Agenda

This meeting of the Executive Committee will be held by electronic means and the proceedings of the Executive Committee will be conducted publicly. 

These measures are necessary to comply with physical distancing requirements and as civic buildings are closed to the public.

Members of Council and participating City Officials will be provided with the video conference details closer to the meeting date.

To provide comments or make a presentation to the Executive Committee during the COVID-19 Emergency, the public may submit written comments or register to speak to the Committee on any item on the agenda. Written comments may be submitted by writing to exc@toronto.ca

To speak to the Committee, please register by email to exc@toronto.ca or by phone at 416-392-4666. Registered speakers will be provided with instructions on connecting to the meeting.

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call 416-392-4666, TTY 416-338-0889 or e-mail exc@toronto.ca.

Closed Meeting Requirements: If the Executive Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006).

Notice to People Writing or Making Presentations to the Executive Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its Committees and Boards. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

Many Committee, Board, and Advisory Body meetings are broadcast live over the internet for the public to view. If you speak at the meeting you will appear in the video broadcast. Video broadcasts are archived and continue to be publicly available.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or call 416-392-4666. 

toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its Committees and Boards. Items with original signatures are kept on file with the City Clerk's Office and are available for viewing.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - November 18, 2020

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on December 10, 2020.

Communications/Reports

The City Manager recommends that:

1. City Council receive this report for information.

This report provides an update to the City Manager's October 2020 report titled "Towards Recovery and Building a Renewed Toronto" (EX17.1) as requested by City Council.

Since October, Toronto has experienced a significant increase in the number of cases of COVID-19 and continues to respond with measures to combat the resurgence of the virus. As of Monday November 23,Toronto entered lockdown under provincial measures to slow the spread of COVID-19.

The City Manager will regularly update Members of Council and the public on the City’s response and recovery including on the reports from the Toronto Office of Recovery and Rebuild (TORR). This first update will be higher-level than future updates as the City Manager’s October report was only recently before City Council. Included in this report are updates on: 

• COVID-19 Response Activities
• Intergovernmental Strategy and Partnerships
• Status of Recommendations from the Toronto Office of Recovery and Rebuild’s report COVID-19: Impacts and Opportunities

Attachment 1 to this report provides updates on any significant changes to the implementation of TORR recommendations since October 28, 2020. A number of updates include information on reports that will be brought forward to Council through future agenda cycles or the 2021 budget process.

There are no financial implications arising from the receipt of this report. The financial impacts of specific recovery and rebuild actions will be included in future reports that will also provide updates on the financial implications of COVID-19, including incremental costs, foregone revenues, as well as recovery efforts.

Any financial implications will be included in applicable budget submissions to be addressed through the Budget process.

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

The City Manager recommends that:  

1.  City Council authorize the City Manager in consultation with the Chief Financial Officer and Treasurer, to apply for federal and provincial funding under the Investing in Canada Infrastructure Program (ICIP) – COVID-19 Resilience Infrastructure Stream – Local Government Sub-Stream for projects set out in Attachment 1 to this report.

 
2.  City Council authorize the City Manager in consultation with the Chief Financial Officer and Treasurer, to apply for federal and provincial funding under the Investing in Canada Infrastructure Program (ICIP) – COVID-19 Resilience Infrastructure Stream – Long-Term Care Sector Sub-Stream for projects set out in Attachment 2 to this report.

 
3.  City Council grant approval to receive funds, if any, from the COVID-19 Resilience Infrastructure Stream – Local Government Sub-Stream and the Long-Term Care Sector Sub-Stream for all City projects outlined in Attachment 1 and Attachment 2 to this report.

 
4.  City Council authorize the Mayor and/or the City Manager to enter into and execute any agreements, including any amendments, with the Province of Ontario and/or Government of Canada under the COVID-19 Resilience Infrastructure Stream – Local Government Sub-Stream and Long-Term Care Sector Sub-Stream on terms and conditions satisfactory to the City Manager and the Chief Financial Officer and Treasurer, and in a form satisfactory to the City Solicitor.

 
5.  Should Ontario or Canada reject one or more of the City's projects submitted as outlined in Attachment 1, that City Council authorize the City Manager, in consultation with the Chief Financial Officer and Treasurer, to apply for funding for projects under the Local Government Sub-Stream that meet mandatory program eligibility criteria and that best meet the following criteria:

a.  Project addresses COVID-19 health and safety impacts;

b.  Project addresses Accessibility for Ontarians with Disabilities Act (AODA) requirements;
c.  Project supports vulnerable groups impacted by COVID-19;

d.  City Council has endorsed the project through a City strategy, plan or decision;

e.  The project is within the City's 10-year Capital Budget and Plan as approved by Council or built in to the 2021 budget request;

f.  Project is in a state of readiness with adequate level of design to proceed to construction;

g. A site has been secured for the project (if applicable);

h.  Project advances the implementation of the Ravine Strategy (2020.EX17.1); and

i.  Project advances critical building repairs, retrofits and upgrades in City buildings including in long-term care homes and shelters (2020.EX17.1).

6.  City Council request the Chief Financial Officer and Treasurer to inform City Council through Budget Committee and as part of the 2021 Budget process of any changes required to the 2021 Staff Recommended Capital Budget and Plan based on City Council approval of projects in Attachment 1 and Attachment 2.

In October 2020, the Province of Ontario announced the launch of the federal-provincial $1.05 billion, COVID-19 Resilience Infrastructure funding stream[1] under the Investing in Canada Infrastructure Program (ICIP). In response to COVID-19, the purpose of this funding stream is to build or renovate health and safety related projects in long-term care ($100 million), education ($700 million) and local governments ($250 million).

On November 17, 2020, Ontario launched the intake for the Local Government Sub-Stream. Toronto's allocation under this Sub-Stream is $24,266,076, and the City can submit up to five project applications for this funding. This Sub-Stream supports capital projects under four categories:

1.  Retrofits, repairs and upgrades for municipal, territorial, provincial and Indigenous buildings, health infrastructure and schools.
2.  COVID-19 response infrastructure, including measures to support physical distancing.
3.  Active transportation infrastructure, including parks, trails, foot bridges, bike lanes and multi-use paths.
4.  Disaster mitigation and adaptation projects, including natural infrastructure, flood and fire mitigation, and tree planting and related infrastructure.

On November 23, 2020, the Province also launched the intake for the Long-Term Care Sector Sub-Stream. Unlike the Local Government Sub-Stream, this Sub-Stream is merit-based and as such, the City did not receive a funding allocation. This Sub-Stream supports capital projects under two categories:

 
1.  Retrofits, repairs and upgrades for long-term care infrastructure.
2.  COVID-19 resilience infrastructure, including measures to support physical distancing in long-term care homes.

Under both Sub-Streams, the federal government will contribute up to 80% of eligible project costs for municipal projects and the Province will contribute the remaining 20%. Projects must start no later than September 30, 2021 and must be substantially completed by December 31, 2021.

This report recommends City Council confirm the list of projects to be submitted to the

Local Government Sub-Stream as outlined in Attachment 1 to maximize Toronto's full funding allocation. In addition, this report also recommends City Council confirm the list of projects to be submitted under the Long-Term Care Sector Sub-Stream as outlined in Attachment 2. The projects outlined in Attachment 1 and 2 have been identified as having the best probability of success as they meet the mandatory program criteria, and best meet the following criteria:

• Project addresses COVID-19 health and safety impacts.
• Project addresses Accessibility for Ontarians with Disabilities Act (AODA) requirements.
• Project supports vulnerable groups impacted by COVID-19.
• City Council has endorsed the project through a City strategy, plan or decision.
• The project is within the City's 10-year Capital Budget and Plan as approved by Council or built in to the 2021 budget request.
• Project is in a state of readiness with adequate level of design to proceed to construction.
• A site has been secured for the project (if applicable).
• Project advances the implementation of the Ravine Strategy (2020.EX17.1).
• Project advances critical building repairs, retrofits and upgrades in City buildings including in long-term care homes and shelters (2020.EX17.1). 

COVID-19 has resulted in disproportionate impacts on racialized and equity-seeking communities, and further deepened the inequalities that are already experienced by residents and neighbourhoods across our City. These recommended projects provide an opportunity to focus on the critical needs of residents, advance health and safety efforts including enabling residents to enjoy outdoor recreation opportunities, and create jobs as we tackle both resurgences of the virus and lay the foundation for a strong recovery together.

Subject to City Council approval, capital projects will be submitted as part of the City's funding applications within the COVID-19 Resilience Infrastructure Stream, providing added capital funding to support eligible capital needs. $24.3 million will be submitted as part of the Local Government Sub-Stream and an added $10.0 million submitted as part of the Long-Term Care Sector Sub-Stream.

The focus of the Local Government Sub-Stream is to advance pandemic-resilient infrastructure projects and stimulate local economies. Toronto's allocation under the Local Government Sub-Stream is $24,266,076. The City can submit up to five project applications for funding. It is recommended that that following projects be submitted (project details available in Attachment 1):

1.  AODA – Toronto Accessibility Upgrades (CREM): $3.0 million
2.  Ravine Strategy (PFR): $6.2 million
3.  HVAC Upgrades at Shelter Sites (SSHA): $7.761 million
4.  Various Active Transportation Works (Transportation Services): $4.5 million
5.  COVID-19 UVC Lamp Installation and Bus Barriers (TTC): $2.8 million
 

The focus of the Long-Term Care Sector Sub-Stream is to fund targeted improvements directly linked to new COVID-19 measures to reinforce safe physical distancing and retrofitting projects. Unlike the Local Government Sub-Stream, the LTCH Sub-Stream is merit-based and as such, the City did not receive a funding allocation. The Province of Ontario will evaluate all applications and only those projects approved by Ontario will be nominated to the federal government for final approval. It is recommended that the following projects, all within Senior Services and Long-Term Care be submitted (project details available in Attachment 2):

1.  HVAC Upgrades: $3.0 million
2.  COVID-19 Facility Improvements and Accessibility Solutions: $3.0 million
3.  Fire Alarm Replacement: $1.5 million
4.  Generator Upgrades: $2.5 million
 

Projects approved will receive full funding from the COVID-19 stream and will not require further City funding, providing added funding capacity to address capital requirements. The Chief Financial Officer and Treasurer has been provided the financial impact associated with this request for review as part of 2021 budget process, and has reviewed this report and agrees with the financial impact information.

The Chief Financial Officer and Treasurer and the Executive Director Housing Secretariat recommend that:

1. City Council direct the Chief Financial Officer and Treasurer to undertake the following steps to develop a vacant home tax program and to report back with a recommended taxation, collection, exemptions and enforcement design for a vacant home tax by the end of Q2 2021 for implementation commencing in the 2022 taxation year:

a. Establishing a dedicated interdivisional project team to lead the implementation of a VHT;

b. Engaging with Provincial staff to develop any necessary regulations;

c. Engaging with City Legal to develop the necessary by-law to implement a VHT

d. Engaging with CIT and others to build the necessary technical infrastructure to administer a VHT including a universal declaration system, compliance/audit database and payment system;

e. Undertaking public education and awareness campaigns to ensure homeowners are aware of the tax, applicability of the tax and requirement to declare on an annual basis;

f. Form an audit and compliance team to develop audit procedures and protocols, review annual declarations, identify non-compliance with the tax and create annual reports on the impact of the tax; and

g. Studying the creation and governance of an external advisory team consisting of industry experts and academic institutions who can advise the City of monitoring, evaluation and implementation.

2. City Council authorize a budget allocation of $5.0 million in 2021 and $6.0 million in 2022 to fund the estimated start-up costs associated with this tax program.

This report responds to all previous requests for information identified by City Council with respect to implementing a vacant home tax policy tool in Toronto.

The report presents the findings of a commissioned study by KPMG titled, “A Review of Issues to be considered for the Taxation of Vacant Homes in Toronto” (the Study) to address the public policy rationale for such a tax, potential tax design features, and a jurisdictional review of municipalities that have adopted such taxes.

The report further identifies current housing market conditions and challenges within the context of the COVID-19 pandemic and lays out a recommended path forward for Council consideration.

The public policy rationale features examined include: the impact a vacant home tax has had on the supply of affordable housing and rental vacancy rates in other jurisdictions;  a comparison of a vacant home tax with other strategies used by other jurisdictions to increase the supply of affordable housing and rental vacancy rates, e.g. incentives for purpose-built affordable rental apartment units;  the nature and trends in the Toronto housing market that perpetuate the occurrence of vacant homes and the duration of such vacancy;  the extent to which vacant homes are negatively affecting the supply of affordable housing or rental vacancy rates in Toronto; and whether a vacant home tax could achieve the objectives of increasing the supply of affordable housing and increasing rental vacancy rates in Toronto.

The potential tax design features and possible implementation of an effective and efficient vacant home tax program includes:  the definition of a vacant home, the means of identifying vacant homes; possible exemptions, amount per property to be levied, staffing and/or external consultants required to implement a vacant home tax, hardware and software costs, effective enforcement and timing required to successfully roll out a vacant home tax.

The Study contains a comparative analysis of the experiences and results of similar taxes implemented in Vancouver and Melbourne.  Although conditions in the Toronto will require a unique approach, planning will benefit from such detailed policy testing. 

The Study was substantially completed in March 2020 and provides insight into Toronto’s housing market and the conditions that gave rise to the phenomenon of vacant homes and the resulting public policy objectives associated with the legislative authority to tax such units.

The study of the vacant home phenomenon, market conditions, policy rationale and practicality of steps to implement such a tax have all been affected by the COVID-19 pandemic and the associated public health restrictions on all aspects of life in 2020. 

The KPMG study has been updated as at November 2020 (the Study Supplement) to include COVID-19 impacts on the topics discussed in the study.

The Study Supplement notes that although current real estate market conditions exhibit increased rental availability and downward trending rent prices, there is still much uncertainty in long-term projections for the market. Long term housing affordability and availability challenges will most likely persist into the future, and a VHT can be a helpful tool to address these challenges.

Thus, moving forward with the tax at this time must be balanced with considerations of urgency of need, market conditions that may have already affected the supply of housing and the practical ability to carry out the necessary administrative steps and public relations campaign to implement the tax. As the effect of the tax is to change the behaviour of certain homeowners who leave their homes unoccupied, sufficient notice and time to adjust such vacancy (e.g. sell or rent out homes) needs to be built into the implementation plan.

Economic and fiscal policy doctrines normally dictate that governments should not implement new forms of taxation during contractionary market conditions.

Notwithstanding the interplay of current economic conditions, vacant home taxes are designed primarily as a housing policy tool intended to affect the behaviours of owners of vacant homes to sell or rent out such homes and thereby make available homes for occupation, rather than a revenue generating tool for a municipality.

The Study provides an examination of the definition of what constitutes a vacant home for taxation, possible exemptions as well as identification methods, tax rates and potential impacts and effectiveness measurement means. The cornerstone of such a tax is the identification of vacant homes by way of a universal declaration method as proposed in this report, whereby every residential property owner in the City would be required to make an annual declaration as to the occupancy status of their home for the preceding year.

The Study provides a plan for the necessary steps to implement such a tax as directed by City Council and the related administrative and operational infrastructure components required to operate, collect, enforce, process appeals on such a tax.  Costs estimates of implementation and potential conversion rates and tax revenue projection ranges are also provided.

In light of its key findings, the Study lays out recommended actions to be taken to move this new policy tool forward for Council consideration including future staffing and resource needs with a detailed report back on key design features by the end of Q2 2021.

This report includes, upon Council direction, recommendations to undertake detailed design work and developing supporting systems to effect the creation of a vacant home tax by-law and taxing regime, with a report back, including a tax by-law, to Executive Committee by the end of Q2 2021.

As outlined in this report, it is estimated that full program start-up costs could be in the range of $10 – $13 million over a two year period.  A $5.0 million budget impact in 2021 is requested in the City's operating budget.  Remaining funding of approximately $6.0 million will be requested for 2022.

The intent of this tax program is to influence any vacant homeowner to occupy or rent out their dwelling for at least six months per calendar year, or else pay this tax.

The number of vacant homes in Toronto is unknown at this time and will not be known until after full implementation and performance of the tax declaration and audit process planned for early 2023.

However, using metrics from Vancouver's collections on a similar tax as a proxy for Toronto, if 1 percent of Toronto's housing stock is vacant and subject to the tax, at a 1 percent tax rate on average Toronto CVA, could yield $55 to $66 million in (gross) tax revenue per year.

The prevalence and reasons for homes being left vacant in Toronto may have been affected by the COVID-19 pandemic and its impact on the housing market.  Revenue projections may similarly be affected in ways that cannot reasonably be estimated.

Costs of administering the program would be funded from related tax revenues and any net surplus of revenues could be dedicated to affordable housing initiatives.

The Deputy City Manager, Infrastructure and Development recommends that:

1. The Executive Committee request the Deputy City Manager, Infrastructure and Development to report back to the Executive Committee following the selection by Waterfront Toronto of a preferred proponent with: the results of staff's assessment of the preferred proponent's proposal; the identification of terms to be negotiated with Waterfront Toronto and the preferred proponent; and the identification of areas of interest to be addressed in a Business and Implementation Plan, to be completed by Waterfront Toronto, working with City and CreateTO staff.

The purpose of this report is to provide the Executive Committee with an update on Waterfront Toronto's Quayside project. Specifically, this report will address Waterfront Toronto's market offering process, the involvement of City and CreateTO staff in the process, and future City Committee and Council reporting milestones.

Quayside is a 4.8-hectare (12-acre) parcel of land on Toronto's waterfront, located at Queens Quay Boulevard East and Parliament Street. The majority of the site is owned by Waterfront Toronto, however, it also includes lands owned by the City of Toronto, CreateTO, Ports Toronto and private landowners (see Attachment 1). In 2017, Waterfront Toronto selected Sidewalk Labs to develop a "Master Innovation and Development Plan" for Quayside, following a competitive offering process that sought a partner to plan for an innovative demonstration project for the site. The draft Master Innovation and Development Plan was publicly released on June 24, 2019, following two years of planning and engagement by Waterfront Toronto and Sidewalk Labs.

The Quayside project has changed substantially since June 6, 2019, when City staff last reported to the Executive Committee. On May 7, 2020 Sidewalk Labs withdrew from the project, citing global economic uncertainty related to the COVID-19 pandemic and other factors. Waterfront Toronto has since announced plans to initiate a new competitive market offering process to select a development partner for Quayside, starting in 2021.

Quayside is intended to be developed as a mixed-use community, consistent with the planning direction in the East Bayfront and Keating Channel precinct plans, and other relevant planning documents. The development concept will be informed by planning and consultation work undertaken since 2017. Accordingly, Waterfront Toronto's broad project goals relate to building an "inclusive, resilient, and dynamic" neighbourhood.

The delivery of affordable housing continues to be a primary area of focus for Waterfront Toronto; Waterfront Toronto will at minimum meet its statutory/contractual obligations to provide land for 20% affordable rental housing. Furthermore, certain innovations discussed under the Sidewalk Labs proposal may be pursued, where feasible and subject to applicable regulations and public consultation. For example, mass timber buildings will not be mandated but may figure into the resiliency plans of proponents. Similarly, while future development concepts are not anticipated to include a significant digital infrastructure component, select digital innovations which align with government priorities and applicable regulations may be pursued.

The purpose of this report is to provide the Executive Committee with an update on Waterfront Toronto's Quayside project. Specifically, this report will address Waterfront Toronto's market offering process, the involvement of City and CreateTO staff in the process, and future City Committee and Council reporting milestones.

Quayside is a 4.8-hectare (12-acre) parcel of land on Toronto's waterfront, located at Queens Quay Boulevard East and Parliament Street. The majority of the site is owned by Waterfront Toronto, however, it also includes lands owned by the City of Toronto, CreateTO, Ports Toronto and private landowners (see Attachment 1). In 2017, Waterfront Toronto selected Sidewalk Labs to develop a "Master Innovation and Development Plan" for Quayside, following a competitive Request for Proposals (RFP) process that sought a partner to plan for an innovative demonstration project for the site. The draft Master Innovation and Development Plan was publicly released on June 24, 2019, following two years of planning and engagement by Waterfront Toronto and Sidewalk Labs.

The Quayside project has changed substantially since June 6, 2019, when City staff last reported to the Executive Committee. On May 7, 2020 Sidewalk Labs withdrew from the project, citing global economic uncertainty related to the COVID-19 pandemic and other factors. Waterfront Toronto has since announced plans to initiate a new competitive market offering process to select a development partner for Quayside, starting in 2021.

Quayside is intended to be developed as a mixed-use community, consistent with the planning direction in the East Bayfront and Keating Channel precinct plans, and other relevant planning documents. The development concept will be informed by planning and consultation work undertaken since 2017. Accordingly, Waterfront Toronto's broad project goals relate to building an "inclusive, resilient, and dynamic" neighbourhood.

The delivery of affordable housing continues to be a primary area of focus for Waterfront Toronto; Waterfront Toronto will at minimum meet its statutory/contractual obligations to provide land for 20% affordable rental housing. Furthermore, certain innovations discussed under the Sidewalk Labs proposal may be pursued, where feasible and subject to applicable regulations and public consultation. For example, mass timber buildings will not be mandated but may figure into the resiliency plans of proponents. Similarly, while future development concepts are not anticipated to include a significant digital infrastructure component, select digital innovations which align with government priorities and applicable regulations may be pursued.

The City has multiple roles and interests in Quayside: as land owner, owner/operator of municipal infrastructure and services, and the local planning authority. Collectively, the City and CreateTO own approximately 0.6 hectares (1.5 acres) intended to be included in the long-term development of Quayside. These lands are primarily located in the development parcel designated as Block 3 (see Attachment 2). City and CreateTO lands have been included in Waterfront Toronto's RFP and will be developed as part of the broader development concept, subject to future City Council direction including approval of a Business and Implementation Plan. Inclusion of CreateTO land will also be subject to approval by the CreateTO Board of Directors.

Waterfront Toronto is engaging senior City and CreateTO staff in their market offering process, starting with the review of draft procurement documents, currently underway. Once the offering is issued, City and CreateTO staff will participate in the technical review of submissions, as well as the evaluation and selection of the preferred proponent.

After Waterfront Toronto has selected a preferred proponent, City and CreateTO staff will assess the preferred proposal based on: alignment with City plans, policies and guidelines; desirability of business proposals; innovation in the achievement of City goals; potential for community benefits; and, in the event that any digital infrastructure components are proposed, alignment with existing and emerging government digital infrastructure and data governance policies.

It is anticipated that the development of Quayside will follow a similar approach used by Waterfront Toronto for projects of similar scale in the East Bayfront and West Don Lands. Waterfront Toronto will lead the delivery of the infrastructure and public realm components while the development partner will be responsible for the delivery of the development blocks, subject to the terms of the market offering process.

The next staff report concerning the Quayside market offering process will be submitted to Executive Committee once Waterfront Toronto has identified a preferred proponent and prior to any negotiations involving City or CreateTO staff. This report, anticipated for Fall 2021, will present City and CreateTO staff's assessment of the preferred proponent's proposal, including the use of City and CreateTO lands. Staff will seek authority to enter into negotiations with Waterfront Toronto and the agency's proponent on City issues, based on key terms authorized by Council. Final negotiations will take place later in Fall 2021, in the final stage of Waterfront Toronto's process.

A third staff report will be submitted to the Executive Committee at the conclusion of negotiations, anticipated in late 2021/early 2022. The report will present a detailed Business and Implementation Plan based on the terms authorized by Council. The report will address, among other matters, anticipated infrastructure costs, revenues and phasing, as well as implementation roles and responsibilities between Waterfront Toronto, the City and CreateTO. Should the project move to implementation, staff will also report on land use planning applications, land transactions and other implementation matters requiring City Council direction and approval.

There is no financial impact associated with this report.

The 2019 Waterfront Revitalization Initiative capital budget included a total of $800,000 for two temporary FTEs to provide dedicated project support and for consulting projects related to public consultation and research related to digital infrastructure and privacy.

Approximately $200,000 was spent in 2019; approximately $300,000 will be spent in 2020. In addition, City staff time has been approximately 2 FTEs in the Waterfront Secretariat (City Planning Division). The remaining funds are unallocated, and thus available to support costs related to Quayside in future years. At the conclusion of the project, unspent funds can be reallocated to other Waterfront Revitalization Initiatives through future year budget submissions.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact Section.

The Chief Planner and Executive Director, City Planning and the Executive Director, Transit Expansion Office recommend that:

Eglinton East Light Rail Transit

1.  City Council approve the updated design for the Eglinton East Light Rail Transit project as described in Attachment 1, and direct the Chief Planner and Executive Director, City Planning and the Executive Director, Transit Expansion Office to update the business case and advance the Transit Project Assessment Process accordingly.

 
2.  City Council direct the Chief Planner and Executive Director, City Planning and the Executive Director, Transit Expansion Office to report back on updated business case analysis for the Eglinton East Light Rail Transit project, including project costs, recommended schedule and a phasing approach, prior to the 2022 Budget process.

Waterfront Transit Network

 
3.  City Council direct the Chief Planner and Executive Director, City Planning and the Executive Director, Transit Expansion Office to report back on the recommended schedule and funding requirements for the Union Station to Queens Quay Link and the East Bayfront Light Rail Transit section of the Waterfront Transit Network, including phasing options and an updated business case, as part of an update on Waterfront Transit Network priorities prior to the 2022 Budget process.

General

 
4.  City Council forward this report to the Toronto Transit Commission Board for its information.

The purpose of this report is to provide updates on components of the City of Toronto's priority transit expansion projects, namely the Eglinton East Light Rail Transit (EELRT) and the Waterfront Transit Network (WTN).

In April 2019, City Council confirmed the preferred design for the EELRT, per agenda item 2019.EX4.1. The EELRT is a 15 km extension of the Eglinton Crosstown LRT from Kennedy Station to Malvern, with up to 21 stops and three connections to GO Transit. Recent changes to transit plans in Scarborough due to the Province's Subway Program required the City to update the scope of the EELRT project. This report recommends City Council approve the updated design to further advance the project, and direct staff to report back on the project costs, schedule and phasing approach prior to the 2022 Budget process.

As part of 2019.EX4.1, City Council also approved the streetcar option as the preferred technology for the Union Station to Queens Quay Link as part of the WTN, and directed staff to undertake the preliminary design and engineering phase of the extension of streetcar service to the East Bayfront. This work is well under way, as a joint effort and partnership between the City, TTC and Waterfront Toronto. This report recommends City Council direct staff to report back on the recommended schedule and funding requirements for the Union Station to Queens Quay Link and the East Bayfront LRT section of the WTN, including phasing options and an updated business case, prior to the 2022 Budget process.

There are no financial implications resulting from the adoption of recommendations in this report. Previously approved budgets will support the current planning and design work on the EELRT and WTN projects. City staff will report back to City Council with cost estimates and recommended schedules for these projects prior to the City's 2022 Budget process.

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

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve the 2021 Tax Supported Interim Operating Budget Estimates totalling $3.573 billion as detailed by City Program and Agency in Appendix 1 attached.

The 2021 Tax Supported Operating and Capital Budgets are scheduled for Council approval in mid- February of 2021. The purpose of this report is to establish the 2021 Tax Supported Interim Operating and Capital Estimates in order to enable Tax Supported City Programs and Agencies to have the necessary spending authority to deliver current services, meet existing contractual commitments and to continue work on previously approved capital projects until the 2021 Operating and Capital Budgets are approved by City Council. 

The 2021 Tax Supported Interim Operating Estimates are $3.573 billion gross and require cash outflow funding of $3.074 billion. The 2021 Tax Supported Interim Capital Estimates total $1.149 billion and require debenture financing of $0.381 billion.

The Interim Budget Estimates provide an interim budget to ensure that adequate spending authority is in place for all Programs and Agencies until such time that Council approves the annual budget.

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve the establishment of a discretionary reserve fund called the 'OIC External Legal and Investigative Expense Reserve Fund' in Appendix B, Schedule 7, Corporate Discretionary Reserve Funds of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to fund investigations or external legal services required by the Office of the Integrity Commissioner, with criteria as set out in Appendix 1.

2.  City Council authorize the necessary amendments to Chapter 227, Reserves and Reserve Funds, in accordance with Recommendation 1 and direct the City Solicitor to introduce any necessary bills to give effect to the recommendations of this report.

3.  City Council approve a budget adjustment that reallocates $0.100 million from Legal and Investigative Expenses to Contribution to the newly created OIC External Legal and Investigative Expense Reserve Fund in the 2020 Approved Operating Budget of the Office of the Integrity Commissioner, having no impact on the 2020 Approved Net Operating Budget of the City.

This report seeks Council approval to establish a new discretionary reserve fund called the OIC External Legal and Investigative Expense Reserve Fund and to make an associated amendment to City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds ("Chapter 227"). The proposed reserve fund is needed to hold funds that will be required by the Office of the Integrity Commissioner (OIC) to fund future investigations and/or the hire of external legal services.

There is no impact on the 2020 Approved Net Operating Budget of the City associated with the adoption of the recommendations of this report.  The initial contribution of $0.100 million will be drawn from the 2020 Approved Operating Budget of the Office of the Integrity Commissioner in an adjustment that reallocates Legal and Investigative expense to Contribution to the Reserve. Future year contributions will be from the Operating Budget of the Office of the Integrity Commissioner to maintain the fund at a level not to exceed its maximum level of $0.400 million.  Draws from this reserve will be up to, and not exceed, the limit of the Reserve.

The Chief Financial Officer and Treasurer recommends that:  

1.  City Council receive this report for information.

The purpose of this report is to provide the following information:

1.  Performance of the Funds for the first six months of 2020

2.  General Market Update and Benchmark Performance

The City's General Group of Funds ("General Fund") that holds the City's working capital and the amounts designated for the City's reserves and reserve funds earned:

• $92.4 million in the first six months of 2020 (3.6% annualized rate of return)

The City's Sinking Fund portfolio that holds funds for future debt repayments earned:

• $17.2 million in the first six months of 2020 (2.3% annualized rate of return) 

Since January 1, 2018, the City's long-term investments have been managed by the Toronto Investment Board under a new Council adopted Investment Policy which is based on the prudent investor standard.

As at June 30, 2020, approximately 80 percent of both the Sinking Fund and the Long Term Fund were managed by external investment managers selected by the Toronto Investment Board.  At the end of 2019, four external fixed income managers controlled approximately 70 percent of the assets while two global equity pooled fund managers oversaw 7 percent of these funds.  A third global equity pooled fund manager started in February 2020 resulting in a total equity exposure of 10 percent at the fund level by June 30, 2020. The balance of these funds remain in cash and short-term securities until additional external fund managers can be funded.  Selection and contract negotiations for an additional global equity pooled fund manager and real asset managers continues in 2020.

All funds managed are compliant with the Council-approved Investment Policy. 

The City’s General Group of Funds ("General Fund") earned $92.4 million in the first six months of 2020.

The investment activities in the first six months of 2020 were compliant with the investment policies and goals adopted by City Council. The earnings for the first half of 2020 have met the forecasted income contribution to the 2019 Operating Budget.

The City's Sinking Funds portfolio earned $17.2 million in the first six months of 2020. These earnings are retained within the Sinking Funds and must be used for the purpose of retiring debenture debt at maturity.

The Budget Committee recommends to the Executive Committee that:

Rates and Fees

1. City Council adopt:

a. effective January 1, 2021, a 1.5 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown below and in Appendix B to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water:

Table 1 - Rate Increase to Combined Water and Wastewater Consumption Rates Charged to Metered Consumers

b. effective January 1, 2021, an increase of 1.5 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 B to the report(October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water; and

c. effective January 1, 2021 the water and wastewater service fees, as set out in Appendix C to the report (October 30, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

2. With respect to assistance for low-income seniors and low-income disabled persons, City Council:

a. effective January 1, 2021, set the water rebate for eligible low-income seniors and low-income disabled persons at a rate of $1.2404 /m3, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3. City Council amend 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.

4. 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.

Operating and Capital Budgets

5. City Council approve the 2021 Operating Budget for Toronto Water of $468.824 million gross, $1,415.336 million revenue and $946.512 million net capital from current contribution for the following services:

6. City Council approve the 2021 staff complement for Toronto Water of 1,841.3 positions comprised of116.0 capital position and 1,725.3 operating positions.

7. City Council approve 2021 Capital Budget for Toronto Water with cash flows and future year commitments totalling $7.597 billion as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water.

8. City Council approve the 2022-2030 Capital Plan for Toronto Water totalling $7.188 billion in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Toronto Water.

9. City Council request that all sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2021 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

Service Levels

10. City Council approve the 2021 service levels for Toronto Water as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Toronto Water, titled "Recommended 2021 Service Levels - Toronto Water".

This report presents the recommended 2021 water and wastewater consumption rates and service fees arising from the concurrent adoption by City Council of the 2021 Toronto Water Operating and Capital Budgets.

In order to support the recovery from the impact of COVID -19, this report recommends a 1.5 percent water and wastewater consumption rate increase, effective January 1, 2021, and inflationary fee increases for certain existing water and wastewater service fees, reflecting cost recovery for these services.

The recommended 2021 water and wastewater consumption rates and service fees 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 Budget Committee recommends to Executive Committee that:

Rates and Fees

1. City Council adopt, effective January 1, 2021, the Solid Waste Management Services Rates and Fees as set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services.

 
2. City Council amend Municipal Code Chapter 441 – Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to these Recommendations.
 

3. 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 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.
 

4. City Council direct the General Manager of Solid Waste Management Services to develop and submit the 2022 and 2023 budgets as outlined in Appendix B to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, representing a 3 percent increase in 2022 and a 3 percent increase in 2023 to be applicable to all Solid Waste Management Services Rates and Fees in order to support the Divisions long term capital plan.
 

5. City Council direct the General Manager, Solid Waste Management Services to review, as part of the work of the Province's transition to extended producer responsibility programs and the amended Food and Organic Waste Policy Statement, the currently accepted items in the City's existing diversion programs with a primary focus on materials in the Green Bin stream and report back to Council with recommendations on items to remain or exclude from the list of accepted items using a triple bottom line approach which considers financial, environmental and social considerations.

 
6. City Council direct the General Manager, Solid Waste Management Services to review the current installment of waste collection bins in Parks and open spaces and as a pilot project determine how the quality of recyclable materials generated in Blue Bin recycling can be improved and the quantities of litter disposed of in landfill can be reduced through the expansion of Green Bin organics and the adjustment of waste bin types, quantities and placement within in Parks.

 
7. City Council request financial support from the Province of Ontario to fully-recover transition costs the City may incur as a result of the Province's anticipated adoption and implementation of measures under the Resource Recovery and Circular Economy Act, 2016 that will implement a new Extended Producer Responsibility model for Ontario, including but not limited to increased service contract costs, specialized professional services support, additional communications, promotion and education support.

 
8. City Council authorize the General Manager, Solid Waste Management Services, to establish and manage a First Nations Engagement Grant Fund for the Green Lane Landfill Renewable Energy Study Project funded through the capital program for qualifying local First Nations to retain, on a verified basis, technical services such as energy, environmental and/or similar consultants to assist with the engagement process. 

9. City Council authorize the General Manager, Solid Waste Management Services, and/or designate, to negotiate and enter into an amending agreement with the City's current mattress recycling contractor for a term up to December 31, 2026, with specific requirements that allow for increased mattress recycling volumes and maintain or exceed existing capture rates for recoverable materials, and on any other terms satisfactory to the General Manager, Solid Waste Management Services, and each in a form satisfactory to the City Solicitor, in support of efforts to increase diversion of these materials from landfill.

 
10. City Council direct that all the rates, fees and charges set out in Appendix A to the report (November 6, 2020) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, adopted by Council in Recommendation 1 and 2 above, continue in full force and effect until such time as they are amended or repealed by City Council.

Operating and Capital Budgets

11. City Council approve the 2021 Operating Budget for Solid Waste Management Services of $361.973 million gross, $379.110 million revenue and $17.137 million net for the following services:

12. City Council approve the 2021 staff complement for Solid Waste Management Services of 1,125.3 positions comprised of 47.6 capital position and 1,077.7 operating positions.

13. City Council approve the 2021 technical adjustments to user fees, market rate user fee changes, and other fee changes above the inflationary adjusted rate Solid Waste Management Services identified in Appendix 9 to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services, for inclusion in the Municipal Code Chapter 441 “Fees and Charges”.

14. City Council approve the 2021 Capital Budget for Solid Waste Management Services with cash flows and future year commitments totaling $549.159 million as detailed by project in Appendix 6a to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.

15. City Council approve the 2022-2030 Capital Plan for Solid Waste Management Services totalling $188.295 million in project estimates as detailed by project in Appendix 6b to the 2021 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.

Service Levels

16. City Council approve the 2021 service levels for Solid Waste Management Services as outlined in Appendix 1 to the report (November 6, 2020) from the General Manager, Solid Waste Management Services, titled "Recommended 2021 Service Levels - Solid Waste Management Services".

This report outlines the recommended 2021 Solid Waste Management Services Rates and Fees arising from the adoption of the 2021 Solid Waste Management Services Operating and Capital Budgets. The recommended rate and fee increases will vary based on customer group and are highlighted in Table 1. 

Table 1 highlights the recommended key Solid Waste Management Services Rates and Fees effective January 1, 2021.

Table 1 - 2021 Recommended Rates and Fees Increases (Effective January 1, 2021)

The recommended blended 1.5 percent increase in Solid Waste Management Services Rates will continue to provide and maintain Council Approved service levels unchanged from the prior year and fund the 2021 Capital Budget and 10-Year Capital Plan. This is in line with the City's Economic Support and Recovery plan to assist residence and business in the City of Toronto recover from the impact of Covid-19. 

The 1.5 percent utility rate increase for 2021 is recommended to maintain the contribution to Waste Management Reserve fund to finance future capital investments, and to address affordability concerns resulting from the pandemic , which results in a loss of approximately $3.334 million (gross) in previously anticipated revenues when compared to the planned 2.7 percent blended rate increase for 2021.

The 2021 Operating Budget is $361.973 million, representing an increase of $1.236 million or 0.3 percent over the 2020 Operating Budget as well as a $17.137 million contribution to the Waste Management Reserve Fund, all of which are offset by total revenues of $379.110 million. The marginal increase in operating expenditures is attributable to contractual inflation increases and an increase in debt principal and interest payments to fund the 10-year Capital Budget and Plan as well as other balancing action taken by staff.  

The 2021 Capital Budget is $69.079 million including carry-forwards, which is comprised of $51.374 million in new 2021 funding and $17.705 million in funding carried forward from 2020 into 2021. The 2021 Capital Budget and Plan remains generally unchanged from last year focusing on the following key capital objectives and priorities for Solid Waste Management Services:

- To safely and efficiently collect materials from 875,000 homes, business and public spaces by implementing Council's direction on health and safety by installing telematics solutions on vehicles in support of Vision Zero 2.0;

 
- To manage 900,000 plus tonnes of material in an environmentally and fiscally sustainable manner by accelerating the development of the 3rd Anaerobic Digester;

 
- To continue investigating long-term disposal options including landfill capacity development and energy from waste as well as site contract renegotiations and strategically using alternate landfill sites; and

 
- To continue to develop and invest in renewable energy such as Renewable Natural Gas facilities.

The City Manager and the Chief Financial Officer and Treasurer have submitted recommendations for the 2020 Recommended Operating Budget and 2021-2030 Recommended Capital Budget and Plan for Toronto Parking Authority.

The Budget Committee recommends that:

1. The Executive Committee receive the report (June 8, 2020) from the Chief Financial Officer and Treasurer for information.

City Council on June 29 and 30, 2020, referred Item EX14.5 to the November 17, 2020 meeting of the Budget Committee for further consideration.

The Budget Committee recommends to the Executive Committee that:

1. City Council authorize the reallocation of cash flows in the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, for the deferral and acceleration of cash flow in the amount of $4.571 million, as included in Appendix 1 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation.

2. City Council authorize amendments to increase project costs and cash flows within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and future year commitments in the amount of $1.619 million, as included in Appendix 2 to the report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact.

3. City Council authorize amendments to create five (5) new sub-projects with a total project cost of $1.633 million and cash flow commitments of $0.113 million in 2020, $0.820 million in 2021 and $0.700 million in 2022, within the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan, as included in Appendix 3 to report (October 29, 2020) from the General Manager, Parks, Forestry and Recreation, with no debt impact.

4. City Council approve an increase in project cost to Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan for the North East Scarborough New Community Centre sub-project, as part of the Community Centre project, in the amount of $20.200 million, from $37.000 million to $57.200 million, with future year cash flow commitments of $13.400 million in 2023 and $6.800 million in 2024, with $18.800 million funded by Development Charges (XR2114), $0.700 million from the City-Wide Parkland Development Cash-in-lieu Reserve Fund (XR2211), and $0.700 million from the East District Parkland Development Cash-in-lieu Reserve Fund (XR2205), to meet the increased scope and implementation of Net Zero for City buildings.

This report requests authority from City Council to amend the Parks, Forestry and Recreation's 2020 Council Approved Capital Budget and 2021-2029 Capital Plan by adjusting project costs and future year cash flow commitments contained within the 10-Year Capital Plan.  These adjustments will align cash flows with capital project delivery schedules, multi-year contracts, and program requirements.  Amendments to cash flows and project costs are also requested to reflect the expanded scope of work resulting from the design process; to achieve net zero for a new building as directed through Council; to initiate design work; for projects that are experiencing unforeseen site conditions; or alternatively to advance projects into 2020 that are ready to proceed.

The recommended in-year adjustments, as presented in this report, will have no incremental debt impact on the Parks, Forestry and Recreation's 2020-2029 Council Approved Capital Budget and Plan.

The Budget Committee recommends to the Executive Committee that:

1. City Council approve in-year budget adjustments to the 2019-2028 Approved Capital Budget and Plan as detailed in Appendix 5 to the report (November 10, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.

The Budget Committee recommends to the Executive Committee that:

1. City Council approve a one-time amendment to the City's annual surplus allocation policy of contributing 75 percent of operating surplus to the Capital Financing Reserve to enable alternative surplus allocation requirements.

 
2. City Council approve the surplus allocation as detailed in Table 3 of this report including a $213.751 million allocation to the Tax Rate Stabilization Reserve to be used to offset COVID financial impacts in the event adequate Federal/Provincial funding support is not forthcoming.

 
3. City Council approve the withdrawal from the Sony Centre Stabilization Reserve Fund (XQ2031) of $0.167 million and Toronto Centre for the Arts Stabilization Reserve Fund (XQ1060) of $0.167 million to partially mitigate the 2019 year-end deficit of TO Live.

The Budget Committee recommends to the Executive Committee that:

1. City Council approve in-year budget adjustments to the 2020-2029 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (November 10, 2020) from the Chief Financial Officer and Treasurer that result in no incremental impact on debt financing.

The Budget Committee recommends to the Executive Committee that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (November 10, 2020) from the Chief Financial Officer and Treasurer, to amend the 2020 Approved Operating Budget, such adjustments to have no impact on the 2020 Approved Net Operating Budget of the City.

The purpose of this report is to provide City Council with the Operating Variance for the nine months ended September 30, 2020 as well as projections to year-end. This report also requests City Council's approval for amendments to the 2020 Approved Operating Budget that have no impact on the City's 2020 Approved Net Operating Budget.

Since mid-March, the City of Toronto, consistent with other major Canadian and Greater Toronto and Hamilton Area municipalities has been experiencing significant financial impacts, both in the form of added costs and revenue losses as a direct result of the COVID-19 pandemic.

COVID-19 related financial impacts are anticipated to total $1.716 billion by year-end for the City of Toronto, prior to offsets achieved through a series of implemented mitigation strategies that focus on spending and workforce restraints ($533.8 million); and phase 1 Safe Restart Agreement funding confirmed in August ($669 million), reducing the year-end shortfall to a projected $514.1 million.

- COVID-19 related financial impacts predominantly reflect revenue losses, which account for approximately 80% of total COVID-19 impacts;

- Mitigation strategies are expected to collectively generate $533.8 million in total offset by year-end, comprised of $499.7 million in savings from workforce restraints, spending constraints and cost avoidance; $34.1 million in added offsets available from budget variance; and included the elimination of inflationary general salary increases for Non-Union staff, Mayor and Council; and

- On August 12, 2020 Safe Restart Agreement funding allocations for the City of Toronto as part of the phase 1 funding were identified totalling $669 million as follows:

- Municipal Transit Funding Phase 1 - $404.1 million allocated to Toronto proportionately based on ridership;

- Social Services Relief Fund Phase 2 - $118.7 million allocated to Toronto in addition to the $39 million previously received as part of Phase 1 funding; and

- Municipal Operating Funding Phase 1 - $145.7 million allocated to Toronto proportionately based on households.

The table below details the anticipated 2020 City-wide COVID-19 related financial impacts; projected offset from mitigations strategies and phase 1 Safe Restart Funding; and the resulting financial position that is reflected in the year-end variance projections:

Table 1 - 2020 Projected COVID-19 Financial Impacts

*Year-to-date savings of $13.0M (Toronto Parking Authority) and $1.3M (Toronto Community Housing Corporation) are reflected in impacts and factored in Year-End projections

Tax Supported Programs:

The following table summarizes the anticipated year-end COVID-19 financial Impacts; projected offset from mitigations strategies and phase 1 initial Safe Restart funding; and the resulting financial position of the City's Tax Supported Operations as of September 30, 2020 and the projection at year-end:

Toronto Parking Authority and Toronto Community Housing variance information is not reflected in table below, which details Tax Supported Programs only.

Table 2 - Tax Supported Operating Variance Summary

Year-to-Date and Year-End Spending Results:

As noted in Table 2 above, for the nine months ended September 30, 2020 Tax Supported Operations experienced an unfavourable net variance of $440.3 million or 5.8 percent of planned expenditures. This is mainly driven by COVID-19 related cost and revenue impacts experienced beginning from mid-March onwards. The impact on the year-to-date results are reflected in the following areas:

- Toronto Transit Commission - Conventional Service ($272.9 million unfavourable) primarily due to significant loss of ridership revenue from the impact of COVID-19. Ridership losses peaked at 86 percent below budget in late April and are currently projected to be 55 percent below budget through the fall. This was partially offset by the implementation of cost containment strategies and matching service capacity to demand.

- Shelter Support and Housing Administration ($22.7 million unfavourable) primarily due to unplanned COVID-19 related expenditures related to new physical distancing measures implemented in the City's shelter system offset by Safe Restart funding; as well as underachieved revenues in Hostels and the Social Housing Service.

- Transportation Services ($14.7 million unfavourable) due to lower capital recoveries, right-of-way permit & inspection fees; utility cut revenue linked to COVID-19 related contract delays.

For year-end, the City is projecting $1.636 billion in COVID-19 related financial impacts, reduced by $533.8 million in savings and offsets ($499.7 million in mitigation strategies/cost avoidance and $34.1 million in offsets from budget variance) and $668.5 million in phase 1 Safe Restart funding for a net unfavourable variance of $433.8 million or 3.7 percent of the 2020 Gross Operating Budget, adjusted for Toronto Building and excluding impacts to Rate supported programs and Toronto Community Housing Corporation impacts.

- The unfavourable variance is primarily driven by COVID-19 financial impacts, resulting in increased emergency social support costs such as Shelter, Seniors Services and Long Term Care, as well as lost revenue in City Services such as TTC, Zoo, Exhibition Place, and Corporate revenues such as Municipal Land Transfer Tax and Municipal Accommodation Tax.

As noted, the projected year-end pressure resulting from COVID-19 related financial impacts has been lessened through a series of mitigation strategies and other offsets, these include:

$499.7 million in projected savings generated through mitigation strategies and cost avoidance as detailed below:

- Workforce restraints including redeployment of staff to critical and essential service areas; implementing emergency and seasonal / part-time staff layoffs; the implementation of a hiring slowdown; and savings generated from labour negotiations.

- Spending restraints such as reducing discretionary spending; and reviewing all services for criticality (prioritize critical, essential and priority services).

- Cost avoidance arising from expenditure management and tracking and forecasting COVID-19 related savings.

An additional $34.1 million in offsets are available from budget variance experienced within MLTT revenues from January 1 to March 31 that will be used to reduce COVID-19 related MLTT financial impacts.

Based on these initiatives, the City has achieved $415.5 million in offsets within its Tax-Supported programs as of October 25, 2020 and expects to generate a total of $533.8 million in offset by year-end.

Rate Supported Programs:

Rate Supported Programs reported a favourable year-to-date variance of $0.8 million. The favourable variance is attributed to lower than budgeted expenditures from Toronto Water and Solid Waste Management Services which is mostly offset from lower than planned revenue in Toronto Parking Authority. At year-end, an unfavourable projected variance is anticipated to be $42.1 million, again primarily driven by significantly lower revenues from Toronto Parking Authority which is reflected in the City-wide COVID-19 financial impacts that are projected to total $514.1 million in 2020, when adjusting for savings and initial Safe Restart funding.

Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance.

Table 2 - Rate Supported Operating Variance Summary

Additional COVID-19 Related Impacts:

In addition to COVID-19 impacts to the City's Tax and Rate supported programs that are reflected in City variance report, further impacts have been experienced with the Toronto Community Housing Corporation (TCHC).

City and TCHC finance staff have been working collaboratively to track and project COVID-19 financial impacts.  The TCHC is estimating that impacts will total $13.5 million by year-end.

In total, it is projected that the City will experience $1.716 billion in COVID-19 financial impacts ($1.636 billion – Tax Supported Programs; $66.8 million – Toronto Parking Authority; and $13.5 million – Toronto Community Housing Corporation) prior to savings and offsets that collectively total $533.8 million; and phase 1 Safe Restart Funding of $668.5, reducing the year-end shortfall to a projected $514.1 million.

Safe Restart Agreement:

On July 27, 2020 the Ontario government in partnership with the federal government announced $4 billion in financial support for Ontario's 444 municipalities as part of the Safe Restart Agreement and on August 12, 2020 the City of Toronto was provided with initial phase funding allocations under the agreement totalling $668.5 million as follows:

- Municipal Transit Funding Phase 1 - $404.1 million allocated to Toronto proportionately based on ridership.

- Social Services Relief Fund Phase 2 - $118.7 million allocated to Toronto in addition to the $39 million previously received as part of Phase 1 funding.

- Municipal Operating Funding Phase 1 - $145.7 million allocated to Toronto proportionately based on households.
 

$668.5 million in new funding will be applied to projected 2020 year-end funding shortfall.

- It is estimated that the remaining 2020 funding shortfall for the City following phase 1 Safe Restart funding will be $514.1 million.

- Future phase funding of up to $2.129 billion will be allocated to municipalities by the Province on a needs basis between municipal transit needs ($1.334 billion), municipal operating needs ($695.0 million) and Public Health ($100.0 million).

- Needs based applications have/will be submitted under the Safe Restart Program to obtain further funding to offset remaining COVID-19 financial impacts within Transit Operations, Public Health and Municipal Operations

The Fire Chief and General Manager, Toronto Fire Services recommends that:

1.  City Council authorize an in-year budget adjustment to the 2020 Capital Budget and 2021 Capital Plan for Toronto Fire Services (TFS) by accelerating the cash flows for the Station B - Downsview project (CFR091-01) by $1.590 million from 2021, with no impact on the total project cost of $11.685 million, with adjusted cash flows of $5.087 million in 2020 and $2.296 million in 2021, funded through the Development Charge Reserve Fund (XR2118) for the construction of the new fire station.

2.  City Council authorize an in-year budget adjustment to the 2020 Capital Budget and 2021-2022 Capital Plan for Toronto Fire Services (TFS) by accelerating the cash flows for the Personal Protection Equipment Replacement project (CFR133-01) by $0.820 million from 2021 and 2022, with no impact on the total project cost of $4.500 million, with adjusted cash flows of $2.026 million in 2020 and $2.380 million in 2021, funded through the Fire Equipment Reserve (XQ1020) for the lifecycle replacement of critical Structural Firefighting Bunker Suits approaching the 10-year expiry date.

This report requests City Council's authority to amend the Approved 2020 Capital Budget and 2021-2022 Capital Plan for Toronto Fire Services by accelerating total cash flows of $2.410 million from 2021 and 2022 for two (2) capital projects, funded from the Development Charge Reserve Fund (XR2118) and Fire Equipment Reserve (XQ1020), with no impact on the cost of either project.

These amendments are required to: 1) complete the construction of the Station B - Downsview capital project which advanced quicker than planned due to good weather, favourable site conditions, and the permission to continue working on an essential service facility through the pandemic; and 2) proceed with the lifecycle replacement of Personal Protection Equipment, i.e., Firefighter Bunker Suits approaching the 10-year expiry date, ahead of schedule to avoid potential delays arising from the second wave of COVID-19.

Station B - Downsview

The acceleration of cash flows from the Development Charge Reserve Fund (XR2118) are required to fund the construction of the new fire station, which is ahead of schedule due to cooperative weather, favourable site conditions, and governmental clearance for contractors to continue working on essential projects throughout the pandemic while other construction activities on non-essential builds stopped. 

The previously approved budgeted cash flows net of HST recoveries are revised in accordance with Table 1, below:

Table 1: Station B-Downsview Project Cash Flows ($000s)

TFS is recommending the relocation of an existing crew (21 Full Time Equivalent) to staff the Station B - Downsview fire station upon completion. The impact of this relocation on service level performance is included in the 2021 Budget Submission, and will be monitored throughout 2022; TFS will report back through the 2023 budget process.

Personal Protection Equipment Replacement

The revised cash flows for the replacement of expiring Personal Protection Equipment (Firefighter Bunker Suits) is provided by the Fire Equipment Reserve (XQ1020). The revised budgeted cash flows ensure that firefighters are provided with the most up-to-date health and safety equipment; and is reflective of the roll-out, which is progressing in advance in order to mitigate potential delays arising from a second wave of COVID-19.

Previously approved budgeted cash flows net of HST recoveries are revised in accordance with Table 2, below:

Table 2: Personal Protection Equipment Replacement Cash Flows ($000s)

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

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

1. City Council direct the Executive Director, Social Development, Finance and Administration, in collaboration with the Chief People Officer, to provide a report to the Toronto Accessibility Advisory Committee, identifying how the City's Equity Responsive Budgeting initiative will align with the City's Data for Equity Strategy and support the use of sociodemographic data in the development of the Operating Budget in the fourth quarter of 2021.

Sarah Blackstock, Manager, Social Policy, Social Development, Finance and Administration Division provided a presentation on the City's Equity Responsive Budgeting initiative to the Toronto Accessibility Advisory Committee.

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

1.  City Council amend the Simplified Procedures for Advisory Bodies to permit remote electronic participation in perpetuity.

2.  City Council request the Chief Technology Officer, in consultation with the City Clerk, to explore options for improving accessibility for all participants in remote meetings of Council and Committees, such as captioning, and to report back to the Toronto Accessibility AdvisoryCommittee by the second quarter of 2021.

The purpose of this report is to provide an overview of the remote electronic participation amendments to the Simplified Procedures for Advisory Bodies which govern the meetings of Council Advisory Bodies, including the Toronto Accessibility Advisory Committee, as requested by the Committee.

At present, the amended Simplified Procedures permit any member of an Advisory Body to participate in meetings by electronic means, and be counted for quorum.

As it stands, these amendments will remain in place for a period of one year following the termination of the municipal emergency related to COVID-19.

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

1. City Council request the Medical Officer of Health to report to the Toronto Accessibility Advisory Committee in the second quarter of 2021 or sooner on strategies and outcomes on how current health programs are reaching target demographics, including persons living with disabilities, in order to ensure their needs are being met.

2. City Council request the Medical Officer of Health to develop public health guidelines and recommendations to minimize the transmission of COVID-19 to people with disabilities living independently outside of congregate settings, and report back to the Toronto Accessibility Advisory Committee in the second quarter of 2021 or sooner, such recommendations to include:

a. expanding access to affordable, or free, personal protective equipment;

b. increasing access and delivery of the influenza vaccine via mobile medical units;

c. working with the Toronto Transit Commission and Wheel-Trans on flexible programs, and times, to accommodate medical appointments; and

d. a communication plan that takes into consideration the needs of all members of the disability community, including deaf people and people with developmental disabilities.

3. City Council request the Province of Ontario to work in partnership with Toronto Public Health to authorize paramedics or other emergency medical service providers to deliver COVID-19 testing.

4. City Council request the Province of Ontario to accelerate and expand the availability of mobile medical programs to include access to COVID-19 testing and the delivery of the influenza vaccine to populations disproportionately affected by COVID-19 including women, racialized and low-income populations, and people living with disabilities.

Dr. Eileen de Villa, Medical Officer of Health gave a presentation on Toronto Public Health's Response and Efforts Related to COVID-19 to the Toronto Accessibility Advisory Committee.

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

1.  City Council request the Toronto Transit Commission Board to request Chief Executive Officer, Toronto Transit Commission to deploy and schedule larger fleet vehicles when providing Wheel-Trans ride share to facilitate physical distancing and other public health guidelines where needed and to incorporate verbal and visual announcements requesting passengers practice physical distancing while riding the TTC and report back to the Toronto Accessibility Advisory Committee in the first quarter of 2021.

2.  City Council request the Toronto Transit Commission Board to request Chief Executive Officer, Toronto Transit Commission, to consult with accessibility stakeholders on options for remote participation in the Wheel Trans appeals process as well as establish public guidelines, in compliance with current Toronto Public Health recommendations, to promote in-person and remote appeals and to ensure accommodations are available as requested, and report back to the Toronto Accessibility Advisory Committee in the third quarter of 2021.

Dwayne Geddes, Head of Wheel-Trans, TTC, provided an update on the public consultations held for customers to receive feedback from parents travelling with infants and strollers and the potential use of skype for appeals. The presentation included an overview of TTC’s service modifications as a response to COVID-19.

At its virtual meeting held on November 24, 2020, the Toronto Police Services Board (Board) was in receipt of a report, dated November 11, 2020, from Ryan Teschner, Executive Director & Chief of Staff, with respect to the above noted matter.

The Board approved the foregoing report and agreed to forward a copy to the City’s Executive Committee to allocate and transfer to the Board additional funding for the Review in an amount not to exceed $700,000, and request that such funds be made available to the Board as of the date of the request, and until the conclusion of the Review.

A copy of Board Minute No. P185/2020 regarding this matter is attached.