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Tax-Supported 2012-2021 Capital Budget & Plan


The 2012-2021 Capital Budget and Plan is a strategy for funding current and future year investments in infrastructure such as transit, roads, buildings and parks.

Each year, the City of Toronto introduces a current year capital budget and a plan for developing infrastructure in the city for the next ten years. The ten-year capital plan commits funding for projects underway and others in development.

The City of Toronto's 2012 Tax and Rate-Supported Capital Budget and Plan totals $23.586 billion.  The Tax-Supported Programs comprise 63% or $14.836 billion with the remaining attributable to the Rate-Supported Programs (Toronto Water, Solid Waste Management Services, and Toronto Parking Authority) in the amount of $8.750 billion.

As well as an annual operating budget, the City prepares a 10-year Capital Budget and Plan. This capital plan, based on debt affordability, includes estimates of capital expenditures (capital projects) to keep the City's current assets in a state of good repair and to improve, expand, acquire and/or construct new capital assets required to meet service demands and support service growth.

The City's Capital Budget pays for building and maintaining roads, TTC buses and subways and major equipment and building major facilities. Major projects are funded through property taxes, money from other levels of government, development fees and by borrowing.

 

  • Where does the money come from?

    • Debt and Capital from Current contributions (CFC) are the primary financing sources for the 2012 – 2021Capital Budget and Plan totalling $7.050 billion or 48% of the total funding of $14.836 billion.
    • The City maximizes all non-debt financing sources first to minimize debt funding; these include Federal/Provincial Transfers, Program-specific reserve funds and capital contribution from the operating budget (Capital from Current).
    • Debt funding totals $4.099 billion or 28% of the financing over the City’s Capital Plan period, as noted in the chart below.


2012-2021 Capital Budget and Plan by Funding Source - $14.836 Billion
Where does the money come from?

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How Your Tax Dollar Will Work For You In 2011

Capital from Current (CFC), $2,951, 20%

Debt, $4,099, 28%

Prov Grants & Subsidy, $2,308, 16%

Federal Grants & Subsidy, $2,081, 14%

Development Charges, $462, 3%

Reserves & Reserve Funds, $1,842, 12%

Other, $1,093, 7%



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The City's $14.836 billion Capital Budget and Plan focuses on transportation and transit, public safety, emergency services, improving customer service and investing in public spaces for the next ten years. The Toronto Transit Commission and Spadina Subway Extension make up 54% of the City's 10-year Capital Budget and Plan.


2012-2021 Capital Budget and Plan Expenditures - $14.836 Billion
Where does the money go?
($ million)

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2012-2021 Capital Budget and Plan Expenditures - $14.836 Billion, Where does the money go?

Spadina Subway, $1,814 million, 12%

Transportation, $2,160 million, 14%

Parks, Forestry & Recreation, $761 million, 5%

Facilities and Real Estate, $534 million, 4%

Toronto Police Service, $496 million, 3%

Fleet Services, $433 million, 3%

Union Station, $411 million, 3%

Information & Technology, $434 million, 3%

Toronto Public Library, $222 million, 1%

LTCHC, $138 million, 1%

Waterfront, $235 million, 2%

Other Programs, $1,014 million, 7%

TTC, $6,184 million, 42%

Capital projects included in the 2012 – 2021 Capital Budget and Plan are prioritized into five categories as shown in the chart below.  The 2012 Capital Budget and Plan focuses on maintaining and rehabilitating existing infrastructure to deliver services to the citizens of Toronto. 

Capital expenditures to maintain and renew the City’s infrastructure total $9.908 billion, representing 67% of the 2012 – 2021 Capital Budget and Plan's spending allocation and with the addition of Health and Safety and Legislated projects grows to approximately 72% of the total budget , as outlined below.  The strategy of continuous investment in City infrastructure reduces the growth in the City’s state of good repair backlog.


2012-2021 Capital Budget and Plan of $14.836 Billion by Expenditure Category
($ million)

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2012-2021 Capital Budget and Plan of $14.836 Billion by Expenditure Category

State of Good Repair, $9,808 million, 67%

Service Improvement, $1,350 million, 9%

Growth Related, $2,865 million, 19%

Health and Safety, $230 million, 2%

Legislated, $230 million, 2%

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How will the City manage its capital debt in 2012

Financing for the City's 10-Year Capital Budget and Plan is derived from various funding sources, both external and City-own sources with debt funding being the funding source of last resort.  It is the City's goal to maximize all funding from external sources, including:

More information is available in the 2012-2021 Tax-Supported Capital Budget and Plan Corporate Report

What is the City's plan for State of Good Repair (SOGR) projects and funding?

Managing the accumulated SOGR backlog is a key capital policy objective and priority.  The City's expansive infrastructure is aging which places a huge burden on limited financial resources to ensure that capital assets are kept in a state of good repair.  For example, 70% of the road network is over 30 years old; 50% of the water network is over 50 years old; and, 68% of all City assets are in excess of 30 years old.  Neglecting to maintain the infrastructure on a timely basis invariably leads to higher rehabilitation, restoration and replacement costs to taxpayers in the future.  Neglecting to maintain the infrastructure on a timely basis invariably leads to higher rehabilitation, restoration and replacement costs to taxpayers in the future.

For the 2012- 2021 Capital Budget and Plan, the City will focus spending on SOGR projects, as the backlog of these projects is expected to increase steadily over this time period and stabilize by 2021.  Each division identified its respective SOGR projects in the Capital Analyst Notes which can be found on http://www.toronto.ca/budget2012/analystnotes_capital.htm.

What's included in the 2012-2021 Capital Budget and Plan?

Listed below are key projects to be delivered by the 2012 – 2021 Capital Budget and Plan.  These projects contribute toward fulfilling the City's priorities and on ensuring that the assets used to deliver services to the public are maintained.  The projects highlighted below indicate major deliverables / outcomes, delivery date and the 2012 – 2021 cash flow funding.

Moving people:

Public safety:


Quality of life of all its citizens:


Access to City staff and services:


Investment in public space:

 

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