October 8, 1998

Ms. Novina Wong

Clerk

City of Toronto

Station 1071, 7th Floor

Metro Hall

55 John Street

Toronto, Ontario

M5V 3C6

Dear Ms. Wong:

At its meeting on Wednesday, October 7, 1998, the Commission considered the attached report entitled, "1999-2003 Capital Program."

The Commission approved the Recommendation contained in the above report, as listed below:

"It is recommended that the Commission:

(1)approve the 1999-2003 Capital Program in the amount of $1.7 billion as described in this report and as detailed in the 1999-2003 Capital Program Blue Book, noting:

(I)the base Capital Program for the existing system represents an assessment of physical needs and safety improvements and provides for realistic life cycle asset replacement, prioritized under the existing approved categories:

(1)State of Good Repair/Safety

(2)Legislation

(3)Improvements

(4)Expansion

(ii)the City's 5 year targets for the TTC capital expenditures of $240 million gross annually is sufficient to cover the 1999-2003 TTC base Capital Program,

(iii)the money prepaid by the Province to discharge its obligations under the MTO/TTC/Metro capital subsidy agreement for the existing system will be completely depleted prior to the end of 1999,

(iv)the City's 1999 target of $240 million gross for the base budget is $220 million short of the 1999 required funding of $460,000 million; and

(v)the TTC's 1999-2003 Capital Program has been prepared on the basis of existing TTC capital criteria, not the new guidelines under consideration by the City. Adopting the new guidelines would shift about $45 million in capital expenditures to the operating budget in 1999 alone.

(2)forward this report to the City of Toronto for Council Approval of the 1999-2003 Capital Program;

(3)request the City to establish a 5-year Capital Program for the City and all its Agencies, Boards and Commissions to determine the realistic physical infrastructure replacement and financing needs; and

(4)consider this report in concert with the following reports:

• 1999 TTC Operating Budget
• 1999 Wheel-Trans Operating Budget."

The Commission also requested that the Budget Committee be advised that any shift in capital to operating carry with it a commensurate shift in subsidy.

The foregoing is forwarded to City of Toronto Council for the necessary action and approval, as detailed above.

Sincerely,

Vincent Rodo

General Secretary

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