City Council Approves $981 million Capital Budget Program for 2000 The City of Toronto's first capital budget of the new century was approved by Council today, giving clear priority to maintaining the city's facilities and infrastructure with strategic investments in growth/investment projects.

For 2000, the Capital Budget is $981 million. Another $800 million of the budget is committed as project cash flow over the next four years, for a total Capital Budget of $1.8 billion.

The $981 million Capital Budget Program strikes a balance between TTC cost pressures, the demand for new investments, the need for maintenance of the City's infrastructure, and the introduction of new, longer-term state-of-good-repair programs for City assets.

"We've brought in a strong capital budget for our citizens and our debt is less," said Mayor Mel Lastman. "However, we still have work to do. We must put a cap on our debts while still maintaining our services and infrastructure."

Councillor Tom Jakobek, Chair of the Budget Committee, said that, "I'm satisfied that the City's Capital Budget is being reduced to $981 million. However, I am still concerned over the $64 million being added to the debt. We must ensure that the 2001 Budget freezes our debt and that we begin to pay it down by 2002. It's important that we get back our triple A rating from all Bond agencies and that we reduce the cost of borrowing."

"This has been a particularly challenging capital budget process," said Chief Administrative Officer Michael R. Garrett. "It also points out the importance of our plans to complete a state-of-good-repair inventory for all our assets; to move toward solid five-year capital plans; and to ensure all the city's policies and processes contribute to fiscal sustainability."

The 2000 Capital Budget Program includes funding for the Base Program and for the Extraordinary Program.