2000 Operating Budget - Proposed Process and
Schedule and Revised 2000 Capital Budget Schedule
The Policy and Finance Committee recommends the adoption of the following report (October 12, 1999) from the
Chief Financial Officer and Treasurer:
Purpose:
This report outlines a proposed process and timetable for the 2000 Operating Budget deliberations and a revised 2000
Capital Budget schedule.
Financial Implications:
There are no financial implications arising from this report.
Recommendations:
It is recommended that:
(1)the proposed process and schedule as described in this report and as outlined in Appendix A and Appendix B for the
2000 Operating Budget be approved;
(2)the revised schedule as outlined Appendix C for the 2000 Capital Budget be approved; and
(3)the appropriate City officials be authorized to take the necessary action to give effect thereto.
Background:
The 1999 Operating Budget process was designed to facilitate and support the continuing decision-making needs of
Council respecting the allocation of resources for City services. To that end, the 1999 process focused on requirements that
enabled the following:
(i)identification of current City services and service levels, service plans, resource (human and financial) allocations and
service delivery options;
(ii)identification of impacts of previously approved Council decisions, including capital programs, on the operating
budget;
(iii)inclusion of a preliminary outlook for the following fiscal year;
(iv)the Chief Administrative Officer (CAO) and Chief Financial Officer and Treasurer (CFO) to review program/agency
submissions, identify issues and provide recommendations, strategies and alternatives to the Budget Committee;
(v)the Budget Committee, Standing Committees and Community Councils to review the CAO-recommended Budget for
service and funding priorities; and
(vi)Council consideration of a recommended 1999 Operating Budget that achieved a 0 percent tax increase while
accommodating the harmonization and expansion of key services.
This was achieved through a two-stage process: the Preliminary Operating Budget Forecast Review and the detailed 1999
Operating Plan and Budget Review. The identification of forecasted changes provided the CAO with the Corporation's
financial outlook for the upcoming year as well as the ability to develop strategies and options to address the pressures
prior to the finalization of the detailed 1999 Operating Plan and Budget submissions (targets) and during the review
process.
Upon completion of the 1999 budget process, the Budget Services Division surveyed program/agency staff; Clerks staff
and the Senior Management Team for feedback in an effort to improve the operating budget process for 2000. Based on the
survey, the following areas were identified for improvement:
(i)need to reduce paper through each phase of the process;
(ii)need for better systems support to eliminate duplicate systems and increase efficiency;
(iii)need to expand timeframes and adjust schedules to allow sufficient time for response; and
(iv)need to allow policy input and priority setting earlier in the process.
An action plan was developed to address these issues and resultant improvements have been incorporated into the proposed
2000 Operating Budget process.
The 2000 Operating Budget:
The 2000 Operating Budget process builds on the successes of the 1999 process, incorporates refinements to address areas
identified for improvements and includes building blocks to move operating budget preparation, analysis and review
towards a mature state of performance budgeting.
Highlights of key changes for the 2000 Operating Budget process include the following:
(i)services defined at the Activity level with key indicators and trend analysis to assist in evaluating the allocation of
resource requirements; and
(ii)Standing Committee and Community Council input respecting service levels and standards early in the process.
(1)Activity-level Information and Key Indicators:
In 1998, budgetary information was provided, reviewed and approved at the program level only. In 1999, Program areas
defined services provided to the public and financial information was reviewed and approved at the service level. For 2000,
where appropriate, Programs will provide summary budgetary information for activities undertaken within each service
delivered. This additional level of financial information will be utilized for analysis and review only. It is not intended that
budgets will be approved at the activity level. This further delineation of budgetary information will provide the foundation
for moving towards the implementation of activity-based costing and budgeting.
Although in 1999 key efficiency and effectiveness indicators were requested with the budget submission, most
amalgamating programs did not have accurate or sufficient data to provide this information. For 2000, it is expected that at
least some key program efficiency indicators will be provided to assess the need and allocation of resources to program
areas.
Both the provision of activity level budgetary information and key performance indicators will improve over the next year
as financial data becomes more readily available and programs have more experience with business planning. Proficiency
in these areas will lay the groundwork for performance budgeting.
(2)Standing Committees and Community Councils to Provide Input Earlier in the Process
During the 1999 process, Standing Committees and Community Councils were able to provide policy input into the
budgetary process once they received the CAO-recommended Operating Budget and the motions of the Budget Committee
arising out of that Committee's preliminary review. Where a particular report may have been submitted to a particular
committee, such as harmonization issues, policy input may have been earlier.
For 2000, it is proposed that the Standing Committee meetings scheduled for the end of November to December 1,1999
and the Community Council meetings scheduled for December 2 and 3, 1999, include briefings by Commissioners
regarding service delivery issues, levels and standards in their respective program areas to enable policy decision-making
and priority-setting early in the process. It is further envisaged that each Commissioner will submit reports on specific
service issues with options on service levels or standards where there may be pressure to expand current service levels.
Once considered by the appropriate Committees or Councils, the respective motions will be referred to the Budget
Advisory Committee for consideration with the Operating Budget, enabling Committee/Council advice to inform the
process.
It should be noted that Standing Committees will continue to receive the CAO-recommended Operating Budget and the
motions of Budget Advisory Committee when that Committee completes the preliminary review. Similarly, any final
recommendations arising out of the Standing Committee review will be reported back to the Budget Advisory Committee
for its final deliberations.
Proposed Review Process and Schedule:
Appendix A and Appendix B outline the operating budget process and the proposed schedule for the 2000 Operating
Budget cycle, respectively. Final Council approval is targeted for April 10 and 11, 2000.
Budget staff are currently reviewing the Operating Budget Preliminary Forecasts for City programs and agencies. Review
by the CAO and CFO by the end of October will result in the issuance of reduction strategies back to agencies and
programs. The CAO will be reporting on the findings of this stage of the process at a special meeting of the Policy and
Finance Committee and the Budget Advisory Committee on November 15, 1999.
Agencies, Boards and Commissions (ABCs) are required to submit their 2000 Operating Plan and Budgets by November 1,
1999 and submissions by City programs are due on November 15, 1999. For 2000, a staggered submission and
administrative review process has been developed to accommodate a delay in the Capital Budget process due to efforts
required for strike contingency planning in August and September. The revised Capital Budget schedule has been provided
as Appendix C for reaffirmation. The Chief Administrative Officer and Chief Financial Officer and Treasurer, in
conjunction with the Budget Services Division and program staff, will review ABC submissions in mid-December. A
similar review of program submissions will occur in mid-January.
Briefings by Commissioners to respective Standing Committees scheduled for November 29 through to December 1, 1999
and to Community Councils on December 2 and 3, 1999 will occur to enable earlier policy input into the budget process, as
previously discussed.
The detailed political review will begin the end of January 2000, with a preliminary program by program review by the
Budget Advisory Committee, commencing the week of January 24 to the 31 with additional days provided February 8 and
9. It should be noted that the Administration Committee and the Works Committee meetings which were originally
scheduled for these latter two days have been moved to February 10 and 14, 2000, respectively. The chairs of these
committees have been consulted and concur with these changes.
During the preliminary review phase, Budget Services will provide a corporate report to outline the issues and financial
implications of the CAO-recommended Operating Budget. In addition, Budget Services will provide program specific
reports summarizing key recommendations.
After the completion of the preliminary review, the CAO-recommended Operating Budget and Budget Advisory
Committee's motions will be forwarded to Standing Committees for final consideration of policy issues specific to each
Committee. These meetings will occur February 7, 10 and 14, 2000. The results of these deliberations will be considered
during wrap-up sessions of the Budget Advisory Committee where a final 2000 Operating Budget is recommended and
then forwarded to the Policy and Finance Committee for its consideration and then on to a special meeting of City Council
on April 10 and 11, 2000.
Conclusion:
The proposed 2000 Operating Budget process and schedule builds on the successes of the 1999 process, incorporates
refinements to address areas identified for improvements and includes building blocks to move operating budget
preparation, analysis and review towards a mature state of performance budgeting. Key changes for 2000 include (a)
services defined at the activity level with key indicators and trend analysis to assist in evaluating the allocation of resource
requirements and (b) Standing Committee and Community Council input respecting service levels and standards early in
the process.
The Chief Administrative Officer has been consulted on the proposed 2000 Operating Budget process contained in this
report and concurs with the recommendations.
Contacts:
Josie La Vita, Manager, Operating Budget, Tel: 397-4229, Fax: 397-4465,
Glenn Vollebregt, Director, Budget Services, Tel: 392-8095, Fax: 397-4465.
Insert Table/Map No. 1
appendix a - 2000 op bud proc
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Appendix B
City of Toronto - 2000 Operating Budget Schedule
