funding.  Detailed changes are the following:

The Budget Committee recommends to the Executive Committee that:

1.  City Council approve reductions to the following underspent debt funded capital projects in the 2017 Capital Budget for the Sony Centre totalling $0.799 million:

 
a.  East Side Restoration project (CHU009-01; $0.076 million)
b.  Exterior Wall project (CHU008-01; $0.648 million)
c.  Stage Floor Replacement project (CHU010-06; $0.075 million)
 

2.  City Council approve an increase to the capital budget for the Fire Curtain Replacement project (CHU010-05) by $0.075 million from $0.261 million to $0.336 million, and the addition of three new capital projects as follows, fully funded by debt reallocated in recommendation 1:

 
a.  LED Auditorium Lighting for $0.245 million;
b.  Concession Stands for $0.240 million; and
c.  Automated Rigging Hoists for $0.239 million.

The purpose of this report is to transmit to City Council the request from the Board of Directors of The Hummingbird (Sony) Centre for the Performing Arts to apply permanent underspending from three projects in their 2017 Capital Budget to three new projects and one overspent project. These changes will deliver an energy cost savings initiative, AODA compliance for the theatre's concession stands, a fire curtain replacement, and rigging hoist automation projects.

The Toronto Transit Commission Board recommends that:

1.  City Council approve a total Toronto Transit Commission complement of 14,995 positions reflecting an increase of 26 positions from the Board approved Budget; and 414 positions from the Council approved 2017 Operating Budget, fully funded from existing salary and benefit expenditures included in the approved budget for these positions.

At its meeting on Monday, November 13, 2017 the Toronto Transit Commission Board considered the attached report entitled, "Toronto Transit Commission 2017 Operating Budget Adjustment".

The Toronto Transit Commission Board adopted the recommendations in the staff report, as follows:

It is recommended that the Board:

1.  Approve a total Toronto Transit Commission complement of 14,995 positions reflecting an increase of 26 positions from the Board approved Budget; and 414 positions from the Council approved 2017 Operating Budget, fully funded from existing salary and benefit expenditures included in the approved budget for these positions; and

2.  Forward this report to the City's Budget Committee for approval.

The foregoing is submitted to the City of Toronto Budget Committee and the City of Toronto Executive Committee, for approval.

The Budget Committee recommends to the Executive Committee that:

1.  City Council approve a total Toronto Transit Commission complement of 14,995 positions reflecting an increase of 26 positions from the Board approved Budget; and 414 positions from the Council approved 2017 Operating Budget, fully funded from existing salary and benefit expenditures included in the approved budget for these positions.

At its meeting on Monday, November 13, 2017 the Toronto Transit Commission Board considered the attached report entitled, "Toronto Transit Commission 2017 Operating Budget Adjustment".

The Toronto Transit Commission Board adopted the recommendations in the staff report, as follows:

It is recommended that the Board:

1.  Approve a total Toronto Transit Commission complement of 14,995 positions reflecting an increase of 26 positions from the Board approved Budget; and 414 positions from the Council approved 2017 Operating Budget, fully funded from existing salary and benefit expenditures included in the approved budget for these positions; and

2.  Forward this report to the City's Budget Committee for approval.

The foregoing is submitted to the City of Toronto Budget Committee and the City of Toronto Executive Committee, for approval.

The Aboriginal Affairs Committee recommends to the Executive Committee that:

1.  City Council express its support for establishing an Indigenous Affairs Office within the City Manager's Office at the City of Toronto.

2.  City Council refer the new and enhanced request of $0.480 million gross and net for the addition of 4.0 positions to staff the Indigenous Affairs Office and $0.040 million gross and net to retain an external consultant, for a total of $0.520 million gross and net, included in the City Manager's Office 2018 Operating Budget Submission for consideration as part of the 2018 budget process.

3.  City Council request the City Manager to submit funding applications, as appropriate, to federal and provincial governments, to non-profit organizations and to private sector organizations to support the establishment and work of the Indigenous Affairs Office, and authorize the City Manager to enter into such agreements in a form satisfactory to the City Manager and City Solicitor.

4.  City Council, as affirmed by the City's commitment to Aboriginal people to self-determination, direct the City Manager to engage the Aboriginal community on the establishment of an Indigenous Affairs Office at the City of Toronto to ensure that it is designed, developed, and reflective of the Aboriginal community's vision.

The City of Toronto will establish an Indigenous Affairs Office within the City Manager's Office. The Indigenous Affairs Office will report directly to the City Manager, with an administrative reporting relationship to the Director, Equity, Diversity and Human Rights for the purposes of budget, timekeeping and administrative support. In this report, the term 'Indigenous' is used to refer to the First Nations, Métis and Inuit communities.

A survey of City divisions indicates several are engaged in initiatives related to Indigenous affairs and a number have staff positions that are assigned to related portfolios. While the City remains committed to embedding responsibility for Indigenous priorities within divisions, the City recognizes the need for a centralized Indigenous Affairs Office in the City Manager's Office to, among other things:

- strengthen the City's relationship with Indigenous communities;

- develop and implement a reconciliation framework/strategy for the City;

 - support City divisions in the development and implementation of reconciliation initiatives and provision of subject matter expertise, including to support conversations with other orders of government;

- assist in the development of Indigenous cultural competency training and related education for the Toronto Public Service;

- support the Aboriginal Affairs Committee;

- track and report on the City's progress in responding to the eight Truth and Reconciliation Priority Calls to Action adopted by the City;

- ensure that the City's work with Indigenous communities is in accordance with the City's Statement of Commitment to the Aboriginal Communities of Toronto;

- promote Indigenous civic participation and inclusion in the City's decision making processes;

- support Indigenous cultural events at the City; and

- secure funding for Indigenous related initiatives.

The Aboriginal Affairs Committee recommends to the Executive Committee that:

1.  City Council request the Acting Director, Equity, Diversity and Human Rights, in consultation with the City Clerk, to organize Indigenous cultural competency training for Members of Council and their staff.

2.  City Council request the City Manager and the Acting Chief Financial Officer to include this initiative in the City Manager's Office 2018 operating budget, for consideration in the 2018 budget process with other City priorities.

Omo Akintan, Acting Director, Equity, Diversity and Human Rights, provided an update to the Committee on Executive Management Indigenous Cultural Competency Training by the Ontario Federation of Indigenous Friendship Centres. This training to the City of Toronto's senior management team aims to increase understanding of the unique needs of Indigenous communities and on how to enhance relationships with the communities they serve.

The Toronto Accessibility Advisory Committee recommends to the Executive Committee that:

1.  City Council direct that:

a.  All festival and events funding programs require any external organizations seeking funding from the City of Toronto to hold a festival or event be required, as part of the eligibility criteria, to submit a detailed plan outlining the specific accessibility services that will be offered during their festival or event; and

b. The accessibility plan requested in Recommendation 1. a. include information on projects and/or initiatives to ensure that any and all communication platforms and marketing material are developed and offered with a focus on accessibility.

At its meeting of October 25, 2017, the Toronto Accessibility Advisory Committee considered a report from Darren Cooper, on behalf of the Information and Communications Working Group, Toronto Accessibility Advisory Committee.

The Toronto Accessibility Advisory Committee recommends to the Executive Committee that:

1.  The Accessibility Consultant, Equity, Diversity and Human Rights, in consultation with the City Clerk, review and seek input from the Toronto Accessibility Advisory Committee members on potential improvements to the strategy for engaging the community of people with disabilities in the public appointments process, including additional outreach and improved accommodation throughout the process and in participation on all agencies, boards and committees and report to a future meeting of the Toronto Accessibility Advisory Committee.

2.  The City Clerk report annually to the Toronto Accessibility Advisory Committee regarding the strategy for engaging the community of people with disabilities in the public appointments process, and include updates on the targeted percentages and the various methods being used to reach out to the community of people with disabilities.

At its meeting of October 25, 2017, the Toronto Accessibility Advisory Committee considered a presentation from the Administrator, Public Appointments, City Clerk's Office gave a presentation to the Toronto Accessibility Advisory Committee on Public Appointments at the City of Toronto.

The Tenant Issues Committee recommends to Executive Committee that:

1.  City Council direct that funds for Toronto Fire Services Open Data projects be included in the 2018 Operating Budget of Fire Services.

At is meeting of October 13, 2017, the Tenant Issues Committee considered a presentation from the Fire Chief and General Manager, Fire Services and the Deputy Fire Chief, Fire Prevention, Fire Services on Fire Prevention in High-Rise Buildings.

The Tenant Issues Committee recommends to the Executive Committee that:

1.  City Council request the Province of Ontario to extend the Ontario Electricity Support Program to low-income households who are tenants in buildings without sub-meters.

2.  City Council forward the report (September 27, 2017) from the General Manager, Shelter, Support and Housing Administration to the Chief Executive Officer, Toronto Atmospheric Fund for consideration.

3.  The General Manager of Shelter Support and Housing Administration, in consultation with community-based legal clinics and tenant advocacy groups, undertake further review and develop recommendations for changes to provincial legislation and guidelines related to electricity suite metering to provide greater protection to tenants and ensure stronger oversight and accountability of suite metering companies, and report to a  future meeting of the Tenant Issues Committee with a position to forward to the provincial government on this matter. 

4.  The Executive Director of Municipal Licensing and Standards consider including additional information related to suite metering in the Apartment Building By-law registration requirements to better understand the extent of sub-metering in Toronto’s rental housing stock, and to include any recommendations for changes in the update report of the Apartment Building Bylaw that will be provided to the Licensing and Standards Committee in 2018.

5.  The Director, Environment and Energy Office report to the Parks and Environment Committee, in the second quarter of 2018, on energy efficiency proposals for multi-unit residential buildings for condominiums, landlords and tenants.

At its meeting of October 13, 2017, the Tenant Issues Committee considered a report (September 27, 2017) from the General Manager, Shelter, Support and Housing Administration on Status of Suite Metering in Rental Buildings in Toronto.

City Council on November 7, 8 and 9, 2017, referred Administrative Inquiry IA34.1 from Councillor James Pasternak, Ward 10, York Centre and the Answer from the Deputy City Manager, Cluster A, to the Executive Committee for consideration.

Councillor Paul Ainslie recommends that:

1.  City Council request the Provincial Government to amend Regulation 387/98 Tax Matters - Taxation of Certain Railway, Power Utility Lands, such that a new system of municipal property taxation for railway right-of-ways is based on an assessed value, which is to include tonnage.  

2.  City Treasurer report back to Executive Committee at the January 24, 2018 meeting on the potential revenue the City could raise if the Province were to implement a modified taxation system based on tonnage, along with comparison data from other municipalities in Provinces where this taxation policy is already in place.

Prior to 1998, in Ontario, railway right-of-ways were assessed based on the market value of abutting lands, and they were taxed at local mill rates. In 1998, a new fixed rate tax system was introduced. The result was a change in the assessment procedures for railway right-of-ways. They were taxed at a fixed rate per acre, based on prescribed municipal and education tax rates.

For the new system, the province was divided into nine regions and different tax rates have been prescribed for each region based on the average tax levels which existed on rail corridor properties prior to 1998. The Provincial government since then, has proposed various options to update the railway right-of-way property tax system, but nothing has ever been done.

One option was to implement an indexed rate, which would maintain a rate per acre property tax, and be updated regularly. Another proposed option, was to implement a minimum rate per acre to address the lower rates and variances between regions. The Province also proposed an approach that is based on assessed value of each ton of cargo over each kilometre of railroad track a train travels.

The City of Toronto has an opportunity to support municipalities in northern Ontario in their desire to increase their financial viability with introduction of an assessed value system based on tonnage which is their preferred option.  It would benefit all municipalities including the City of Toronto as we search for additional funding to maintain our financial stability as well.

For many years provinces such as Manitoba, Saskatchewan and Alberta have levied a tax on railroad companies per ton, per mile, travelled through municipalities. It would be prudent for the City of Toronto and the Province of Ontario to review the revenue opportunities available, and implement a revised system. 

I look forward to your support on this important matter.