CITY CLERK

Clause embodied in Report No. 2 of the Strategic Policies and Priorities Committee, as adopted by the Council of the City of Toronto at its meeting held on February 2, 3 and 4, 1999.

3
Proposed 1999 Operating Budget Process and Schedule

(City Council on February 2, 3 and 4, 1999, amended this Clause, by adding thereto the following:

"It is further recommended that:

(1)the report dated February 1, 1999, from the Chief Financial Officer and Treasurer, embodying the following recommendation, be adopted, subject to the meeting of the Corporate Services Committee scheduled to be held on Monday, April 26, 1999, at 9:30 a.m., being rescheduled to Monday, April 19, 1999, at 2:00 p.m., in order to accommodate the Special Meeting of City Council to consider the 1999 Operating Budget:

'It is recommended that the proposed amended 1999 Operating Budget Process and Schedule, as detailed in Appendix A, be approved.'; and

(2)the following motion be referred to the Budget Committee with a request that the Committee attempt to adhere to the requests outlined therein:

Moved by Councillor Mihevc:

'It is recommended that:

(a)the Budget Committee and City staff working on the budget, be requested:

(i)to distribute the agendas for currently scheduled meetings of the Budget Committee, five business days in advance, in accordance with the normal practice for the distribution of Standing Committee agendas;

(ii)when calling meetings of the Budget Committee which are in addition to those meetings currently scheduled, to provide 48hours notice of such meeting, with the notice period starting at the time of the distribution of the agenda; and

(iii)to circulate any additional agenda items to all Members of Council 48hours in advance of meetings: and

(b)the Budget Committee not consider reports which are "walked-in" or have not been distributed 48 hours in advance of any meeting.' ")

The Strategic Policies and Priorities Committee:

(1)recommends the adoption of the Recommendation of the Budget Committee embodied in the communication (January 21, 1999) from the City Clerk; and

(2)reports having requested the Chief Administrative Officer and the Chief Financial Officer and Treasurer to meet with the Community Council Chairs to establish dates for presenting the Operating Budget to the Community Councils.

The Strategic Policies and Priorities Committee submits the following communication (January 21, 1999) from the City Clerk:

Recommendation:

The Budget Committee on January 19, 1999, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the joint report (January 18, 1999) from the Chief Administrative Officer and the Chief Financial Officer and Treasurer, subject to providing that the proposed April 20, 1999, Special Strategic Policies and Priorities Committee meeting to hear deputations pertaining to the 1999 Operating Budget, shall be a joint meeting of Strategic Policies and Priorities Committee and the Budget Committee.

The Budget Committee reports for the information of the Strategic Policies and Priorities Committee, and Council having requested that the Chief Administrative Officer to report directly to Council at its meeting scheduled to be held on February 2, 1999, providing alternate dates for the Council Strategy Sessions scheduled for February 25 and 26, 1999.

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(Joint Report dated January 18, 1999, addressed to the

Budget Committee from the Chief Administrative Officer

and the Chief Financial Officer and Treasurer)

Purpose:

To propose the 1999 Operating Budget process and schedule.

Funding Sources, Financial Implications and Impact Statement:

N/A.

Recommendation:

It is recommended that the proposed Operating Budget process and schedule be approved.

Discussion:

1999 Operating Budget Process:

Overview:

The 1999 Operating Budget process has been designed to facilitate the continued decision-making needs of Council regarding the allocation of resources for City services. To that end, the 1999Operating Plan and Budget submission for each City Program and Agency will focus on the following information:

(i)Services provided to the public;

(ii)Service plans and priorities;

(iii)Performance measures, benchmarks;

(iv)Resources (human and financial) required to provide services;

(vi)Service delivery options; and

(vii)Major issues.

In conjunction with the above, each Program Area/Agency will be required to prepare detailed budget submissions for each service delivered by a program. The Budget Services Division of Finance will identify salient issues and provide advice, to the Chief Administrative Officer for review and recommended action. The Chief Administrative Officer will present a recommended 1999 Operating Budget to the Budget Committee for its consideration and subsequent consideration of Standing Committees of Council.

The preparation of the 1999 Operating Budget is two-staged: the Preliminary Operating Budget Forecast and the 1999 Operating Plan and Budget Submission.

(Stage 1)Preliminary Operating Budget Forecast and Review

The preliminary Operating Budget forecast is intended to provide the Chief Administrative Officer with an overview of the Corporation's financial outlook for the upcoming year.

This stage of the process, completed in the Fall of 1998, identified high level changes from the 1998 Approved Budget, including annualized impacts of 1998 reductions/revenue enhancements; fiscal impacts of capital budgets; changes in services approved by Council during 1998 as well as the identification of budget pressures resulting from wage settlements, downloading, service levelling etc., as well as savings to be realized from amalgamation/restructuring,

An analytical review of these submissions, undertaken by the Budget Services Division of Finance for the Chief Administrative Officer, resulted in the issuance of operating budget targets. Amalgamating program areas were given 1999 restructuring targets for the second installment of the City's continuing restructuring program to achieve the $150 million savings target over three years. Amalgamating Program areas were requested to reflect the restructuring target reductions in their 1999 Operating Budget requests.

The preliminary operating budget forecast also identified pressures that required all Program Areas, Agencies, Boards and Commissions to submit, together with their 1999 Operating Budget requests, proposals for reducing up to 10 percent of their net 1998 Approved Operating Budgets.

The findings of this stage of the Operating Budget process were reported to City Council in the presentation "1999 Preliminary Operating Budget Outlook" made by the Chief Administrative Officer on November 25, 1998.

(Stage 2)1999 Operating Plan and Budget Submission and Review:

The second phase of the process focuses on the preparation, analysis and approval of the 1999 Operating Plan and Budget Submission. 1999 Operating Budget instructions, guidelines, process and timetable have been developed to enable the following:

(i)development of a 1999 Operating Budget for Council consideration in April, 1999;

(ii)identification of current City services and service levels, service plans, resource allocations and service delivery options;

(iii)identification of impacts of previously approved Council decisions, including capital programs, on the operating budget;

(iv)inclusion of a preliminary outlook for the following fiscal year;

(v)the Chief Administrative Officer and Chief Financial Officer to review program/agency submissions, identify issues and provide recommendations, strategies and alternatives to the Budget Committee; and

(vi)Budget Committee, Standing Committees and City Council to review the Operating Budget requests for service and funding priorities.

The 1999 Operating Budget Schedule:

Administrative Review:January/Early February, 1999

Each Program Area/Agency was required to develop a formal 1999 Operating Plan and Budget Submission for each Program and its Services for final submission to the Budget Services Division by January 8, 1999. Once consolidated, an administrative review will take place in two phases:

(1)Finance Review:

At this stage, the Budget Services Division will undertake a detailed analytical review of program submissions, meeting with Program staff to clarify issues and negotiate recommended adjustments to the Operating Budget submissions. Budget staff will then bring forward issues and recommendations to the Chief Administrative Officer respecting each Operating Budget submission.

(2)Chief Administrative Officer Review:

After a review of each Operating Budget submission in early February, the Chief Administrative Officer will present a CAO-recommended Operating Budget for each Program and Agency to be submitted to the Budget Committee for its review commencing February 19, 1999.

It should be noted that the Chief Administrative Officer will be updating his November 25, 1998 "1999 Operating Budget Outlook" presentation to City Council on February 2, 1999 to provide current Operating Budget submission estimates.

Committee Reviews:

Preliminary Budget Committee Review:February 9, 19 to 27, 1999

Once the CAO-recommended Operating Budget is presented to the Budget Committee, the Committee will begin its review of the CAO-recommended budget for each Program and Agency. These meetings will begin February 19th through to the 27th, with the exception of the TTC, Police, Zoo, Exhibition Place, Conservation Authority and TEDCO budgets which will receive their respective reviews on February 9th, 1999.

During these sessions, the Budget Committee will consider each operating budget, identifying issues and requests for further information towards the resolution of those issues to assist the Budget Committee in determining funding priorities.

Standing Committee Review:March 22 to 31, 1999

Each Standing Committee will receive for review the CAO-recommended budgets for their respective Program Areas and Agencies and associated motions from Budget Committee's preliminary review meetings to assist Standing Committees in recommending service priorities.

These meetings will occur the week of March 22nd to the 31st, 1999. These meetings will also provide an opportunity for committee members to hear public deputations on their particular operating budgets.

Budget Committee Wrap-Up:March 29, April 6 to 9, 1999

Standing Committee recommendations will be forwarded to the Budget Committee for its consideration during a series of wrap-up meetings commencing March 29th and April 6th to the 9th, 1999. Any other outstanding matters arising from the Budget Committee preliminary meetings will also be resolved at this time.

Political Approval:

Special Budget Committee Meeting:April 16, 1999

Once Budget Committee deliberations have been completed, the Budget Committee-recommended budget for each Program and Agency will be consolidated and the final 1999 Operating Budget document will be submitted to Budget Committee for final consideration at a special meeting to be scheduled for April 16, 1999.

Special Strategic Policies and Priorities Meeting:April 20, 1999

The Budget Committee will forward the final Budget Committee-recommended 1999 Operating Budget to the Strategic Policies and Priorities Committee for consideration at a special meeting to be scheduled for April 20, 1999.

It is proposed that public deputations on the 1999 Operating Budget be held at this special meeting rather than Council of the Whole, as was done in 1998. The Budget Committee would meet subsequently (April 22, 1999) to respond to issues raised from deputants and report directly to City Council.

Special Meeting of City Council:April 26 and 27, 1999

It is proposed that a special meeting of City Council to consider the 1999 Operating Budget be scheduled for April 26 and 27, 1999.

It should be noted that special meetings are required to meet the deadlines of the 1999 workplan. A draft calendar of Committee and Council meetings highlighting the proposed Operating Budget meetings has been attached as Appendix A. As well, a detailed meeting schedule has been attached as Appendix B.

Contact Name:

Josie LaVita, Manager, Operating Budget: 397-4229.

Appendix B

1999 Operating Budget Process

Proposed Meeting Schedule

Special Pre-Council Meeting:

Tuesday February 2, 1999 - 8:3 0 am to 9:30 am

1999 Operating Budget Update - Submission Overview

Preliminary Budget Committee Reviews:

Tuesday February 9, 1999 - 9:00 am to 9:00 pm

9:00 - 1:30Police

1:30 - 2:00Lunch (brought in)

2:00 - 6:30TTC

6:30 - 7:00Dinner (brought in)

7:00 - 7:30TEDCO

7:30 - 8:00Conservation Authority

8:00 - 8:30Zoo

8:30 - 9:00CNE

Friday, February 19, 1999 - 2:00 pm to 9:00 pm

2:00 - 4:001999 Operating Budget Presentation (CAO/CFO)

4:00 - 5:00Urban Planning and Building

5:00 - 5:30Licensing Commission

5:30 - 6:30Grants

Monday, February 22, 1999 - 9:00 am to 9 pm

To be scheduled - Community and Neighbourhood Services

Childrens' Services

Homes for the Aged

Shelter, Housing and Support

Toronto Housing Company

Social Services

Social Development and Administration

Public Library

Public Health

Tuesday, February 23, 1999 - 2:00 pm - 9:00pm

To be scheduled - Economic Development, Culture and Tourism and associated ABCs

Parks and Recreation

Arts, Culture and Heritage/Heritage Toronto

Economic Development

Special Events

THC

Theatres and Galleries

St. Lawrence Centre for the Arts

Hummingbird

North York Centre for the Performing Arts

Arena Boards of Management

Wednesday, February 24, 1999 - 9:00 am - 9:00 pm

To be scheduled - Works and Emergency Services and associated ABCs

Solid Waste Management

Transportation

Fire

Ambulance

Water/Waste Water

Parking Authority

Thursday, February 25, 1999 - 9:00 am - 9:00 pm

To be scheduled - Corporate Services:

Audit

Legal

Human Resources

Information Technology

Facilities Management and Real Estate

Fleet and Equipment

Clerks

Friday, February 26, 1999: - 9:00 am - 6:00 pm

To be scheduled:

Chief Administrative Officer

Council

Mayor's Office

Finance

Non-Program Expenditures and Revenues

Any budget revisits

Saturday, February 27, 1999 - 10:00 am - 5:00 pm

Available for any budget revisits.

Budget Review by Standing Committees:

Emergency and Protective Services Committee - March 23, 1999

Community and Neighbourhood Services Committee - March 24, 1999

Works and Utilities Committee - March 24, 1999

Corporate Services Committee - March 25, 1999

Economic Development Committee - March 26, 1999

Urban Environment and Development Committee - March 31, 1999

Budget Committee Wrap-Up Meetings:

Monday, March 29, 1999* - 2:00 pm - 9:00 pm

*Regular meeting of Budget Committee scheduled for this day - could start at 9:00 am if wish to cancel regular meeting agenda

Tuesday, April 6, 1999 - 2:00 pm - 9:00 pm

Wednesday, April 7, 1999 - 9:00 am - 9:00 pm

Thursday, April 8, 1999 - 9:00 am - 9:00 pm

Friday, April 9, 1999* - 9:00 am - 6:00 pm

* This is Good Friday (Orthodox) but available, if necessary.

Special Budget Committee Meeting:

Friday, April 16, 1999 - 9:30 am - 12:30 pm - consideration of the final 1999 Operating Budget

Special Strategic Policies and Priorities Committee Meeting:

Tuesday, April 20, 1999 - 9:00 am - 9 pm - consideration of the 1999 Operating Budget and Deputations *

*It is proposed that public deputations on the 1999 Operating Budget be received at this special meeting of Strategic Policies and Priorities rather than Council of the Whole. The Budget Committee would meet subsequently to respond to the issues raised from deputants and report directly to the Special Meeting of City Council on these matters.

Special Budget Committee Meeting:

Thursday, April 22, 1999 - 2:00 pm - 9:00 pm - to respond to deputations forwarded from Strategic Policies and Priorities meeting of April 20, 1999.

Special Meeting of City Council

Monday, April 26, 1999 and Tuesday April 27, 1999.

(City Council on February 2, 3 and 4, 1999, had before it, during consideration of the foregoing Clause, the following report (February 1, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

To submit an amended 1999 Operating Budget Process and Schedule which includes Community Council meeting dates to consider the 1999 Operating Budget.

Funding Sources, Financial Implications and Impact Statement:

N/A

Recommendation:

It is recommended that the proposed amended 1999 Operating Budget Process and Schedule, as detailed in Appendix A, be approved.

Background:

At its meeting of January 26, 1999, the Strategic Policies and Priorities Committee requested the Chief Administrataive Officer and Chief Financial Officer and Treasurer to meet with the Community Council Chairs to establish dates for presenting the Operating Budget to the Community Councils.

Discussion:

Meeting dates have now been incorporated into the 1999 Operating Budget schedule to provide Community Councils with an overview of the 1999 CAO-Recommended Budget and to hear deputations on the same. Meetings have been scheduled as follows:

The 1999 Operating Budget schedule now provides for public input at Standing Committee meetings the week of March 22 as well as at these newly-scheduled Community Council meetings.

In view of the above, deputations are no longer required at the special Strategic Policies and Priorities meeting of April 20, 1999, as originally contemplated. The special meeting of Budget Committee scheduled for April 22, 1999 to address matters arising from the deputations of April20th can now be eliminated.

Appendix A, the attached calendar of Committee and Council meetings for the 1999 Operating Budget process, has been amended to reflect the above changes.

Contact Name:

Josie LaVita, Manager, Operating Budget: 397-4229)

(City Council also had before it, during consideration of the foregoing Clause, the following report (January 29, 1999) from the Chief Administrative Officer:

Purpose:

At its meeting of January 19, 1999, the Budget Committee requested the CAO to submit a report directly to the February 2, 1999, meeting of Council on alternate dates for the first Strategic Planning plenary session in light of scheduling conflicts on February 25-26, 1999.

Recommendation:

It is recommended that this report be received for information.

Comment:

Tentative plans for the first Strategic Planning plenary session on February 25-26, 1999, are now in conflict with the recommended schedule for Budget Committee meetings. Staff canvassed Members of Council for their availability on Monday, March 1, 1999, as an alternate date for the first plenary session. Canvassing indicates that almost all Council Members are available the afternoon of March 1, 1999.

Few alternate dates exist in Council's crowded legislative calendar. Monday, March 1, 1999, from noon to 5:00 p.m. is being held for the first plenary session for the Strategic Planning Process.)