Agenda
Executive Committee
- Meeting No.:
- 1
- Contact:
- Jennifer Forkes, Committee Administrator
- Meeting Date:
- Friday, December 5, 2014
- Phone:
- 416-392-4666
- Start Time:
- 9:30 AM
- E-mail:
- exc@toronto.ca
- Location:
- Committee Room 1, City Hall
- Chair:
- Mayor John Tory
Members of Council and Staff: Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended.
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. 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.
The City makes a video record of committee and community council meetings. If you make a presentation to a committee or community council, the City will be video-recording you and City staff may make the video record available to the public.
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 by calling 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.
Declarations of Interest under the Municipal Conflict of Interest Act
Speakers/Presentations - A complete list will be distributed at the meeting
Communications/Reports
EX1.1 - Election of the Chair of the Budget Committee
- Consideration Type:
- ACTION
Summary
Election of the Chair of the Budget Committee in accordance with Appendix II Section 4(B) of Chapter 27, Council Procedures By-law.
EX1.2 - Election of the Chair of the Employee and Labour Relations Committee
- Consideration Type:
- ACTION
Summary
Election of the Chair of the Employee and Labour Relations Committee in accordance with Appendix II Section 6(B) of Chapter 27, Council Procedures By-law.
EX1.3 - Multi-Year Debenture and Temporary Borrowing Authorities - 2015 to 2018
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Deputy City Manager and Chief Financial Officer recommends that:
1. City Council authorize the Mayor (or as an alternate to the Mayor, either the Deputy Mayor or the Chair of the Budget Committee) and the Deputy City Manager and Chief Financial Officer, during each of the years 2015, 2016, 2017 and 2018, to:
a. enter into agreements for the sale, or the issuance and sale of debentures, and revenue bonds and for entering into bank loan agreements, upon such terms and conditions, including price, as they deem expedient, for the purposes of borrowing money to obtain or provide long-term financing of any capital work, in an annual amount not to exceed $900 million per year;
b. enter into any additional agreements necessary to provide for the management of interest rate risk, the management of currency risk or to minimize the costs or risks due to fluctuations in interest rates, all associated with the debentures, revenue bonds, or bank loan agreements upon terms satisfactory to them;
c. to reopen an existing debenture issue if it is determined that the reopening will be advantageous to the City, depending upon capital market conditions;
d. to temporarily borrow amounts that the City considers necessary to meet expenses of the City for the year and of prescribed amounts. whether or not they are expenses for the year, that the City requires in the year as set out in the applicable regulation under the City of Toronto Act, 2006 (COTA) until such time as the taxes are collected and other revenues are received, provided the total amount so borrowed plus the principal amount of any outstanding temporary borrowings together with all accrued interest thereon at any time will not exceed $300 million per year; and
e. to temporarily borrow for capital works pending the issuance of debentures or entering into bank loans, in an amount not to exceed $300 million per year.
2. City of Toronto Municipal Code Chapter 30, Debenture and other Borrowing, be amended to reflect Recommendation 1, and authority be granted for the introduction of the necessary Bills in Council to give effect to the foregoing.
3. City of Toronto’s Financing of Capital Works Policy and Goals be amended to reflect Recommendation 1.
Summary
This report requests the delegation of Council's authority to the Mayor (or as an alternate to the Mayor, either the Deputy Mayor or the Chair of the Budget Committee) together with the Deputy City Manager and Chief Financial Officer, in respect of the following three borrowing activities on behalf of the City for the current term of Council:
a. negotiating and entering into agreements for bank loans and for the sale and issuance of debentures and revenue bonds to provide long-term financing for the City’s capital program, up to the recommended annual limits;
b. temporarily borrowing primarily for operating expenses pending the receipt of annual taxes and other revenues during Council’s term, up to the recommended annual limits; and
c. temporarily borrowing for approved capital works pending long term financing, up to the recommended annual limits.
Since 2011, this authority has been delegated by Council for the duration of the Council term, within annual monetary limits. Prior to 2011, the authority was delegated annually.
These measures are necessary to support the City’s efforts to maintain and enhance its fiscal sustainability, flexibility and credit worthiness.
Financial Impact
The debt charges associated with previous and new borrowings are approved annually by Council and are contained in the Capital and Corporate Financing/Non-Program section of the Operating Budget. Debt charges are affected by past levels of borrowing, interest rates on new debt issuance, the amount of debt issued and the term of the debt.
Staff estimates that the capital markets and annual budget will be able to absorb up to $900 million of the City's long-term debt issuance in each year. Any amounts which cannot be financed through long-term debt in a given year will be temporarily financed using the City's working capital and/or temporary borrowing facilities until debentures can be issued, or bank loans can be entered into, to provide permanent financing.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73790.pdf
EX1.4 - Operating Variance Report for the Nine-Month Period Ended September 30, 2014
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Deputy City Manager and Chief Financial Officer recommends that:
1. City Council approve the budget adjustments detailed in Appendix F to amend the 2014 Approved Operating Budget between Programs and Agencies that have no impact to the 2014 Approved Net Operating Budget.
Summary
The purpose of this report is to provide Council with the City of Toronto Operating Variance for the nine-month period ended September 30, 2014 as well as year-end projections and to request Council's approval for amendments to the 2014 Approved Operating Budget between programs that have no net impact to ensure accurate reporting and financial accountability.
For the nine-month period ended September 30, 2014, Tax Supported Operations reported a net favourable variance of $112.775 million or 4.1%, as noted in Table 1 below.
Table 1 | ||||||
Tax Supported Variance Summary ($ Millions) | ||||||
|
|
|
|
|
|
|
|
| Sept 2014 |
| Projected Y/E 2014 | ||
| Over/(Under) | Over/(Under) | ||||
|
| $ | % |
| $ | % |
| Gross Expenditures | (209.6) | -3.0% | (245.9) | -2.5% | |
| Revenues | (96.8) | -2.3% |
| (147.5) | -2.5% |
| Net Expenditures | (112.8) | -4.1% |
| (98.4) | -2.6% |
The favourable year-to-date variance was driven largely by salary and benefit under-spending from vacant positions and a reduction in caseload for Ontario Works. Higher than budgeted revenue from permit applications for Toronto Building, Toronto Hydro Dividend Income, Parking Tag and Enforcement and Operations and the Municipal Land Transfer Tax has also contributed to the favourable net variance. The under-spending was partially offset by over-expenditures for Tax Deficiencies and Transportation Services.
Projections indicate that the year-end position will result in a net favourable variance of $98.370 million or 2.6%. The projected decline in the net favourable variance compared to the year-to-date is largely driven by net expenditure/revenue changes for Court Services, Parks, Forestry and Recreation, Shelter, Support and Housing Administration, Parking Tag Enforcement and Operations, Supplementary Taxes and Non-Program Revenue Budget contribution from the Toronto Parking Authority's net income sharing to the City.
T Table 2 below summarizes Rate Supported Program net variances:
Table 2 | |||||
Rate Supported Variance Summary ($ Millions) | |||||
|
|
|
|
|
|
|
|
| Sept 2014 |
| Projected Y/E 2014 |
|
|
| Over/(Under) |
| Over/(Under) |
| |||||
| Solid Waste Management Services | 3.2 | (5.3) | ||
| Toronto Parking Authority | 1.8 | 4.7 | ||
| Toronto Water | 2.1 | (3.2) | ||
| Total Variance |
| 7.1 |
| (3.8) |
Rate Supported Programs collectively realized a year-to-date unfavourable net variance of $7.146 million or 7.4%. Solid Waste Management Services reported net over-spending of $3.237 million primarily from under-achieved revenues due to lower paid tonnes at Green Lane, lower tonnes of contractor residual waste and lower than planned Divisional, school and yellow bag fees. Toronto Water realized a net over-expenditure of $2.128 million owing largely to lower than budgeted revenues from the sale of water as a result of higher than normal rainfall, as well as colder temperatures during the summer months. In addition, the Toronto Parking Authority reported a net deficit of $1.781 million as a result of weaker than anticipated on-street parking revenues.
Rate Supported Programs collectively project year-end net favourable variance of $3.826 million. This change from the year-to-date actual is primarily driven by Solid Waste Management Services, which is forecasting a favourable year-end variance of $5.323 million. The year-end net under-spending is driven by savings in salaries and benefits due to vacancies, lower costs for contracted processing, increased Provincial funding for recycling and higher tipping fee revenue from transfer stations. Toronto Water is projecting a favourable variance of $3.218 million, mostly due to lower than planned salaries and benefits and partially offset by lower sales of water. The favourable variances noted above will be partially off-set by the Toronto Parking Authority's net deficit of $4.715 million from continued lower on-street revenues.
Table 3 below summarizes the vacancy rate for the nine months ended September 30, 2014 and projections to year-end.
Table 3 | ||||||
Summary of Approved Complement | ||||||
(Includes Capital and Operating Positions) | ||||||
Program/Agency | Year-to-Date | Year-End Projections | ||||
Vacancy % | Budgeted Gapping | Vacancy After Gapping | Vacancy % | Budgeted Gapping | Vacancy After Gapping | |
City Operations | 5.7% | 2.3% | 3.4% | 4.1% | 2.3% | 1.8% |
Agencies | 4.9% | 2.1% | 2.8% | 2.3% | 2.1% | 0.2% |
Corporate Accounts | 4.8% | 0.0% | 4.8% | -1.5% | 0.0% | 0.0% |
Total Levy Operations | 5.3% | 2.2% | 3.1% | 3.1% | 2.2% | 0.9% |
Rate Supported Programs | 8.5% | 2.3% | 6.2% | 12.3% | 2.3% | 10.0% |
Grand Total | 5.4% | 2.2% | 3.3% | 3.6% | 2.2% | 1.5% |
As of September 30, 2014, the City recorded a vacancy rate of 3.3% after gapping for an approved complement of 53,193.2 positions. The forecasted year-end vacancy rate after gapping is projected to be 1.5% for an approved complement of 52,701.2 positions. A more detailed analysis is provided in the Approved Complement Section of this report.
A
Financial Impact
The table below outlines the City's nine-month and projected year-end favourable variances by major program area.
Table 4 | |||||||
Tax Supported Expenditure Variance ($ Millions) | |||||||
|
|
|
|
|
|
|
|
|
| Sept 2014 Over/(Under) |
| Projected Y/E 2014 Over/(Under) | |||
|
| Gross | Net |
|
| Gross | Net |
| Citizen Centred Services "A" | (146.1) | (17.8) | (161.5) | 8.6 | ||
| Citizen Centred Services "B" | 8.8 | (0.3) | (10.7) | (9.5) | ||
| Internal Services | (18.9) | (4.2) | (28.6) | (6.1) | ||
| City Manager | (6.0) | (4.5) | (4.6) | (2.4) | ||
| Other City Programs | (6.3) | (0.6) | (2.7) | (0.3) | ||
| Council Appointed Programs | (0.2) | (0.2) |
|
| (0.2) | (0.2) |
| Total - City Operations | (168.7) | (27.6) | (208.3) | (9.9) | ||
| Agencies | (46.7) | (15.0) | (50.5) | (17.4) | ||
| Corporate Accounts | 5.8 | (70.1) |
|
| 12.9 | (71.1) |
| Sub-Total | (40.9) | (85.1) | (37.7) | (88.5) | ||
| Total Variance | (209.6) | (112.8) |
|
| (245.9) | (98.4) |
City Operations reported gross under-spending of $168.675 million or 4.8% with a favourable net variance of $27.641 million or 1.9% as of September 30, 2014. Current projections indicate that City Operations' 2014 year-end gross budget will be $208.254 million or 4.3% below planned; this will result in a $9.888 million or 0.5% favourable net variance.
Agencies reported gross under-spending of $46.674 million or 1.9% and $15.031 million or 1.2% of budgeted net expenditures for the nine months ended September 30, 2014. Agencies collectively project gross under-expenditures of $50.547 million or 1.5%. This will result in a $17.395 million or 1.0% favourable net variance at year-end.
Corporate Accounts were over-spent by $5.763 million or 0.6% gross but a favourable net variance of $70.104 million for the nine months ended September 30, 2014, primarily due to higher Municipal Land Transfer Tax revenues. Corporate Accounts collectively are forecast to have year-end gross over-expenditures of $12.886 million or 0.9% but a favourable net variance of $71.088 million, again based on higher Municipal Land Transfer Tax projections.
The 2014 preliminary year-end operating position for Tax Supported Operations includes $6.121 million to comply with approved Council direction/legislative requirements. The remaining year-end favourable balances will be allocated based on the City's Surplus Management Policy as part of the Operating Variance Report for the Year Ended December 31, 2014.
Appendices A, B and C attached summarize net expenditures, gross expenditures and revenues, respectively. Appendices D and E provide a detailed assessment of the complement and strength for the nine months ended September 30, 2014 and year-end projections. Appendix F details the in-year budget adjustments to the 2014 Approved Operating Budget which require Council approval. Appendix G provides detailed variance explanations for each City Program and Agency for the nine months ended September 30, 2014 as well as projections to year-end.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73787.pdf
Appendix A - City of Toronto Net Expenditures for Nine Months Ended September 30, 2014 Appendix B - City of Toronto Gross Expenditures for Nine Months Ended September 30, 2014 Appendix C - City of Toronto Revenues for Nine Months Ended September 30, 2014 Appendix D - City of Toronto Complement for Nine Months Ended September 30, 2014 Appendix E - City of Toronto Complement Projections for 2014 Year-End
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73864.pdf
Appendix F - City of Toronto Budget Adjustments for Nine Months Ended September 30, 2014 Appendix G - City of Toronto Significant City Programs/Agencies Variance Explanations
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73865.pdf
EX1.5 - Capital Variance Report for the Nine Month Period Ended September 30, 2014
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Deputy City Manager and Chief Financial Officer recommends that:
1. City Council receive for information in-year budget adjustments to the 2014-2023 Approved Capital Budget and Plan detailed in Appendix 2 for Economic Development and Culture, Transportation Services, Toronto Public Library, Toronto ZOO and Solid Waste Management Services requested during the 2014 Election recess in accordance with "Delegation of Authority During Extended Council Recess" (EX44.1).
2. City Council receive for information Appendix 3 which lists 4 capital project for Toronto Public Library that will be closed.
3. City Council direct The Toronto Transit Commission to identify cash flow funding to be reallocated between projects within the Capital Program to ensure that 2014 cash flow funding does not exceed the 2014 Approved Capital Budget, and to report to Budget Committee on required changes at the first regular meeting of 2015.
4. City Council authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.
Summary
The purpose of this report is to provide Council with the 2014 Capital Variance Report for the nine month period ended September 30, 2014 as well as projected actual expenditures to December 31, 2014. Furthermore, this report informs Council about approval for 2014 in-year budget adjustments requested during the 2014 Election recess from September to December 2014.
This report identifies closure of 4 capital projects for Toronto Public Library. Under-spending for these projects was reallocated previously, with Council approval, to other capital projects to address funding requirements. As a result, the projects were completed on budget with total funding and expenditures of $16.979 million.
Capital expenditures for the nine months ended September 30, 2014 totalled $1.531 billion or 35.7% of the 2014 Approved Capital Budget of $4.284 billion (see Table 1). This spending pattern is consistent with prior years. As detailed by City Program and Agency in Appendix 1, actual expenditures to year-end are expected to reach $2.912 billion or 68% of the total 2014 Approved Capital Budget; 15 of 33 City Programs and Agencies are projecting spending in excess of 70% by year-end: Tax Supported Programs project a spending rate of 65.8% to year-end; while Rate Supported Programs project a year-end spending rate of 77.6%.
Table 1 | |||||
Corporate Capital Variance Summary | |||||
for the Period Ended September 30, 2014 | |||||
($000s) | |||||
| 2014 Approved Budget | Actual Expenditures - January 1 to September 30, 2014 | Projected Actual Expenditure at Year-End | ||
$000s | % |
|
| ||
|
|
|
|
|
|
City Operations | 1,366,586 | 437,924 | 32.0 | 871,197 | 63.7 |
Agencies | 2,125,705 | 737,005 | 34.7 | 1,426,326 | 67.1 |
Sub Total - Tax Supported | 3,492,291 | 1,174,929 | 33.6 | 2,297,523 | 65.8 |
Rate Supported Programs: | 791,913 | 356,331 | 45.0 | 614,662 | 77.6 |
TOTAL | 4,284,204 | 1,531,260 | 35.7 | 2,912,185 | 68.0 |
The rate of spending in the first nine months was driven largely by expropriation process delays for the acquisition of various sites, poor weather conditions, longer than planned timelines to obtain necessary approvals or required permits; delays in securing funds from cost-sharing partners; design issues and difficulty in securing necessary resources for project delivery.
Financial Impact
As shown in Table 2 below, Tax Supported Programs and Agencies reported capital expenditures of $1.175 billion representing 33.6% of their collective 2014 Approved Capital Budget of $3.492 billion Rate Supported Programs reported capital spending of $356.331 million or 45% of their collective 2014 Approved Capital Budget of $791.913 million.
Table 2 | |||||
Corporate Capital Variance Summary | |||||
for the Period Ended September 30, 2014 | |||||
($000s) | |||||
| 2014 Approved Budget | Actual Expenditures - January 1 to September 30, 2014 | Projected Actual Expenditure at Year-End | ||
$000s | % | $000s | % of Plan | ||
Tax Supported Programs: |
|
|
|
|
|
Citizen Centred Services - "A" | 291,328 | 84,229 | 28.9 | 181,384 | 62.3 |
Citizen Centred Services - "B" | 513,787 | 177,427 | 34.5 | 340,667 | 66.3 |
Internal Services | 444,918 | 137,680 | 30.9 | 259,723 | 58.4 |
Other City Programs | 116,553 | 38,588 | 33.1 | 89,422 | 76.7 |
Sub Total City Operations | 1,366,586 | 437,924 | 32.0 | 871,197 | 63.7 |
Agencies | 2,125,705 | 737,005 | 34.7 | 1,426,326 | 67.1 |
Sub Total - Tax Supported | 3,492,291 | 1,174,929 | 33.6 | 2,297,523 | 65.8 |
Rate Supported Programs: |
|
|
|
|
|
Toronto Parking Authority | 71,009 | 6,538 | 9.2 | 28,789 | 40.5 |
Solid Waste Management | 103,942 | 22,780 | 21.9 | 42,167 | 40.6 |
Toronto Water | 616,962 | 327,013 | 53.0 | 543,706 | 88.1 |
Sub Total Rate Supported | 791,913 | 356,331 | 45.0 | 614,662 | 77.6 |
Total | 4,284,204 | 1,531,260 | 35.7 | 2,912,185 | 68.0 |
City Operations reported capital expenditures of $437.924 million or 32% of their collective 2014 Approved Capital Budget of $1.367 billion as of September 30, 2014; and spending is projected to be $871.197 million or 63.7 % by year-end.
Agencies reported capital expenditures of $737.005 million or 34.7% of their collective 2014 Approved Capital Budget of $2.126 billion, for the nine months ended September 30, 2014; and spending is projected to be $1.426 billion or 67.1% at December 31, 2014.
Rate Supported Programs reported capital spending of $356.331million or 45% of their collective 2014 Approved Capital Budget of $791.913 million, for the nine months ended September 30, 2014; and spending is projected to be $614.662 million or 77.6% by year end.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73788.pdf
Appendix 1 - 2014 Consolidated Capital Variance Report for the Nine Months Ended September 30, 2014
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73866.pdf
Appendix 2 - In-Year Budget Adjustments during the Election Recess 2014
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73867.pdf
Appendix 3 - Capital Project to be Closed
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73868.pdf
Appendix 4 - Capital Variance Explanation - Programs/Agencies
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73869.pdf
EX1.6 - 2015 Interim Estimates
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Deputy City Manager and Chief Financial Officer recommends that:
1. City Council approve the 2015 Interim Operating Estimates totaling $3.283 billion as detailed by City Program and Agency in Appendix 1 attached.
2. City Council authorize the Deputy City Manager and Chief Financial Officer to make net operating disbursement totaling $2.771 billion to tax and rate supported programs during the period January 1 to April 30, 2015, including cash transfer of $527.317 million to Agencies as detailed in the attached Appendix 1.
3. City Council approve the 2015 Interim Capital Estimates totalled $945.048 million in gross expenditures and financing of $310.198 million in debt funding; $145.564 million in Provincial and Federal funding; $386.912 million in Reserve/Reserve Funds funding; and $76.914 million in Third Party and Other funding as detailed by City Program and Agency in Appendix 2 attached.
4. City Council authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.
Summary
The 2015 Operating and Capital Budgets are proposed to be approved by City Council by March 11, 2014. The purpose of this report is to establish the 2015 Interim Operating and Capital Estimates in order to enable City Programs and Agencies to carry out their ongoing base operations and to continue work on previously approved urgent capital projects during the period January 1 to April 30, 2015.
In accordance with the Financial Control By-Law, Interim Operating Estimates must be approved prior to January 1, 2015 to ensure that appropriate Council approval is granted to fund the continuance of the City's business during the period January 1 to April 30, 2015. The 2015 Interim Operating Estimates are $3.283 billion gross and requires cash outflow net funding of $2.771 billion. The 2015 Interim Capital Estimates total $945.048 million gross and requires debenture financing of $310.198 million.
Financial Impact
As shown in Table 1, the 2015 Interim Operating Estimates total $3.283 billion gross requiring estimated net cash outflows of $2.771 billion. Cash outflows for City Operations total $1.491 billion; for Corporate Accounts $298.005 million, and for Rate Supported Programs $454.364 million. Transfers to City Agencies to make their cash payments during the period January 1 to April 30, 2015 total $527.317 million as most Agencies are only partially funded by the City, which includes the Toronto Transit Commission (TTC) for which approximately 70% of expenditures are funded from its own receipts.
Table 1 | ||
City of Toronto | ||
2015 Interim Operating Estimates | ||
For the Period Jan 1 to April 30, 2015 | ||
($000's) | ||
| Gross | Cash Net Outflow |
Citizen Centred Services "A" | 980,133 | 980,133 |
Citizen Centred Services "B" | 319,169 | 319,169 |
Internal Services | 136,633 | 136,633 |
City Manager | 16,621 | 16,621 |
Other City Programs | 38,855 | 38,855 |
Total - City Operation | 1,491,410 | 1,491,410 |
Agencies | 1,039,632 | 527,317 |
Corporate Accounts | 298,005 | 298,005 |
Total - Tax Supported Programs | 2,829,047 | 2,316,732 |
Rate Supported Programs | 454,364 | 454,364 |
Total | 3,283,411 | 2,771,097 |
The 2015 Interim Capital Estimates for previously approved capital projects, approved commitments and carry forward funding required to complete capital work for the three month period ending March 31, 2015 total $945.048 million and is summarised in Table 2. These expenditures would be funded as follows:
$310.198 million in debt funding;
$145.564 million in Provincial/Federal funding;
$342.315 million in Reserve/Reserve funding;
$44.597 million in Development Charges funding; and
$76.914 million in Third Party and Other funding.
Appendix 2 provides details.
Table 2 | ||
City of Toronto | ||
2015 Interim Capital Estimates | ||
For the Period January 1 to March 31, 2015 | ||
($000's) | ||
| ||
| Gross | Debt |
Citizen Centred Services "A" | 54,685 | 18,756 |
Citizen Centred Services "B" | 93,222 | 63,758 |
Internal Services | 105,617 | 43,259 |
Other City Programs | 11,671 | 4,737 |
Total - City Operation | 265,195 | 130,510 |
Agencies | 418,957 | 179,689 |
Total - Tax Supported Programs | 684,152 | 310,198 |
Rate Supported Programs | 260,896 | 0 |
Total - All Programs | 945,048 | 310,198 |
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73838.pdf
EX1.7 - 2015 Recommended Budget Process and Schedule
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The City Manager and the Deputy City Manager and Chief Financial Officer recommend that:
1. City Council approve the 2015 Budget Process and Schedule which is designed to develop, review and adopt the 2015 Operating and Capital Budgets by March 11, 2015 as set out in Appendix 1.
Summary
The purpose of this report is to present to City Council for its consideration a process and schedule to review and approve the Tax and Rate Supported 2015 Operating Budget and 2015 to 2024 Capital Budget and Plan for the City of Toronto.
In compliance with the City of Toronto Act (CoTA), the recommended 2015 Budget Process fulfills the City's requirement to “prepare and adopt a budget including estimates of all sums required during the year” for the purpose of operating the business of the City. Although the process is modified to account for an election year, the recommended 2015 Budget Process and Schedule is designed to ensure that both the Tax Levy and Rate Supported Capital and Operating Budgets are approved by March 11, 2015. Staff will be reporting back after the 2015 Budget process with a recommended multi-year planning and budgeting process for the balance of the term of Council (2016 – 2018).
Financial Impact
There are no financial impacts arising from the adoption of this report.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73785.pdf
Appendix 2 - 2015 Recommended Budget Process Schedule
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73878.pdf
EX1.8 - Reserves and Reserve Funds Variance Report - September 30, 2014
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Acting Treasurer recommends that:
1. The Executive Committee receive this report for information.
Summary
This report provides information on reserve and reserve fund balances as at September 30, 2014, and activity in reserves and reserve funds during the first nine months of 2014, and projected year-end balances. The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.
Financial Impact
There are no financial implications contained in this report.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73789.pdf
Appendices A1, B1, C1, A2, B2 and C2 - Reserves and Reserve Funds Variance Report - September 30, 2014
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73798.pdf
EX1.9 - Bloor-Yorkville Business Improvement Area (BIA) - Yorkville Avenue Streetscape Project Financing
- Consideration Type:
- ACTION
- Ward:
- 27 - Toronto Centre-Rosedale
Origin
Recommendations
The Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture recommend that:
1. City Council approve an exception to the Business Improvement Area Capital Cost-Sharing Guidelines under the Financed Funding Model for the Bloor-Yorkville Business Improvement Area Yorkville Avenue Project so as to increase the financed funding for the Project by $0.401 million from $0.650 million to $1.051 million to be repaid to the City with interest over a period of up to 10 years.
2. City Council direct the Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture, review the Business Improvement Area Capital Cost-Share Program Guidelines and report to Executive Committee in 2015 with the results of their review.
Summary
In August 2013 the Bloor-Yorkville Business Improvement Area applied for funding of $1.000 million gross through the Financed Funding option ($1.000 million maximum; $0.350 million City / $0.650 million Business Improvement Area financing) to complete streetscape improvements to Yorkville Avenue from Bay Street and Avenue Road in conjunction with road resurfacing and water main replacement work. The project was approved by City Council in the 2014 Economic Development and Culture Capital Budget.
When the project was tendered in July, the lowest bid for the Business Improvement Area streetscaping component of the project was $2.001 million. On August 25, 2014, City Council allocated an additional $0.600 million to the project from funds received pursuant to Section 37 of the Planning Act from the development of 21 Avenue Road.
City Council approval is required for an exception to the Business Improvement Area Capital Cost-Sharing Program Guidelines to increase the financed amount by $0.401 million from $0.650 million to $1.051 million to fully fund the Business Improvement Area share and allow awarding of the contract. The $1.051 million of Business Improvement Area financing is repayable to the City with interest over a period of up to 10 years and is secured under priority lien status in favour of the City.
Financial Impact
The 2014 Operating Budget for the Bloor –Yorkville Business Improvement Area is $2.736 million. The loan of $1.051 million will require debt service payments of $0.130 million annually for the 10 year retirement period. All loans to Business Improvement Areas are secured by the priority lien status of the Business Improvement Area special charge payable by the Business Improvement Area membership, such that if a Business Improvement Area ceases to operate, all debts and obligations can be satisfied through continued assessments of the member properties.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73811.pdf
EX1.10 - Strategy to Support the Ongoing Operation of the Island Yacht Club
- Consideration Type:
- ACTION
- Ward:
- 28 - Toronto Centre-Rosedale
Origin
Recommendations
The General Manager, Parks, Forestry and Recreation recommends that:
1. City Council authorize the Island Yacht Club to enter into a management agreement with a company to be incorporated by the principals of the Toronto Island Marina (which is expected to be named "Manage Co."), on terms and conditions satisfactory to the General Manager of Parks, Forestry and Recreation and in a form satisfactory to the City Solicitor.
2. City Council authorize the General Manager, Parks, Forestry and Recreation to amend the current lease agreement between the City of Toronto and the Island Yacht Club to allow the Club to enter into the management agreement with Manage Co, and to enter into any other agreements that may be required to facilitate the management agreement, in a form satisfactory to the City Solicitor.
Summary
This report seeks Council authority to allow the Island Yacht Club ("IYC") to enter into a management agreement with a company to be incorporated by the principals of the company that currently operates the Toronto Island Marina (referred to herein as "Manage Co"). It also seeks authority for the General Manager, Parks, Forestry and Recreation to amend the current lease agreement between the City of Toronto and the Island Yacht Club to allow the Island Yacht Club to enter into the Management Agreement with Manage Co.
This arrangement is to ensure the Island Yacht Club is able to meet its ongoing financial obligations to the City while providing an opportunity to increase its membership numbers. In 2004 the Island Yacht Club's clubhouse was destroyed by fire which caused a significant number of the club's members to relocate their boats to other clubs / marinas. Since then, the Island Yacht Club has struggled to retain its current membership and entice new members, and has fallen into financial hardship. Currently, the Island Yacht Club has fewer than 50 paying members, and operates at a significant deficit. The current scenario is unsustainable. The Club’s operating deficit is expected to continue into the 2015 boating season.
Financial Impact
Currently the Island Yacht Club is in arrears to the Parks, Forestry and Recreation Division in the amount of $251,000 (rounded) inclusive of rent and property tax. As a result of MPAC'S recently proposed resolution of an assessment appeal, the property tax liability has been reduced to $186,000 (rounded), the remaining $65,000 is related to rent.
For 2014, the IYC has been levied an annual rental charge of $60,000 (rounded) along with an additional annual $15,000 (rounded) property tax charge. For 2015, the annual rental charge will be increased by the Consumer Price Index (CPI). At the moment the IYC is unable to make any of the required payments under their lease agreement. If the IYC were to fall into receivership, it would be unlikely that the City would be able to collect any of these amounts.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73818.pdf
EX1.11 - Request to Extend Transition Period for Implementing Amendments of Toronto Atmospheric Fund Statement of Investment Objectives and Principles (SIOP)
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Board of Directors, Toronto Atmospheric Fund requests that:
1. City Council approve the necessary amendment to City of Toronto By-law No. 226-2013 to give effect to an extension of two years for the transition period for implementing the above-mentioned By-Law, and authorize the City's Chief Financial Officer to assist the Toronto Atmospheric Fund in ensuring that the appropriate accountability measures are undertaken.
Summary
The Board of Directors of the Toronto Atmospheric Fund met on September 23, 2014 to consider Item TA20.8 - Statement of Investment Objectives and Principles (SIOP). The Board of Directors of the Toronto Atmospheric Fund submits the item through the Executive Committee to City Council for approval.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73783.pdf
(September 9, 2014) Report from the Toronto Atmospheric Fund on Statement of Investment Objectives and Principles (SIOP)
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73784.pdf
EX1.12 - Request for Report on Review of SmartTrack and Regional Express Rail Plans
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
Mayor John Tory recommends that:
1. City Council direct the City Manager, in collaboration with the Toronto Transit Commission and the Provincial Government and its agencies, to bring forward an interim report to the January 22, 2015 meeting of Executive Committee to provide an accelerated work plan for a review of the SmartTrack and Regional Express Rail plans, including the required planning, environmental assessment, business case analysis, and implementation schedule.
2. City Council authorize the City Manager to retain the following specialized services to support the review of the SmartTrack plan:
a. the University of Toronto to support the planning analysis and required transit modeling;
b. Strategic Regional Research Associates for assessing development scenarios along the SmartTrack alignment; and
c. Third party peer reviewers of all SmartTrack analysis.
3. City Council amend the 2015 Interim Estimates report (EX1.6) to include additional funding of up to $750,000 in the 2015 interim capital estimates, reflecting 50 percent of the Transit Expansion Initiatives capital project to conduct the various studies, and analyses, as outlined in Recommendation 1 and 2.
4. City Council authorize the City Manager to engage provincial and federal officials and Greater Toronto and Hamilton Area municipalities as needed to review the SmartTrack and Regional Express Rail implementation plans and to pursue required partnership funding.
Summary
The SmartTrack plan is a cornerstone of my election platform. Moving forward on SmartTrack requires an informed public debate and City Council's direction to proceed with this vital transit expansion initiative. An analysis of the SmartTrack plan to consider its public policy and cost/benefit implications, based on sound and objective evidence is the necessary first step in its delivery.
During my first meeting with Premier Wynne we agreed that the City of Toronto must work closely with the Province when considering and implementing SmartTrack which we both see as complementary to the Province's vision for transit in our region. Both Premier Wynne and I were pleased to confirm to the public following our meeting that our respective officials are already working together to identify these implications and collect the relevant facts and evidence.
The SmartTrack plan depends on the success of the provincial Regional Express Rail (RER) plan and their 2014 Budget commitment to transform the regional transportation system by providing significant new travel choices across the Greater Toronto and Hamilton Area. A committed working relationship and collaboration across city and provincial officials is required to integrate the SmartTrack plan with the Metrolinx RER initiative.
With the support of City Council, I will be formally asking the City Manager to work with my office to coordinate a review of the SmartTrack plan in close collaboration with the Toronto Transit Commission and the Provincial Government and its agencies. The review will require appropriate resourcing to expedite various studies, including planning and environmental assessments, business case, and system integration analysis. All resulting evidence and options will be brought forward to Council for their deliberation.
The SmartTrack plan also depends on successful partnership and collaboration with the federal government and Greater Toronto and Hamilton Area municipalities. City, Provincial and Federal investments in transit expansion must be aligned with economic development strategies, both in the city and the region. This is the vision that we must communicate and advance with provincial and federal government and regional municipalities with the goal of creating a long term partnership to finance and implement this vital transit expansion plan. With City Council's support, I will be working to enhance our intergovernmental relations to advance the SmartTrack initiative.
To immediately move forward on the SmartTrack initiative, I am recommending the attached actions for Executive Committee's consideration.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-73931.pdf