September 18, 1998
BUDGET COMMITTEE:
The Emergency and Protective Services Committee on September 8, 1998, had before it the
following reports:
(a)(July 7, 1998) from Councillor Norman Gardner, Chairman, Toronto Police Services
Board, advising that the Toronto Police Services Board on June 18, 1998, received a report
(May 20, 1998) from the Chief of Police in response to a request from the Emergency and
Protective Services Committee on April 21, 1998 for information on a number of issues
related to parking enforcement.
(b)(August 28, 1998) from the Chief Financial Officer and Treasurer, responding to a request
from the Emergency and Protective Services Committee regarding the feasibility of
establishing a First Appearance Facility at the Etobicoke Civic Centre.
(c)(August 28, 1998) from the Chief Financial Officer and Treasurer, reporting on a request
from the Emergency and Protective Services Committee regarding a change in Council policy
that would provide for revenues from parking enforcement to be placed into reserve accounts
rather than treating such funds as revenue; and recommending that parking tag revenues not
be removed from the corporate revenue stream.
The Emergency and Protective Services Committee reports having:
(1)received the communication (July 7, 1998) from the Chairman of the Toronto Police
Services Board;
(2)deferred the report (August 28, 1998) from the Chief Financial Officer and Treasurer
regarding the feasibility of establishing a First Appearance Facility at the Etobicoke Civic
Centre until such time as the recommendations contained in Bill 108 having been
implemented and that the matter be placed before the Emergency and Protective Services
Committee for reconsideration at that time; and directed that when determining sites efforts be
made to ensure that these sites are in City-owned facilities; and
(3)received the report (August 28, 1998) from the Chief Financial Officer and Treasurer
regarding the feasibility of placing parking tag revenues into a reserve; and having advised the
Budget Committee that the Emergency and Protective Services Committee neither confirms
nor refuses the recommendation contained in the conclusions section of said report which
reads: "It is therefore not recommended that the parking tag revenues be removed from the
corporate revenue stream."
City Clerk
Candy Davidovits\ms
Item No. 9
Attachments
Sent to:Budget Committee
Chief Financial Officer and Treasurer
c.Chairman, Toronto Police Services Board
Commissioner of Works and Emergency Services
Commissioner of Corporate Services
August 28, 1998
TO: Emergency and Protective Services Committee
FROM: Chief Financial Officer and Treasurer
SUBJECT:FEASIBILITY OF PLACING PARKING TAG REVENUES INTO A RESERVE
Purpose:
To report on a request from the Committee regarding a change in Council policy that would
provide for revenues from parking enforcement to be placed into reserve accounts rather than
treating such funds as revenue.
Financial Implications and Impact Statement:
The re-direction of revenue associated with parking enforcement from the corporate revenue
account to a reserve would result in a net impact on the corporate budget of $20.0 million and
an increase in the tax rate of close to 0.8 percent.
Recommendations:
It is recommended that this report be received for information purposes.
Background:
At its meeting on April 21, 1998 the Emergency and Protective Services Committee requested
that the Chief Financial Officer and Treasurer report on a change in Council policy that would
provide for revenues from parking enforcement to be placed into reserve accounts rather than
treating such funds as revenue. This request came as a result of a joint presentation from the
Parking Enforcement Unit, Toronto Police Service and Parking Tag Operations, Toronto
Finance.
Comments:
At present, the revenue associated with parking tags is budgeted as corporate revenue. The net
revenue is $20 million. This revenue is used to meet the targeted net corporate expenditures
and is a part of the overall mill rate determination. To exclude these funds from the corporate
revenue stream would create a budgetary pressure of $20.0 million annually and would
necessitate approximately a one percent increase in the tax rate to offset this revenue loss.
The Budget Committee requested the Commissioner of Works & Emergency Services to
report back to the Budget Committee by October 1998, on the options and models available
for integrating the operations of the Parking Authority, Parking Enforcement and Permit
parking under one umbrella. At that time, recommendations will be made regarding the total
revenue and expenditure stream for parking and parking enforcement activities, as well as
where and how the monies arising from parking tag violations should be reported. However, it
must be recognised that any transfer of parking tag violations net revenue will create a
budgetary pressure of $20 million or one percent during 1998 and future years.
Conclusions:
The 1998 budget as approved by the City of Toronto Council, on April 30, 1998, is based on
the premise that these revenues will be available to meet targeted corporate net expenditures.
It is therefore not recommended that the parking tag revenues be removed from the corporate
revenue stream. Placing these monies into an earmarked reserve would create a net annual
budgetary pressure of $20.0 million and would contribute to a mill rate increase.
Contact Name:
Bryan Kerr
Phone No. 392-5880 / Fax No. 397-9577
E-mail address: bryan_a._kerr@metrodesk.metrotor.on.ca
W. A. Liczyk
Chief Financial Officer and Treasurer