Agenda

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Declarations of Interest under the Municipal Conflict of Interest Act

Presentations - A complete list will be distributed at the meeting.

Communications/Reports

The Chief Financial Officer and Treasurer and the Acting General Manager, Toronto Water recommend that:

1.  City Council consider this report concurrently with the 2019-2028 Toronto Water Capital Plan and the 2019 Toronto Water Operating Budget.

2.  City Council adopt:

a.  Effective April 1, 2019, the combined water and wastewater consumption rates charged to metered consumers as shown below and in Appendix C attached to this report; 

b.  Effective April 1, 2019, an increase of 3.98 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix C attached to this report.

c.  Effective April 1, 2019, the water and wastewater service fees as set out in Appendix D attached to this report.

3.  City Council adopt with respect to assistance for low-income seniors and low-income disabled persons:

 a.  Effective April 1, 2019, the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.1864/cubic metres, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

4.  City Council authorize the implementation and monitoring of a bulk water fill station pilot (Bulk Water Pilot) on the following conditions:

 a.  Municipal Code Chapter 851 - Water Supply, be amended to authorize the supply, sale and delivery of bulk potable water dispensed from a bulk water station owned and operated by the City for industrial, commercial or institutional purposes only.

b.  Effective April 1, 2019, Municipal Code Chapter 441 - Fees and Charges, Appendix D, Schedule 2, Water Services, be amended to include a new fee for the metered water to be dispensed at any bulk water station owned and operated by the City, including under the Bulk Water Pilot, based on the Block 1 water and wastewater consumption rate.

c.  The Bulk Water Pilot be undertaken by Toronto Water for a minimum of 2 years at Toronto Water's Disco Yard located at 150 Disco Road (Etobicoke), or alternate Toronto Water facility at the discretion of the General Manager of Toronto Water, and that it be operated seasonally, from approximately April to October, with 24-hour access.

d.  The General Manager, Toronto Water be delegated the authority to implement, administer and monitor the Bulk Water Pilot including the authority to develop all related program policies and procedures, to procure all related goods and services necessary to implement and conduct the Bulk Water Pilot and to negotiate, enter into and execute any agreements necessary to give effect to the Bulk Water Pilot on terms and conditions acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

e.  The General Manager, Toronto Water report back to the Infrastructure and Environment Committee on the outcome of the Bulk Water Pilot once completed.

5.  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, Municipal Code Chapter 851 - Water Supply, and Municipal Code Chapter 681 - Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to these Recommendations.

6.  City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

7.  City Council authorize and direct the appropriate City officials to take the necessary action to give effect to Council's decision thereto.

This report presents the recommended 2019 water and wastewater consumption rates and service fees arising from the concurrent adoption by City Council of the recommended 2019 Toronto Water Operating and Capital Budgets.  

In accordance with the City Council 10 year capital plan approved in 2015, this report recommends a 3.98 percent water and wastewater consumption rate increase, effective April 1, 2019, which is the equivalent of a 3 percent annualized increase in 2019.  In addition, this report recommends inflationary fee increases for certain existing water and wastewater service fees, reflecting cost recovery for these services.  

This report also seeks Council authority to proceed with the implementation and monitoring of a proposed two-year bulk water fill station pilot project at Toronto Water's Disco Yard location (Bulk Water Pilot) or alternate Toronto Water location, subject to a report back to the Infrastructure and Environment Committee, and the establishment of a related new bulk water service fee for any metered water dispensed to customers at the bulk water fill station, based on the Block 1 water and wastewater consumption rate (Bulk Water Fee), to offset the costs of the Bulk Water Pilot (additional details in Appendix A).

The recommended 2019 water and wastewater consumption rates, service fees and the Bulk Water Fee will allow the Toronto Water Program to remain fully self-funded and financially stable, with both operating and capital needs being met without excessive year-over-year fluctuations in pricing over the long term.

The City of Toronto Water and Wastewater Program (the "Program") is currently fully funded on a 'pay-as-you-go' basis through a combined water and wastewater rate without any reliance on property taxes or borrowing/debenture financing.  The property tax supported budget is not impacted by adoption of the recommendations contained in this report. 

Based on the recommended 2019 Toronto Water Operating and Capital Budgets, the updated water consumption forecast, and Council's direction that the Capital Plan be predicated on a 3 percent rate increase in 2019 for planning purposes, a rate increase of 3.98 percent, effective April 1, 2019 is recommended for Block 1 consumers and Block 2 industrial process-use consumers. A 3.98 percent increase effective April 1, 2019 is a 3 percent rate increase on an annualised basis and will raise additional $35.52 million revenue for the Program.

The Toronto Water 2019 Operating and Capital Budget requires a combined water and wastewater expenditure level of $1.331 billion, which is fully funded from the recommended 2019 water and wastewater consumption rates and service fees.

As shown in Chart 1 below, the recommended rate increase impact on an average home consuming 240 cubic metres/year, billed at the Block 1 Rate, will be 3 percent or $27 over the calendar year (from $913 in 2018 to $940 in 2019).  The impact of the 3 percent increase on a commercial consumer at the Block 1 rate and an industrial consumer at the Block 2 rate with annual consumption of 100,000 cubic metres will be $11,348 and $8,113 respectively, the latter reflecting a 30 percent discount over Block 1 rates for eligible industrial consumers. The rate increase impact on a large industrial consumer of 1,000,000 cubic metres eligible for the Block 2 rate will be $79,595.

Chart 1 - Impact of Recommended 3.98 percent Rate Increase effective April 1, 2019

The recommended increases to certain water and wastewater service fees set out in Appendix C are expected to generate additional revenue of approximately $87,953 which is intended to offset the cost increases associated with delivering these services.

It is estimated that $300,000 in capital funds is required for the purchase and installation of the bulk water station required for the Bulk Water Pilot. Required funding is included in the 2019-2028 Recommended Capital Budget and Plan for Toronto Water (CWW034-06, Yards and Facilities). It is expected that capital works will be completed sometime later in 2019, as it will take time for the procurement process and subsequent assembly and installation of the bulk water station itself.

It is further estimated that annual operating costs of approximately $2,000 will be required to operate and maintain the bulk water fill station. It is anticipated that the Bulk Water Fee will generate, if a City-wide network of bulk water fill stations are constructed, approximately $400,000 in annual revenues from the sale of bulk water. In addition to offsetting the costs of the Bulk Water Pilot, these revenues will offset the revenue loss currently experienced by Toronto Water due to illegal practices like unauthorized hook-ups to fire hydrants. The 2019 Recommended Operating Budget for Toronto Water includes initial operating costs ($2,000) and revenues ($35,000) estimated for 2019, with fully annualized impact in 2020.

The General Manager, Solid Waste Management Services and the Chief Financial Officer and Treasurer recommend that:

1.  City Council adopt the 2019 Solid Waste Management Services Rates and Fees as set out in Appendix A to the report, dated January 30, 2019, from the General Manager, Solid Waste Management Services, and the Chief Financial Officer and Treasurer, retroactive to January 1, 2019.

2.  City Council consider this report concurrently with the 2019 Recommended Capital Budget, 2020-2028 Recommended Capital Plan and the 2019 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 Chief Financial Officer and Treasurer, and General Manager Solid Waste Management Services.

5.  City Council direct the following Renewable Natural Gas Initiatives:

a.  Fully exempt the Solid Waste Management Services renewable natural gas initiative, including any and all environmental attributes that may result from the program, from the City's Carbon Credit Policy;

 
b.  Place net revenues that the City derives from the future sale of renewable natural gas and/or any associated environmental attributes generated under the Solid Waste Management Services renewable natural gas initiative in the Solid Waste Management Reserve Fund XR1404 for the exclusive use of Solid Waste Management Services, which will be used to fund projects identified within the Council approved Long Term Waste Management Strategy and other environmentally sustainable initiatives; and

 
c.  Allow only Solid Waste Management Services to hold any unsold environmental attributes associated with the Solid Waste Management Services renewable natural gas initiative on behalf of the City, and the authority to sell the attributes.
 

6.  City Council direct that all the rates, fees and charges set out in Appendix A to this report, adopted by Council in Recommendation 1 above, continue in full force and effect until such time as they are amended or repealed by City Council.

7.  City Council direct the General Manager, Solid Waste Management Services, and the Executive Director of Financial Planning, to develop a Multi-Year Financial Strategy and rate structure for the Department and report back to Budget Committee.

8.  City Council authorize the General Manager, Solid Waste Management Services, or their designate, to develop and implement a Single Family Residential Low-income Relief Program in accordance with the description provided in the report, dated January 30, 2019, from the General Manager, Solid Waste Management Services, and the Chief Financial Officer and Treasurer, including, but not limited to, automatic enrollment for certain qualifying customers.

This report outlines the Recommended 2019 Solid Waste Management Services Rates and Fees arising from the concurrent adoption of the 2019 Recommended Solid Waste Management Services Operating and Capital Budgets. Recommended rate and fee increases will vary based on customer group. 

Table 1 highlights the recommended key Solid Waste Management Services Rates and Fees effective retroactive to January 1, 2019.

Table 1 - 2019 Recommended Rates and Fees Increases

The 2019 Recommended Operating Budget is $391.620 million, an increase of $8.178 million over 2018 plus a $20.000 million contribution to the Waste Management Reserve Fund, all of which are offset by total revenues of $411.620 million. The aforementioned increase is attributed to an increase in organic collection and processing costs due to volume and contractual inflation adjustments, reduction in the sale of recyclable materials due to declining commodity market prices and to fund the Division's 10-Year Capital Budget and Plan. Some of these increases were partially offset by service changes and efficiencies of $4.978 million net and the net reduction in the contribution to the Solid Waste Management Reserve Fund.

The 2019 Recommended Capital Budget is $84.626 million which is comprised of $39.611 million in new 2019 funding and $45.015 million in funding carried forward from 2018 into 2019.  A key priority for Solid Waste Management Services in 2019 Capital Budget program is the continued implementation of the Long Term Waste Management Strategy, which includes making advancements in waste reduction and further diversion opportunities, as well as ensuring the long term fiscal sustainability of the Division.

The proposed blended 2.2 percent increase in Solid Waste Management Services Rates and Fees, which is in line with inflation, will generate $10.555 million in additional revenues required to primarily maintain the City Council approved service levels for Solid Waste Management Services within the 2019 Recommended Operating Budget and fund implementing the 2019 Recommended Capital Budget program.

Solid Waste Management Services is a utility funded from a combination of service rates and fees (including the Solid Waste Rebate), recoverable debt, other charges, sale of recyclables, and industry stewardship funding. The recommended 2019 budget provides funding to support Solid Waste Management Services operations and capital projects, enhance diversion and reduce waste sent to landfill.

Revenues total $411.620 million in the 2019 recommended Operating Budget as outlined in the table below.

Service Rates and Fees of $313.929 million represent 76 percent of total revenues which are comprised of various rate increases based on customer type equating to a blended 2.2 percent increase to the 2018 approved Solid Waste Management Services rates and fees. 2019 Recommended Rates and Fees associated with the Program’s various customers and services are outlined in Appendix A.

In addition, the charge for oversized items is recommended to be increased from $8.00 to $15.00 per Unit / household / year. This adjustment is required to recover the full cost of the service which is budgeted at $12.510 million in 2019. This is in alignment with the City of Toronto's User Fee By-law approved by City Council on September 11, 2011 which allows City divisions to recover the cost of a service from those who receive a direct benefit and that the user fee be set to recover the full cost of the service to the extent that there is no conflict with City objectives and other legislative requirements. By not charging the full cost of collecting, processing and disposing of oversized items, the Waste Management Reserve fund will subsidize this service by $4.292 million in 2019. The oversize charge was first introduced in 2017 at $8.00 / household which over the past two years recovered collection costs only. The next and final step is to add processing and disposal costs, net of sale of recycled materials, to the annual cost per household which adds $7.00 to the charge.

The 2019-2028 Recommended Capital Budget and 10-Year Plan totals $686.295 million including 2019 capital carry forwards of $45.015 million. The recommended 2019 Capital budget, including carry forwards, totals $84.626 million which is financed by recoverable debt of $31.364 million (37.1 percent) and reserve funding of $53.262 million (62.9 percent). The City issues debt on behalf of Solid Waste Management Services and debt servicing costs are repaid to the City by Solid Waste Management Services through the Debt Reserve Fund financed by operating fee revenues.  Capital projects are funded by the Program's operating contributions to the Waste Management Reserve Fund, Green Lane Reserve Fund and Perpetual Care Reserve Fund.

The 2019 Rate and Fee increase is required to support Solid Waste Management Services' current capital needs as well as off-setting operating budget pressures of $27.221 million including one service level enhancement at a cost of $0.313 million. The Solid Waste Management Services Operating Budget also includes $29.332 million to repay debt issued to fund capital infrastructure needs ($10.000 million) and to pay over the long term for the Green Lane Landfill acquisition and development ($19.332 million).

Recommended Rate and Fee Multi-Year Sustainability Plan

At its meeting of December 5, 6, 7 and 8, 2017 City Council adopted the recommendations in the Executive Committee Report EX29.19 "2018 Rate Supported Budgets - Solid Waste Management Services and Recommended 2018 Solid Waste Rates and Fees" and directed Solid Waste Management Services and Financial Planning to report to the Budget Committee on a multi-year rate strategy for the 2019 Budget Process.

A study was undertaken in 2018 by Solid Waste Management Services, and Financial Planning to develop a 10-Year rate structure that provides sufficient funding for the 2019 Operating Budget and the 2019 to 2028 Capital Budget and Plan. Analysis indicated that if Solid Waste Management Services continues on the path of increasing service rates and fees at or below the rate of inflation, which has been the general practice since the utility was formed in 2008, the Waste Management Reserve Fund will be insufficient to finance the recommended 2019 10-Year Capital Budget and Plan necessary to achieve a 70 percent diversion target, finance ongoing capital works and maintenance and will be in a negative position by 2022 at $4.326 million, growing to a deficit of $110.182 million by 2028 and continuing to $336.583million by 2033.

This report recommends a blended 2.2 percent rate increase for 2019 followed by an estimated sustainable blended 4.0 percent rate increase in each year 2020 and 2021 and a blended 2.8 percent increase in each year from 2022 to 2028. Estimated future rates and fee increases will vary by customer group as described in Appendix B.

As illustrated in Figure 1 below, if the estimated service rate and fee increases over the 10-Year Capital Plan are implemented, the Waste Management Reserve Fund will be sufficient to fund the recommended Capital Budget and Plan projecting a reserve balance to remain positive and to increase to $126.362 million by 2028 and fully fund the new waste management and organics facilities planned for completion by 2031.

Figure 1 - Waste Management Reserve Fund Balance Forecast based on Recommended 2019 Rate Increase, estimated multi-year rate increases versus a Fixed Annual CPI Increase of 2.2 percent

(See Figure 1 titled "Waste Management Reserve Fund Balance Forecast based on Recommended 2019 Rate Increase, estimated multi-year rate increases versus a Fixed Annual CPI Increase of 2.2 percent", in the Financial Impact section of the report dated January 30, 2019 from the General Manager, Solid Waste Management Services and the Chief Financial Officer and Treasurer)

Table 2 provides a summary of anticipated major capital investments required in the 15-Year period beyond the 10-Year Capital Plan (2029-2043).

Table 2 - Capital Investments for the period 2029-2043 is $440.145 million

Pending initiatives and actions that may impact Solid Waste Management Services future operating costs and revenue opportunities are as follows:

- Expiry and renewal of four major operating contracts valued at $450 million over the next two years impact on operating costs, which include:

- the operation of the Disco Source Separated Organics Facility expiring June 2019;
 

- District 2 Collection Contract expiring August 2021;

 
- Single Stream Recovery Material Processing Contract expiring April 2020; and

 
- Haulage services to Green Land Landfill expiring December 2020. Outcome of these tenders may impact operating costs.

- Increased blue bin contamination which is negatively impacting recycling programs and processing costs.

The extent to which these initiatives will impact future expenditures and revenues is not fully known at this time and is a reason for staff to report back on a Multi-Year Financial Strategy.

Residential Rebate Program

The Solid Waste Rebate was introduced in 2008, when Solid Waste Management Services transitioned from a City service embedded in the property tax to a volume-based utility model, where residents who create more garbage pay higher rates.

Beginning in 2015, there were a series of reductions in the Single Family Residential Rebate, differing across different bin sizes. There were reductions in 2016 and 2017 as well. Each reduction in the aforementioned Rebate represents a savings to the property tax budget. During this time, the Multi-Residential Rebates have never been reduced.

After a pause in the reductions of the Solid Waste Rebate in 2018, this report recommends the phase out the Solid Waste Rebate Program (Single Family and Multi-Residential) by 2022. This will align the true costs to users based on waste generation, thereby incentivizing increased diversion towards meeting the 70 percent diversion rate goal within the Long Term Waste Management Strategy, and moving the Program towards City Council's 2016 direction of becoming a self-sustaining utility.

Part of the City's Long Term Waste Management Strategy that was approved by City Council in July 2016, was for Solid Waste Management Services to become a fully self-sufficient and sustainable utility.  Eventually phasing out the Rebate will assist Solid Waste Management Services in its goal of transitioning to a sustainable utility model where operating expenses are fully covered by revenues, and property tax support is no longer part of the financial model as was envisioned in the Long Term Waste Management Strategy.

The City Manager and Chief Financial Officer and Treasurer recommend that:

1.  City Council approve the 2019 Staff Recommended Operating Budget for Toronto Parking Authority of $100.599 million gross, ($66.538 million) net for the following services:

2.  City Council approve the 2019 service levels for Toronto Parking Authority as outlined in Appendix 3 of this report, and associated staff complement of 328.5 operating positions.

3.  City Council approve the 2019 Staff Recommended Capital Budget for Toronto Parking Authority with a total project cost of $102.902 million, and 2019 cash flow of $68.640 million and future year commitments of $100.448 million comprised of the following:

a.  New Cash Flow Funds for:

1.  22 new / change in scope sub-projects with a 2019 total project cost of $102.902 million that requires cash flow of $6.454 million in 2019 and future year cash flow commitments of $17.400 million for 2020; $18.168 million for 2021; $5.500 million for 2022; $19.180 million for 2023; $14.200 million for 2024; $5.500 million for 2025; $5.500 million for 2026; $5.500 million for 2027; and $5.500 million for 2028.

2.  Four previously approved sub-projects with a 2019 cash flow of $21.260 million and future year cash flow commitments of $4.000 million for 2020; and

b.  2018 approved cash flow for 46 previously approved sub-projects with carry forward funding from 2018 into 2019 totalling $40.926 million.

4.  City Council approve the 2020 - 2028 Staff Recommended Capital Plan for Toronto Parking Authority of $217.800 million in project estimates, comprised of $7.300 million for 2020; $12.500 million for 2021; $36.000 million for 2022; $38.000 million for 2023; $45.800 million for 2024; $46.900 million for 2025; $27.300 million for 2026; $2.000 million for 2027, and $2.000 million for 2028.

5.  City Council consider the operating revenues of $0.766 million net in 2019; $1.516 million net in 2020; $1.565 million net in 2021; $1.538 million net in 2022; $2.075 million net in 2023; $2.675 million net in 2024; $3.158 million net in 2025; $2.620 million net in 2026; $1.640 million in 2027; and $0.375 million net resulting from the approval of the 2019 Capital Budget for inclusion in the 2019 and future year operating budgets.

6.  City Council direct the President, Toronto Parking Authority to report back to Council in 2019 once they have identified and secured a long-term sponsor for the Bike Share Program.

The City Manager and Chief Financial Officer and Treasurer have submitted recommendations for the 2019 Recommended Operating Budget and 2019 - 2028 Recommended Capital Budget and Plan for Toronto Parking Authority.

The Board of Directors of the Toronto Parking Authority:

1.  Forwarded the report (November 20, 2018) from the Acting President, Toronto Parking Authority including the following recommendations of the Acting President, to City Council, through the Budget and Executive Committees, for consideration in the 2019 and future years' Budget processes:

a.  City Council approve the principle that Bike Share as a municipal service is an integral component in the City's transportation, transit and mobility network, and as such, there is considerable merit in continuing City investment and support in the program.

b.  City Council acknowledges that user/operating revenues alone will not completely cover ongoing operating expenses of Bike Share, and municipal subsidy will likely be required to offset capital requirements (State of Good Repair and expansion) and net operating deficits.

c.  City Council approve the "Financial Sustainability Principles" set out in this report, and that funding current outstanding, as well as future Bike Share capital programs and operating deficits, as necessary, be considered as part of the annual budget cycle in accordance with these principles, namely.

i.   Efficiency in operations - the need to continually optimize the expense side of operating the Bike Share system;

ii.  Securing system sponsorship and advertising - as key elements to offset operating deficits and ensure the long-term financial sustainability of Bike Share;

iii.  Commitment to municipal funding subsidies – to address any system shortfalls as well as capital programs, recognizing the value of the municipality continuing to invest in a Bike Share program;

iv.  Subsidy funding would not rely on property tax sources, debt financing or impact operating budgets; and

v.  Future years' net surplus operating funds, if any, be deposited to the Bike Share Reserve.

d.  City Council authorize that, in accordance with the principles set out in Recommendation c above, current outstanding unallocated Capital and Operating cash deficits, for Bike Share be funded as follows:

i.  Outstanding 2016 capital requirements in the amount of $301,000: from interest accruing on Metrolinx funds and retained by Toronto Parking Authority ($123,500); and from the Bike Share Reserve XQ-0013 ($177,500);

ii.  Remaining 2013-2016 cumulative operating cash deficit which has not been covered by existing Bike Share Reserve funds, in the amount of  $1,054,000 from the Public Realm Reserve Fund XR-1410;

iii.  2017 Operating cash deficit of $2,148,000 from the Public Realm Reserve;

iv.  2018 Operating final cash deficit amount, currently projected to be $2,279,000, from the Public Realm Reserve Fund XR-1410;

v.  Proposed 2019 capital expansion, municipal share under the Ontario Municipal Computer Cycling Program, in the amount of $1.5 million from received Section 37 and 45 funds.

e.  City Council direct that its previous request, namely that the Chief Planner and Executive Director, City Planning and the General Manager, Transportation Services report back on a review of Toronto's parking standards for new multi-unit residential and commercial developments with the objective to consider the expansion of public bike sharing programs at net zero costs to the City, be revisited.

At its meeting on November 26, 2018, the Board of Directors of the Toronto Parking Authority considered Item PA16.3 - Bike Share Program Financial Considerations.

The Budget Committee will consider and make recommendations to the Executive Committee on the 2019 Capital and Operating Budgets.

The following schedule has been established for the consideration of the 2019 Staff Recommended Capital and Operating Budgets:

February 4, 2019:

Presentations:

Agencies
Toronto Police Service 
Toronto Police Services Board
Parking Tag Enforcement and Operations

Community and Social Services

Affordable Housing Office
Children's Services
Court Services
Economic Development and Culture
Toronto Paramedic Services
Long-Term Care Homes and Services
Parks, Forestry and Recreation
Shelter, Support and Housing Administration
Toronto Community Housing
Social Development, Finance and Administration
Toronto Employment and Social Services

Questions and answers only - no presentations:

Agencies
Toronto Public Health
Toronto Public Library

Presentations:

Infrastructure and Development Services
City Planning
Waterfront Revitalization Initiative (Capital only)
Engineering and Construction Services
Fire Services
Municipal Licensing and Standards
Policy, Planning, Finance and Administration
Toronto Building
Transportation Services
Solid Waste Management
Toronto Water

February 6, 2019:

Questions and answers only - no presentations:

Other Agencies
Association of Community Centres
Exhibition Place
Heritage Toronto 
Civic Theatres Toronto
Toronto Zoo
Arena Boards of Management
Yonge-Dundas Square
CreateTO
Toronto Parking Authority
Toronto and Region Conservation Authority
Toronto Atmospheric Fund

Presentations:

Accountability Officers
Auditor General's Office
Office of the Integrity Commissioner
Office of the Lobbyist Registrar
Office of the Ombudsman

Questions and answers only - no presentations:

Corporate Services
311 Toronto
Facilities, Real Estate, Environment and Energy
Fleet Services
Information and Technology

Financial and Treasury Services
Office of the Chief Financial Officer
Office of the Controller
Financial Services (Capital only)

Other City Programs
City Manager's Office
Legal Services
City Clerk's Office
City Council
Office of the Mayor

Presentation:

Agency
Toronto Transit Commission 

The Auditor General recommends that:

1.  City Council approve the Auditor General's Office 2019 Operating Budget of $6.639 million gross and net and the associated staff complement of 36.0 permanent positions.

This report transmits to Budget Committee the recommended 2019 Operating Budget for the Auditor General's Office.

The Auditor General's report (Attachment 1) provides information to the Budget Committee on her Office's 2019 Operating Budget request. The report supplements the budget notes (Attachment 2) being submitted to the Budget Committee for consideration during its deliberation on the City's 2019 budget, which launches on January 28, 2019.

Chapter 3 of the Toronto Municipal Code states that "The Auditor General shall submit his or her annual budget request to the Audit Committee for consideration and recommendation to Council".

In normal circumstances, the budget of the Auditor General’s Office would be considered by the Audit Committee in October, prior to its submission to the Budget Committee. Due to the election and the compressed budget process time frame, this was not possible.

The Audit Committee will consider the Auditor General's report and 2019 Operating Budget request at its meeting on February 22, 2019. The Audit Committee will submit its recommendation regarding the Auditor General's 2019 Operating Budget to Council through Executive Committee at its meeting on March 4, 2019, so that the recommendations from both the Budget Committee and the Audit Committee are before the Executive Committee at the same time.

This approach is consistent with the past practice taken following the 2014 election. The current Budget Chief and the former Chair of the Audit Committee have been updated on the approach being taken this year.

The Auditor General's Office Operating Budget request of $6.639 million is a $0.135 million (2.1 percent) increase from the 2018 approved budget. This increase arises from cost of living adjustments and progressive pay increases for existing staff.

The Auditor General's 2019 Operating Budget includes an enhancement request to make four existing Council-approved temporary junior professional positions permanent. This request has no net impact in 2019 and only a base impact of $0.389 million in 2020 and $0.008 million in 2021 should the current temporary funding be rescinded.

Budget reductions will have a corresponding negative impact on the Auditor General's ability to identify efficiencies, cost savings, and revenue leakage.

The Integrity Commissioner recommends that:  

1.  City Council approve the 2019 operating budget of $0.766 million gross and net for the Office of the Integrity Commissioner.

This report transmits to Budget Committee the recommended 2019 Operating Budget for the Office of the Integrity Commissioner (the "Office" or the "OIC").

Approval of the Office of the Integrity Commissioner's 2019 operating budget request will result in an inclusion of $0.766 million in the 2019 annual budget of the City of Toronto.

The Lobbyist Registrar recommends that:

1.  City Council approve the Lobbyist Registrar's 2019 Operating Budget Request of $1.490 million gross and net and associated staff complement of 10.3 positions.

2.  City Council approve the Capital Budget for the Office of the Lobbyist Registrar with 2019 cash flow of $0.215 million.

3.  City Council approve the 2020-2028 Capital Plan for the Office of the Lobbyist Registrar with a total project estimate of $0.950 million, comprising of $0.350 million for 2024, $0.350 million for 2025, and $0.250 million for 2026.

4.  City Council approve 0.65 net new temporary capital position for the delivery of 2019 capital project and that the duration for each temporary position not exceed the life and funding of its projects/subprojects.

This report seeks Budget Committee's recommendation for City Council to approve the Office of the Lobbyist Registrar's 2019 Operating Budget Request of $1.490 million gross and net and its 2019-2028 Capital Budget and Plan.

The financial impact of adopting the recommendation in this report will be the inclusion of:

1. the annual budget of the Office of the Lobbyist Registrar at $1.490 million gross and net in the City of Toronto's 2019 Approved Operating Budget; and

2. $1.165 million in the City of Toronto’s 2019-2028 10-year Capital Budget and Plan, fully funded from debt.

The Ombudsman recommends that:

1.  City Council approve the 2019 Ombudsman-Recommended Base Operating Budget for Ombudsman Toronto of $2.158 million gross and net and associated staff complement of 14 positions.

2.  City Council approve the Ombudsman-Recommended 2019-2028 Capital Budget and Plan for Ombudsman Toronto with a total project estimate of $0.700 million, comprising $0.350 million for 2024 and $0.350 million for 2025.

This report transmits to Budget Committee the Ombudsman's recommendation for Ombudsman Toronto's 2019 Operating Budget and Ombudsman Toronto's 2019-2028 Capital Budget and Plan.

Adopting the recommendations in this report will result in the inclusion of:

1. $2.158 million gross and net in the City of Toronto's 2019 Approved Operating Budget; and

2. $0.700 million in the City of Toronto's 2019-2028 10-year Capital Budget and Plan, fully funded from debt.

City Council on June 26, 27, 28 and 29, 2018, adopted Motion MM43.48 as amended and has directed the Budget Committee to consider as part of the 2019 Budget Process, a one time increase in funding to Toronto Community Housing to fully compensate them for any reduction in Toronto Community Housing profit from the Leslie Nymark revitalization project due to development charge increases related to construction delays.

City Council on June 26, 27, 28 and 29, 2018, adopted Item PW30.5 as amended, and among other things has directed the Budget Committee to consider funding the implementation of Community Safety Zones at every school in Toronto, including high schools and private schools, as part of the 2019 Budget Process.

City Council on December 4, 5 and 13, 2018, in adopting MM1.11 on Implementation of Additional Road Safety Measures and Accelerating the Vision Zero Road Safety Plan, has directed the Budget Committee to consider as part of the 2019 Budget Process the allocation of additional funds to Vision Zero in order to facilitate the accelerated rollout of vital elements of the Vision Zero Project.

The Board of Directors of CreateTO recommends that:

1.  City Council approve CreateTO's 2019 Budget request of $13.005 million gross, and $0 net.

2.  City Council direct that Confidential Attachment 1 to the revised report (November 27, 2018) from the Chief Financial Officer, CreateTO remain confidential as it deals with personal matters about identifiable persons and contains financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value.

The purpose of this report is to recommend the Board of Directors of CreateTO to approve the CreateTO 2019 budget.

The City Manager recommends that:  

1.  City Council request the City Manager to post online a toolkit of participatory budgeting resources and information developed during the Pilot to support City divisions and Members of Council in their use of participatory budgeting for their ward and divisional decision-making.

2.  City Council request the City Manager to include participatory budgeting information in the City's civic engagement training courses to enhance public participation in municipal decision-making, including input on capital infrastructure investments.

This report summarizes the findings from Toronto's 2015 to 2017 participatory budgeting pilot. The City of Toronto piloted participatory budgeting in the former Ward 33 and the Neighbourhood Improvement Areas of Oakridge in the former Ward 35, and Rustic in the former Ward 12. The findings from the pilot suggest that participatory budgeting may be an appropriate method of public participation under certain conditions, but has limitations and should be understood within the City's broader objectives and civic engagement strategy.

Many people use the term "participatory budgeting" to describe a wide range of civic engagement methods related to budgets, such as consultations, online budget guides and calculators, or public deputations or hearings.

However, participatory budgeting is distinct from other budget consultations and specifically refers to a method that invites the public to propose ideas, vote and have the final say on how a portion of a government's budget will be allocated.

The Pilot evaluation, along with research on participatory budgeting in other jurisdictions, found that:

- Residents seek and value clear information and ongoing opportunities to be more involved in decisions which affect their neighbourhoods, including local improvements and infrastructure planning;

- The public would like more opportunities to speak directly with City staff on a wide range of issues that are important to them, and appreciate engagement processes which include ways for them meet their neighbours, local groups and their Councillor; and

- Participatory budgeting supports specific types of decisions and can benefit communities, but has limited reach, is resource-intensive and can result in frustration, divisions within communities and a mismatch of investments against broader community needs.

 
Staff will share the feedback, templates, materials, and evaluation reports developed during the Pilot with City Councillors, City Divisions and community partners who may choose to host a participatory budgeting process or use participatory budgeting in their work.

The City Manager's Office will continue to review the City's civic engagement strategies to support decision making using a mix of appropriate engagement methodologies to involve and engage more residents on more issues than might be possible through participatory budgeting alone, including in capital infrastructure or local improvement decisions.

This report includes information on potential operating and capital costs, should City Council wish to consider implementing participatory budgeting more broadly in the future.

The full Participatory Budgeting Pilot evaluation report is available at https://www.toronto.ca/community-people/get-involved/participatory-budgeting/ and data from participant surveys and community improvement ideas suggested by residents can be found in the City's Open Data Catalogue https://www.toronto.ca/city-government/data-research-maps/open-data/open-data-catalogue/.

There are no financial implications resulting from the implementation of the recommendations in this report. The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Board of Health recommends that:

1.  City Council approve a 2019 Recommended Capital Budget for Toronto Public Health with a total project cost increase of $2.648 million for a 2019 cash flow of $3.889 million and future year commitments of $2.039 million. 

2.  City Council approve the 2020-2028 Capital Plan for Toronto Public Health totalling $18.007 million in project estimates, comprised of $2.218 million in 2020, $2.589 million in 2021, $2.500 million in 2022, $2.200 million in 2023, $1.700 million in 2024, $1.700 million in 2025, $1.700 million in 2026, $1.700 million in 2027, and $1.700 million in 2028.

3.  City Council approve additional debt funding of $2.090 million to implement two additional projects to improve service delivery and enhance systems.

At its meeting on November 19, 2019, the Board of Heath forwarded the report (October 30, 2018) from the Medical Officer of Health to the City of Toronto's Budget Committee for its consideration during the 2019 Budget Process.

The Board of Health recommends that:

1.  City Council approve a $55.0 thousand gross, $13.75 thousand net increase to the Toronto Public Health 2019 Operating Budget Request to support project management of the Creating Health Plus partnership, which provides nutritious food to 29 drop-ins across the City of Toronto as part of the 2019 Budget process.

2.  City Council approve a $30.0 thousand gross, $7.5 thousand net increase to the Toronto Public Health 2019 Operating Budget Request for the Toronto Food Policy Council to support food champions across the City of Toronto and to address emerging issues as part of the 2019 Budget process.

3.  City Council not approve the 2019 Minor Service Reductions of $230.2 thousand gross and $229.3 thousand net, as summarized in Confidential Attachment 3 to the report (November 8, 2018) from the Medical Officer of Health, to meet the City's zero percent target.

4.  City Council approve the Toronto Public Health 2019 Operating Budget Request of $256,696.8 thousand gross and $65,114.3 thousand net, as summarized in Table 3 to the report (November 8, 2018) from the Medical Officer of Health, as amended by Recommendations 1, 2, and 3 above.

5.  City Council approve the list of base budget adjustments, as summarized in Table 3 to the report (November 8, 2018) from the Medical Officer of Health, totalling a decrease of $370.8 thousand gross, an increase of $267.4 thousand net, and a decrease of six positions.

6.  City Council approve the 2019 Recommended Efficiencies of $152.5 thousand gross and $38.1 thousand net, as summarized in Confidential Attachment 2 to the report (November 8, 2018) from the Medical Officer of Health, to meet the City's zero percent target.

7.  City Council approve the 2019 Council Directed New and Enhanced Requests of $1,510.5 thousand gross, $377.6 thousand net, and increase of 14 positions, as outlined in Table 3 to the report (November 8, 2018) from the Medical Officer of Health.

8.  City Council approve the 2019 increase of new and enhanced request of $150.0 thousand gross, $37.5 thousand net, and 0 net positions for the Toronto Urban Health Fund Enhancement - Year 5, as outlined in Table 3 to the report (November 8, 2018) from the Medical Officer of Health.

9.  City Council approve the 2019 increase of new and enhanced request of $300.0 thousand gross, $300.0 thousand net, and 0 net positions for the Student Nutrition Program to Maintain Municipal Contribution at 20 percent of Total Program Costs.

10.  City Council approve the 2019 increase of new and enhanced request of $625.0 thousand gross, $602.5 thousand net, and 0 net positions for the Student Nutrition Program Expansion to Independent Schools.

11.  City Council direct that Confidential Attachments 2 and 3 to the report (November 8, 2018) from the Medical Officer of Health remain confidential in their entirety, as they relate to personal matters about identifiable persons and labour relations or employee negotiations.

12.  City Council direct that Confidential Attachment 1 to the presentation (November 19, 2018) from the Medical Officer of Health remain confidential in its entirety, as it relates to personal matters about identifiable persons and labour relations or employee negotiations.

At its meeting on November 19, 2018, the Board of Health forwarded the report (November 8, 2018) from the Medical Officer of Health to the City of Toronto's Budget Committee for its consideration during the 2019 Budget Process.

The Toronto Transit Commission Board recommends that City Council:

1.  Approve the recommended Toronto Transit Commission 2019-2028 Base Capital Budget and Plan of $6.453 billion as outlined in Appendix A of this report.

2.  Approve the recommended Toronto Transit Commission 2019-2028 Capital Budget and Plan of $3.832 billion for transit expansion projects including the Line 2 Subway Extension (formerly Scarborough Subway Extension), Relief Line South, Waterfront Transit and Toronto-York Spadina Subway Extension as outlined in Appendix A of this report.

At its meeting on January 24, 2019, the Toronto Transit Commission Board adopted the recommendations in the report titled "Toronto Transit Commission 15-Year Capital Investment Plan and 2019-2028 Capital Budget and Plan" and, among other things:

1. Forwarded the Capital Investment Plan to the Budget Committee and the City Manager to inform the City's Long-term Financial Plan; and

2. Forwarded this report to the Budget Committee and the City Manager as the official 2019-2028 Capital Budget and Plan submission for the Toronto Transit Commission.

The Toronto Transit Commission Board recommends that City Council:

1.  Approve the recommended 2019 Toronto Transit Commission Conventional Operating Budget as detailed in this report, with gross expenditures of $1.911 billion, revenues of $1.289 billion and net subsidy requirement of $621.9 million, reflecting an additional $25.3 million operating subsidy over the 2018 budgeted level.

2.  Approve the recommended 2019 Wheel-Trans Budget as detailed in this report, with gross expenditures of $149.0 million, revenues of $8.1 million and net subsidy requirement of $140.9 million, reflecting a reduction of $3.3 million from the 2018 budgeted level.

3.  Approve a variable increase to the Transportation Services managed Lane Occupancy fee to recover incremental costs of required additional service hours to maintain service standards resulting from lane occupancy permits.

4.  Approve a 2019 year-end workforce complement of 15,951 positions as described in Appendix G.

At its meeting on Thursday, January 24, 2019 the Toronto Transit Commission Board adopted the recommendations in the report titled "2019 Toronto Transit Commission and Wheel-Trans Operating Budgets" and forwarded this report to the Budget Committee and the City Manager as the official 2019 Operating Budget submission for the Toronto Transit Commission.

The Toronto Police Services Board recommends that:

1.  The Budget Committee approve a 2019 net Operating Budget of $2,458,300, over a 2018 adjusted budget of $2,309,100.

At a meeting held on January 24, 2019, the Toronto Police Services Board was in receipt of a report dated January 16, 2019 containing the 2019 operating budget request for the Toronto Police Services Board.

The Toronto Police Services Board recommends that:

1.  The Budget Committee approve the Toronto Police Service's revised 2019 net operating budget request of $1,026.8 Million, a 3.0 percent increase over the 2018 approved budget.

At a meeting held on January 24, 2019, the Toronto Police Services Board was in receipt of a report dated January 17, 2019 from Chief of Police Mark Saunders containing the 2019 operating budget request for the Toronto Police Service.

The Toronto Police Services Board recommends that:

1.  The Budget Committee approve a 2019 net Operating Budget request of $46.7 Million, a zero increase from the 2018 net budget.

At a meeting held on January 24, 2019, the Toronto Police Services Board was in receipt of a report dated January 11, 2019 from Chief of Police Mark Saunders containing the 2019 operating budget request for the Toronto Police Service - Parking Enforcement Unit.

The Toronto Police Services Board recommends that:

1.  The Budget Committee approve the Service's 2019-2028 Capital Program with a 2019 net request of $29.6 Million (excluding cash flow carry forwards from 2018), and a net total of $218.0 Million for the 10 year period 2019-2028, as detailed in Attachment A contained in Appendix A of the report from Chief Saunders to the Board.

At its meeting held on January 24, 2019, the Toronto Police Services Board was in receipt of a report dated January 10, 2019 from Chief of Police Mark Saunders containing the Toronto Police Service's 2019-2028 Capital Program Request.

The General Manager, Economic Development and Culture recommends that:

1.  City Council direct the General Manager, Economic Development and Culture, to consult with the community on priorities for further investment in the arts, heritage and creative industries outside the core, and report back through the 2020 Budget Process.

In 2018, the City of Toronto reached its longstanding target of directly investing $25 per capita in culture (including the arts, film and entertainment industries, and museums and heritage). The 2018 per capita is calculated using Statistics Canada's census population of 2.7 million people in 2016. This target was first established as part of the Culture Plan for the Creative City in 2003, when Toronto was investing $14 per capita with a population of 2.4 million people.

The City of Toronto has made significant progress. While all the impacts of increased cultural investment cannot be attributed solely to City funding, the sector has performed well overall, increasing earned revenues, expanding programming partnerships, and funding new positions to support the film and music sectors. New signature programs such as Cultural Hotspot, and two new local arts service organizations, North York Arts and East End Arts are the direct result of increased investment.

However, issues of equity and access to arts and heritage programs, affordable and sustainable space, adoption of new technologies and talent retention outside the downtown core remain.

There is no 2019 financial impact to this report. However, it is anticipated that the report to the 2020 Budget Process on priorities for further opportunities for investments in the arts, heritage, and creative industries outside the core of the City will include new financial resource priorities for the coming years.

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

The General Manager, Economic Development and Culture recommends that:

1.  City Council award total funding of $750,000 over 2019, 2020 and 2021, fully funded by the Major Special Events Reserve Fund, to the significant special events listed below, who have applied to the Toronto Significant Events Investment Program and been deemed eligible, subject to the applicants' compliance with Toronto Significant Events Investment Program requirements:

2.  City Council direct the General Manager, Economic Development and Culture to submit a plan to establish an ongoing tax-supported base budget for the Toronto Significant Events Investment Program to the 2020 Budget Process.

Significant events have a large economic and tourism impact and play an important role in promoting Toronto as an international destination. Such events can advance City priorities and strategies, create jobs, attract visitors, and leave lasting legacies for the community. Given the volume of such events seeking the City's support, City Council adopted on June 7, 2016 the City of Toronto Bidding and Hosting Strategy for Significant Special Events providing a framework for managing and evaluating significant event opportunities in Toronto. Among the key objectives of the report was a commitment to identify dedicated resources to support competitive event opportunities that provide a high return on investment for the City.

This report recommends that the total new funding included in the 2019 Staff Recommended Operating Budget of $750,000 gross and $0 net, fully funded from the Major Special Events Reserve Fund be awarded to support the 2019 successful applicant organizations. It also recommends that a plan to establish ongoing tax base funding for the Toronto Significant Event Investment Program be submitted to the 2020 Budget Process for consideration.

The recommendations in this report award $0.750 million of Toronto Significant Events Investment Program grants to successful 2019 program applicants. $0.750 million for this program, is included in the Staff Recommended 2019 Operating Budget for Economic Development and Culture, funded by the Major Special Events Reserve Fund (XR1218). The current uncommitted balance of the Major Special Event Reserve Fund is adequate to support this award.

As the Toronto Significant Events Investment Program is not established as a funded program in the tax supported base budget for Economic Development and Culture, but has been supported on a year-to-year basis by one-time reserve funds added to each Budget, it is also recommended that the General Manager of Economic Development and Culture submit a plan as part of the 2020 Budget process, to establish this program as part of the ongoing tax-supported base budget. 

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