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TABLE OF CONTENTS

REPORTS OF THE STANDING COMMITTEES

AND OTHER COMMITTEES

As Considered by

The Council of the City of Toronto

on April 26, 27 and 28, 1999


STRATEGIC POLICIES AND PRIORITIES COMMITTEE

REPORT No. 8

1 1999 Operating Budget

2 1999 Levy By-law and the 1999 Levy of a Special Charge for Certain Business Improvement Areas

APPENDIX "A"

City of Toronto


REPORT No. 8

OF THE STRATEGIC POLICIES AND PRIORITIES COMMITTEE

(from its meeting on April 20, 1999,

submitted by Mayor Mel Lastman, Chair)


As Considered by

The Council of the City of Toronto

on April 26, 27 and 28, 1999


1

1999 Operating Budget

(City Council on April 26, 27 and 28, 1999, adopted the recommendations of the Strategic Policies and Priorities Committee embodied in this Clause, subject to the following amendments:

Children's Services (A):

(1) by amending Recommendation No. (9) to read as follows:

"(9) A one time only adjustment of $3.3 million be made as a down payment towards paying the actual cost of operating Child Care Centres and that this amount be found within the existing 1999 Child Care Operating Budget, subject to confirmation of 80 percent cost-sharing by the Province of Ontario; the Commissioner of Community and Neighbourhood Services be requested to submit a report to the Community Services Committee in July, 1999, outlining the provincial position in this regard; and, should the Province of Ontario not agree to this cost-sharing, the City of Toronto release the $3.3 million by September 1, 1999."

Homes for the Aged (E):

(2) by adding thereto the following:

"It is further recommended that the Commissioner of Community and Neighbourhood Services be requested to submit a report to the Community Services Committee, as soon as possible, on the impact of:

(a) the loss of $15 million in provincial funding for long-term care which has occurred since 1996; and

(b) the additional long-term care funding initiatives recently announced by the provincial government."

Solid Waste Management (I):

(3) by adding thereto the following:

"It is further recommended that:

(a) any business may choose to reduce its number of weekly collections, provided it is able to store its waste materials on-site in a manner satisfactory to the Commissioner of Works and Emergency Services and the Medical Officer of Health; and

(b) the Commissioner of Works and Emergency Services be requested to submit a report to the Works Committee:

(i) after consultation with the Lake Shore Boulevard West Business Improvement Area, on the possibility of reinstating twice per week garbage collection for commercial properties located on Lake Shore Boulevard West in the former City of Etobicoke, and reverting the collection service to Tuesdays and Fridays;

(ii) at the end of 1999, on the impact of any fee for service program;

(iii) on a fee-per-bag system of funding commercial garbage collection, by December, 1999; and

(iv) on the feasibility of quickly developing a program for wet waste collection from businesses in the City of Toronto, for compost purposes, at no charge to businesses, such report to address options in this regard, including a pilot project and full implementation, as soon as possible."

Transportation (J):

(4) by deleting from Recommendation No. (47) the words "prior to the 2000 Operating Budget process" and inserting in lieu thereof the words "by October, 1999", so that such recommendation shall now read as follows:

"(47) Transportation Division provide a report on the use of the Snowlink Program as a mechanism for providing senior and disabled snow clearance service, by October, 1999;"; and

(5) by adding thereto the following:

"It is further recommended that:

(i) the parking enforcement protocol be amended to provide that the grace period for change-over days be changed to '8:00 p.m. to 12:00 noon' from '9:00 p.m. to 9:00 a.m.'; and

(ii) the Commissioner of Works and Emergency Services be requested to submit a report to the Planning and Transportation Committee on:

(a) an accelerated program to provide all areas of the City of Toronto with an equivalent service level for sidewalk snow clearing, i.e., six times per year; and

(b) an appropriate fee scale to be charged for road closures due to special events, depending on the size."

Economic Development (O):

(6) by adding thereto the following:

"It is further recommended that the following motions be referred to the Commissioner of Economic Development, Culture and Tourism for a report thereon to Council, through the Economic Development and Parks Committee, such report to also include a method of sustaining the grant to the Canadian Film Institute:

Moved by Councillor Ashton:

'It is further recommended that the Commissioner of Economic Development, Culture and Tourism be requested to submit a report to the Economic Development and Parks Committee on:

(i) a consolidated film permit administration model, identifying revenues necessary to achieve a streamlined, cost-effective system; and

(ii) the following recommendations:

(a) that Council approve, in principle, the implementation of an amalgamated Film and Television Office;

(b) that all fees associated with this industry which are currently assessed by any City Department, Agency, Board or Commission be collected by the Toronto Film and Television Office (TFTO) as part of its customer service initiative to address the industry's need for streamlined services, and be distributed by the TFTO to the appropriate groups, and that staff from the Economic Development Division work with affected groups, including the Board of Directors of the Canadian Film Centre and the Film Liaison Industry Committee, on a comprehensive plan to give effect to this proposal; and

(c) that the Commissioner of Economic Development, Culture and Tourism be requested to develop a comprehensive policy related to fees charged and revenues generated by all City Departments, Agencies, Boards and Commissions, with respect to filming, in an effort to have a consistent and fair approach to supporting this important economic sector, and that no fees be levied over and above those stipulated as part of the charge.'; and

Moved by Councillor Flint:

'That the Clause be amended by striking out Recommendation No. (61) of the Strategic Policies and Priorities Committee and inserting in lieu thereof the following:

"(61) where street parking is required, a fee of $50.00 for each day of filming, to a maximum of $200.00, be charged, until such time as any changes proposed by representatives of the film industry and the Board of Directors of the Canadian Film Centre are approved by Council."' "

Parks and Recreation (P):

(7) by adding thereto the following:

"It is further recommended that the Commissioner of Economic Development, Culture and Tourism be requested to submit a report to the Economic Development and Parks Committee on:

(a) the possibility of implementing a membership card system which would allow different fees to be charged based on family income, without visible discrimination;

(b) a method of requiring proof of residency prior to admittance into City of Toronto Parks and Recreation programs, where there is a potential cross-border problem;

(c) the feasibility of partnering with the Toronto Raptors Foundation to introduce the Raptor Ball Recreation Program for children throughout the City of Toronto; and

(d) the number of times the grass is cut on arterial road allowances as included in the operating budget, as well as the cost and cutting cycle, and whether an increased number of cuts can be accommodated within the existing budget envelope."

Special Events (Q):

(8) by adding thereto the following:

"It is further recommended that the Commissioner of Economic Development, Culture and Tourism be requested to submit a report to the Economic Development Committee for its meeting to be held in May, 1999, on the possibility of including the 'Taste of the Danforth Festival' as a City of Toronto signature event, and the City's endorsement thereof."

Licensing (R):

(9) by deleting Recommendation No. (77), viz:

"(77) that the cost of legal services amounting to $0.211 million (part of the $0.458 million reinstated to the License Administration Service budget) pertaining to the Tribunal, as a result of separating its function from administrative functions of Licensing, be recovered from the Legal Division's budget."

Urban Planning and Development Services (S):

(10) by adding thereto the following:

"It is further recommended that the Commissioner of Urban Planning and Development Services be requested to report to the Planning and Transportation Committee, the Policy and Finance Committee, and the Community Councils, for subsequent submission to Council in June, 1999, addressing concerns regarding the adequacy of the number of City planning staff, particularly in the following areas:

(a) community planning;

(b) building permit processing;

(c) municipal standards inspection; and

(d) the construction building code review."

Clerks (U):

(11) by adding to Recommendation No. (88) the words "the Corporate Communications Division of the Corporate Services Department", so that such recommendation now reads as follows:

"(88) $15,300.00 be maintained and the funding be provided from the appropriate program budgets of Special Events, Clerks Division, Facilities and Real Estate Division and the Corporate Communications Division of the Corporate Services Department;".

Finance (DD):

(12) by adding the following to Recommendation No. (126):

"(e) that the Chief Financial Officer and Treasurer be requested to consult with the Commissioner of Community and Neighbourhood Services and the Sub-Committee to Restore Rent Control, in order to improve and clarify the focus of the messages embodied in the notices to tenants."

Council (EE):

(13) by amending Recommendation No. (131) by:

(i) deleting from Part (5)(a) the word "Mayor" and inserting in lieu thereof the word "City", so that such recommendation shall now read as follows:

"(a) vehicles used by Councillors representing the City, there be no charge to the Councillors' budget;";

(ii) deleting Part (5)(c), viz:

"(c) vehicles used for other purposes, to be charged to the Councillors' budget at $10.00 per trip;",

and by amending Recommendation No. (132) accordingly;

(14) by adding thereto the following:

"It is further recommended that any over-expenditure by a Member of Council in the 1999 Operating Budget, be deducted from the Member's budget for the year 2000."

Toronto and Region Conservation Authority (HH):

(15) by adding thereto the following:

"It is further recommended that the City Solicitor be requested to submit a report to the Administration Committee on the legal implications of Recommendation No. (140), viz:

'(140) the by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from Agencies, Boards and Commissions and the Toronto and Region Conservation Authority, and that it be done in a way so that it does not impact the Councillor's pension;' ".

Library (KK):

(16) by adding thereto the following:

"It is further recommended that the City Librarian, Toronto Public Library, be requested to submit a report to the Policy and Finance Committee, in the fall of 1999, on the level of funding required for multi-lingual materials, such report to include the amount of funds expended to that date in this regard."

Public Transit Program (MM):

(17) by adding thereto the following:

"It is further recommended that:

(a) the Toronto Transit Commission (TTC) be requested to approve a 10 cent fare increase as recommended by the Chief General Manager, TTC;

(b) the City of Toronto strive to ensure that the TTC operating budget cost of 80 percent supported by its ridership will not be exceeded, as recommended by the Chief General Manager, TTC; and the TTC, together with representatives of the Budget Advisory Committee, be requested to prepare a three-year funding plan for the TTC, and report thereon to Council, through the Policy and Finance Committee, by September, 1999;

(c) the City of Toronto establish a reserve fund for the TTC in order to stabilize funding over time, such fund to be operated on the basis that any TTC operating surplus shall be paid in, and any TTC operating deficit shall, to the limit of the fund's balance, be funded therefrom;

(d) the TTC be requested to monitor ridership levels and submit a report to Council in October, 1999, through the Planning and Transportation Committee, on the measurable impact of the fare increase;

(e) the TTC and the Chief Administrative Officer be requested to report to Council, through the Planning and Transportation Committee, no later than June, 1999, on how the TTC would divide (between operational requirements and transit expansion) any proceeds from gasoline taxes presently collected by the federal and provincial governments, if and when such taxes become available for public transit;

(f) the Chief Administrative Officer and the Chief Financial Officer and Treasurer be requested to submit a joint report to the Planning and Transportation Committee on a recommended comprehensive parking levy, as part of a long-term strategy to sustain public transit in the City of Toronto, including the feasibility of dedicating a portion of revenue generated from permit parking, front yard parking, parking meters, and municipal parking lots, such report to also assess the anticipated economic impact of such a parking levy on businesses in the City of Toronto, as well as any correlation which might be expected based on past experience with the Commercial Concentration Tax;

(g) the Chief Financial Officer and Treasurer, in consultation with the President of the Toronto Parking Authority, be requested to submit a report to Council, through the Policy and Finance Committee, by September, 1999, on the feasibility of implementing a $1.00 levy that could be charged on private and public parking in the City of Toronto, to offset future TTC fare increases;

(h) the Commissioner of Works and Emergency Services be requested to review the revenue generated by automobiles (e.g., parking fees, parking tags, etc.) and report thereon to the Planning and Transportation Committee, and further, that the Committee be directed to recommend to City Council what portion of the revenue should be allocated to the TTC; and

(i) the following motion be referred to the Toronto Community Council for consideration:

Moved by Councillor Bossons:

'It is further recommended that immediately, and until further notice, the Public Art contributions payable upon approval of developments located in the Toronto Community Council area, and in any other community in the City of Toronto, be applied to public transit operating and capital deficits.' "

Toronto Police Service (NN):

(18) by adding thereto the following:

"It is further recommended that:

(a) a Task Force be established to review Target Policing in the Toronto area, such Task Force to report to the Policy and Finance Committee by June 30, 1999;

(b) Councillors Ashton, Balkissoon, Gardner and Rae, together with a representative of the Mayor's Office, be appointed to such Task Force;

(c) the Task Force to Review Target Policing be requested to:

(i) review the deployment strategy for officers assigned to police Special Events and/or demonstrations in the central area of the City of Toronto; and

(ii) meet with the Chief of Police to discuss:

(1) the deployment of police officers where needed in the downtown area, specifically with respect to problem areas such as the United States Consulate, the SkyDome and the Air Canada Centre; and

(2) the issues of community safety and tourism;

(d) the Chief Administrative Officer be requested to submit a report to the Policy and Finance Committee on the feasibility, and the implications to the City of Toronto, of directing revenues from police-enforced municipal by-law offences to cover policing costs;

(e) the Chief of Police be requested to submit a report to Council, through the Policy and Finance Committee, on:

(i) mechanisms employed to increase the number of successful visible minority recruits to the Toronto Police Service, in an attempt to make the Police Service more reflective of the greater community;

(ii) the results experienced at the end of the recruitment process;

(iii) the full cost of training a new officer, the minimum number of years of service expected in order for the City to recoup such training costs and any initiatives underway to retain new officers within the Toronto Police Service; and

(iv) associated costs for police officers to enforce municipal by-laws;

(f) the Chair of the Police Services Board be requested to submit a report to Council, through the Policy and Finance Committee, on the feasibility of initiating a program whereby all newly trained officers who leave the Toronto Police Service within five years of graduating are required to repay the cost of their training on a declining scale; and

(g) the following motions be referred to the Task Force to Review Target Policing for consideration:

Moved by Councillor Nunziata:

'It is further recommended that the Chief of Police be requested to submit a report to Council, through the Policy and Finance Committee, on how and where the funds for Target Policing will be used.'

Moved by Councillor Rae:

'That $2.0 million be added to the 1999 Operating Budget of the Toronto Police Service for call-back purposes.' "

Consolidated Grants Program (QQ):

(19) by striking out and referring that portion of the Consolidated Grants Program [Recommendation No. (209)] pertaining to the Tourism Toronto budget for 2000, to the Commissioner of Economic Development, Culture and Tourism for report thereon to the Economic Development and Parks Committee prior to the 2000 budget process;

(20) by adding thereto the following:

"It is further recommended that:

(a) the Board of Directors of the Toronto Arts Council be authorized to use the amount for which it qualifies from the unallocated portion of the Consolidated Grants Budget (up to $64,000.00) towards addressing increased administration costs resulting from the expanded mandate and responsibilities of the Toronto Arts Council, until such time as the Commissioner of Economic Development, Culture and Tourism has reported on the administration issues pertaining to the Culture Office and the Toronto Arts Council; and

(b) the following motion be referred to the Commissioner of Community and Neighbourhood Services for report thereon to the Municipal Grants Review Committee coincident with the 2000 budget process:

Moved by Councillor Mihevc:

'It is further recommended that the Commissioner of Community and Neighbourhood Services be requested to submit a report to the Municipal Grants Review Committee on a process for a three- to five-year harmonization of community grants, with such harmonization to begin in 2000.' "

Capital and Corporate Financing, Non-Program Expenditures, and Non-Program Revenues (RR):

(21) by deleting an amount of $40,000.00 from Recommendation No. (218)(i)(c) to reflect the decision of Council respecting Recommendation No. (132), so that Recommendation No. (218)(i)(c) shall now read as follows:

"(c) $ 1.723 million as a reserve for adjustments to the Provincial subsidy;";

(22) by amending the Clause in accordance with the following recommendations of the Strategic Policies and Priorities Committee, embodied in the communication dated April 26, 1999, from the City Clerk:

"The Strategic Policies and Priorities Committee recommends:

(i) the adoption of the report (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled 'Non-Program Expenditures - Tax Deficiencies', wherein it is recommended that:

(1) the tax deficiencies budget be increased by $46.46 million in anticipation of additional 1999 tax deficiencies resulting from vacancy changes, capping/tax relief for new construction, the aggressive processing of assessment appeals, the tax imbalance (billing loss) of the residential phase-in program and maintenance of the frozen assessment listing in 1999, and that this expenditure increase be funded from potential new tax revenue arising from the 1999 assessment roll;

(2) the Chief Financial Officer and Treasurer report in October 1999, on the actual tax losses resulting from the issues noted in Recommendation No. (1), above;

(3) the Province of Ontario be requested to work proactively with City of Toronto officials to review its policies and practices on vacancy changes and new construction; and

(4) the Ontario Property Assessment Corporation (OPAC) focus resources to address the issues raised in this report, and potential errors identified on the assessment roll, in order that the City of Toronto and other Ontario municipalities be provided with sustainable, non-volatile, realizable tax revenue;

and that Recommendation No. (211) be amended accordingly; and

(ii) the adoption of the report (March 30, 1999) from the Chief Administrative Officer, addressed to the Budget Committee, entitled 'Toronto Atmospheric Fund, 1999 Operating Budget', wherein it is recommended that:

(1) the 1999 Operating Budget for the Toronto Atmospheric Fund totalling $625.6 thousand (gross) and $0 (net) be approved;

(2) the 1999 Operating Budget for the Toronto Atmospheric Fund be forwarded to the Works and Utilities Committee for information; and

(3) the Chief Financial Officer and Treasurer be requested to submit a report back, in consultation with the Toronto Atmospheric Fund, with a resolution on the Street Lighting and Lane Conversion Program loan prior to the consideration of the 2000 Operating Budget."

(23) by adopting Recommendations Nos. (213) and (214), subject to a further report being submitted by the Chief Financial Officer and Treasurer to Council for its next regular meeting to be held on May 11, 1999, through the Strategic Policies and Priorities Committee, on the following motions:

Moved by Councillor Adams:

'That the Clause be amended by striking out Parts (ii), (iii), (iv) and (v) embodied in Recommendation No. (214) of the Strategic Policies and Priorities Committee and inserting in lieu thereof the following new Parts (ii) and (iii), and renumbering the remaining Parts accordingly:

"(ii) that the rate of interest to be paid by the City of Toronto on assessment appeal refunds relating to the 1998 tax year and onward, from one month from the date the Notice of Decision from the Assessment Review Board is received by the City, to the date of refund, be set at the average rate paid by the six major Canadian chartered banks on one-year GICs as determined by the Chief Financial Officer and Treasurer, from time to time;

(iii) that the Province of Ontario be requested to pay interest on assessment appeal refunds for 1998 and onward, from the date of overpayment to the date of the Notice of Decision from the Assessment Review Board, and that the rate of interest to be paid at the same rate of interest set by the City;" '

Moved by Councillor Moscoe:

'That the Clause be amended by deleting from Part (v) of Recommendation No. (213) of the Strategic Policies and Priorities Committee the words "capital program and thereafter revert to being transferred to the", so that such recommendation shall now read as follows:

"(v) effective January 1, 1999 to December 31, 2000, the estimated tax supported operating budget savings of $46.2 million due to the continued suspension of the OMERS premium in 1999 and 2000 be applied to the Employee Benefit Reserve;" '

Moved by Councillor Sgro:

'It is further recommended that, prior to final approval of any in-year changes to approved or new initiatives, the recommendation be referred to the Chief Administrative Officer for report thereon to the first subsequent meeting of the Policy and Finance Committee, and Council, on the full cost and source of funds for such initiative.' 

Parking Tags (RR-1):

(24) by adding to the end of Recommendation No. (220), the words "and that such report also be submitted to the Administration Committee", so that such recommendation shall now read as follows:

"(220) the Parking Enforcement Unit expenditures be approved as submitted on the basis that the program maintain full staffing levels (i.e., no gapping), which would result in an increase in the gross revenue for parking tags of $1 million annually, pro-rated to a $500,000.00 increase in 1999 budgeted revenues, and the Budget Analyst be directed to work with the Parking Enforcement staff to ensure that this revenue target is met at year end and provide an updated report to the Budget Committee in September, 1999 in that regard, and that such report also be submitted to the Administration Committee."

Water and Waste Water (UU):

(25) by adding thereto the following:

"It is further recommended that:

(a) the Commissioner of Works and Emergency Services and the Chief Financial Officer and Treasurer be requested to submit a joint report to the Works Committee, for subsequent submission to Council by the end of July, 1999, on all funding options for the meter conversion program, such report to also reconsider the issue of freezing water rates in the former City of Toronto; and

(b) the following motion be referred to the Works Committee for further consideration and report thereon to Council:

Moved by Councillor Prue:

'That:

(1) Recommendation No. (233) of the Strategic Policies and Priorities Committee, be amended by:

(i) deleting the words "four-year deferral" from the first paragraph and inserting in lieu thereof the words "two-year deferral", so that such paragraph shall now read as follows:

"(233) the recommendations to provide for a harmonized water rate structure embodied in the report (March 22, 1999) from the Chief Financial Officer and Treasurer, entitled "Harmonization of Water and Water Pollution Control Rates", be adopted, subject to striking out Recommendations Nos. (1) and (4), and inserting in lieu thereof the following paragraphs in order to provide funding for the Universal Metering Project through a two-year deferral of the decreases to which former City of Toronto water users would realize under any harmonization initiative, while phasing-in increases and decreases for all other users over a four-year period, as described in Section (3) in the report (April 12, 1999) from the Chief Financial Officer and Treasurer, entitled 'Water Rate Harmonization - Addendum (2)':";

(ii) inserting after the words "Toronto shall be" in Part (1)(ii), the words "increased by 20 percent per year for a two year period effective July 1, 1999" (Schedules "B", "C" and "D" to be amended accordingly), so that such recommendation shall now read as follows:

"(ii) effective September 1, 1999, the combined water and sewer rate in the former City of Toronto for metered customers for accounts paid on or before the due date shall be $1.03083 per cubic metre, and the rate charged to flat-rate customers in the former City of Toronto shall be increased by 20 percent per year for a two-year period effective July 1, 1999 as set out in Schedules "B", "C" and "D" of City of Toronto By-law No. 356-1998;"; and

(iii) deleting Recommendation No. (233)(1)(iv) and inserting in lieu thereof the following:

"(iv) effective September 1, 2001, the rate charged to metered customers in the former City of Toronto shall be the appropriate phased-in competitive rate structure for the former City of Toronto;"; and

(2) the Clause be amended by adding thereto the following:

"It is further recommended that the Commissioner of Works and Emergency Services be requested to submit a report to the Works Committee, prior to the 2000 budget process, on the number of meter conversions that have been requested in 1999 and the ability of staff to respond to such requests." ' ")

The Strategic Policies and Priorities Committee recommends:

(I) The adoption of the Recommendations of the Budget Committee embodied in the communication (April 17, 1999) from the City Clerk, as amended by the Strategic Policies and Priorities Committee at its meeting on Tuesday, April 20, 1999, viz:

(1) The 1999 Operating Budget of $5.539 billion (gross) and $2.530 billion (net), after reflecting the full use of the new provincial subsidy, be adopted;

COMMUNITY AND NEIGHBOURHOOD SERVICES:

A. CHILDREN'S SERVICES:

(2) Pending further clarification from the Province, the Recommended Operating Budget of $234.833 million gross and $41.492 million net, comprised of the following services, be approved:

Service Gross Budget ($, mil) Net Budget

($, mil)

Divisional Office 2.246 1.123
Municipally Funded Programs 6.039 6.039
Service Access Management 6.201 2.971
Contract and Quality Compliance 4.574 1.608
Directly Operated Child Care 42.034 5.291
Purchased Services 173.739 24.460
Total Program Budget 234.833 41.492

(3) the Commissioner of Community and Neighbourhood Services report on possible funding partnerships and an implementation plan for feasibility studies to develop pilot projects to integrate all key children's services (such as child care and kindergarten) into a seamless program for children, ages 0 to 5 years old; and that funding for such projects be found from the $3.0 million set aside in the Social Services Reserve for children's needs;

(4) the Commissioner of Community and Neighbourhood Services report to Community and Neighbourhood Services Committee and Budget Committee, if and when the Province announces details of the Learning, Earning and Parenting (LEAP) initiative and the criteria for qualification;

(5) The Commissioner of Community and Neighbourhood Services report to Budget Committee on all summer camps provided throughout the City, with emphasis upon harmonizing the services that exist and addressing the possibility of reallocating the summer camps to a program where they could be cost-shared;

(6) The Chief Financial Officer and Treasurer report to Budget Committee on the status of the Social Assistance Reserve Funds, including the adequacy based on historical needs, the plan to fund the reserve which would maintain it at the recommended level and the GTA pooling implications;

(7) Children's Services advise the Community and Neighbourhood Services Committee if additional funding is required for the renewal of rental agreements at the Scarborough and Finch West field offices;

(8) Children's Services continue negotiations with the Province to direct the additional Ontario Works funding to maintain the current level of Ontario Works child care and to maximize the number of additional spaces which can be funded;

(9) A one time only, non-salary adjustment of $3.3 million be made as a down payment towards paying the actual cost of operating Child Care Centres and that this amount be found within the existing 1999 Child Care Operating Budget.

B. TORONTO HOUSING COMPANY:

(10) The 1999 Operating Budget request totalling $251.0732 million (gross) and $0.0 thousand (net), comprised of the following services be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Corporate Functions 3.467 0.0

Operations 245.751 0.0

Housing Connections 1.855 0.0

Total Program Budget 251.073 0.0

C. SHELTERS, HOUSING AND SUPPORT:

(11) That the 1999 Operating Budget request totalling $401.895 million (gross) and $273.538 million (net), comprised of the following services be approved, pending further clarification by the recent Provincial announcements:

Service Gross Budget Net Budget

($, mil) ($, mil)

Finance & Administration 0.644 0.644

Provincial Housing Download 328.962 249.288

Hostel Services 68.627 19.114

Social Housing and Support 2.397 1.258

Housing Supply, Rehab & Development 1.265 1.234

Total Program Budget 401.895 271.538

(12) That the Province be requested to pay the full 80 percent subsidy for expenditures for direct Hostel Services and eliminate the imposed ceiling cap.

(13) That the Chief Financial Officer and Treasurer be requested to develop a strategy to protect the City if interest rates go up, including the implications for GTA pooling.

(14) The report (April 14, 1999) from Councillor Jack Layton, respecting the Big City Mayors' National Homelessness and Housing Initiative, be adopted, viz:

(i) That the budget provide funds in the amount of $60,000.00 to support the Big City Mayors' Caucus on Homelessness and Housing Initiative. The project will be administered by the FCM administration; and

(ii) that $20,000.00 of the funds be released to the FCM immediately and that the balance of $40,000.00 be released subject to the participation of at least three additional cities in funding the initiative at a similar per capita level ($0.3/capita).

(15) That the $60,000.00 for the Big City Mayors' Caucus on Homelessness and Housing Initiative be provided from within the 1999 Shelter, Housing and Support Operating Budget.

(16) Any savings from the Mortgage Renewal Portfolio (beyond the existing budget) be transferred to a Mayor's Homeless Initiative Reserve Fund, for 1999 only, the use of this fund be reported on and be subject to City Council approval.

(17) The report (September 10, 1998) from the City Clerk, forwarding report (August 20, 1998) from the Commissioner of Community and Neighbourhood Services respecting the Hostel Ombudsperson Pilot Project, be received.

D. SOCIAL SERVICES:

(18) The 1999 Operating Budget request totalling $1,067.442 million (gross) and $267.217 million (net), comprised of the following services be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Operations Support 8.557 4.278

Social Assistance 1,058.885 262.939

Total Program Budget 1,067.442 267.217

(19) The City funding of Workers' Information and Action Centre of Toronto (WIACT) continue until September, 1999, and the Commissioner of Community and Neighbourhood Services make all efforts with the Federation of Labour and WIACT to attempt to obtain Provincial/Federal funding and that a report be submitted to City Council in September; and

(20) The Commissioner of Community and Neighbourhood Services be requested to review this unit (WIACT) as to where it should be located.

E. HOMES FOR THE AGED:

(21) The 1999 Recommended Operating Budget of $125.579 million gross and $22.915 million net, comprised of the following services, be approved:

Service Gross Budget

($ mil)

Net Budget

($ mil)

Administration and Program Support 1.139 0.212
Toronto Homes 116.068 21.550
Community Based Services 8.372 1.153

Total Program Budget

125.579 22.915

(22) The Commissioner of Community and Neighbourhood Services be requested to report to the Community and Neighbourhood Services Committee and the Budget Committee in June or July 1999, on the loss of $15 million in Provincial funding for long-term care since 1996, identifying options as to how the money would be spent if returned by the Provincial government; and for the report to include options of expanding the number of available beds, improving the personal care level, as well as other service restorations. Further, pending the report, City Council request the Province to restore up to $15.0 million of subsidies previously funded in 1996 to the City of Toronto, now that funding is available from the Federal government;

(23) Homes for the Aged report on how the year 2000 termination of red-circle funding ($1.6 million in 1999) will impact the 2000 budget request;

(24) The Commissioner of Community and Neighbourhood Services be requested to report to Budget Committee providing an update on the "replacement co-payment" program;

(25) City Council request the Province to replace the funding the City received previously from client co-payments ($350.0 thousand) for Supportive Housing so that 35 clients can continue to be served by the Program;

(26) Homes for the Aged report to Community and Neighbourhood Services Committee regarding the most efficient and economical service delivery model for laundry services, pending the review of RFP results; and

(27) Homes for the Aged report back for the 2000 budget, what the capital and operating impacts will be for the redevelopment of True Davidson Acres and Albion Lodge.

F. SOCIAL DEVELOPMENT AND ADMINISTRATION:

(28) The 1999 Recommended Operating Budget of $8.632 million gross and $4.083 million net, comprised of the following services, be approved:

Service

Gross Budget ($, mil) Net Budget

($, mil)

Administration and Program Support 7.551 3.469
Community Resources 1.081 0.614

Total Program Budget

8.632 4.083

WORKS AND EMERGENCY SERVICES:

G. TORONTO AMBULANCE:

(29) The 1999 Recommended Operating Budget of $75.828 million gross and $32.844 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Ambulance Services 62.402 30.388

Toronto Central Ambulance

Communication Centre 7.296 0

Administration & Program Support 6.130 2.456

Total Program Budget 75.828 32.844

(30) The Commissioner of Works & Emergency Services report back to Budget Committee providing an update on the cross border-billing issue when further information becomes available.

H. FIRE SERVICES:

(31) The 1999 Recommended Program Budget for Fire Services of $219.062 million (gross) and $217.439 million (net), comprised on the following Services on a gross and net basis, be approved;

Service

Gross Budget($, mil) Net Budget

($, mil)

Operations 187.993 187.992
Fire Prevention and Enforcement 8.929 8.629
Administration and Program Support 22.140 20.818

Total Program Budget

219.062 217.439

(32) Fire Services and Human Resources report back to the Budget Committee by September 1, 1999 on the policy changes required to reduce absenteeism in the Fire Services staff force and the Corporation as a whole. This policy should consider mandatory physical fitness activities in order to enhance the fitness levels of individuals, with a view to reducing injury and illness. In addition, an appropriate monitoring program should be developed, including clear courses of action for lengthy and/or frequent absenteeism;

(33) Fire Services pursue avenues to reduce false alarms and report back to the Works and Emergency Services Committee and Budget Committee by July 30, 1999. Extensive research should include solutions implemented by other municipalities, in particular the Cities of Mississauga and Ottawa;

(34) Fire Services report back to the Works and Emergency Services Committee and Budget Committee with long term detailed plans regarding Central Dispatch Systems and fleet preventative maintenance plans and costs;

(35) Fire Services continue to research and report back to Budget Committee by September 30, 1999 on the possibility of increasing revenues, through recoveries for false alarms, recovery of inspection services, etc.;

(36) Fire Services in conjunction with the Chief Financial Officer and Treasurer report back to Budget Committee by September 30, 1999 with a detailed financial plan with respect to the potential implementation of recommendations made in the Fire Location Study; and

(37) A corporate review committee be struck to review and assess the equipment needs of the various Departments prior to the 2000 Operating Budget Cycle.

I. SOLID WASTE MANAGEMENT:

(38) The 1999 Recommended Operating Budget for the Solid Waste Management Program of $125.964 million (gross) and $68.016 million (net), comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Administration and Program Support 17.755 14.271

Collection 59.451 49.084

Transfer 15.781 4.365

Processing 5.100 2.666

Disposal 27.879 (2.370)

Total Program Budget 125.964 68.016

(39) The following policies and financial implications for solid waste and recycling activities, following consideration of the Commissioner of Works and Emergency Services' report, dated March 12, 1999, entitled "Revised 1999 Solid Waste Management Service Harmonization Recommendations" (report included in Volume 3) be approved:

(a) Garbage and Recycling Collection for Low Density Residential Properties

(i) effective September 1, 1999, all low density residential properties be provided with once a week garbage collection and every second week (or alternating weekly) recycling collection, at an annual saving of $1.6 million; savings of $533 thousand have been included in the 1999 Recommended Budget

(ii) A program be phased in over three years in the summer months across the City for non-recyclable materials only at a cost of $800 thousand in 2000, an additional $1 million in 2001, and $1 million in 2002;

(iii) staff report back to the Works and Utilities Committee by October 1999 with the proposed eligibility criteria for residential areas that would receive summer twice a week garbage collection in 2000, and the associated cost impacts;

(iv) twice a week garbage pick up continue in North York in the summer months in the summer of 1999;

(v) The Commissioner of Works and Emergency Services be requested to report to the Works Committee in the fall of 1999 on:

(a) how the pick up of nonrecyclable materials, phased in over three years, can be accomplished and the cost associated therewith, including a mechanism to survey residents to determine whether or not they perceive a real need for twice a week pick up in the summer; and

(b) the projected savings from efficiencies and other changes in the delivery of residential waste collection service area.

(b) Yard Waste Collection Services

Once a week yard waste collection service be provided to all low density residential properties from mid-April to May 31 and from October 1 to November 30, with once every second week collection from June 1 to September 30, at an annual saving of $200 thousand;

(c) Rear and Side Yard Collection

Effective July 1, 1999, rear and side yard collection service be provided at no direct charge only to residents in low density properties who, on the basis of a doctor's certificate, lack sufficient mobility to carry waste to the curbside and who do not live in a residence with a fully able person at an annual cost of $50,000 (1999 cost of $25,000 to be absorbed within the recommended budget), and optional rear and side yard collection service for a fee be terminated;

(d) Provision of Curbside Recycling Boxes

(i) the City charge $5.00 to replace lost recycling boxes or provide additional recycling boxes, and exchange damaged boxes for new boxes at no charge, and the City provide new residents with recycling boxes at no charge (with proof of new residency) at an annual revenue of $60,000 ($30,000 included in the 1999 Recommended Budget);

(ii) a limit of one free blue or grey box per single family residence be provided at City sponsored Environment Day events at an annual cost of $60,000 included in the 1999 Recommended Budget;

(e) Garbage and Recycling Collection for Small Commercial Properties

Council adopt a three year phase in plan to deal with small commercial garbage and recyclable collection as follows:

(i) existing service levels and eligibility criteria for garbage and recyclable collection service to the small commercial sector currently receiving this service be maintained until the end of 2000;

(ii) the City charge mandatory service fees in 1999, to all small commercial locations currently receiving more than twice a week garbage collection at a rate of $150.00 for three times a week garbage collection, $600.00 for five times a week garbage collection and $800.00 for six times a week garbage collection with revenues of $2.3 million included in the 1999 Recommended Budget;

(iii) effective January 1, 2000, the City charge a mandatory annual rate of $225.00 for those locations receiving three times a week collection; $900.00 for five times a week garbage collection; and $1,200.00 for six times a week garbage collection with annual revenues of $3.50 million (additional $1.2 million in 2000);

(iv) effective January 1, 2001, the City charge a mandatory annual rate of $300.00 for those locations receiving three times a week garbage collection; $1,200.00 for five times a week garbage collection and $1,600.00 for six times a week garbage collection with annual revenues of $4.7 million (additional $1.2 million in revenue in 2001);

(v) the Commissioner of Works and Emergency Services be requested to report to the Works Committee by June 2000:

(a) providing a harmonized eligibility criteria for garbage and recyclables collection service to the small commercial sector and a harmonized service fee structure to be effective January 1, 2001; and

(b) providing equivalent garbage service levels to small businesses (restaurants and greengrocers) with similar characteristics to business communities receiving multiple weekly garbage collection.

(vi) The Commissioner of Works and Emergency Services to include in the requested ICI report:

(a) the cost for commercial pick up being expanded City wide at locations where flower pots are shared between commercial units at street level and the residents above such units;

(b) the feasibility of introducing this program as soon as possible; and

(c) the expansion being absorbed within the department's 1999 operating budget.

(vii) The Commissioner of Works and Emergency Services be requested to consider not charging or withdrawing services from residential properties where residential waste is found mixed with commercial waste.

(40) The Commissioner of Works and Emergency Services report back to the Works and Utilities Committee on the provision of blue box service across the City for all single family residential homes and town homes; the replacement of 'flower pot' bins in the North York Community Council Area; and the implementation of 'bagged' system for leaf pick-up throughout the City, and the savings that could be realized if such a program were approved.

J. TRANSPORTATION:

(41) The 1999 Recommended Budget for Transportation of $184.585 million (gross) and $153.003 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Roadway Services 118.482 93.169

Pedestrian 20.444 15.055

Traffic systems 28.827 27.947

Infrastructure Planning 2.891 2.891

Administration & Program Support 13.941 13.941

Total Program Budget 184.585 153.003

(42) The following policies and financial implications for winter maintenance activities, following consideration of the General Manager, Transportation Services' report, dated March 11, 1999, entitled Winter Maintenance Activities Harmonization of Services Levels, and the report by the Chief Financial Officer and Treasurer, dated March 24, 1999, entitled Funding for 1999 Snow Clearing and Harmonization of Winter Maintenance Services (both reports included in Volume 3) be approved:

WINTER MAINTENANCE

(a) Driveway Windrow Snow Clearing

(i) clear all windrows in areas of the City where this activity can be achieved by mechanized means, i.e., the new areas to be covered in winter 1999/2000 would include all of the former Etobicoke; and parts of former Toronto, York and East York, where technically possible, at an annual cost of $1.6 million; funds in the amount of $400 thousand have been provided in the 1999 Recommended Budget;

(ii) the Commissioner of Works and Emergency Services be requested to review and report (to the Urban Environment and Development Committee) on new methods to clear windrows in areas where current mechanical methods cannot be utilized;

(b) Sidewalk Snow Clearing

(i) that a four year phase in of all sidewalk clearing across the City, at an estimated cost of $7.7 million at the end of the phase in, begin as follows: that the areas of the City currently provided with sidewalk snow clearing be maintained in 1999 at a level of 8 clearings per winter season (North York from 14 to 8; East York from 6 to 8, Scarborough and York unchanged), and that additional funding in the amount of $250 thousand, be recommended in order to provide the year one of four increase;

(ii) the Commissioner of Works and Emergency Services, in consultation with the Chief Financial Officer and Treasurer, report back to the Budget Committee by September 30, 1999 with a proposal and financial plan to achieve this within four years, beginning in winter 1999/2000; specifically providing the cost for the year 2000, so that pre-budget approval can be given, if necessary; addressing the possible redeployment of City staff that are currently part of snow clearing programs, or may be available to assist in snow clearing programs, to increase efficiencies and reduce costs; and giving priority to arterial roads with transit, as the program is phased in;

(c) Snow Ploughing/De-icing

the central areas of the City receive improved snow ploughing/de-icing services, at an annual cost of $1 million; funds in the amount of $250 thousand have been provided in the 1999 Recommended Budget;

(d) Snow Removal

(i) funds for snow removal have been provided in the 1999 Recommended Budget to contract to supply 700 dump trucks ($140 thousand) and provide a registry for equipment ($20 thousand);

(ii) funds in the amount of $1.5 million be provided to purchase 10 additional snow blowers from the equipment reserve account; and

(iii) the Chief Financial Officer and Treasurer, in conjunction with the General Manager, Transportation Services, report to Budget Committee by July 31, 1999 on funding the over-expenditure caused by the January snowstorm; further the Chief Financial Officer and Treasurer should also report on the appropriate amount which should be included in a reserve to cover the snow removal operating costs which would be incurred in the eventuality of a 50 cm snow accumulation.

(43) that the Commissioner of Works and Emergency Services include as part of the tender process for sidewalk snow clearing, standby and operational costs for six snow clearings, seven snow clearings, and eight snow clearings and that the City only pay for the actual times that snow is removed;

(44) that it be the Commissioner of Works and Emergency Services who determines when the contractors should be called to do sidewalk snow removal;

(45) The following policies and financial implications for fee structure for permits, following consideration of the General Manager, Transportation Services' report, dated March 26, 1999, entitled Fee Structure Options for Road Allowance Permits and Permit Parking (included in Volume 3), be approved, resulting in an increase in revenue of $1.130 million, as provided in the 1999 Recommended Budget; and that the fee schedule be reviewed in two years:

(a) that the fee for on-street permit parking be established at $84.00 annually and the fee for visitors' permits be set at $10.00 per week;

(b) that the fee for residential boulevard parking be established at $84.00 annually; and

(c) the one-time application fees of $260.00 for front yard parking, $60.00 for disabled front yard parking and $60.00 for driveway widening/boulevard parking be approved.

(46) Recommendations Nos. (1), (4), (5) and (6) in the report (March 26, 1999) from the Commissioner, Works and Emergency Services, entitled "Fee Structure Options for Road Allowance Permits and Permit Parking", be adopted, viz:

(a) that the fees for the various construction and commercial uses of the public road allowance set out in Table 1 (attached to the above-noted report) be approved and the relevant "Street By-laws" be amended accordingly;

(b) that the new fee structure become effective on the renewal date of present licenses and permits be adjusted annually to the rate of inflation (except in the case of on-street permit parking and residential boulevard parking), and be applied to all new licences and permits issued subsequent to the amendments to the applicable By-laws and Municipal Codes;

(c) that the Chief Administrative Officer, in consultation with the Commissioner of Corporate Services, initiate a study to assess the impact of front yard (residential boulevard) parking from a real estate value perspective and recommend any adjustments to the fee established; and

(d) that the appropriate City Officials be authorized to take whatever action is necessary to give effect to the foregoing, including the introduction in Council of any Bills that may be required.

(47) Transportation Division provide a report on the use of the Snowlink Program as a mechanism for providing senior and disabled snow clearance service, prior to the 2000 Operating Budget process; and

(48) $150,000.00 be maintained for special leaf pick up in areas as defined by the Commissioner of Works and Emergency Services and identified by City Council; and the Commissioner of Works and Emergency Services be requested to report to the Works and Utilities Commission providing standards for bulk leaf pick up in the City.

K. WES SUPPORT SERVICES:

(49) The 1999 recommended program budget for WES Support Services of $18.978 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Service

Gross Budget

($, mil)

Net Budget

($, mil)

Executive Services

.494

.494

Program & Administrative Support .151 .151
Information Technology Services 2.145 2.145
Financial Services 3.918 3.918
Administrative Services 9.764 (9.215)
Customer Services 1.445 1.445
Communication Services 1.062 1.062

Total Program Budget

18.978

0.000

(50) The Director, Support Services, in consultation with the Budget Services Division, Finance Department, review the current allocation methodology for the recovery of costs from the other divisions and report back as part of the 2000 Operating Budget, on any changes to the allocation methodology for implementation in 2000.

L. WES TECHNICAL SERVICES:

(51) The 1999 recommended program budget for WES Technical Services of $32.458 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Service

Gross Budget

($, mil)

Net Budget

($, mil)

Facilities and Structure

5.447

5.082

Survey Services 11.479 7.580
Environmental Services 4.168 3.213
Construction Services 10.793 4.666
Program Administration .572 (20.541)

Total Program Budget

32.458

0.000

(52) The Executive Director, Technical Services, in consultation with the Budget Services Division, Finance Department, review the current allocation methodology for the recovery of costs from the other divisions and report back as part of the 2000 Operating Budget, on any changes to the allocation methodology for implementation in 2000.

ECONOMIC DEVELOPMENT, CULTURE AND TOURISM:

M. CULTURE:

(53) The 1999 Recommended Program Budget of $3.241 million (gross) and $2.530 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Arts and Culture 1.996 1.769

Heritage Services 1.245 .761

Total Program Budget 3.241 2.530

(54) The Commissioner of Economic Development, Culture and Tourism, in conjunction with the Chief Financial Officer and Treasurer report to the Policy and Finance Committee on the restructured 1999 Operating Budget following Council direction on the governance and restructuring of Arts, Culture and Heritage.

(55) The Commissioner of Economic Development, Culture and Tourism review the service delivery options not currently recommended in conjunction with the restructuring of Arts, Culture and Heritage program.

N. CUSTOMER & BUSINESS SUPPORT:

(56) The 1999 Recommended Operating Budget of $17.607 million gross and $17.262 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Admin. & Support 12.580 12.280

Policy & Development 5.027 4.982

Total Program Budget 17.607 17.262

0. ECONOMIC DEVELOPMENT:

(57) The 1999 Recommended Operating Budget of $6.213 million gross and $5.863 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Business Development & Retention 2.124 2.124

Small Business & Local Partnerships 1.415 1.265

Investment Marketing 1.710 1.710

Economic Research & Business

Information .964 .764

Total Program Budget 6.213 5.863

(58) Up to $.085 million in the base budget continue to be made available to accommodate the Economic Development World Cities Alliance, subject to the following conditions:

(a) limitation on the number of people who go on any particular business venture; and

(b) the confirmation of the Mayor's office.

(59) The Commissioner of Economic Development, Culture and Tourism be directed to reallocate existing resources within the Division to accommodate the film permitting function.

(60) That the following Recommendation No. (54) embodied in the report (April 15, 1999) from the Budget Committee, be deleted:

" (54) The Chief Administrative Officer be requested to report back to Economic Development Committee on the appropriateness of having the Economic Development Division under the auspices of the Mayor's Office";

(61) The Budget Committee's recommendation that there be no fee for film permits be confirmed.

(62) The report (April 15, 1999) from Mayor Mel Lastman, entitled "International City to City Program", respecting the process to undertake relationships with selected cities around the world for economic development purposes, wherein it is recommended that:

(1) additional funds in the amount of $250,000.00 be allocated maintain relationships with selected cities around the world;

(2) the Commissioner of Economic Development, Culture and Tourism report to Economic Development Committee on an annual basis the workplan and activities for the year;

(3) the Commissioner of Economic Development, Culture and Tourism work with Protocol and other City departments to co-ordinate activities of an international city to city program;

(4) the Commissioner of Economic Development, Culture and Tourism establish a policy and criteria for the support of and participation in inbound and outbound missions that contain the following:

(a) identification of a clear economic benefit to the City prior to approval of international city to city program activities;

(b) strict limits on the number of staff and elected officials participating in international city to city program activities;

(c) requirement for a written follow-up report from participants in international city to city program to the Economic Development Committeee; and

(d) approval by the Mayor for international city to city program activities;

(5) the policy and criteria be approved by the Finance and Policy Committee;

be adopted, subject to adding the following:

(i) "That the World Cities Committee be requested to solicit private sector partnership funds to assist in the aforementioned undertaking"; and

(ii) that the funds be added to Economic Development Program 1999 Operating Budget.

P. PARKS AND RECREATION:

(63) The 1999 Recommended Operating Budget of $169.905 million gross and $109.667 million net, comprised of the following services, be approved:

Service Gross Budget NetBudget

($, mil) ($, mil)

Parkland & Open Space 78.998 65.346

Sports & Recreation Programming 90.907 44.321

Total Program Budget 169.905 109.667

(64) With respect to the Parks and Recreation User Fees Harmonization, that Option "B" be adopted, and that:

(a) User Fees Harmonization Option B (as described in Appendix C attached) be implemented in 1999, at a cost of approximately $0.8 million in 1999, and an annualized impact of approximately $1.9 million in the year 2000 (representing lost revenues resulting from implementation of this option);

(b) As a result of the implementation of User Fees Harmonization Option B, the Parks and Recreation Program be exempted from paying water rates in 1999, and that the funding request included in the Program's budget submission for this purpose, amounting to $1.996 million, be deleted;

(c) The Chief Financial Officer and Treasurer report to the Budget Committee, in time for the year 2000 budget process, on the future practice and implications of this exemption;

(d) A corporate allocation of $300,000.00 be included in the 1999 Non-program Expenditure Budget, to be used exclusively to offset the estimated net increase in costs associated with a projected increase in demand for programs, resulting from implementation of harmonization Option B;

(e) The Commissioner of Economic Development, Culture and Tourism report to the Budget Committee on the actual increase in demand, and the problems and issues associated therewith;

(f) The Commissioner of Economic Development, Culture and Tourism and the Chief Financial Officer & Treasurer report jointly to the Budget Committee on the utilization of the corporate allocation of $300,000.00;

(g) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee and City Council, in time for the year 2000 budget process, on:

(i) utilization of the free programs, including attendance and drop-out rates;

(ii) the problems of cross-border usage by residents of neighbouring regions; and

(iii) the provision of premium, specialized programs and regulation of such programs.

(65) that with respect to the report (April 20, 1999) from the Commissioner of Economic Development, Culture and Tourism, entitled "Harmonization of User Fees for Recreation Adult Drop-in Programmes", the following guidelines be applied respecting the minimal free adult drop-in opportunities at no additional cost or revenue loss:

(a) that the facility would already be open with supervisory or maintenance staff on duty;

(b) that no additional staff facilitation or equipment costs would be incurred;

(c) that no existing programme/permits be cancelled to accommodate the adult drop-in opportunities;

(d) that the programmes be self-sufficient and self-managed by the participants;

(e) that the programmes be designed to meet the needs of the surrounding communities; and

(f) that opportunities generally be offered during non-prime hours, 8:30 a.m. to 3:30 p.m., Monday through Friday, as most other hours are booked with waiting lists for the space (i.e., 4:30 p.m. to 10:00 p.m., Monday through Friday, Saturdays and Sundays);

(66) The Commissioner of Economic Development, Culture and Tourism be requested to report back to the Budget Committee, as soon as possible, on why there would be a cost in having a restricted free adult drop in program in the former City of Toronto.

(67) With respect to the proposal to solicit advertising on 3,500 waste receptacles in parks for garbage and waste:

(a) the Commissioner of Economic Development, Culture and Tourism ensure that the advertising contract is awarded based on tendering, in accordance with the City's tendering policy and procedures;

(b) the Commissioner of Economic Development, Culture and Tourism ensure that Ward Councillors are duly consulted on the proposed advertising on receptacles; and

(c) the Commissioner of Economic Development, Culture and Tourism report to the appropriate standing committees on details of the proposed advertising on receptacles, including the types of advertising that will be permitted and prohibited, and the estimated advertising revenues.

(68) That the Commissioner of Economic Development, Culture & Tourism be authorized to provide funding of up to $2,000.00 for the Gardens contest in York, the said funding be absorbed in the Parks & Recreation 1999 approved budget, and the Commissioner evaluate the program;

(69) With respect to the review being undertaken by the staff in the Chief Administrative Officer office, in support of the Task Force on Agencies, Boards and Commissions (ABCs), the Chief Financial Officer and Treasurer review the financial implications of alternative governance structures of ABCs, as part of the review process.

(70) That the Commissioner of Economic Development, Culture and Tourism be requested to review funding, staffing and fees charged to seniors in City-run versus independent senior centres with a view to service and fee equalization with neighbouring senior centres (e.g., Piccinnini Centre and Amesbury Centre) and submit a report thereon to the Economic Development Committee;

(71) That the Commissioner of Economic Development Culture and Tourism, with regard to sidewalk clearing in the core of the City, be requested to report by June, 1999, on ways and means of protecting existing inground trees so as to prevent damage on the City's commercial streets and other streets;

Q. SPECIAL EVENTS:

(72) The 1999 Recommended Program Budget of $6.857 million (gross) and $3.812 million (net), be approved;

(73) The Millennium Project budget be confirmed at $2.850 million (gross) with 1999 Operating Budget funding of $.850 million from the City, $1 million from Corporate sponsorship and the balance from 1998 previously approved funding; and

(74) The Commissioner of Economic Development, Culture and Tourism, in conjunction with the Chief Financial Officer, report to the Policy and Finance Committee in six months on the status of the Corporate Sponsorship revenues for 1999; and the ability of the Corporate Sponsorship Program to provide revenue for the 2000 Budget to cover more of the Special Events programming.

URBAN PLANNING AND DEVELOPMENT SERVICES:

R. LICENSING:

(75) The 1999 recommended program budget for Licensing of $11.259 million (gross) and $0.239 million (net surplus), composed of the following Services on a gross and net basis, be approved:

Service Gross Budget NetBudget

($, mil) ($, mil)

License Issuance 1.730 1.730

License Enforcement 4.283 4.283

License Administration 5.247 5.247

Licensing Revenue 0.000 -11.498

Total Program Budget 11.259 -0.239

(76) The Executive Director of Municipal Standards and Licensing, in conjunction with the Commissioner of Urban Planning and Development Services, report back to the Budget Committee no later than the first week of September 1999 on the proposed redirection of $0.458 million from the License Administration Service budget to expenditures involving front-line operations.

(77) That the cost of legal services amounting to $0.211 million (part of the $0.458 million reinstated to the License Administration Service budget) pertaining to the Tribunal, as a result of separating its function from administrative functions of Licensing, be recovered from the Legal Division's budget.

S. URBAN PLANNING AND DEVELOPMENT SERVICES:

(78) The 1999 Recommended Operating Budget for Urban Planning & Development Services of $55.777 million (gross) and $14.401 million (net), comprised of the following services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

City Planning 19.539 13.862

Building 20.771 (12.149)

Service Integration & Support 7.486 7.242

Municipal Standards (excludes Licensing) 7.981 5.446

Total Program Budget 55.777 14.401

(79) The Chief Administrative Officer, in conjunction with the appropriate Commissioners, report back to the Budget Committee on any necessary changes in the staff complement in City departments that review planning applications, site plan applications or building permits to facilitate a reasonable turnaround for all applications, including turnaround time for comments from other departments.

(80) The Commissioner Urban Planning & Development Services, in conjunction with the Toronto & Region Conservation Authority, the Commissioner Works & Emergency Services and the Chief Financial Officer and Treasurer, report back to the Urban Environment & Development Committee on the proposal to establish the Council of Toronto Watershed no later than September 15, 1999;

(81) Up to $100,000.00 be placed in the budget to assist in redoing the secondary plans in South Etobicoke and if additional staff is required to complete the project, the Commissioner Urban Planning & Development Services be requested to re-deploy staff or use contract staff if necessary.

CORPORATE SERVICES:

T. AUDIT:

(82) The 1999 Recommended Program Budget for Audit of $2.335 million (gross) and $2.181 million (net) be approved;

(83) Prior to the City embarking on the purchase and implementation of the new radio system, the City Auditor be requested to review and report back to the Budget Committee on this matter.

U. CLERK'S:

(84) The 1999 Recommended program Budget for Clerk's of $35.964 million (gross) and $21.219 million (net), comprised the following services on the gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Secretariat 7.056 6.632

Printing & Distribution 12.046 5.486

Council and Support Services & Executive 2.678 2.678

Corporate Access & Privacy 0.711 0.700

Corporate Records & Archives 5.660 5.571

Elections 2.879 2.874

Legislative Services 3.622 (4.034)

Protocol 1.312 1.312

Total Program Budget 35.964 21.219

(85) In the event a request for the establishment of a task force or sub-committee, the Members of Council be so advised of the cost implications of such task force and sub-committee;

(86) (i) The Commissioner of Corporate Services be requested to:

(a) keep the Dempsey House in a state of good repair;

(b) report back to Budget Committee providing a proposal for the display of archival materials and the future of the Dempsey House; and

(ii) that an amount of $75,000.00 be added to the Clerk's budget to cover the cost of a single staff person to co-ordinate volunteers on the Dempsey House Program;

(87) That with respect to the need for a centralized elections storage and operations facility, the City Clerk work with Executive Director, Facilities and Real Estate to identify city-owned or other properties, explore alternatives, including further negotiations with the Provincial Elections Officer, and report back to the Budget Committee on financial implications for 1999 and 2000, by June 1, 1999.

TORONTO OUTDOOR ART EXHIBIT

(88) $15,300.00 be maintained and the funding be provided from the appropriate program budgets of Special Events, Clerks Division and Facilities and Real Estate; and

(89) the City Clerk be requested to report back to the Policy and Finance Committee on the costs associated with producing this event.

V. SERVICE INTEGRATION AND SUPPORT:

(90) The 1999 Recommended Program Budget for Corporate Services - Service Integration & Support of $1.100 million (gross and net), composed of the following Services on a gross and net basis, be approved:

Service Gross and Net Budget ($, mil)

Operations & Support 0.709

Executive Office 0.391

Total Program Budget 1.100

(91) The Commissioner of Corporate Services report back to the Corporate Services Committee respecting the pricing for full-cost recovery and the alternative service delivery options that are being planned or considered by her department and divisions under her purview.

W. CORPORATE COMMUNICATIONS:

(92) The 1999 Recommended program Budget for Corporate Communications of $ 5.849 million (gross) and $ 5.735 million (net), comprised the following services on the gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Director's Office 0.178 0.178

Corporate Communications &

Media Relations 1.416 1.416

Public Information 2.391 2.297

Creative Services 1.864 1.844

Total Program Budget 5.849 5.735

(93) That the budget cut of $310,000.00 and 5 FTE's from the establishment of strength, in the 1999 Operating Budget, be at the discretion of the Commissioner of Corporate Services.

X. FACILITIES AND REAL ESTATE:

(94) The 1999 Recommended Program Budget of $81.915 million (gross) and $45.683 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Facilities 76.266 43.985

Real Estate 5.649 1.698

Total Program Budget 81.915 45.683

(95) The program be requested to conduct a comprehensive review of alternative service delivery in 1999, and submit a report to Finance & Policy Committee by September 1999 outlining the savings that could be achieved. The report to include an implementation strategy that will enable the Corporation to achieve these savings at the earliest date possible;

(96) Add $32,000.00 to the Facilities and Real Estate budget to cover the costs for additional space at Central Eglinton Community Centre, 160 Eglinton Avenue East, as adopted by City Council at its meeting of April 13, 14 and 15, 1999.

(97) The Commissioner of Corporate Services be requested to report to the Corporate Services Committee, prior to the Year 2000 budget cycle, on the following matters:

(a) prepare an inventory of all real, built up property used for the City's business with details of purpose of use, department responsible for use, property size, market value, whether leased or owned, and vacant space if any available at a particular location;

(b) identify how the property is managed (whether corporately, by a specific department or by private sector) and the total cost and unit cost per square foot of managing the property;

(c) identify details of borrowing against specific properties, rate of interest, and annual mortgage payments or lease/rent met from the operating budget;

(d) identify details of utility costs for each location and how each property is cleaned (through staff or contract services) and the unit cost of utilities and cleaning;

(e) identify details of how the property is maintained (building repairs and maintenance) whether by internal or contract staff, the total cost of maintenance and unit cost;

(f) identify systems and methods in use for time management and job costing of all maintenance tasks and labour productivity levels;

(g) identify industry benchmarks for unit cost of property maintenance and management;

(h) comparison, for each property, of the industry average benchmarks with the internal unit costs and identify the potential excess costs being incurred in time for the Year 2000 budget cycle; and

(i) identify potential candidates to be declared surplus property without impacting on program operations.

Y. FLEET & MANAGEMENT SERVICES:

(98) The 1999 Recommended program Budget for Fleet Management Services of $22.516 million (gross) and $0.0 million (net), comprised the following services on the gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Fleet Maintenance 19,793.5 (2,721.2)

Fleet Management 2,722.6 2,721.2

Total Program Budget 22,516.1 0.0

(99) The report (April 7, 1999) from the Commissioner of Corporate Services, entitled "1999 Vehicle and Equipment Replacement Program", be referred to the Chief Administrative Officer and the Chief Financial Officer and Treasurer to review same with Department Heads for a report thereon to the Budget Committee, the said report to include fleet reduction and garage issues.

(100) The report (April 15, 1999) from the Chair, Toronto Police Services Board, respecting the 1999 Police Vehicle Replacement Budget, wherein it is recommended that the Budget Committee:

(i) approve funding of $7.4 million from the City's Fleet Reserve, as per our 1999 original request, to continue with the replacement of marked and unmarked vehicles for front-line use; and

(ii) approve the utilization of the remaining $307,000.00 from the funding approved in 1998;

be adopted as per the list of vehicles embodied in the said report.

(101) The Chief Administrative Officer be requested to reduce the fleet by 5 percent by December 31, 1999;

(102) The Budget Committee express its concern regarding the way in which the fleet reduction has been handled to the Mayor, and ask the Mayor to take the appropriate action;

(103) Senior Staff, i.e., the six Commissioners, the Chief Administrative Officer and the Executive Director, Fleet Management Services be requested to meet and discuss a method, acceptable to all parties, for the charge back of vehicles to departments and report back thereon to the Corporate Services Committee by this summer;

(104) The Chief Administrative Officer be requested to report back to the Budget Committee on the following matters:

(a) a Fleet Assignment Policy by April 30, 1999 for the assignment of vehicles for business use and for vehicles provided as part of compensation; and

(b) a zero base review of all fleet based on the City's Fleet Assignment Policy and report back on fleet reductions by June, 1999, including all ABC's;

(105) The Commissioner of Corporate Services be requested to report back to the Budget Committee on:

(a) the budgeted expenditures in the City for the maintenance of real property (including housing units), facilities, fleet, plant and machinery, parks and green space, roads and other infrastructure and the full time equivalent staff involved in the respective program areas, along with details of existing systems and standards in use for monitoring staff productivity and output levels, by April 30, 1999. (Maintenance Services);

(b) the establishment of a common City wide job and project costing system which includes tracking of staff time and cost for specific jobs\tasks, and sets standards for all recurring jobs/tasks, by June 30, 1999 (Maintenance Services); and

(c) service disruption caused to the Works Department due to delay of repairs of equipment;

(106) The City Auditor be requested to review the Terms of Reference and all correspondence between the City and KPMG and report back to the Budget Committee on:

(a) whether the Terms of Reference have been fully complied with;

(b) whether reasonable grounds exist to terminate the project for reasons of noncompliance; and

(c) usefulness of work completed and fair amount payable; and

(107) The Executive Director, Fleet Management Services be requested to report back on less costly alternatives to the Fleet Management Information system currently included in the Y2K program.

(108) The Fleet Management Division be requested to accomplish $500,000.00 of savings in 1999.

(109) The Chief Administrative Officer be requested to report back to Budget Committee on:

(a) where the aforementioned savings of $500,000.00 could be achieved;

(b) the possible closure of three garages and in that regard provide comments on the following:

(i) lost productivity costs of the proposed yard closures, calculations to include the number of units currently repaired on site; the distance to the closest yard; and the number of repairs/unit/year;

(ii) the process and time to shuttle vehicles/equipment to the closest yard;

(iii) lost productivity time due to ferrying vehicles to the closest yard;

(iv) cost of lost productivity time; and

(v) if the closest yard can accommodate the increased number of vehicles/equipment and have the ability to respond to repairs in a timely fashion.

(110) The Commissioner of Corporate Services be requested to provide a bi-monthly report to the Budget Committee on how the requested savings are being achieved.

Z. HUMAN RESOURCES MANAGEMENT:

(111) The 1999 recommended program budget for Human Resources of $22.576 million (gross) and $21.722 million (net), comprised the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Employment Services 6.440 6.263

Employee & Labour Relations 1.407 1.340

Training & Organizational

Development 3.079 3.079

Department Services 9.964 9.391

Access & Equity 1.501 1.471

Fair Wage & Labour Trades Office 0.185 0.178

Total Program Budget 22.576 21.722

(112) The Executive Director of Human Resources in conjunction with the Chief Financial Officer & Treasurer report back to Corporate Services Committee by June 30, 1999:

(a) providing data on the average number of sick days per employee during 1997 and 1998 and the number of employees on Long Term Disability during the same period;

(b) providing recommendations on City programs to assist employees dealing with the impact of changes resulting from amalgamation, including the impact of downsizing; and

(c) providing information on the number of City employees who, having been placed into new City positions, are now resigning from their positions and having to be replaced.

AA. INFORMATION AND TECHNOLOGY:

(113) That the 1999 recommended program budget for Information & Technology of $36.854 million gross and $32.554 net, comprised the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Applications & Professional Services 7.230 7.230

Computer Operations & Telecommunications 21.116 16.817

Information & Technology Planning 0.915 0.915

Productivity & Support Services 4.207 4.207

Land Information Services 2.474 2.474

Executive Director's Office 0.307 0.307

Client Services Cluster - A, B & C 0.605 0.604

Total Program Budget 36.854 32.554

BB. LEGAL:

(114) The 1999 Recommended Program Budget of $17.613 million (gross) and $15.36 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Municipal Law 8.745 7.544

Litigation 8.868 7.816

Total Program Budget 17.613 15.360

(115) Council confirm that the appropriate location for funds to be allocated for external planning consultants is in the Legal budget;

(116) The City Solicitor and the Commissioner of Urban Environment and Development be requested to report back to Budget Committee on the funds spent in 1998 for Ontario Municipal Board appeals and the amount included in the Non-Program budget and Urban Development budget in 1999;

(117) That every request for outside planning consultants that goes before City Council have the maximum cost;

(118) The Commissioner of Urban Planning and Development and the City Solicitor report to the Urban Environment and Development Committee every three months on the expenditures to date respecting this account and further that the said report be available each time Council considers acquiring outside planners.

OTHER PROGRAMS:

CC. CHIEF ADMINISTRATOR'S OFFICE:

(119) The 1999 recommended program budget for the Chief Administrator's Office of $3.957 million (gross) and $3.781 million (net), comprised the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Executive Management 1.591 1.417

Strategic & Corporate Policy 2.366 2.364

Total Program Budget 3.957 3.781

DD. FINANCE:

(120) The 1999 recommended program budget for Finance of $53.139 million (gross) and $30.198 million (net), composed of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Office of the CFO & Treasurer 0.667 0.564

Accounting Services 8.738 7.679

Budget Services 3.501 3.180

Development, Research & Policy 0.703 0.639

Pensions, Payroll & Employees Benefits 6.986 5.585

Purchasing & Materials Management 6.355 5.566

Revenue Services 23.623 5.054

Treasury & Financial Services 2.567 1.931

Total Program Budget 53.139 30.198

(121) In regard to the report to Budget Committee dated March 29, 1999, "Assessment Appeals Temporary Staff in Finance Department (Revenue Services Division)" by the Chief Financial Officer and Treasurer, the following recommendation be adopted:

(a) The Chief Financial Officer and Treasurer be authorized to hire twenty additional staff as casual employees for a period not to exceed six months to assist in the processing of assessment appeals and the cost not to exceed $0.325 million will be provided from the Transition Reserve Fund.

(122) In regard to the report to the Budget Committee dated March 28, 1999, "Revenue Services Call Centre" by the Chief Financial Officer and Treasurer, the following recommendations be adopted:

(a) the Finance Department recruit ten additional call centre operators on a contract basis for up to twelve months beginning May 1999 and that funds in the amount of $0.323 million be allocated from the Transition Reserve Fund for this purpose. The Chief Financial Officer and Treasurer be directed to report back to the Budget Committee in early 2000 on the status of call volumes in the Revenue Services call centre;

(b) the Commissioner of Corporate Services be directed to allocate space and procure suitable workstations for 40 call centre operators and that funds in the amount of $0.220 million be allocated from the Transition Reserve Fund; and

(c) the Commissioner of Corporate Services be directed to ensure that the computers in the Revenue Services call centre are upgraded to allow quick access to required tax and water systems by the end of April 1999, prior to the billing of 1999 final property taxes.

(123) The Finance Department's costs of $0.500 million for pension plan administration for the five pension plans predating OMERS be recovered from these plans and that the Boards of Trustees be so advised.

(124) The Chair of Budget Committee and the Chair of Works and Utilities Committee, with the Chief Financial Officer and Treasurer, convene a meeting of all parties involved in the coordination of meter reading and further that the Chief Financial Officer and Treasurer report back on the use of alternate technologies for meter reading.

(125) The Chief Financial Officer and Treasurer report back to the Corporate Services Committee and the Budget Committee on the following matters:

(a) provide a methodology for the establishment of the account code structure in the City;

(b) the financial policies being implemented as part of the SAP financial system implementation; and

(c) incorporate the above matters in her status report to the Corporate Services Committee on the SAP system.

(126) In regard to the referral by the Strategic Policies and Priorities Committee April 6, 1999 and the communication to Budget Committee dated April 1, 1999, "Tenant Tax Notification Reduction in 1999 Finance Department Operating Budget" from the City Clerk, Assessment And Tax Policy Task Force, the staff report to the Assessment and Tax Policy Task Force dated March 29, 1999, incorporating the following recommendations that result in a reduction in the 1999 Operating Budget of $0.432 million be adopted:

(a) that the full notification of tax increases and decreases to all tenants and landlords in the City of Toronto be undertaken again in the year of the next general reassessment (2001);

(b) that only mandatory notification to tenants and landlords of multi-residential properties as required under the Tenant Protection Act be undertaken for 1999 and 2000;

(c) that the Province be requested to undertake the notification process and cost for all tenants and landlords as it relates to the rent reduction provisions of the Tenant Protection Act; and

(d) that the Province be requested to review and amend Ontario Regulation 455/98 which requires that a ratio of 20 percent of taxes to rental income be used in the calculation of rent reductions and ensure it reflects a more appropriate ratio for rental properties of less than 7 units and that it be completed prior to September 1999 which is the latest date for notices to be mailed to landlords in 1999.

EE. COUNCIL:

(127) The 1999 recommended program budget for Council of $18.643 million (gross) and $18.598 million (net), composed of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Councillors/Staff - Salaries & Benefits 13.949 13.949

Councillors - Global Budget 3.363 3.363

Councillors - General Expenses 1.331 1.286

Total Program Budget 18.643 18.598

(128) That the Councillors Global Budget be reduced from $70,000.00 to $59,000.00 per Councillor for a savings of $627,000.00.

(129) that the Community Council Hospitality Budget be allocated among the Community Councils on a per capita basis;

(130) that an amount of $30,000.00 be allocated to the Community Council Hospitality Budget;

(131) That the Recommendations of the Audit Committee embodied in Clause No. 2 of Report No. 2 of the Audit Committee contained in the communication dated April 19, 1999, from the City Clerk be adopted, subject to:

(i) deleting Recommendation No. (5) and inserting in lieu thereof the following:

"(5) (a) vehicles used by Councillors representing the Mayor there be no charge to the Councillors' budget;

(b) vehicles used by Councillors for meetings between City Hall and ABCs (including the GTSB) there be no charge to the Councillors' budget;

(c) vehicles used for other purposes, to be charged to the Councillors' budget at $10.00 per trip; and

(d) vehicles pooled by Councillors to attend official functions, such as representing the Mayor, be at no charge to the Councillors' budget;

(ii) deleting Recommendation No. (7) and inserting in lieu thereof the following:

"(7) Space allocation for Councillors be referred to the Office Consolidation Sub-Committee to report thereon directly to City Council, no later than July 6, 1999, with recommendations, if approved, being implemented on January 1, 2000."; and

(iii) deleting Recommendation No. (8) and inserting in lieu thereof the following:'

"(8) The Councillors' budget be reduced to $59,000.00";

(132) The Council Transportation Service budget be reduced to $390,000.00 gross and $350,000.00 net; the City Clerk to receive the revenues generated from charge back fees from Councillors, and further that the City Clerk be requested to report back to Budget Committee in the event that the anticipated $40,000.00 in revenues cannot be achieved.

(133) (a) Council budget be adjusted by $16,000.00 to reflect recommended limitations to Toronto Conservation Authority remuneration.

(b) The by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from ABCs and the Toronto and Region Conservation Authority;

(c) The Toronto and Region Conservation Authority, through City Council, be requested to review their policy of per diem and mileage allowance to its Board Members and report back to the Budget Committee in that regard prior to the 2000 Operating Budget process;

(d) The Councillors' salary budget be adjusted in the event that the salary draw be reduced; and

(e) The by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from Agencies Boards and Commissions and the Toronto and Region Conservation Authority, and that it be done in a way so that it does not impact the Councillor's pension;

FF. MAYOR'S OFFICE:

(134) The 1999 recommended program budget for the Mayor's Office of $1.447 million gross and net be approved.

SPECIAL PURPOSE BODIES:

GG. ARENA BOARDS OF MANAGEMENT:

(135) The 1999 Recommended program budget for the Arena Boards of Management of $4.285 million (gross) and $104,200.00 (net), be approved:

Arena Boards of Management Gross Budget Net Budget

($000's) ($000's)

(Surplus)/Deficit

George Bell Arena 527.4 (8.1)

William H. (Bill) Bolton Arena 391.7 (1.8)

Forest Hill Memorial Arena 571.4 (92.3)

Leaside Memorial Community Gardens 660.3 242.3

McCormick Playground Arena 488.4 (3.6)

Moss Park Arena 550.2 (11.9)

North Toronto Memorial Arena 620.2 (20.3)

Ted Reeve Arena and Grounds 475.2 (0.1)

Total Program Budget 4,284.6 104.2

(136) The current review of Arena Boards of Management governance structures include an analysis of the following, prior to recommendations being brought forward for consideration:

(i) the financial impacts of alternative arena governance structures;

(ii) the financial impacts of alternative ice rental pricing structures;

(iii) the revenue impacts on arena operations of potential new ice allocation policies;

(iv) the financial and procedural implications of alternate models for funding arena capital expenditures and operating deficits/surpluses, and

(v) the potential of expanding accessory operations as best practices among, or benchmarks between, all the City's arenas to maximize potential revenues;

(137) The Arena Boards consult with the City's Year 2000 Project Office to determine appropriate measures to ensure Y2K compliance and that the Arena Boards implement the appropriate measures to meet this requirement within their operating budgets; and

(138) The City Auditor be requested to review the revenues and expenditures of those arenas with large deficits, and report back to the Policy and Finance Committee with recommendations on how those deficits may be reduced.

HH. TORONTO AND REGION CONSERVATION AUTHORITY:

(139) The 1999 Recommended Operating Budget of $20.701 million gross and $4.057 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Corporate Services 3.000 1.238

Watershed Health 10.921 2.760

Watershed Experience 6.528 0.000

Rouge Park Interim Management 0.252 0.059

Total Program Budget 20.701 4.057

(140) The by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from Agencies Boards and Commissions and the Toronto and Region Conservation Authority, and that it be done in a way so that it does not impact the Councillor's pension;

(141) The Toronto and Region Conservation Authority, through City Council, be requested to review its policy of per diem and mileage allowance to its Board Members and report back to the Budget Committee in that regard prior to the 2000 Operating Budget process.

(142) The Councillors' salary budget be adjusted in the event that the salary draw be reduced.

(143) The Commissioner of Urban Planning and Development Services, in conjunction with the Toronto and Region Conservation Authority, the Commissioner of Works and Emergency Services, and the Chief Financial Officer and Treasurer, be requested to report back to the Urban Environment and Development Committee on the proposal to establish the Council of Toronto Watersheds, no later than September 15, 1999.

II. EXHIBITION PLACE:

(144) The 1999 Recommended Program Budget of $36.370 million (gross) and $(.955) million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Canadian National Exhibition 16.076 (.374)

Exhibition Place Operations 9.103 1.313

National Trade Centre 11.191 (1.894)

Total Program Budget 36.370 (.955)

(145) The Board of Governors of Exhibition Place report to the Budget Committee by May 1999 on both the new revenue strategies for the Canadian National Exhibition and progress to date on making the Canadian National Exhibition profitable;

(146) The Chief Financial Officer and Treasurer, in conjunction with Exhibition Place, report to the Policy and Finance Committee on the status of the Canadian National Exhibition Stabilization Reserve;

(147) The Canadian National Exhibition's contribution to the Parkland Acquisition Reserve from revenues earned from its use of Marilyn Bell and Battery Parks for parking purposes be waived during 1999;

(148) The Chief Financial Officer and Treasurer, in conjunction with staff of Exhibition Place, the Toronto Region Conservation Authority, and Parks and Recreation, report on a policy for future contributions to the Parkland Acquisition Reserve to the Policy and Finance Committee prior to the 2000 Operating Budget process;

(149) The principle of direct allocation of costs from the Exhibition Place Program to the Canadian National Exhibition Association be approved; and,

(150) The recommended Exhibition Place budget which provides for a 1999 surplus to the City of Toronto of $.955 million, not be impacted by the change to direct allocation of costs between Exhibition Place and the Canadian National Exhibition.

JJ. HERITAGE TORONTO:

(151) The 1999 Recommended Program Budget of $5.803 million (gross) and $4.295 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Museum and Heritage Services 5.249 3.776

Heritage Preservation .555 .519

Total Program Budget 5.803 4.295

(152) That the Commissioner of Economic Development, Culture and Tourism report to the Policy and Finance Committee on a plan for the management and maintenance of Heritage buildings and properties, as part of the restructuring implementation, given that they are currently maintained through a number of programs including Parks and Recreation, Heritage Toronto and Facilities;

(153) That Heritage Toronto report to the Budget Committee by April 1999 on the 1999 and subsequent years business plan for the Pier Marine Museum; and,

(154) That the 10 percent options for service delivery adjustments not recommended for inclusion in the 1999 Operating Budget be reviewed by the Commissioner of Economic Development, Culture and Tourism in conjunction with the restructuring of Arts, Culture and Heritage.

KK. TORONTO PUBLIC LIBRARY:

(155) That the 1999 Recommended Program Operating Budget totalling $109.805 million (gross) and $97.953 million (net) be approved, subject to any other corporate adjustments that may be allocated to this Program.

Service Gross Budget Net Budget

($, mil) ($, mil)

Administration & Support 4.462 4.282

Library Services 105.343 93.671

Total Program Budget 109.805 97.953

(156) If the Toronto Library Board approves the harmonization of Sunday Service rationalization as recommended in the report from the City Librarian dated January 25, 1999 that the additional costs of $56.5 thousand associated with service harmonization be absorbed within the 1999 budget submission.

(157) The Chief Librarian be requested to report directly to City Council with regard to the purchasing and materials budget, the said report to include the purchasing of multi-lingual materials.

(158) That the City Librarian provide the requested report pertaining to potential library closures to the Finance and Priorities Committee no later than September 1999.

(159) That the City Librarian report back to Budget Committee on room rental and options for maximizing revenue in the context of pending corporate policy on the use of community meeting space.

LL. PUBLIC HEALTH:

(160) The 1999 Operating Budget request totalling $111.821 million (gross) and $53.559 million (net), comprised of the following services be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Support Services 7.886 5.457

Planning and Policy 8.017 3.895

Family Health/Healthy Living 60.833 26.513

Communicable Diseases 18.823 8.518

Healthy Environments 16.262 9.176

Total Program Budget 111.821 53.559

(161) (i) Before any further requests for additional funds are considered, the Medical Officer of Health report back to Budget Committee on accommodating any additional requests for harmonizing the remaining programs through re-prioritizing all Public Health activities within the recommended budget envelope;

(ii) A comprehensive review of Public Health programs be conducted by the Chief Administrative Officer, and be included in the Chief Administrative Officer's review of Public Health's mandatory/non mandatory programs, and that the review be conducted in consultation with the Medical Officer of Health for purposes of ensuring that the Chief Administrative Officer's recommendations comply with the statutory program requirements prescribed by the Health Protection and Promotion Act;

(162) The City request the Province to re-evaluate the prescriptiveness of the Provincial mandatory guidelines respecting public health programs to allow the municipality to identify and prioritize the recommended levels of service applicable to its community;

(163) The Medical Officer of Health report to Budget Committee on any additional licensing and registration revenues that have been identified to fund program initiatives in animal services and be incorporated into the 2000 budget submission;

(164) The Medical Officer of Health be requested to provide a report to Budget Committee on the possibility of generating user fees or different delivery methods to achieve the outcomes as recommended in the provincial standards guidelines, particularly on the new mandatory regime of public health inspections and be incorporated into the 2000 budget submission;

(165) The Medical Officer of Health, be requested to pursue possible Federal Government funding of public health initiatives given its large surplus and new spending in health e.g., public health awareness programs;

(166) $100 thousand be allocated for Food Access Grants of which $50,000.00 be added to, and $50,000.00 be absorbed within the Grants Budget for the express purpose of providing capital funding, on a one-time basis only, for the purchase of refrigerators, ovens, etc., on a emergency basis for volunteers providing food to the homeless, and that the said funding to be at the sole discretion of the Commissioner of Community and Neighbourhood Services;

(167) The provision for a level of service for Food Safety, Tuberculosis and Needle Exchange as recommended by the Board of Health on February 22, 1999 in the Report, entitled "Public Health 1999 Budget", dated February 16, 1999, and detailed in report entitled "Meeting Provincial Standards Across the City for Selected Public Health Program and Services", dated January 18, 1999, be adjusted to a service level that meets the Ministry's of Health's minimum program requirements as recommended as follows:

(i) Food Safety -- additional funding in the amount $391.9 thousand (gross) and $195.9 thousand (net) for 1999 and $1,084.0 thousand (gross) and $542.0 (net) for 2000 be provided;

(ii) Tuberculosis -- additional funding of $477.7 thousand (gross) and $238.9 thousand (net) for 1999 and $1,163.8 thousand (gross) and $581.9 thousand (net) for 2000 be provided; and

(iii) Needle Exchange -- additional funding of $185.1 thousand (gross) and $92.6 thousand (net) for 1999 and $413.5 thousand (gross) and $206.8 thousand (net) for 2000 be provided.

(168) The provision for the level of service for the Dental Program as recommended by the Board of Health on January 25, 1999 in the Report entitled "Harmonization of Dental & Oral Health Services" dated January 15, 1999 (Reference #1.3.LL) to harmonize in 1999 across the City by extending the hours of some or all of current clinics be approved with the exception that no capital monies be included and that the following items be adopted to facilitate the Budget Committee review process for the 2000 budget process:

(i) $800 thousand be added for the expansion of the Dental Program for kids and seniors in 1999 and the Commissioner of Community and Neighbourhood Services be requested to report on whether, with this expansion, the pilot program for dental services can be included, providing the Community and Neighbourhood Services Committee with a full review of the expanded program, including its successes and failures, prior to year-end;

(ii) A Dental Advisory Committee be established to set up and examine the methods of providing dental services for the City of Toronto in the year 2000, to include an Action Plan and the cost of same, and report thereon to the Board of Health and the Community and Neighbourhood Services Committee in that regard;

(iii) The aforementioned Dental Advisory Committee be comprised of the Chief Administrative Officer, Chief Financial Officer and Treasurer, Commissioner of Community and Neighbourhood Services, the Medical Officer of Health, and representatives from the University of Toronto's Faculty of Dentistry, the Ontario Dental Association, Ontario Dental Hygienists' Association, and the Society of Denturists, include a representative from the Community Health Centre.

(iv) The Commissioner of Community and Neighbourhood Services and Medical Officer of Health be requested to report within three months to Community and Neighbourhood Services Committee on the new management structure for dental services.

(v) The City Auditor be requested:

(a) to report back to the Budget Committee on a system of control for the eligibility of clients requesting dental services; and

(b) review the dental services that are now in operation and report back to the Board of Health prior to the Year 2000 budget deliberations.

(vi) The Ontario Dental Association be requested to:

(a) report back to the Budget Committee on the costs related to referrals and administrative fees;

(b) provide Members of Budget Committee with a copy of the FDA "Table of Benefits"; and

(c) consult with the City to work out a plan whereupon every resident in the geographic area requiring dental services could be looked after at a reasonable costs.

(vii) The Ontario Dental Association be requested to report back to Budget Committee and advise whether or not dentists who are members of the Association who acquire work from the City, are prepared to do pro-bono work for the City.

MM. PUBLIC TRANSIT PROGRAM:

(169) The 1999 Recommended Operating Budget of $760.720 million gross and $188.128 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

TTC Conventional 719.545 148.888

Wheel Trans 41.175 39.240

Total Program Budget 760.720 188.128

(170) The City's level of dollar subsidy remain at the 1998 approved level for Conventional transit, net of a $0.5 million reduction to reflect anticipated traction power savings, and that the TTC absorb any other cost pressures from other sources of funding including a fare increase; and

(171) The Wheel Trans budget include the requested $1.5 million net increase over the 1998 levels to expand the number of trips and maintain the unaccommodated booking rate at 2 percent, as reflected in Recommendation No. (169) above.

NN. TORONTO POLICE SERVICE:

(172) The 1999 Recommended Operating Budget for the Toronto Police Service of $535.9 million (gross) and $522.9 million (net), be approved;

(173) The report (April 15, 1999) from the Chair, Toronto Police Services Board, respecting the 1999 Police Vehicle Replacement Budget, wherein it is recommended that the Budget Committee:

(i) approve funding of $7.4 million from the City's Fleet Reserve, as per our 1999 original request, to continue with the replacement of marked and unmarked vehicles for front-line use; and

(ii) approve the utilization of the remaining $307,000.00 from the funding approved in 1998;

be adopted as per the list of vehicles embodied in the said report.

(174) The Chair, Toronto Police Services Board, be requested to provide a five year plan for vehicle replacement together with a five year maintenance plan, the said plan to include leased vehicles.

(175) The Chair, Police Services Board report back as soon as possible, on the feasibility of marking some of the 731 unmarked vehicles so as to show a greater police presence in the City;

(176) The Chair, Police Services Board report back to the Budget Committee, prior to the next budget cycle, with a review of the clothing allowance for plainclothes officers;

(177) The Chair, Police Services Board report back to the Budget Committee prior to the next budget cycle outlining the possibility of re-deploying Superintendent and Staff Inspector positions to enhance the front-line officer strength;

(178) The Toronto Police Service report back to Budget Committee, prior to the next budget cycle, on the Attendance Management Program and consider a policy for the mandatory physical training of officers;

(179) The Corporate fund-raising for the Air Service pilot project provide for the costs of all police personnel re-deployed to the project to prevent degradation to front-line policing and that no additional operating costs accrue to the budget. Consideration be given to an independent analysis for the Air Service pilot project; and

(180) The Toronto Police Service report back, prior to the completion of the 1999 budget process, on the specific allocation of expenditures and revenues of the Budget Committee recommended adjustments.

(181) that up to $500,000.00 be allocated between the Police and Public Works for barricades for the Santa Claus Parade, Caribana, Gay Pride Parade and the Beaches Jazz Festival; the Police to absorb their portion of $350,000.00 whereas $150,000.00 to be added to the Transportation Program budget.

OO. THEATRES AND GALLERIES:

(182) The 1999 Recommended Program Budget of $21.612 million (gross) and $1.472 million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

St. Lawrence Centre for the

Performing Arts 1.881 1.120

Hummingbird Centre for the

Performing Arts (operating) 10.196 0

North York Performing

Arts Centre 5.718 .352

Total Program Budget 17.795 1.472

Hummingbird (capital) 3.817 0

Total Program Budget 21.612 1.472

(183) The $55,000.00 requested for a one time marketing and sponsorship program for the St. Lawrence Centre for the Arts be funded from the St. Lawrence Capital Improvement Fund;

(184) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee on the future of theatres in Toronto, including those occupying City buildings that operate privately, by the end of 1999;

(185) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee on options for governance and management of the St. Lawrence Centre for the Arts, and strategies to generate revenue from non-revenue producing programs such as the Forum;

(186) The Chief Financial Officer and Treasurer, in conjunction with the North York Performing Arts Centre, report to the Policy and Finance Committee by June 1999 on the financial performance of the North York Performing Arts Centre;

(187) The Commissioner of Economic Development, Culture and Tourism review the operations of the two galleries (Arts Gallery of North York and the St. Lawrence Market Gallery) and the details of their amalgamation/operating structure be subject to a further report as soon as possible; and,

(188) The combined 1999 Operating Budgets of both galleries be reduced by a total amount of $.236 million.

PP. TORONTO ZOO:

(189) The 1999 Operating Budget of $ 22.800 million gross and $ 7.275 million net, comprised of the following services be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Biology and Conservation 7.329 6.908

Marketing and Communications 5.287 .310

General Management/

Administrative & Site Services 10.184 10.001

Revenue 0.0 (9.944)

Total Program Budget 22.800 7.275

CORPORATE ITEMS:

QQ. CONSOLIDATED GRANTS PROGRAM:

(190) The 1999 Recommended Operating Budget of $44.437 million gross and $42.513 million net, comprised of the following services, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Arts and Culture Grants 12.235 12.180

Community Services Grants 13.533 13.533

Recreation Grants 1.327 1.327

Public Health Grants 3.043 3.043

Housing Grants 0.974 0.974

Legion Grants 0.195 0.195

Access and Equity Grants 0.444 0.444

Economic Development Grants 5.116 5.116

Urban Development Grants 0.284 0.284

Misc. City of Toronto Grants 7.286 5.417

Total Program Budget 44.437 42.513

(191) The Commissioner of Community and Neighbourhood Services provide a document to Budget Committee members indicating how the grants' funding is disbursed and the detailed 1998 listing of grants disbursed to specific organizations;

(192) On-going under-expenditures of $898.8 thousand be reallocated within the Consolidated Grants program to begin addressing service levelling requirements;

(193) The Public Health Program's request to expand and fully fund the restoration of Food Access Grants not be approved, but that within the grants envelope, $100.0 thousand be allocated for the express purpose of providing capital funding, on a one-time basis only, for the purchase of refrigerators, ovens, etc. on an emergency basis for volunteers providing food to the homeless, and that the said funding to be at the sole discretion of the Commissioner of Community and Neighbourhood Services; that the said funding to be as follows:

(i) $50,000.00 to be added to the Consolidated Grants Budget; and

(ii) $50,000.00 be absorbed within the Consolidated Grants Budget; and

that the Commissioner of Community and Neighbourhood Services be requested to report thereon to the Municipal Grants Committee;

(194) that the Toronto Arts Council be permitted to take $43,000.00 from its Loan Program for Y2K improvements, subject to a review through the Y2K Program Office;

(195) The Toronto Arts Council's operating budget requests for a $98.0 thousand increase for grants administration, and $400.0 thousand increase for levelling up of service, be referred to the Municipal Grants Review Committee for consideration;

(196) The Commissioner of Economic Development, Culture and Tourism be requested to report back to the Policy and Finance Committee, no later than its meeting on July 20, 1999, providing a plan to balance the Toronto Arts Council and the Culture Office administrative workload, etc.

(197) The Commissioner of Economic Development, Culture and Tourism be given authority to negotiate a purchase of service agreement with Tourism Toronto, in consultation with the City Solicitor and the Chief Financial Officer and Treasurer;

(198) The President of Tourism Toronto report to Economic Development Committee and Budget Committee on the progress toward achieving the implementation of a tourism levy before the 2000 operating budget cycle;

(199) During 1999, staff of the Corporate Grants Team deal with the criteria, rationale, and justification for the use of automatic monthly instalment payments, the timing of them, and the application of consistent procedures in all cases where this process is utilized;

(200) During 1999, a corporate review be completed to determine the proper treatment and funding for organizations occupying city-owned properties and that this be used in establishing the occupancy grants policy. Implications of the policy should be incorporated into the 2000 operating budget;

(201) The Heritage Fund report to Municipal Grants Review Committee requesting and justifying the one-time "top-up" requested liability for 1998;

(202) As soon as results are determined for the Toronto District Board negotiations, revised figures for the negotiated rents in Recreation Grants be provided to the Finance Department;

(203) Given that hospital grants are a provincial, not municipal responsibility, all hospital grants be eliminated for the 1999 operating budget;

(204) As soon as the Province responds regarding the tax exemption for all Veteran's clubhouses, Canadian, British and Allied forces, that the Chief Financial Officer and Treasurer report to Municipal Grants Review Committee on the budget impact;

(205) The Economic and Development co-ordinator for BIA's, in consultation with the City's Auditor and Chief Financial Officer and Treasurer, review the audit practices of the new BIA organizations and that there be a rationalization of the audit fees following the review during 1999;

(206) The City of Toronto communicate with the Harbourfront Corporation regarding the upcoming end of the agreement and establish a plan of action for beyond 2001;

(207) The actual expenditures for partial graded exemption grants be reviewed and the grant eliminated during the next five years;

(208) The Finance Department examine the past five year's claims experience for the Drain Claim Grants and prepare estimates of the projected amount for the 2000 operating budget.

(209) The Tourism Toronto budget be reduced by 2 percent in 1999 and 8 percent in the year 2000, for a total 10 percent reduction over two years;.

RR. CAPITAL AND CORPORATE FINANCING, NON PROGRAM EXPENDITURES, AND NON-PROGRAM REVENUES;

(210) The 1999 recommended budget for Capital and Corporate Financing of $330.11 million (net) be approved;

(211) The 1999 recommended budget for Non Program Expenditures of $296.35 million (net) be approved, subject to the reduction of $737,000.00 in the reserve for adjustments to the Provincial Subsidy as reflected in Recommendation No. (218) (i) (c);

(212) The 1999 recommended budget for Non Program Revenues of $449.15 million be approved;

(213) With respect to the report to Budget Committee dated April 1, 1999, "1999 Capital Financing Plan Tax Supported Program" by the Chief Financial Officer and Treasurer, the said report incorporating the following recommendations be adopted:

(i) capital from current contributions be increased by $25 million for the 1999 operating budget, and approval in principle be confirmed for additional increases of $7 million, $0 million, $7 million, and $24million in the year 2000 through 2003 respectively, totalling a minimum of $38 million annually over the next four budget years, to continue to address the TTC capital shortfall;

(ii) the Sheppard Subway reserve fund withdrawal rate be increased to 100 percent of project expenditures, increasing withdrawals by $49.7 million in 1999 for a total contribution from reserve of $198 million;

(iii) effective January 1, 1999 to December 31, 2000, the first $25 million in annual unencumbered proceeds from the sale of surplus properties deposited in the Land Acquisition Reserve Fund be applied to offset capital requirements for the capital program in 1999 and 2000;

(iv) the City's share of the GO Transit 1998 budget surplus, estimated at $5 million, be used to offset debt requirements for the Year 2000 system compliance project in 1999;

(v) effective January 1, 1999 to December 31, 2000, the estimated tax supported operating budget savings of $46.2 million due to the continued suspension of the OMERS premium in 1999 and 2000 be applied to the capital program and thereafter revert to being transferred to the Employee Benefit Reserve;

(vi) total net debt financing (after provision for under expenditure of $50 million) for the 1999 capital program be limited to no more than $321.5 million, consisting of $110 million baseline debt and $211.5 million in new additional debt;

(vii) the City request the second Provincial interest free loan up to $100 million, and that such loan be used for the purposes of funding 1999 amalgamation and related capital costs;

(viii) the portion of the Y2K project attributable to the Water and Waste Water program, in the amount of $12.4 million, be funded from respective capital financing reserves in the rate supported budget; and

(ix) the following additional mitigating measures be pursued and reported on to further reduce the debt financing of $321.5 million:

(a) the potential to enter into a cross border sale/leaseback of subway cars be investigated and reported back by the Chief Financial Officer and Treasurer, and that, if implemented, any resulting up-front proceeds be applied to reduce debt requirements for the TTC capital program in 1999;

(b) the Province be requested to recognize the TTC capital subsidy elimination under the "Who Does What" downloading compensation formula, which may entitle the City to ongoing annual funding from the Community Reinvestment Fund; and

(c) the Province be urged to provide ongoing financial support to the City's unique (in Ontario) transit system, particularly in the area of funding subway car purchases on an ongoing basis, and that this financial support be in the form of a sustaining grant or access to additional revenue sources.

(214) With respect to the report dated April 8, 1999, "Policy on Interest Paid on Assessment Appeal Refunds Financial Implications of Interest Paid on Prime", from the Chief Financial Officer and Treasurer, the said report incorporating the following recommendations be adopted;

(i) the interest on assessment appeal refunds for 1997 and prior tax years be calculated based on the policies and rates that existed in each of the former area municipalities at that time;

(ii) that the rate of interest to be paid on assessment appeal refunds be set at the average rate paid by the six major Canadian chartered banks on savings account balances (or a minimum of 1 percent), as determined by the Chief Financial Officer and Treasurer, from time to time;

(iii) that the City of Toronto pay interest on assessment appeal refunds from 1998 and 1999 at a rate of 1 percent retroactive to January 1, 1998;

(iv) that the Province of Ontario be responsible for the amount of interest earned on an overpayment due to the time lag between the filing of an assessment appeal and the final disposition of the appeal by the Assessment Review Board;

(v) that the Province of Ontario be requested to reimburse the City for interest earned from the date of overpayment to the date of receipt by the City of the Notice of Decision;

(vi) that By-law No. 29097 of the former City of North York, which allows for the payment of interest on assessment appeal refunds for properties in the former City of North York, be amended to reflect the changes as set out in Recommendations Nos. (2) and (3) above;

(vii) that the former City of Toronto's Municipal Code be amended to provide that any overpayments made on, or after, January 1, 1998, which are eligible for assessment appeal refunds, shall have the interest applied from the day the overpayment is made;

(viii) that the City Solicitor be authorized to submit the necessary by-law to give effect to these recommendations.

(215) With respect to the communication dated April 6, 1999, "School Tax Sub-Committee Recommendations: City of Toronto 1999 Operating Budget respecting Children's Services and School rents Master Service Agreement and Related Agreements", from the City Clerk, Recommendations Nos. (3), (4), and (5) be adopted, viz:

"(3) that the Master Agreement be ratified as soon as possible and that the City not be confined to $3.70 per square foot for child care spaces used to provide child care services;

(4) that the City have security of tenure for City programs such as Day Care and Community and Recreation space;

(5) that the Chief Financial Officer and Treasurer, and other appropriate staff including Children's Services, Public Health and Parks and Recreation review the opportunities for service exchanges between the City and the School Boards, i.e., hydro, water, and garbage pick-up";

and further:

(iv) that City Council support the School Boards in their efforts to have their temporary borrowing costs reflected in the funding allocation formula;

(v) the report dated April 7, 1999, "Financial Relationship between the City of Toronto and School Boards" by the Chief Financial Officer and Treasurer, (reference 1.3.RR), be received.

(216) With respect to the report dated April 1, 1999, "Annual Sinking Fund Levies for 1999", from the Chief Financial Officer and Treasurer (reference 1.3.RR), that the said report incorporating the following recommendations be adopted:

(i) the 1999 Sinking Fund Levies, as detailed in the report, be approved;

(ii) no reduction of Sinking Fund Deposits be approved for 1999; and

(iii) the appropriate City of Toronto officials be authorized to take the necessary actions to give effect thereto.

(217) The City of Toronto's 1999 contribution to the Greater Toronto Services Board (GTSB) of $550,000.00 be approved for inclusion in the Non-Program Expenditures budget.

(218) Further to revised estimates of Provincial downloading costs and the recent Provincial announcements on Local Services Realignment (LSR):

(i) a Provincial Local Services Realignment section be established in Non Program Expenditures to include the following:

(a) $13.20 million recoverable from Public Health;

(b) $ 5.90 million recoverable from Ambulance Services;

(c) $ 1.763 million as a reserve for adjustments to the Provincial subsidy;

(ii) the budget for the cost of the Assessment Function downloaded by the Province in Non Program Expenditures be increased by $1.06 million; and

(iii) that staff be directed to allocate the corporate recovery charges from Public Health and Ambulance Services to the appropriate program budgets, following approval of the 1999 Operating Budget.

RR-1 PARKING TAGS:

(219) The 1999 Recommended program Budget for Parking Tag Operations of $25.938 million (gross) and $26.211 million (net revenues), comprised the following services on the gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Non-Program Expenditures:

- Parking Tag Operation (City Finance) 4.490 4.490

- Parking Enforcement Unit (Police Services) 21.448 21.448

Non-Program Revenues:

- Parking Tag Revenues (52.150)

Total Program Budget 25.938 (26.212)

(220) The Parking Enforcement Unit expenditures be approved as submitted on the basis that the program maintain full staffing levels (i.e. no gapping), which would result in an increase in the gross revenue for parking tags of $1 million annually, pro-rated to a $500,000.00 increase in 1999 budgeted revenues and the Budget Analyst be directed to work with the Parking Enforcement staff to ensure that this revenue target is met at year end and provide an updated report to the Budget Committee in September, 1999 in that regard.

SS. TEDCO:

(221) The 1999 Operating Budget for the Toronto Economic Development Corporation (TEDCO) of $6.177 million gross expenditures, $8.374 million revenues, and a retained surplus of $2.197 million (as detailed in Appendix A and summarised below), be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

TEDCO 6.177 (2.197)

(222) With regards to an additional reduction target of $103,000.00 agreed to by TEDCO and recommended by the Budget Committee:

(i) TEDCO be given the flexibility to apportion the revised additional reduction target of $103,000.00 to expenditure line items in the manner it considers most appropriate;

(ii) the expenditure reductions of up to $103,000.00 be restored, if necessary, contingent on the 1999 actual surplus exceeding the budgeted surplus of $2,196,300.00.

(223) TEDCO report to the Budget Committee in 1999 on appropriate statistics and performance measures that would indicate how TEDCO's operations compare with industry standards;

(224) With respect to the study currently being undertaken by the Chief Administrative Officer and the Economic Development Committee regarding TEDCO's governance structure, its future role and its financial accountability to the City:

(i) the Chief Financial Officer and Treasurer be requested to determine the financial implications of the recommendations of the study;

(ii) the Chief Financial Officer and Treasurer, in consultation with TEDCO, report to the Budget Committee on the necessary adjustments to TEDCO's approved 1999 Operating Budget, to reflect the financial implications of the study;

(225) The City Solicitor, in consultation with the Chief Financial Officer and Treasurer, report to the Budget Committee, for its regular business meeting scheduled for May 25, 1999, on the most appropriate process for the disposition of grants/subsidies in TEDCO's portfolio of grants/subsidies to third parties; and

(226) The Chief Financial Officer and Treasurer, in consultation with TEDCO, report to the Budget Committee on the necessary adjustments to TEDCO's approved 1999 Operating Budget, to reflect the recommendations of the report.

TT. TORONTO PARKING AUTHORITY:

(227) The 1999 Recommended Operating Budget for the Toronto Parking Authority of $30.726 million (gross, before contributions to City and retaining earnings) and ($29.593) million (net), comprised of the following Services on a gross and net basis, be approved:

Service Gross Budget Net Budget

($, mil) ($, mil)

Off-Street Parking 28.383 (16.159)

On-Street Metered Parking 2.343 (13.434)

Total Program Budget 30.726 (29.593)

(228) The Chief Administrative Officer, in consultation with the President, Toronto Parking Authority ensure that the appropriate staff are made available to process expeditiously all legal and other requirements to give effect to changing the by-laws respecting a new rate policy for the City.

UU. WATER AND WASTE WATER:

(229) The 1999 Recommended Operating Budget for Water and Waste Water of $442.033 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget

($, mil)

Net Budget

($, mil)

Water
Water Production 52,567.1 52,567.1
Water Distribution 70,552.0 70,552.0
Administration & Other 27,192.5 27,192.5
Capital Financing 51,722.6 51,722.6
Total Water Expenditures 202,034.2 202,034.2
Revenues (202,034.2) (202,034.2)
Net Total - Water Program 0.0 0.0
Waste Water
Wastewater Treatment 84,735.4 84,735.4
Wastewater Collection 38,173.2 38,173.2
Administration & Other 28,258.2 28,258.2
Capital Financing 88,832.4 88,832.4
Total Waste Water Expenditures 239,999.2 239,999.2
Revenues (239,999.2) (239,999.2)
Net Total - Waste Water Program 0.0 0.0

(230) The General Manager, Water and Waste Water, in conjunction with the Chief Financial Officer and Treasurer report back to Budget Committee by June 30, 1999 on the following matters:

(a) savings realization schedule for the years 1999 to 2003 in relation to the Best Practices Program, and the initiation of the Program for District operations;

(b) the extent, nature and impact of water loss in the distribution system relating to the former City of Toronto; and

(c) the overall financial impact of the termination of industrial waste agreements;

(231) With respect to the report (March 22, 1999) from the Chief Financial Officer and Treasurer, entitled "Financing the 1999 Water and Waste Water Capital and Operating Budgets" to Budget Committee, the following Recommendations be adopted:

"It is recommended that, in the absence of capital expenditure reductions in 2000 and 2001:

(a) the capital financing strategy as outlined in Option C(ii) and table 12 of the report, which provides for a combination of debenture financing (in the amount of $65.0 million over the 2000-2003 capital works plan) and an increase in the average water rate (projected at 2.0 percent in the years 2000 and 2001), be endorsed in principle;

(b) the combined water and sewer rates, and the rate charges to flat rate customers, be increased by 2.0 percent effective January 1, 2000; and

(c) the rate increases for 2001 and debenture financing proposed, as shown in recommendation (a) above for the years 2000 and 2001, be subject to a review of the 2000-2004 Water and Waste Water Program requirements prior to approval;

(232) The Chief Financial Officer and Treasurer, in consultation with the General Manager Water and Waste Water be requested to consider spreading the capital expenditures more evenly over five years; and

(233) The recommendations to provide for a harmonized water rate structure embodied in the report (March 22, 1999) from the Chief Financial Officer and Treasurer, entitled "Harmonization of Water and Water Pollution Control Rates", be adopted, subject to striking out Recommendations Nos. (1) and (4), and inserting in lieu thereof the following paragraphs in order to provide funding for the Universal Metering Project through a four-year deferral of the decreases to which former City of Toronto water users would realize under any harmonization initiative, while phasing-in increases and decreases for all other users over a four-year period, as described in Section (3) in the report (April 12, 1999) from the Chief Financial Officer and Treasurer, entitled "Water Rate Harmonization - Addendum (2)":

(1) (i) Effective September 1, 1999 (representing the first-year implementation of a four-year phase-in plan), the combined water and sewer rate in the former cities of East York, Etobicoke, North York, Scarborough and York for accounts paid on or before the due date shall be based on volume of water consumed as follows:

(1) (2) (3) (4) (5)
Monthly Volume Consumed: Water Charge Sewer Charge

($ / M3)

Combined Rate to be Charged if not paid on or before due date ($ / M3)

Discounted Rate if paid on or before due date

($ / M3)

In the former Borough of East
First 20 M3 0.4679 0.5919 1.0598 1.0093
Next 480 M3 0.4760 0.6021 1.0780 1.0267
Next 500 M3 0.4753 0.6012 1.0765 1.0252
Next 4,000 M3 0.4729 0.5983 1.0712 1.0202
Next 5,000 M3 0.4695 0.5939 1.0634 1.0128
Next 10,000 M3 0.4626 0.5852 1.0478 0.9979
Amount over 20,000 M3 0.4565 0.5775 1.0340 0.9848
In the former City of
First 20 M3 0.4220 0.5338 0.9558 0.9103
Next 480 M3 0.4295 0.5434 0.9729 0.9266
Next 500 M3 0.4289 0.5425 0.9714 0.9251
Next 4,000 M3 0.4265 0.5396 0.9661 0.9201
Next 5,000 M3 0.4231 0.5352 0.9583 0.9127
Next 10,000 M3 0.4162 0.5265 0.9427 0.8978
Amount over 20,000 M3 0.3950 .4996 0.8946 0.8520
In the former City of North
First 20 M3 0.4364 0.5520 0.9884 0.9413
Next 480 M3 0.4441 0.5618 1.0059 0.9580
Next 500 M3 0.4434 0.5609 1.0043 0.9565
Next 4,000 M3 0.4410 0.5579 0.9990 0.9514
Next 5,000 M3 0.4377 0.5536 0.9913 0.9441
Next 10,000 M3 0.4308 0.5449 0.9757 0.9292
Amount over 20,000 M3 0.4246 0.5372 0.9618 0.9160
In the former City of
First 20 M3 0.3860 0.4883 0.8742 0.8326
Next 480 M3 0.3932 0.4974 0.8906 0.8482
Next 500 M3 0.3925 0.4965 0.8889 0.8466
Next 4,000 M3 0.3901 0.4935 0.8837 0.8416
Next 5,000 M3 0.3867 0.4892 0.8759 0.8342
Next 10,000 M3 0.3798 0.4805 0.8603 0.8193
Amount over 20,000 M3 0.3487 0.4411 0.7897 0.7521
In the former City of York:
First 20 M3 0.4610 0.5831 1.0441 0.9944
Next 480 M3 0.4688 0.5931 1.0619 1.0113
Next 500 M3 0.4675 0.5914 1.0589 1.0085
Next 4,000 M3 0.4639 0.5868 1.0506 1.0006
Next 5,000 M3 0.4531 0.5732 1.0264 0.9775
Next 10,000 M3 0.4198 0.5310 0.9508 0.9055
Amount over 20,000 M3 0.3744 0.4736 0.8480 0.8076

(ii) effective September 1, 1999, the combined water and sewer rate in the former City of Toronto for metered customers for accounts paid on or before the due date shall be $1.03083 per cubic metre, and the rate charged to flat-rate customers in the former City of Toronto shall be as set out in Schedules "B", "C" and "D" of City of Toronto By-law No. 356-1998;

(iii) effective September 1, 1999, the rate charged to flat-rate customers in the former City of Etobicoke shall be as set out in Schedule "A" of City of Toronto By-law No. 356-1998; and

(iv) effective February 1, 2003, the rate charged to metered customers in the former City of Toronto shall be the same as the competitive rate structure charged to metered customers in the former cities of East York, Etobicoke, North York, Scarborough and York.

(2) with respect to the harmonization of the early payment discount, the combined water and sewer rate for all accounts paid in full on or before the due date indicated on the bill be subject to a discount of 5.0 percent on the price per cubic metre of water, with the discounted price being that shown under column (5) of Recommendation No. (1);

(3) with respect to Sewer Surcharge Rebates and Private Water Works Agreements:

(i) Section (4) of Article 1 of Chapter 292 of the Municipal Code of the former City of Toronto, which provides for a rebate of the sewer surcharge to certain customers in the former municipality of Toronto, be repealed, and By-law No. 32-93 of the former Municipality of Metropolitan Toronto be amended to provide for the rebate of the sewer surcharge to qualifying customers in any of the former municipalities, and that the rebate for 1999 be based on the cost of sewage treatment of $0.3858 per cubic metre;

(ii) By-law No. 32-93 of the former Municipality of Metropolitan Toronto be further amended to provide for a rebate of 55.85 percent of the effective retail rate charged to those customers receiving water services from the City and with a private septic system that is not connected to the sewer system; and

(iii) Section (5) of Article 1 of Chapter 292 of the Municipal Act of the former City of Toronto, respecting a charge where sewage flow exceeds water usage, be repealed, and By-law No. 96-80 of the former Municipality of Metropolitan Toronto be amended to reflect both the cost of local sewage collection and treatment, and that this cost be set at 55.85 percent of the effective retail rate;

(II) that Council endorse a Zero percent increase in the 1999 Operating Budget; and

(III) that the necessary City Officials be authorized and the necessary By-laws be enacted to give effect to the foregoing Recommendations.

The Strategic Policies and Priorities Committee reports, for the information of Council, having:

(A) tabled the following motions for consideration at its Special meeting scheduled to be held on Monday, April 26, 1999, respecting the portion of the Operating Budget (Section SS) pertaining to TEDCO:

Moved by Councillor Ootes on behalf of Councillor Chow:

"That:

(1) the Toronto Harbour Commission's (THC) budget and its monthly operating fund through TEDCO, not be approved nor funding released from TEDCO to the THC until:

(i) THC submit the 1998 actual spending and the 1999 proposed line-by-line budget for approval;

(ii) City of Toronto Financial staff review THC's line-by-line detailed budget; and

(iii) the Budget Committee, Strategic Policies and Priorities Committee and Council approve the THC's budget; and

(2) the THC provides, for the City's budget deliberation, a detailed accounting on:

(i) consultants, clearly describing who received funds, in what amounts, and what services were performed for the payments;

(ii) travel budget, who spent what to go where; and

(iii) hospitality funds, save as above.

Moved by Councillor O'Brien:

"That the Chair of the Budget Committee be requested to write to the Toronto Harbour Commission forwarding the concerns raised by the Strategic Policies and Priorities Committee having regard that THC's Operating Budget was not submitted in appropriate time for consideration by the Budget Committee."

(B) requested the Chief Administrative Officer, in consultation with the Mayor, to report directly to the Council for its special meeting on April 26, 1999, on a consolidation of Task Forces and Sub-Committees, and the savings and reductions be taken from the City Clerk's budget if Council adopts such consolidation;

(C) requested the Executive Director of Human Resources to submit a report to the Strategic Policies and Priorities Committee for its Special Meeting to be held on April 26, 1999, with regard to front line staffing levels for various positions in various Departments, as requested by the Toronto Community Council at its meeting on March 30, 1999;

(D) requested the Chief Financial Officer and Treasurer to submit a report to the Special Meeting of the Strategic Policies and Priorities Committee to be held on April 26, 1999, providing written assurance that no additional tag issuances are required;

(E) received the communication (April 19, 1999) from Councillor Joan King, Seneca Heights; and

(F) conveyed its appreciation to Councillors Tom Jakobek, Chair of the Budget Committee and the Members of the Budget Committee, the Chief Administrative Officer, the Chief Financial Officer and Treasurer, staff in the Finance Department and the Clerks Division , and all staff who worked in the preparation of the 1999 Operating Budget for their efforts in finalizing the Budget.

The Strategic Policies and Priorities Committee further reports, for the information of Council that the Budget Committee on April 16, 1999, took the following action:

(1) the Chair, Toronto Police Services Board, be requested to report directly to City Council for its meeting of April 26, 1999, providing a list of vehicles leased in the last year, the disposition of such vehicles, the projected number of vehicles to be leased in 1999 and where said vehicles are to be located; and

(2) the Chief Financial Officer and Treasurer be requested to report verbally to City Council for its meeting of April 26, 1999, on whether the 1 percent rule that existed in the former Metro in regard to tax levy for the Sheppard Subway has been met or exceeded.

The Strategic Policies and Priorities Committee further reports, for the information of Council, that the following motions were voted on and lost at the meeting of the Strategic Policies and Priorities Committee on Tuesday, April 20, 1999:

Moved by Councillor Betty Disero:

"That with regard to the $64,000.00 grant identified for its portion of Consolidated Grants, the Toronto Arts Council be permitted to use the $64,000.00 for either administration or grant; and submit a report thereon to the Economic Development Committee for information."

Moved by Councillor Elizabeth Brown on behalf of Councillor Joe Mihevc:

"That:

(1) with regards to Food Access Grants Program, an additional $100,000.00 be provided, such funds to be provided from the Provincial Subsidy Reserve; and

(2) the Chief Administrative Officer, working with appropriate staff, be directed to harmonize community grants within a three year period beginning in the year 2000, such harmonization to follow the recommendations of City staff in the areas of Community Services, AIDS prevention, Access and Equity, Housing Initiatives (Emergency Aid), Arts and Culture, Recreation and Economic Development."

Moved by Councillor Pantalone:

"That in order to allow a better optimization of the grants program, the $525,000.00 elimination for Hospital Grants be accepted and re-allocated for grants to new organizations in underserved areas."

Moved by Councillor Chris Korwin-Kuczynski:

"That the Strategic Policies and Priorities Committee recommend to Council that Option B plus respecting the Harmonization of User Fees for Recreation, be approved.

"That the front yard parking charge in the City of Toronto be reduced from $84.00 to $60.00."

Moved by Councillor Rae:

"That the Strategic Policies and Priorities Committee recommend to Council that Option B plus respecting the Harmonization of User Fees for Recreation, be implemented in the former City of Toronto."

Moved by Councillor O'Brien:

"That the Strategic Policies and Priorities Committee strike out Recommendation I. Nos. (2) and (3) embodied in the communication (April 17, 1999) from the City Clerk respecting the phasing in of residential garbage pick up."

Moved by Councillor Rae:

"That the Recommendations respecting the phasing in of residential garbage pick up be amended to provide that twice a week garbage pick up not occur in the downtown riding, excluding high needs areas."

Moved by Councillor Chris Korwin-Kuczynski:

"That service fees for garbage and re-cycling collection for small commercial properties in areas where these charges are presently not in effect be deferred for discussion in the year 2000."

Moved by Councillor Pantalone:

"That Recommendation No. (6) embodied in the communication (April 17, 1999) from the City Clerk be amended to provide that the stated rates to be charged be on an annualized basis and that the projected revenue be accordingly revised."

The Strategic Policies and Priorities Committee submits the following communication (April 17, 1999) from the City Clerk:

Recommendations:

The Budget Committee on April 16, 1999, recommended to the Strategic Policies and Priorities Committee, and Council the adoption of the 1999 Operating Budget (as outlined below), subject to the following amendments:

Community and Neighbourhood Services:

A. Children's Services (Volume 1, Page 1)

A one time only, non-salary adjustment of $3.3 million be made as a down payment towards paying the actual cost of operating Child Care Centres and that this amount be found within the existing 1999 Child Care Operating Budget.

C. Shelter, Housing and Support (Volume 1, Page 50)

(1) The report (April 14, 1999) from Councillor Jack Layton, respecting the Big City Mayors' National Homelessness and Housing Initiative, be adopted, viz:

(a) That the budget provide funds in the amount of $60,000.00 to support the Big City Mayors' Caucus on Homelessness and Housing Initiative. The project will be administered by the FCM administration; and

(b) that $20,000.00 of the funds be released to the FCM immediately and that the balance of $40,000.00 be released subject to the participation of at least three additional cities in funding the initiative at a similar per capita level ($0.3/capita).

(2) That the $50,000.00 for the Big City Mayors' Caucus on Homelessness and Housing Initiative be provided from the 1999 Shelter, Housing and Support Operating Budget.

(3) Any savings from the Mortgage Renewal Portfolio (beyond the existing budget) be transferred to a Mayor's Homeless Initiative Reserve Fund, for 1999 only, subject to City Council approval.

(4) The report (September 10, 1998) from the City Clerk, forwarding report (August 20, 1998) from the Commissioner of Community and Neighbourhood Services respecting the Hostel Ombudsperson Pilot Project, be received.

Works and Emergency Services:

I Solid Waste Management (Volume 1, Page 168)

(1) Twice a week residential garbage pick up continue in North York for the summer of 1999;

(2) A program be phased in over three years in the summer months across the City for nonrecyclable materials only.

(3) The Commissioner of Works and Emergency Services be requested to report to the Works Committee in the fall of 1999 on:

(a) how the pick up of nonrecyclable materials, phased in over three years, can be accomplished and the cost associated therewith, including a mechanism to survey residents to determine whether or not they perceive a real need for twice a week pick up in the summer; and

(b) the projected savings from efficiencies and other changes in the delivery of residential waste collection service area.

(4) The Commissioner of Works and Emergency Services to include in the requested ICI report:

(a) the cost for commercial pick up being expanded City wide at locations where flower pots are shared between commercial units at street level and the residents above such units;

(b) the feasibility of introducing this program as soon as possible; and

(c) the expansion being absorbed within the department's 1999 operating budget.

(5) The Commissioner of Works and Emergency Services be requested to consider not charging or withdrawing services from residential properties where residential waste is found mixed with commercial waste.

(6) Recommendation No. 36(e), embodied in the report (April 15, 1999) from the Budget Committee, entitled "1999 Recommended Operating Budget Corporate Report", be struck out and insert in lieu thereof the following:

"36(e) Garbage and Recycling Collection for Small Commercial Properties:

Council adopt a three year phase in plan to deal with small commercial garbage and recyclable collection as follows:

(i) existing service levels and eligibility criteria for garbage and recyclable collection service to the small commercial sector currently receiving this service be maintained until the end of 2000;

(ii) effective July 1, 1999, the City charge mandatory service fees to all small commercial locations currently receiving more than twice a week garbage collection at a rate of $150.00 for three times a week garbage collection, $600.00 for five times a week garbage collection and $800.00 for six times a week garbage collection with revenues of $2.3 million included in the 1999 Recommended Budget;

(iii) effective January 1, 2000, the City charge a mandatory annual rate of $225.00 for those locations receiving three times a week collection; $900.00 for five times a week garbage collection; and $1,200.00 for six times a week garbage collection with annual revenues of $3.50 million (additional $1.2 million in 2000);

(iv) effective January 1, 2001, the City charge a mandatory annual rate of $300.00 for those locations receiving three times a week garbage collection; $1,200.00 for five times a week garbage collection and $1,600.00 for six times a week garbage collection with annual revenues of $4.7 million (additional $1.2 million in revenue in 2001);

(v) the Commissioner of Works and Emergency Services be requested to report to the Works Committee by June 2000:

(a) providing a harmonized eligibility criteria for garbage and recyclables collection service to the small commercial sector and a harmonized service fee structure to be effective January 1, 2000; and

(b) providing equivalent garbage service levels to small businesses (restaurants and greengrocers) with similar characteristics to business communities receiving multiple weekly garbage collection."

(7) $150,000.00 be maintained for special leaf pick up in areas as defined by the Commissioner of Works and Emergency Services and identified by City Council.

J Transportation (Volume 1, Page 195)

Recommendations Nos. (1), (4), (5) and (6) in the report (March 26, 1999) from the Commissioner, Works and Emergency Services, entitled "Fee Structure Options for Road Allowance Permits and Permit Parking", be adopted, viz:

(a) that the fees for the various construction and commercial uses of the public road allowance set out in Table 1 (attached to the above-noted report) be approved and the relevant "Street By-laws" be amended accordingly;

(b) that the new fee structure become effective on the renewal date of present licenses and permits be adjusted annually to the rate of inflation (except in the case of on-street permit parking and residential boulevard parking), and be applied to all new licences and permits issued subsequent to the amendments to the applicable By-laws and Municipal Codes;

(c) that the Chief Administrative Officer, in consultation with the Commissioner of Corporate Services, initiate a study to assess the impact of front yard (residential boulevard) parking from a real estate value perspective and recommend any adjustments to the fee established; and

(d) that the appropriate City Officials be authorized to take whatever action is necessary to give effect to the foregoing, including the introduction in Council of any Bills that may be required.

Economic Development, Culture and Tourism:

O Economic Development (Volume 1, Page 296)

The Budget Committee's recommendation that there be no fee for film permits be confirmed.

P Parks and Recreation (Volume 1, Page 316)

Harmonization of User Fees for Recreation:

(1) That Budget Committees's adoption of Option B be confirmed.

(2) The Commissioner of Economic Development, Culture and Tourism be requested to report to Strategic, Policies and Priorities Committee at its meeting on April 20, 1999, on providing minimal free adult drop-in programs on a restricted basis at no cost, during regular business hours City wide.

(3) The Commissioner of Economic Development, Culture and Tourism be requested to report back to the Budget Committee, as soon as possible, on why there would be a cost in having a restricted free adult drop in program in the former City of Toronto.

Q Special Events (Volume 1, Page 342)

Toronto Outdoor Art Exhibit:

(1) $15,300.00 be maintained and the funding be provided from the appropriate program budgets; and

(2) the City Clerk be requested to report back to the Policy and Finance Committee on the costs associated with producing this event.

Urban Planning and Development Services:

S Urban Planning and Development Services (Volume 1, Page 370)

Recommendation No. 68, embodied in the report (April 15, 1999) from the Budget Committee, respecting the Toronto Watershed be amended by adding:

"no later than September 15, 1999."

Corporate Services:

X Facilities and Real Estate (Volume 1, Page 466)

(1) Add $32,000.00 to the Facilities and Real Estate budget to cover the costs for additional space at Central Eglinton Community Centre, 160 Eglinton Avenue East, as adopted by City Council at its meeting of April 13, 14 and 15, 1999.

(2) The Commissioner of Corporate Services be requested to report to the Corporate Services Committee, prior to the Year 2000 budget cycle, on the following matters:

(a) prepare an inventory of all real, built up property used for the City's business with details of purpose of use, department responsible for use, property size, market value, whether leased or owned, and vacant space if any available at a particular location;

(b) identify how the property is managed (whether corporately, by a specific department or by private sector) and the total cost and unit cost per square foot of managing the property;

(c) identify details of borrowing against specific properties, rate of interest, and annual mortgage payments or lease/rent met from the operating budget;

(d) identify details of utility costs for each location and how each property is cleaned (through staff or contract services) and the unit cost of utilities and cleaning;

(e) identify details of how the property is maintained (building repairs and maintenance) whether by internal or contract staff, the total cost of maintenance and unit cost;

(f) identify systems and methods in use for time management and job costing of all maintenance tasks and labour productivity levels;

(g) identify industry benchmarks for unit cost of property maintenance and management;

(h) comparison, for each property, of the industry average benchmarks with the internal unit costs and identify the potential excess costs being incurred in time for the Year 2000 budget cycle; and

(i) identify potential candidates to be declared surplus property without impacting on program operations.

W Corporate Communications (Volume 1, Page 448)

That the 1999 Operating Budget include a budget cut of $310,000.00 and 5 FTE's from the establishment of strength, the said reduction to be at the discretion of the Commissioner of Corporate Services.

Y Fleet Management (Volume 1, Page 483)

(1) The Fleet Management Division be requested to accomplish $500,000.00 of savings in 1999.

(2) The Chief Administrative Officer be requested to report back to Budget Committee on:

(a) where the aforementioned savings of $500,000.00 could be achieved;

(b) the possible closure of three garages and in that regard provide comments on the following:

(i) lost productivity costs of the proposed yard closures, calculations to include the number of units currently repaired on site; the distance to the closest yard; and the number of repairs/unit/year;

(ii) the process and time to shuttle vehicles/equipment to the closest yard;

(iii) lost productivity time due to ferrying vehicles to the closest yard;

(iv) cost of lost productivity time; and

(v) if the closest yard can accommodate the increased number of vehicles/equipment and have the ability to respond to repairs in a timely fashion.

(3) The report (April 7, 1999) from the Commissioner of Corporate Services, entitled "1999 Vehicle and Equipment Replacement Program", be referred to the Chief Administrative Officer and the Chief Financial Officer and Treasurer to review same with Department Heads for a report thereon to the Budget Committee, the said report to include fleet reduction and garage issues.

(4) The Commissioner of Corporate Services be requested to provide a bi-monthly report to the Budget Committee on how the requested savings are being achieved.

Other:

EE Council (Volume 2, Page 615)

(1) The Community Council Hospitality Budget be allocated between the Community Councils on a per capita basis.

(2) The report (January 15, 1999) from the City Auditor be adopted, subject to deleting Recommendation No. (8) and inserting in lieu thereof the following:

"(8) The Councillors' budget be reduced to $59,000.00."

(3) The adoption of Clause No. 1, Report No. 3 of The Audit Committee, entitled "Review of Staff, Councillors' and Mayor's Office Expenses"; subject to the following:

(a) Recommendations Nos. (5) and (7) be struck out and insert in lieu thereof the following:

"(5) Official Vehicles:

(a) vehicles used by Councillors representing the Mayor there be at no charge to the Councillors' budget;

(b) vehicles used for other purposes, to be charged to the Councillors' budget at $10.00 per trip; and

(c) vehicles pooled by Councillors to attend official functions, such as representing the Mayor, be at no charge to the Councillors' budget.

(7) Space allocation for Councillors be referred to the Office Reallocation Sub-Committee to report thereon directly to City Council, no later than July 6, 1999, with recommendations, if approved, being implemented on January 1, 2000."

(4) Adding the following Recommendation:

"The Council Transportation Service budget by reduced to $390,000.00 gross and $350,000.00 net; the City Clerk to receive the revenues generated from charge back fees from Councillors, and further that the City Clerk be requested to report back to Budget Committee in the event that the anticipated $40,000.00 in revenues cannot be achieved.

(5) Recommendation No. 113(d) embodied in the report (April 15, 1999) from the Budget Committee, entitled "1999 Operating Budget Corporate Report", be struck out.

(6) Recommendation No. 114 embodied in report (April 15, 1999) from the Budget Committee, entitled "1999 Operating Budget Corporate Report", be amended by striking out the words "The courier costs be reduced by $200,000.00 and the Commissioner of Corporate Services be requested to work out the technical aspects of same."

FF Mayor's Office (Volume 2, Page 634)

The report (April 15, 1999) from Mayor Mel Lastman, entitled "International City to City Program", respecting the process to undertake relationships with selected cities around the world for economic development purposes, be adopted, subject to adding the following:

(1) "That the World Cities Committee be requested to solicit private sector partnership funds to assist in the aforementioned undertaking"; and

(2) that the funds be added to the Economic Development, Culture and Tourism 1999 Operating Budget.

Special Purpose Bodies

KK Toronto Public Library (Volume 2, Page 706)

The Chief Librarian be requested to report directly to City Council with regard to the purchasing and materials budget, the said report to include the purchasing of multi-lingual materials.

LL Public Health (Volume 2, Page 724)

The Dental Advisory Committee, pertaining to Dental Health Services, include a representative from the Community Health Centre.

NN Toronto Police Services (Volume 2, Page 771)

(1) The report (April 15, 1999) from the Chair, Toronto Police Services Board, respecting the 1999 Police Vehicle Replacement Budget, be adopted as per the list of vehicles embodied in the said report.

(2) The Chair, Toronto Police Services Board, be requested to provide a five year plan for vehicle replacement together with a five year maintenance plan, the said plan to include leased vehicles.

(3) Recommendation No. (154), embodied in report (April 15, 1999) from the Budget Committee, entitled "1999 Recommended Operating Budget Corporate Report" be amended by deleting the words "prior to the next budget cycle" and inserting in lieu thereof the words, "as soon as possible", so that such recommendation now reads:

"The Chair, Toronto Police Services Board, report back, as soon as possible, on the feasibility of marking some of the 731 unmarked vehicles so as to show a greater police presence in the City."

(4) The Chair, Toronto Police Services Board, be requested to report directly to City Council for its meeting of April 26, 1999, providng a list of vehicles leased in the last year, the disposition of such vehicles, the projected number of vehicles to be leased in 1999 and where said vehicles are to be located.

(5) Allocate up to $500,000.00 between the Police and Public Works for barricades for the Santa Claus Parade, Caribana, Gay Pride Parade and the Jazz Festival; the Police to absorb their portion of $350,000.00 whereas $150,000.00 to be added to the Transportation Program budget.

Corporate Items:

QQ Consolidated Grants - (Volume 2, Page 819)

(1) Food Access Grants

The allocation of funding for Food Access Grants be at the discretion of the Commissioner of Community and Neighbourhood Services to report thereon to the Municipal Grants Committee, the said funding to be as follows:

(i) $50,000.00 to be added to the Consolidated Grants budget; and

(ii) $50,000,00 to be absorbed within the Consolidated Grants budget.

(2) Toronto Arts Council

The Commissioner of Economic Development, Culture and Tourism be requested to report back to the Policy and Finance Committee, no later than its meeting on July 20, 1999, providing a plan to balance the Toronto Arts Council and the Culture Office administrative workload, etc.

(3) Tourism Toronto

The Tourism Toronto budget be reduced by 2 percent in 1999 and 10 percent in the year 2000.

Corporate Items:

RR Capital and Corporate Financing, Non Program Expenditures, and Non Program Revenues (Volume 2, Page 855)

(1) The Chief Financial Officer and Treasurer be requested to report verbally to City Council for its meeting of April 26, 1999, on whether the 1 percent rule that existed in the former Metro in regard to tax levy for the Sheppard Subway has been met or exceeded.

(2) The Chief Financial Officer and Treasurer be requested to provide a verbal report to Strategic Policies and Priorities Committee for its meeting of April 20, 1999, on the status of determining appropriate budgeting numbers to reflect assessment.

(3) Recommendation No. (193) (i) (c) be amended to read as follows:

"$1.768 million as a reserve for adjustments to the Provincial subsidy."

(4) Recommendation No. (186), embodied in report (April 15, 1999) from the Budget Committee, be amended by striking out the sum of "$296.39 million (net)" and inserting in lieu thereof the sum of "$296.35 million (net)."

RR-1 Toronto Parking Operations (Volume 2, Page 868)

(1) Recommendation No. (195), embodied in the report (April 15, 1999) from the Budget Committee, entitled "1999 Operating Budget Corporate Report" be amended by striking out the words "so as to generate an additional $1 million in revenues, pro-rated to result in" and inserting in lieu thereof the words "by 2.5 percent, which would result in an increase in the gross revenue for parking tags of $1 million annually, pro-rated to".

Non-Levy Operations:

UU Water and Waste Water (Volume 2, Page 916)

Water and Wastewater:

The recommendations to provide for a harmonized water rate structure embodied in the report (March 22, 1999) from the Chief Financial Officer and Treasurer, entitled "Harmonization of Water and Water Pollution Control Rates", be adopted, and furthering that the said recommendations be amended by striking out Recommendations Nos. (1) and (4), and inserting in lieu thereof the following paragraphs in order to provide funding for the Universal Metering Project through a four-year deferral of the decreases to which former City of Toronto water users would realize under any harmonization initiative, while phasing-in increases and decreases for all other users over a four-year period, as described in Section (3) in the report (April 12, 1999) from the Chief Financial Officer and Treasurer, entitled "Water Rate Harmonization - Addendum (2)":

(1) (i) Effective September 1, 1999 (representing the first-year implementation of a four-year phase-in plan), the combined water and sewer rate in the former cities of East York, Etobicoke, North York, Scarborough and York for accounts paid on or before the due date shall be based on volume of water consumed as follows:

(1) (2) (3) (4) (5)
Monthly Volume Consumed: Water Charge

($ / M3)

Sewer Charge

($ / M3)

Combined Rate to be Charged if not paid on or before due date

($ / M3)

Discounted Rate if paid on or before due date

($ / M3)

In the former Borough of East York:
First 20 M3 0.4679 0.5919 1.0598 1.0093
Next 480 M3 0.4760 0.6021 1.0780 1.0267
Next 500 M3 0.4753 0.6012 1.0765 1.0252
Next 4,000 M3 0.4729 0.5983 1.0712 1.0202
Next 5,000 M3 0.4695 0.5939 1.0634 1.0128
Next 10,000 M3 0.4626 0.5852 1.0478 0.9979
Amount over 20,000 M3 0.4565 0.5775 1.0340 0.9848
In the former City of Etobicoke:
First 20 M3 0.4220 0.5338 0.9558 0.9103
Next 480 M3 0.4295 0.5434 0.9729 0.9266
Next 500 M3 0.4289 0.5425 0.9714 0.9251
Next 4,000 M3 0.4265 0.5396 0.9661 0.9201
Next 5,000 M3 0.4231 0.5352 0.9583 0.9127
Next 10,000 M3 0.4162 0.5265 0.9427 0.8978
Amount over 20,000 M3 0.3950 0.4996 0.8946 0.8520
In the former City of North York:
First 20 M3 0.4364 0.5520 0.9884 0.9413
Next 480 M3 0.4441 0.5618 1.0059 0.9580
Next 500 M3 0.4434 0.5609 1.0043 0.9565
Next 4,000 M3 0.4410 0.5579 0.9990 0.9514
Next 5,000 M3 0.4377 0.5536 0.9913 0.9441
Next 10,000 M3 0.4308 0.5449 0.9757 0.9292
Amount over 20,000 M3 0.4246 0.5372 0.9618 0.9160
In the former City of Scarborough:
First 20 M3 0.3860 0.4883 0.8742 0.8326
Next 480 M3 0.3932 0.4974 0.8906 0.8482
Next 500 M3 0.3925 0.4965 0.8889 0.8466
Next 4,000 M3 0.3901 0.4935 0.8837 0.8416
Next 5,000 M3 0.3867 0.4892 0.8759 0.8342
Next 10,000 M3 0.3798 0.4805 0.8603 0.8193
Amount over 20,000 M3 0.3487 0.4411 0.7897 0.7521
In the former City of York:
First 20 M3 0.4610 0.5831 1.0441 0.9944
Next 480 M3 0.4688 0.5931 1.0619 1.0113
Next 500 M3 0.4675 0.5914 1.0589 1.0085
Next 4,000 M3 0.4639 0.5868 1.0506 1.0006
Next 5,000 M3 0.4531 0.5732 1.0264 0.9775
Next 10,000 M3 0.4198 0.5310 0.9508 0.9055
Amount over 20,000 M3 0.3744 0.4736 0.8480 0.8076

(ii) effective September 1, 1999, the combined water and sewer rate in the former City of Toronto for metered customers for accounts paid on or before the due date shall be $1.03083 per cubic metre, and the rate charged to flat-rate customers in the former City of Toronto shall be as set out in Schedules "B", "C" and "D" of City of Toronto By-law No. 356-1998;

(iii) effective September 1, 1999, the rate charged to flat-rate customers in the former City of Etobicoke shall be as set out in Schedule "A" of City of Toronto By-law No. 356-1998; and,

(iv) effective February 1, 2003, the rate charged to metered customers in the former City of Toronto shall be the same as the competitive rate structure charged to metered customers in the former cities of East York, Etobicoke, North York, Scarborough and York.

(2) with respect to the harmonization of the early payment discount, the combined water and sewer rate for all accounts paid in full on or before the due date indicated on the bill be subject to a discount of 5.0 percent on the price per cubic metre of water, with the discounted price being that shown under column (5) of Recommendation No. (1);

(3) with respect to Sewer Surcharge Rebates and Private Water Works Agreements:

(i) Section (4) of Article 1 of Chapter 292 of the Municipal Code of the former City of Toronto, which provides for a rebate of the sewer surcharge to certain customers in the former municipality of Toronto, be repealed, and By-law No. 32-93 of the former Municipality of Metropolitan Toronto be amended to provide for the rebate of the sewer surcharge to qualifying customers in any of the former municipalities, and that the rebate for 1999 be based on the cost of sewage treatment of $0.3858 per cubic metre;

(ii) By-law No. 32-93 of the former Municipality of Metropolitan Toronto be further amended to provide for a rebate of 55.85 percent of the effective retail rate charged to those customers receiving water services from the City and with a private septic system that is not connected to the sewer system; and

(iii) Section (5) of Article 1 of Chapter 292 of the Municipal Act of the former City of Toronto, respecting a charge where sewage flow exceeds water usage, be repealed, and By-law No. 96-80 of the former Municipality of Metropolitan Toronto be amended to reflect both the cost of local sewage collection and treatment, and that this cost be set at 55.85 percent of the effective retail rate;

(4) the necessary City Officials be authorized and directed to give effect thereto.

Background:

The Budget Committee on April 16, 1999, reports having completed its review of the 1999 Operating Budget and recommended the adoption of same and directed that it be forwarded to the Strategic Policies and Priorities Committee and Council for consideration.

The Budget Committee also had before it the following reports and communications:

(a) (April 15, 1999) from the Budget Committee forwarding the 1999 recommended Operating Budget for the City's departments, agencies, boards and commissions;

(b) (March 18, 1999) from the Chief Administrative Officer and the Chief Financial Officer and Treasurer, providing a summary of the financial impact of former municipalities and the various harmonization proposals outlined in the Chief Administrative Officers report of February 19, 1999, as well as other options described in various reports that have been presented to the Community Councils and Standing Committees;

(c) (March 22, 1999) from the Chief Financial Officer and Treasurer presenting a review of the current practices and rate structuring respecting the water and waste water program and recommending a strategy towards a harmonized rate structure across the new City;

(d) (March 31, 1999) from the Chief Financial Officer and Treasurer respecting motions raised by the Community Councils at their meetings of March 26-30, 1999, and providing additional options respecting water rate harmonization;

(e) (April 12, 1999) from the Chief Financial Officer and Treasurer providing additional options regarding the water rate harmonization initiative which addresses the issues raised respecting funding for the conversion of flat-rate (unmetered) accounts to metered service;

(f) (April 7, 1999) from the Chief Financial Officer and Treasurer providing a recalculation of the final impact by former municipalities of the various service harmonization proposals incorporating the adjustment for the $18.4 million transferred from the appropriate tax levy to the water rate during 1998;

(g) (April 12, 1999) from the Chief Financial Officer and Treasurer responding to a motion moved by the Budget Committee at its meeting on April 8, 1999, respecting a policy upon which the water rate is based;

(h) (April 7, 1999) from the Commissioner of Corporate Services presenting the 1999 Vehicle and Equipment Replacement Program for approval;

(i) (April 9, 1999) from the Commissioner of Urban Planning and Development Services commenting on the proposal for a Council of Toronto Watersheds as requested by the Toronto Community Council on April 16, 1999;

(j) (April 8, 1999) from the Commissioner of Works and Emergency Services to determine the impact and feasibility of extending summer twice a week residential garbage collection to other high need areas in the City;

(k) (April 15, 1999) from the Chair, Toronto Police Services Board, providing further information pertaining to the Toronto Police Service request for replacement vehicles;

(l) (April 15, 1999) from the Director, Finance and Administration, Toronto Police Service, addressed to Councillor David Shiner, providing further information requested regarding replacement of Police vehicles;

(m) (April 16, 1999) from Mr. Andrew Clarke, Director, Uniform Field Service, Toronto Police Association, regarding approval of contingency funds - Toronto Police Service - cars, 1999;

(n) (April 14, 1999) from Councillor Jack Layton, Don River, regarding a $60,000.00 funding request for Big City Mayors' National Homelessness and Housing Initiative;

(o) (April 15, 1999) from Mayor Mel Lastman, providing input to the Budget Committee as requested on the process to undertake relationships with selected cities around the world for economic development purposes;

(p) (April 16, 1999) from the City Clerk in response to the Budget Committee proposal to utilize 50 percent of the official Council vehicles and drivers as a courier service; and

(q) (April 19, 1999) from the City Clerk advising that City Council at its meeting on April 13, 14 and 15, 1999, directed that Clause No. 1 of Report No. 3 of The Audit Committee, headed "Review of Staff, Councillors' and Mayor's Office Expenses", and the following motions be referred to the Budget Committee for consideration with a request that all Members of Council be advised when this matter will be considered:

Moved by Councillor Duguid:

"That the Clause be amended by:

(1) adding to Recommendation No. (3) of the Audit Committee the words 'and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation', so that such recommendation shall now read as follows:

'(3) the City Clerk, in the outline of the purpose of the global office budget requested in Recommendation No. 3(d) of the report (January 15, 1999) from the City Auditor, clarify in a detailed manner what is permitted and what is not, particularly, whether a Councillor paying for City pins and T-Shirts for community groups promoting the City, or a Councillor paying for the costs of advertising activities done by local groups, would be permitted, and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation;'; and

(2) adding to Recommendation No. (7) of the Audit Committee the words' provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space', so that such recommendation shall now read as follows:

'(7) the Commissioner of Corporate Services, in her expected report on charge-back for all office space, base the report on a policy of full-cost accounting for such space for all Members of Council, provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space.' "

Moved by Councillor Mahood:

"That Recommendations Nos. (5) and (7) of the Audit Committee be referred to the appropriate Standing Committees for consideration."

--------

(Report dated April 15, 1999, addressed to the Budget Committee,

from Councillor Tom Jakobek, Chair, Budget Committee, entitled,

"1999 Recommended Operating Budget Corporate Report")

Purpose:

To present the 1999 Recommended Operating Budget for the City's departments, agencies, boards and commissions.

Financial Implications:

The 1999 Recommended Operating Budget achieves a zero tax increase, utilizes $72.5 million of amalgamation savings, and eliminates reliance on provincial funding in the City's operating budget.

Recommendations:

It is recommended that:

(1) The 1999 Operating Budget of $5.539 billion (gross) and $2.530 billion (net), after reflecting the full use of the new provincial subsidy, be adopted;

Children's Services

(2) Pending further clarification from the Province, the Recommended Operating Budget of $234.833 million gross and $41.492 million net, comprised of the following services, be approved:

Service Gross Budget ($, mil) Net Budget

($, mil)

Divisional Office 2.246 1.123
Municipally Funded Programs 6.039 6.039
Service Access Management 6.201 2.971
Contract and Quality Compliance 4.574 1.608
Directly Operated Child Care 42.034 5.291
Purchased Services 173.739 24.460
Total Program Budget 234.833 41.492

(3) Recommendations from the two reports presented to Budget Committee on April 7,1999; namely the report dated March 9, 1999 and entitled "Payments to Toronto District School Board for Child Care Program" and the report dated March 30, 1999 and entitled "Additional Information Pertaining to the 1999 Children's Services Budget Request", be deferred to the April 16, 1999 Budget Committee Wrap-Up meeting;

(4) The Commissioner of Community and Neighbourhood Services report on possible funding partnerships and an implementation plan for feasibility studies to develop pilot projects to integrate all key children's services (such as child care and kindergarten) into a seamless program for children, ages 0 to 5 years old; and that funding for such projects be found from the $3.0 million set aside in the Social Services Reserve for children's needs;

(5) The Commissioner of Community and Neighbourhood Services report to Community and Neighbourhood Services Committee and Budget Committee, if and when the Province announces details of the Learning, Earning and Parenting (LEAP) initiative and the criteria for qualification;

(6) The Commissioner of Community and Neighbourhood Services report to Budget Committee on all summer camps provided throughout the City, with emphasis upon harmonizing the services that exist and addressing the possibility of reallocating the summer camps to a program where they could be cost-shared;

(7) The Chief Financial Officer and Treasurer report to Budget Committee on the status of the Social Assistance Reserve Funds, including the adequacy based on historical needs, the plan to fund the reserve which would maintain it at the recommended level and the GTA pooling implications;

(8) Children's Services advise the Community and Neighbourhood Services Committee if additional funding is required for the renewal of rental agreements at the Scarborough and Finch West field offices; and

(9) Children's Services continue negotiations with the Province to direct the additional Ontario Works funding to maintain the current level of Ontario Works child care and to maximize the number of additional spaces which can be funded.

Toronto Housing Company:

(10) The 1999 Operating Budget request totalling $251.0732 million (gross) and $0.0 thousand (net), comprised of the following services be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Corporate Functions 3.467 0.0

Operations 245.751 0.0

Housing Connections 1.855 0.0

Total Production Budget 251.073 0.0

Shelters, Housing and Support:

(11) That the 1999 Operating Budget request totalling $401.895 million (gross) and $273.538 million (net), comprised of the following services be approved, pending further clarification by the recent Provincial announcements:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Finance & Administration 0.644 0.644

Provincial Housing Download 328.962 249.288

Hostel Services 68.627 19.114

Social Housing and Support 2.397 1.258

Housing Supply, Rehab & Development 1.265 1.234

Total Program Budget 401.895 271.538

(12) That the Commissioner of Community and Neighbourhood Services report back to Budget Committee on the status of the Provincial funding request for the unbudgeted $100 thousand Ombudsperson Pilot Project as recommended in the Community and Neighbourhood Services Committee August, 1998 staff report.

(13) That the Province be requested to pay the full 80 percent subsidy for expenditures for direct Hostel Services and eliminate the imposed ceiling cap.

(14) That the Chief Financial Officer and Treasurer be requested to develop a strategy to protect the City if interest rates go up, including the implications for GTA pooling.

Social Services

(15) The 1999 Operating Budget request totalling $1,067.442 million (gross) and $267.217 million (net), comprised of the following services be approved:

Gross Budget Net Budget Service ($, mil) ($, mil)

Operations Support 8.557 4.278

Social Assistance 1,058.885 262.939

Total Program Budget 1,067.442 267.217

(16) The City funding of Workers' Information and Action Centre of Toronto (WIACT) continue until September and the Commissioner of Community and Neighbourhood Services make all efforts with the Federation of Labour and WIACT to attempt to obtain Provincial/Federal funding and that a report be submitted to City Council in September; and

(17) The Commissioner of Community and Neighbourhood Services be requested to review this unit (WIACT) as to where it should be located.

Homes for the Aged:

(18) The 1999 Recommended Operating Budget of $125.579 million gross and $22.915 million net, comprised of the following services, be approved:

Service Gross Budget

($ mil)

Net Budget

($ mil)

Administration and Program Support 1.139 0.212
Toronto Homes 116.068 21.550
Community Based Services 8.372 1.153

Total Program Budget

125.579 22.915

(19) The Commissioner of Community and Neighbourhood Services be requested to report to the Community and Neighbourhood Services Committee and the Budget Committee in June or July 1999, on the loss of $15 million in Provincial funding since 1996, identifying options as to how the money would be spent if returned by the Provincial government; and for the report to include options of expanding the number of available beds, improving the personal care level, as well as other service restorations. Further, pending the report, City Council request the Province to restore up to $15.0 million of subsidies previously funded in 1996 to the City of Toronto, now that funding is available from the Federal government;

(20) Homes for the Aged report on how the year 2000 termination of red-circle funding ($1.6 million in 1999) will impact the 2000 budget request;

(21) The Commissioner of Community and Neighbourhood Services be requested to report to Budget Committee providing an update on the "replacement co-payment" program;

(22) City Council request the Province to replace the funding the City received previously from client co-payments ($350.0 thousand) for Supportive Housing so that 35 clients can continue to be served by the Program;

(23) Homes for the Aged report to Community and Neighbourhood Services Committee regarding the most efficient and economical service delivery model for laundry services, pending the review of RFP results; and that

(24) Homes for the Aged report back for the 2000 budget, what the capital and operating impacts will be for the redevelopment of True Davidson Acres and Albion Lodge.

Social Development and Administration:

(25) The 1999 Recommended Operating Budget of $8.632 million gross and $4.083 million net, comprised of the following services, be approved:

Service

Gross Budget ($, mil) Net Budget

($, mil)

Administration and Program Support 7.551 3.469
Community Resources 1.081 0.614

Total Program Budget

8.632 4.083

Toronto Ambulance:

(26) The 1999 Recommended Operating Budget of $75.828 million gross and $32.844 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Ambulance Services 62.402 30.388

Toronto Central Ambulance

Communication Centre 7.296 0

Administration & Program Support 6.130 2.456

Total Program Budget 75.828 32.844

(27) The Commissioner of Works and Emergency Services report back to Budget Committee providing an update on the cross border-billing issue when further information becomes available.

Fire Services:

(28) The 1999 Recommended Program Budget for Fire Services of $219.062 million (gross) and $217.435 million (net), comprised on the following Services on a gross and net basis, be approved;

Service

GrossBudget

($, mil)

Net Budget

($, mil)

Operations 187.993 187.992
Fire Prevention and Enforcement 8.929 8.629
Administration and Program Support 22.140 20.818

Total Program Budget

219.062 217.439

(29) Fire Services and Human Resources report back to the Budget Committee by September 1, 1999 on the policy changes required to reduce absenteeism in the Fire Services staff force and the Corporation as a whole. This policy should consider mandatory physical fitness activities in order to enhance the fitness levels of individuals, with a view to reducing injury and illness. In addition, an appropriate monitoring program should be developed, including clear courses of action for lengthy and/or frequent absenteeism;

(30) Fire Services pursue avenues to reduce false alarms and report back to the Works and Emergency Services Committee and Budget Committee by July 30, 1999. Extensive research should include solutions implemented by other municipalities, in particular the Cities of Mississauga and Ottawa;

(31) Fire Services report back to the Works and Emergency Services Committee and Budget Committee with long term detailed plans regarding Central Dispatch Systems and fleet preventative maintenance plans and costs;

(32) Fire Services continue to research and report back to Budget Committee by September 30, 1999 on the possibility of increasing revenues, through recoveries for false alarms, recovery of inspection services, etc.;

(33) Fire Services in conjunction with the Chief Financial Officer and Treasurer report back to Budget Committee by September 30, 1999 with a detailed financial plan with respect to the potential implementation of recommendations made in the Fire Location Study; and

(34) A corporate review committee be struck to review and assess the equipment needs of the various Departments prior to the 2000 Operating Budget Cycle.

Solid Waste Management:

(35) The 1999 Recommended Operating Budget for the Solid Waste Management Program of $125.964 million (gross) and $68.016 million (net), comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Administration and Program Support 17.755 14.271

Collection 59.451 49.084

Transfer 15.781 4.365

Processing 5.100 2.666

Disposal 27.879 (2.370)

Total Program Budget 125.964 68.016

(36) The following policies and financial implications for solid waste and recycling activities, following consideration of the Commissioner of Works and Emergency Services' report, dated March 12, 1999, entitled "Revised 1999 Solid Waste Management Service Harmonization Recommendations" (report included in Section 1.3.I) be approved:

(a) Garbage and Recycling Collection for Low Density Residential Properties

(i) effective September 1, 1999, all low density residential properties be provided with once a week garbage collection and every second week (or alternating weekly) recycling collection, at an annual saving of $1.6 million; savings of $533 thousand have been included in the 1999 Recommended Budget

(ii) effective June 2000 (last full week), summer twice a week garbage collection begin for up to 1/3 of the City in areas of high waste generation and limited storage space at an annual cost of $800 thousand;

(iii) staff report back to the Works and Utilities Committee by October 1999 with the proposed eligibility criteria for residential areas that would receive summer twice a week garbage collection in 2000, and the associated cost impacts;

(iv) twice a week garbage pick up continue in North York in the summer months in 1999, and further that the Commissioner of Works and Emergency Services report to the Works and Utilities Committee in the Fall of 1999 on providing an extra pick up, phased in over three years, in the summer across the City for compostable materials only;

(b) Yard Waste Collection Services

Once a week yard waste collection service be provided to all low density residential properties from mid-April to May 31 and from October 1 to November 30, with once every second week collection from June 1 to September 30, at an annual saving of $200 thousand;

(c) Rear and Side Yard Collection

Effective July 1, 1999, rear and side yard collection service be provided at no direct charge only to residents in low density properties who, on the basis of a doctor's certificate, lack sufficient mobility to carry waste to the curbside and who do not live in a residence with a fully able person at an annual cost of $50,000.00 (1999 cost of $25,000.00 to be absorbed within the recommended budget), and optional rear and side yard collection service for a fee be terminated;

(d) Provision of Curbside Recycling Boxes

(i) effective July 1, 1999, the City charge $5.00 to replace lost recycling boxes or provide additional recycling boxes, and exchange damaged boxes for new boxes at no charge, and the City provide new residents with recycling boxes at no charge (with proof of new residency) at an annual revenue of $60,000.00 ($30,000.00 included in the 1999 Recommended Budget);

(ii) a limit of one free blue or grey box per single family residence be provided at City sponsored Environment Day events at an annual cost of $60,000.00 included in the 1999 Recommended Budget;

(e) Garbage and Recycling Collection for Small Commercial Properties

Council adopt a three year phase in plan to deal with small commercial garbage and recyclables collection as follows:

(i) existing service levels and eligibility criteria for garbage and recyclables collection service to the small commercial sector currently receiving this service be maintained until the end of 2000;

(ii) effective July 1, 1999, the City charge mandatory service fees to all small commercial locations currently receiving more than twice a week garbage collection at a rate of $150.00 for three times a week garbage collection, $600.00 for five times a week garbage collection and $800.00 for six times a week garbage collection with revenues of $2.3 million included in the 1999 Recommended Budget;

(iii) effective January 1, 2000; the City charge a mandatory annual rate of $300.00 for those locations receiving three times a week garbage collection, $1,200.00 for five times a week garbage collection and $1,600.00 for six times a week garbage collection with annual revenues of $4.7 million (additional $2.4 million revenue in 2000);

(iv) staff report back to the Works and Utilities Committee by June 2000 with harmonized eligibility criteria for garbage and recyclables collection service to the small commercial sector and a harmonized service fee structure to be effective January 1, 2001;

(v) the Commissioner of Works and Emergency Services report by June 2000 to the Works and Utilities Committee on providing equivalent garbage service levels to small businesses (restaurants and greengrocers) with similar characteristics to business communities receiving multiple weekly garbage collection; and

(37) The Commissioner of Works and Emergency Services report back to the Works and Utilities Committee on the provision of blue box service across the City for all single family residential homes and town homes; the replacement of 'flower pot' bins in the North York Community Council Area; and the implementation of 'bagged' system for leaf pick-up throughout the City, and the savings that could be realized if such a program were approved.

Transportation:

(38) The 1999 Recommended Budget for Transportation of $184.585 million (gross) and $153.003 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Roadway Services 118.482 93.169

Pedestrian 20.444 15.055

Traffic systems 28.827 27.947

Infrastructure Planning 2.891 2.891

Administration & Program Support 13.941 13.941

Total Program Budget 184.585 153.003

(39) The following policies and financial implications for winter maintenance activities, following consideration of the General Manager, Transportation Services' report, dated March 11, 1999, entitled Winter Maintenance Activities Harmonization of Services Levels, and the report by the Chief Financial Officer and Treasurer, dated March 24, 1999, entitled Funding for 1999 Snow Clearing and Harmonization of Winter Maintenance Services (both reports included in section 1.3.J) be approved:

Winter Maintenance:

(a) Driveway Windrow Snow Clearing

(i) clear all windrows in areas of the City where this activity can be achieved by mechanized means, i.e., the new areas to be covered in winter 1999/2000 would include all of the former Etobicoke; and parts of former Toronto, York and East York, where technically possible, at an annual cost of $1.6 million; funds in the amount of $400 thousand have been provided in the 1999 Recommended Budget;

(ii) the Commissioner of Works and Emergency Services be requested to review and report (to the Urban Environment and Development Committee) on new methods to clear windrows in areas where current mechanical methods cannot be utilized;

(b) Sidewalk Snow Clearing

(i) that a four year phase in of all sidewalk clearing across the City, at an estimated cost of $7.7 million at the end of the phase in, begin as follows: that the areas of the City currently provided with sidewalk snow clearing be maintained in 1999 at a level of 8 clearings per winter season (North York from 14 to 8; East York from 6 to 8, Scarborough and York unchanged), and that additional funding in the amount of $250 thousand, be recommended in order to provide the year one of four increase;

(ii) the Commissioner of Works and Emergency Services, in consultation with the Chief Financial Officer and Treasurer, report back to the Budget Committee by September 30, 1999 with a proposal and financial plan to achieve this within four years, beginning in winter 1999/2000; specifically providing the cost for the year 2000, so that pre-budget approval can be given, if necessary; addressing the possible redeployment of City staff that are currently part of snow clearing programs, or may be available to assist in snow clearing programs, to increase efficiencies and reduce costs; and giving priority to arterial roads with transit, as the program is phased in;

(c) Snow Ploughing/De-icing

the central areas of the City receive improved snow ploughing/de-icing services, at an annual cost of $1 million; funds in the amount of $250 thousand have been provided in the 1999 Recommended Budget;

(d) Snow Removal

(i) funds for snow removal have been provided in the 1999 Recommended Budget to contract to supply 700 dump trucks ($140 thousand) and provide a registry for equipment ($20 thousand);

(ii) funds in the amount of $1.5 million be provided to purchase 10 additional snow blowers from the equipment reserve account; and

(iii) the Chief Financial Officer and Treasurer, in conjunction with the General Manager, Transportation Services, report to Budget Committee by July 31, 1999 on funding the over-expenditure caused by the January snowstorm; further the Chief Financial Officer and Treasurer should also report on the appropriate amount which should be included in a reserve to cover the snow removal operating costs which would be incurred in the eventuality of a 50 cm snow accumulation.

(40) The following policies and financial implications for fee structure for permits, following consideration of the General Manager, Transportation Services' report, dated March 26, 1999, entitled Fee Structure Options for Road Allowance Permits and Permit Parking (included in section 1.3.J), be approved, resulting in an increase in revenue of $1.130 million, as provided in the 1999 Recommended Budget; and that the fee schedule be reviewed in two years:

(a) that the fee for on-street permit parking be established at $84.00 annually and the fee for visitors' permits be set at $10.00 per week;

(b) that the fee for residential boulevard parking be established at $84.00 annually; and

(c) the one-time application fees of $260.00 for front yard parking, $60.00 for disabled front yard parking and $60.00 for driveway widening/boulevard parking be approved.

(41) Transportation Division provide a report on the use of the Snowlink Program as a mechanism for providing senior and disabled snow clearance service, prior to the 2000 Operating Budget process; and

(42) The Commissioner of Works and Emergency Services be requested to report to the Works and Utilities Commission providing standards for bulk leaf pick up in the City.

WES Support Services:

(43) The 1999 recommended program budget for WES Support Services of $18.978 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Service

Gross Budget

($, mil)

Net Budget

($, mil)

Executive Services

.494

.494

Program & Administrative Support .151 .151
Information Technology Services 2.145 2.145
Financial Services 3.918 3.918
Administrative Services 9.764 (18.978)
Customer Services 1.445 1.445
Communication Services 1.062 1.062

Total Program Budget

18.978

0.000

(44) The Director, Support Services, in consultation with the Budget Services Division, Finance Department, review the current allocation methodology for the recovery of costs from the other divisions and report back as part of the 2000 Operating Budget, on any changes to the allocation methodology for implementation in 2000.

WES Technical Services:

(45) The 1999 recommended program budget for WES Technical Services of $32.458 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Facilities and Structures 5.447 5.082

Survey Services 11.479 7.580

Environmental Services 4.168 3.213

Construction Services 10.793 4.666

Program Administration .572 (20.541)

Total Program Budget 32.458 0.000

(46) The Executive Director, Technical Services, in consultation with the Budget Services Division, Finance Department, review the current allocation methodology for the recovery of costs from the other divisions and report back as part of the 2000 Operating Budget, on any changes to the allocation methodology for implementation in 2000.

Culture:

(47) The 1999 Recommended Program Budget of $3.241 million (gross) and $2.530 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Arts and Culture 1.996 1.769

Heritage Services 1.245 .761

Total Program Budget 3.241 2.530

(48) The Commissioner of Economic Development, Culture and Tourism, in conjunction with the Chief Financial Officer and Treasurer report to the Policy and Finance Committee on the restructured 1999 Operating Budget following Council direction on the governance and restructuring of Arts, Culture and Heritage.

(49) The Commissioner of Economic Development, Culture and Tourism review the service delivery options not currently recommended in conjunction with the restructuring of Arts, Culture and Heritage program.

Customer and Business Support:

(50) The 1999 Recommended Operating Budget of $17.607 million gross and $17.262 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Admin. & Support 12.580 12.280

Policy & Development 5.027 4.982

Total Program Budget 17.607 17.262

Economic Development:

(51) The 1999 Recommended Operating Budget of $6.213 million gross and $5.863 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Business Development & Retention 2.124 2.124

Small Business & Local Partnerships 1.415 1.265

Investment Marketing 1.710 1.710

Economic Research & Business

Information .964 .764

Total Program Budget 6.213 5.863

(52) Up to $.085 million in the base budget continue to be made available to accommodate the Economic Development World Cities Alliance, subject to the following conditions:

(a) limitation on the number of people who go on any particular business venture; and

(b) the confirmation of the Mayor's office.

(53) The Commissioner of Economic Development, Culture and Tourism be directed to reallocate existing resources within the Division to accommodate the film permitting function.

(54) The Chief Administrative Officer be requested to report back to Economic Development Committee on the appropriateness of having the Economic Development Division under the auspices of the Mayor's Office.

Parks and Recreation:

(55) The 1999 Recommended Operating Budget of $169.905 million gross and $109.667 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Parkland & Open Space 78.998 65.346

Sports & Recreation Programming 90.907 44.321

Total Program Budget 169.905 109.667

(56) With respect to the Parks and Recreation User Fees Harmonization:

(a) User Fees Harmonization Option B (as described in Appendix C attached) be implemented in 1999, at a cost of approximately $0.8 million in 1999, and an annualized impact of approximately $1.9 million in the year 2000 (representing lost revenues resulting from implementation of this option);

(b) As a result of the implementation of User Fees Harmonization Option B, the Parks and Recreation Program be exempted from paying water rates in 1999, and that the funding request included in the Program's budget submission for this purpose, amounting to $1.996 million, be deleted;

(c) The Chief Financial Officer and Treasurer report to the Budget Committee, in time for the year 2000 budget process, on the future practice and implications of this exemption;

(d) A corporate allocation of $300,000.00 be included in the 1999 Non-program Expenditure Budget, to be used exclusively to offset the estimated net increase in costs associated with a projected increase in demand for programs, resulting from implementation of harmonization Option B;

(e) The Commissioner of Economic Development, Culture and Tourism report to the Budget Committee on the actual increase in demand, and the problems and issues associated therewith;

(f) The Commissioner of Economic Development, Culture and Tourism and the Chief Financial Officer and Treasurer report jointly to the Budget Committee on the utilization of the corporate allocation of $300,000.00;

(g) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee and City Council, in time for the year 2000 budget process, on:

(i) utilization of the free programs, including attendance and drop-out rates;

(ii) the problems of cross-border usage by residents of neighbouring regions;

(iii) the provision of premium, specialized programs and regulation of such programs.

(57) With respect to the proposal to solicit advertising on 3,500 waste receptacles in parks for garbage and waste:

(a) the Commissioner of Economic Development, Culture and Tourism ensure that the advertising contract is awarded based on tendering, in accordance with the City's tendering policy and procedures;

(b) the Commissioner of Economic Development, Culture and Tourism ensure that Ward Councillors are duly consulted on the proposed advertising on receptacles; and

(c) the Commissioner of Economic Development, Culture and Tourism report to the appropriate standing committees on details of the proposed advertising on receptacles, including the types of advertising that will be permitted and prohibited, and the estimated advertising revenues.

(58) That the Commissioner of Economic Development, Culture and Tourism be authorized to provide funding of up to $2,000.00 for the Gardens contest in York, the said funding be absorbed in the Parks and Recreation 1999 approved budget, and the Commissioner evaluate the program;

(59) With respect to the review being undertaken by the staff in the Chief Administrative Officer office, in support of the Task Force on Agencies, Boards and Commissions (ABCs), the Chief Financial Officer and Treasurer review the financial implications of alternative governance structures of ABCs, as part of the review process.

Special Events:

(60) The 1999 Recommended Program Budget of $6.857 million (gross) and $3.812 million (net), be approved;

(61) The Millennium Project budget be confirmed at $2.850 million (gross) with 1999 Operating Budget funding of $.850 million from the City, $1 million from Corporate sponsorship and the balance from 1998 previously approved funding; and

(62) The Commissioner of Economic Development, Culture and Tourism, in conjunction with the Chief Financial Officer, report to the Policy and Finance Committee in six months on the status of the Corporate Sponsorship revenues for 1999; and the ability of the Corporate Sponsorship Program to provide revenue for the 2000 Budget to cover more of the Special Events programming.

Licensing:

(63) The 1999 recommended program budget for Licensing of $11.259 million (gross) and $0.239 million (net surplus), composed of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

License Issuance 1.730 1.730

License Enforcement 4.283 4.283

License Administration 5.247 5.247

Licensing Revenue 0.000 -11.498

Total Program Budget 11.259 -0.239

(64) The Executive Director of Municipal Standards and Licensing, in conjunction with the Commissioner of Urban Planning and Development Services, report back to the Budget Committee no later than the first week of September 1999 on the proposed redirection of $0.458 million from the License Administration Service budget to expenditures involving front-line operations.

(65) That the cost of legal services amounting to $0.211 million (part of the $0.458 million reinstated to the License Administration Service budget) pertaining to the Tribunal, as a result of separating its function from administrative functions of Licensing, be recovered from the Legal Division's budget.

Urban Planning and Development Services:

(66) The 1999 Recommended Operating Budget for Urban Planning and Development Services of $55.777 million (gross) and $14.401 million (net), comprised of the following services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

City Planning 19.539 13.862

Building 20.771 (12.149)

Service Integration & Support 7.486 7.242

Municipal Standards (excludes Licensing) 7.981 5.446

Total Program Budget 55.777 14.401

(67) The Chief Administrative Officer, in conjunction with the appropriate Commissioners, report back to the Budget Committee on any necessary changes in the staff complement in City departments that review planning applications, site plan applications or building permits to facilitate a reasonable turnaround for all applications, including turnaround time for comments from other departments.

(68) The Commissioner Urban Planning and Development Services, in conjunction with the Toronto and Region Conservation Authority, the Commissioner Works and Emergency Services and the Chief Financial Officer and Treasurer, report back to the Urban Environment and Development Committee on the proposal to establish the Council of Toronto Watershed.

(69) Up to $100,000.00 be placed in the budget to assist in redoing the secondary plans in South Etobicoke and if additional staff is required to complete the project, the Commissioner Urban Planning and Development Services be requested to re-deploy staff or use contract staff if necessary.

Audit:

(70) The 1999 Recommended Program Budget for Audit of $2.335 million (gross) and $2.181 million (net) be approved;

(71) Prior to the City embarking on the purchase and implementation of the new radio system, the City Auditor be requested to review and report back to the Budget Committee on this matter.

Clerk's:

(72) The 1999 Recommended program Budget for Clerk's of $35.964 million (gross) and $21.219 million (net), comprised the following services on the gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Secretariat 7.056 6.632

Printing & Distribution 12.046 5.486

Council and Support Services & Executive 2.678 2.678

Corporate Access & Privacy 0.711 0.700

Corporate Records & Archives 5.660 5.571

Elections 2.879 2.874

Legislative Services 3.622 (4.034)

Protocol 1.312 1.312

Total Program Budget 35.964 21.219

(73) In the event a request for the establishment of a task force or sub-committee, the Members of Council be so advised of the cost implications of such task force and sub-committee;

(74) The Commissioner of Corporate Services be requested to:

(a) keep the Dempsey House in a state of good repair; and

(b) report back to Budget Committee providing a proposal for the display of archival materials and the future of the Dempsey House; and

(75) The Chief Administrative Officer, in consultation with the Mayor, be requested to report directly to the Council for its special meeting on April 26, 1999, on a consolidation of Task Forces and Sub-Committees, and the savings and reductions be taken from the City Clerk's budget if Council adopts such consolidation; and

(76) That with respect to the need for a centralized elections storage and operations facility, the City Clerk work with Executive Director, Facilities and Real Estate to identify city-owned or other properties, explore alternatives, including further negotiations with the Provincial Elections Officer, and report back to the Budget Committee on financial implications for 1999 and 2000, by June 1, 1999.

Service Integration and Support:

(77) The 1999 Recommended Program Budget for Corporate Services - Service Integration and Support of $1.100 million (gross and net), composed of the following Services on a gross and net basis, be approved:

Gross and Net Budget

Service ($, mil)

Operations & Support 0.709

Executive Office 0.391

Total Program Budget 1.100

(78) The Commissioner of Corporate Services report back to the Corporate Services Committee respecting the pricing for full-cost recovery and the alternative service delivery options that are being planned or considered by her department and divisions under her purview.

Corporate Communications:

(79) The 1999 Recommended program Budget for Corporate Communications of $ 5.849 million (gross) and $ 5.735 million (net), comprised the following services on the gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Director's Office 0.178 0.178

Corporate Communications & Media Relations 1.416 1.416

Public Information 2.391 2.297

Creative Services 1.864 1.844

Total Program Budget 5.849 5.735

Facilities and Real Estate:

(80) The 1999 Recommended Program Budget of $81.915 million (gross) and $45.683 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Facilities 76.266 43.985

Real Estate 5.649 1.698

Total Program Budget 81.915 45.683

(81) The program be requested to conduct a comprehensive review of alternative service delivery in 1999, and submit a report to Finance and Policy Committee by September 1999 outlining the savings that could be achieved. The report to include an implementation strategy that will enable the Corporation to achieve these savings at the earliest date possible;

(82) The Commissioner of Corporate Services be requested to instruct the Central Eglinton Community Centre to apply for a grant through the Municipal Grant Committee to cover the costs for additional space at 160 Eglinton Avenue East.

Fleet and Management Services:

(83) The 1999 Recommended program Budget for Fleet Management Services of $22.516 million (gross) and $0.0 million (net), comprised the following services on the gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Fleet Maintenance 19,793.5 (2,721.2)

Fleet Management 2,722.6 2,721.2

Total Program Budget 22,516.1 0.0

(84) The Chief Financial Officer and Treasurer report back to the Budget Committee on the financing options related to the report dated April 7, 1999 of the Commissioner of Corporate Services with respect to the 1999 Vehicle and Equipment Replacement Program in April, 1999;

(85) That with respect to the Police Services Fleet:

(i) that Police Services provide a breakdown as to the usage of the new vehicles;

(ii) 100 marked vehicles and 100 unmarked vehicles from the Police Services Fleet request be approved and further that;

(iii) the unmarked vehicles be used by front line staff only and not be used by senior staff;

(iv) five vans be ordered;

(v) no motorcycles be ordered;

(vi) no other vans or trailers be ordered;

(vii) seven parking enforcement vehicles be ordered;

(viii) no additional vehicles be ordered until a thorough review of police vehicles is completed by the Director, Fleet Management Services; and

(ix) the new vehicles be equipped for the use that they are intended.

(86) The Chair, Police Services Board, be requested to arrange for interested Members of Committee to visit the police garage and observe the 37 motorcycles that are rusted out, the five horse trailers that are rusted out and the 17 light trucks, along with any other police vehicles that are part of the fleet, on Friday, April 9, 1999.

(87) The Chief Administrative Officer be requested to reduce the fleet by 5 percent by December 31, 1999;

(88) Members of Committee, and the Chief Financial Officer and Treasurer be provided with the final draft of the KPMG study for their perusal on April 9, 1999;

(89) The Budget Committee express its concern regarding the way in which the fleet reduction has been handled to the Mayor, and ask the Mayor to take the appropriate action;

(90) Senior Staff, i.e., the six Commissioners, the Chief Administrative Officer and the Executive Director, Fleet Management Services be requested to meet and discuss a method, acceptable to all parties, for the charge back of vehicles to departments and report back thereon to the Corporate Services Committee by this summer;

(91) The Chief Administrative Officer be requested to report back to the Budget Committee on the following matters:

(a) a Fleet Assignment Policy by April 30, 1999 for the assignment of vehicles for business use and for vehicles provided as part of compensation; and

(b) a zero base review of all fleet based on the City's Fleet Assignment Policy and report back on fleet reductions by June, 1999, including all ABC's;

(92) The Commissioner of Corporate Services be requested to report back to the Budget Committee on:

(a) the budgeted expenditures in the City for the maintenance of real property (including housing units), facilities, fleet, plant and machinery, parks and green space, roads and other infrastructure and the full time equivalent staff involved in the respective program areas, along with details of existing systems and standards in use for monitoring staff productivity and output levels, by April 30, 1999. (Maintenance Services);

(b) the establishment of a common City wide job and project costing system which includes tracking of staff time and cost for specific jobs\tasks, and sets standards for all recurring jobs/tasks, by June 30, 1999 (Maintenance Services); and

(c) service disruption caused to the Works Department due to delay of repairs of equipment;

(93) The City Auditor be requested to review the Terms of Reference and all correspondence between the City and KPMG and report back to the Budget Committee on:

(a) whether the Terms of Reference have been fully complied with;

(b) whether reasonable grounds exist to terminate the project for reasons of noncompliance; and

(c) usefulness of work completed and fair amount payable; and

(94) The Executive Director, Fleet Management Services be requested to report back on less costly alternatives to the Fleet Management Information system currently included in the Y2K program.

Human Resources Management:

(95) The 1999 recommended program budget for Human Resources of $22.576 million (gross) and $21.722 million (net), comprised the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Employment Services 6.440 6.263

Employee & Labour Relations 1.407 1.340

Training & Organizational Development 3.079 3.079

Department Services 9.964 9.391

Access & Equity 1.501 1.471

Fair Wage & Labour Trades Office 0.185 0.178

Total Program Budget 22.576 21.722

(96) The Executive Director of Human Resources in conjunction with the Chief Financial Officer and Treasurer report back to Corporate Services Committee by June 30, 1999:

(a) providing data on the average number of sick days per employee during 1997 and 1998 and the number of employees on Long Term Disability during the same period;

(b) providing recommendations on City programs to assist employees dealing with the impact of changes resulting from amalgamation, including the impact of downsizing; and

(c) providing information on the number of City employees who, having been placed into new City positions, are now resigning from their positions and having to be replaced.

Information and Technology:

(97) That the 1999 recommended program budget for Information and Technology of $36.854 million gross and $32.554 net, comprised the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Applications & Professional Services 7.230 7.230

Computer Operations & Telecommunications 21.116 16.817

Information & Technology Planning 0.915 0.915

Productivity & Support Services 4.207 4.207

Land Information Services 2.474 2.474

Executive Director's Office 0.307 0.307

Client Services Cluster - A, B & C 0.605 0.604

Total Program Budget 36.854 32.554

Legal:

(98) The 1999 Recommended Program Budget of $17.613 million (gross) and $15.36 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Municipal Law 8.745 7.544

Litigation 8.868 7.816

Total Program Budget 17.613 15.360

(99) Council confirm that the appropriate location for funds to be allocated for external planning consultants is in the Legal budget;

(100) The City Solicitor and the Commissioner of Urban Environment and Development be requested to report back to Budget Committee on the funds spent in 1998 for Ontario Municipal Board appeals and the amount included in the Non-Program budget and Urban Development budget in 1999;

(101) That every request for outside planning consultants that goes before City Council have the maximum cost;

(102) The Commissioner of Urban Planning and Development and the City Solicitor report to the Urban Environment and Development Committee every three months on the expenditures to date respecting this account and further that the said report be available each time Council considers acquiring outside planners.

Chief Administrator's Office:

(103) The 1999 recommended program budget for the Chief Administrator's Office of $3.957 million (gross) and $3.781 million (net), comprised the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Executive Management 1.591 1.417

Strategic & Corporate Policy 2.366 2.364

Total Program Budget 3.957 3.781

Finance:

(104) The 1999 recommended program budget for Finance of $53.139 million (gross) and $30.198 million (net), composed of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Office of the CFO & Treasurer 0.667 0.564

Accounting Services 8.738 7.679

Budget Services 3.501 3.180

Development, Research & Policy 0.703 0.639

Pensions, Payroll & Employees Benefits 6.986 5.585

Purchasing & Materials Management 6.355 5.566

Revenue Services 23.623 5.054

Treasury & Financial Services 2.567 1.931

Total Program Budget 53.139 30.198

(105) In regard to the report to Budget Committee dated March 29, 1999, "Assessment Appeals Temporary Staff in Finance Department (Revenue Services Division)" by the Chief Financial Officer and Treasurer, (reference 1.3.DD), the following recommendation be adopted:

(a) The Chief Financial Officer and Treasurer be authorized to hire twenty additional staff as casual employees for a period not to exceed six months to assist in the processing of assessment appeals and the cost not to exceed $0.325 million will be provided from the Transition Reserve Fund.

(106) In regard to the report to the Budget Committee dated March 28, 1999, "Revenue Services Call Centre" by the Chief Financial Officer and Treasurer, (reference 1.3.DD), the following recommendations be adopted:

(a) the Finance Department recruit ten additional call centre operators on a contract basis for up to twelve months beginning May 1999 and that funds in the amount of $0.323 million be allocated from the Transition Reserve Fund for this purpose. The Chief Financial Officer and Treasurer be directed to report back to the Budget Committee in early 2000 on the status of call volumes in the Revenue Services call centre;

(b) the Commissioner of Corporate Services be directed to allocate space and procure suitable workstations for 40 call centre operators and that funds in the amount of $0.220 million be allocated from the Transition Reserve Fund; and

(c) the Commissioner of Corporate Services be directed to ensure that the computers in the Revenue Services call centre are upgraded to allow quick access to required tax and water systems by the end of April 1999, prior to the billing of 1999 final property taxes.

(107) The Finance Department's costs of $0.500 million for pension plan administration for the five pension plans predating OMERS be recovered from these plans and that the Board of Trustees be so advised.

(108) The Chair of Budget Committee and the Chair of Works and Utilities Committee, with the Chief Financial Officer and Treasurer, convene a meeting of all parties involved in the coordination of meter reading and further that the Chief Financial Officer and Treasurer report back on the use of alternate technologies for meter reading.

(109) The Chief Financial Officer and Treasurer report back to the Corporate Services Committee and the Budget Committee on the following matters:

(a) provide a methodology for the establishment of the account code structure in the City;

(b) the financial policies being implemented as part of the SAP financial system implementation; and

(c) incorporate the above matters in her status report to the Corporate Services Committee on the SAP system.

(110) In regard to the referral by the Strategic Policies and Priorities Committee April 6, 1999 and the communication to Budget Committee dated April 1, 1999, "Tenant Tax Notification Reduction in 1999 Finance Department Operating Budget" from the City Clerk, Assessment And Tax Policy Task Force, (reference 1.3.DD), the staff report to the Assessment and Tax Policy Task Force dated March 29, 1999, incorporating the following recommendations that result in a reduction in the 1999 Operating Budget of $0.432 million be adopted:

(a) that the full notification of tax increases and decreases to all tenants and landlords in the City of Toronto be undertaken again in the year of the next general reassessment (2001);

(b) that only mandatory notification to tenants and landlords of multi-residential properties as required under the Tenant Protection Act be undertaken for 1999 and 2000;

(c) that the Province be requested to undertake the notification process and cost for all tenants and landlords as it relates to the rent reduction provisions of the Tenant Protection Act; and

(d) that the Province be requested to review and amend Ontario Regulation 455/98 which requires that a ratio of 20 percent of taxes to rental income be used in the calculation of rent reductions and ensure it reflects a more appropriate ratio for rental properties of less than 7 units and that it be completed prior to September 1999 which is the latest date for notices to be mailed to landlords in 1999.

Council:

(111) The 1999 recommended program budget for Council of $18.643 million (gross) and $18.598 million (net), composed of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Councillors/Staff - Salaries & Benefits 13.949 13.949

Councillors - Global Budget 3.363 3.363

Councillors - General Expenses 1.331 1.286

Total Program Budget 18.643 18.598

(112) That the Councillors Global Budget be reduced from $70,000.00 to $59,000.00 per Councillor for a savings of $627,000.00.

(113) Official Vehicles:

(a) Vehicles used by Councillors that are representing the City on official business be at no charge to the Councillors' budget;

(b) vehicles used for other purposes, to be charged to the Councillors' budget at $10.00 per trip;

(c) vehicles pooled by Councillors to attend official functions such as representing the Mayor be at no charge to the Councillors' budget;

(d) fifty percent of the usage of the official vehicles be for the delivery of courier services and the Commissioner of Corporate Services be requested to report back on the utilization and cost of same.

(114) The courier costs be reduced by $200,000.00, and the Commissioner of Corporate Services be requested to work out the technical aspects of same.

(a) Council budget be adjusted by $16,000.00 to reflect recommended limitations to Toronto Conservation Authority remuneration.

(b) The by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from ABCs and the Toronto and Region Conservation Authority;

(c) The Toronto and Region Conservation Authority, through City Council, be requested to review their policy of per diem and mileage allowance to its Board Members and report back to the Budget Committee in that regard prior to the 2000 Operating Budget process;

(d) The Councillors' salary budget be adjusted in the event that the salary draw be reduced.

Mayor's Office:

(115) The 1999 recommended program budget for the Mayor's Office of $1.447 million gross and net be approved.

Arena Boards of Management:

(116) The 1999 Recommended program budget for the Arena Boards of Management of $4.285 million (gross) and $104,200.00 (net), be approved:

Gross Budget Net Budget

Arena Boards of Management ($000's) ($000's)

(Surplus)/Deficit

George Bell Arena 527.4 (8.1)

William H. (Bill) Bolton Arena 391.7 (1.8)

Forest Hill Memorial Arena 571.4 (92.3)

Leaside Memorial Community Gardens 660.3 242.3

McCormick Playground Arena 488.4 (3.6)

Moss Park Arena 550.2 (11.9)

North Toronto Memorial Arena 620.2 (20.3)

Ted Reeve Arena and Grounds 475.2 (0.1)

Total Program Budget 4,284.6 104.2

(117) The current review of Arena Boards of Management governance structures include an analysis of the following, prior to recommendations being brought forward for consideration:

(i) the financial impacts of alternative arena governance structures;

(ii) the financial impacts of alternative ice rental pricing structures;

(iii) the revenue impacts on arena operations of potential new ice allocation policies;

(iv) the financial and procedural implications of alternate models for funding arena capital expenditures and operating deficits/surpluses, and

(v) the potential of expanding accessory operations as best practices among, or benchmarks between, all the City's arenas to maximize potential revenues;

(118) The Arena Boards consult with the City's Year 2000 Project Office to determine appropriate measures to ensure Y2K compliance and that the Arena Boards implement the appropriate measures to meet this requirement within their operating budgets; and

(119) The City Auditor be requested to review the revenues and expenditures of those arenas with large deficits, and report back to the Policy and Finance Committee with recommendations on how those deficits may be reduced.

Toronto and Region Conservation Authority

(120) The 1999 Recommended Operating Budget of $20.701 million gross and $4.057 net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Corporate Services 3.000 1.238

Watershed Health 10.921 2.760

Watershed Experience 6.528 0.000

Rouge Park Interim Management 0.252 0.059

Total Program Budget 20.701 4.057

(121) The by-law in respect to Councillors' salaries be changed to the normal set amount minus the amount received from Agencies Boards and Commissions and the Toronto and Region Conservation Authority.

(122) The Toronto and Region Conservation Authority, through City Council, be requested to review its policy of per diem and mileage allowance to its Board Members and report back to the Budget Committee in that regard prior to the 2000 Operating Budget process.

(123) The Councillors' salary budget be adjusted in the event that the salary draw be reduced.

(124) The Commissioner of Urban Planning and Development Services, in conjunction with the Toronto and Region Conservation Authority, the Commissioner of Works and Emergency Services, and the Chief Financial Officer and Treasurer, be requested to report back to the Urban Environment and Development Committee on the proposal to establish the Council of Toronto Watersheds.

Exhibition Place:

(125) The 1999 Recommended Program Budget of $36.370 million (gross) and $(.955) million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Canadian National Exhibition 16.076 (.374)

Exhibition Place Operations 9.103 1.313

National Trade Centre 11.191 (1.894)

Total Program Budget 36.370 (.955)

(126) The Board of Governors of Exhibition Place report to the Budget Committee by May 1999 on both the new revenue strategies for the Canadian National Exhibition and progress to date on making the Canadian National Exhibition profitable;

(127) The Chief Financial Officer and Treasurer, in conjunction with Exhibition Place, report to the Policy and Finance Committee on the status of the Canadian National Exhibition Stabilization Reserve;

(128) The Canadian National Exhibition's contribution to the Parkland Acquisition Reserve from revenues earned from its use of Marilyn Bell and Battery Parks for parking purposes be waived during 1999;

(129) The Chief Financial Officer and Treasurer, in conjunction with staff of Exhibition Place, the Toronto Region Conservation Authority, and Parks and Recreation, report on a policy for future contributions to the Parkland Acquisition Reserve to the Policy and Finance Committee prior to the 2000 Operating Budget process;

(130) The principle of direct allocation of costs from the Exhibition Place Program to the Canadian National Exhibition Association be approved; and,

(131) The recommended Exhibition Place budget which provides for a 1999 surplus to the City of Toronto of $.955 million, not be impacted by the change to direct allocation of costs between Exhibition Place and the Canadian National Exhibition.

Heritage Toronto:

(132) The 1999 Recommended Program Budget of $5.803 million (gross) and $4.295 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Museum and Heritage Services 5.249 3.776

Heritage Preservation .555 .519

Total Program Budget 5.803 4.295

(133) That the Commissioner of Economic Development, Culture and Tourism report to the Policy and Finance Committee on a plan for the management and maintenance of Heritage buildings and properties, as part of the restructuring implementation, given that they are currently maintained through a number of programs including Parks and Recreation, Heritage Toronto and Facilities;

(134) That Heritage Toronto report to the Budget Committee by April 1999 on the 1999 and subsequent years business plan for the Pier Marine Museum; and,

(135) That the 10 percent options for service delivery adjustments not recommended for inclusion in the 1999 Operating Budget be reviewed by the Commissioner of Economic Development, Culture and Tourism in conjunction with the restructuring of Arts, Culture and Heritage.

Library:

(136) That the 1999 Recommended Program Operating Budget totalling $109.805 million (gross) and $97.953 million (net) be approved, subject to any other corporate adjustments that may be allocated to this Program.

Gross Budget Net Budget

Service ($, mil) ($, mil)

Administration & Support 4.462 4.282

Library Services 105.343 93.671

Total Program Budget 109.805 97.953

(137) If the Toronto Library Board approves the harmonization of Sunday Service rationalization as recommended in the report from the City Librarian dated January 25, 1999 that the additional costs of $56.5 thousand associated with service harmonization be absorbed within the 1999 budget submission.

(138) That the City Librarian provide the requested report pertaining to potential library closures to the Finance and Priorities Committee no later than September 1999.

(139) That the City Librarian report back to Budget Committee on room rental and options for maximizing revenue in the context of pending corporate policy on the use of community meeting space.

Public Health:

(140) The 1999 Operating Budget request totalling $111.821 million (gross) and $53.559 million (net), comprised of the following services be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Support Services 7.886 5.457

Planning and Policy 8.017 3.895

Family Health/Healthy Living 60.833 26.513

Communicable Diseases 18.823 8.518

Healthy Environments 16.262 9.176

Total Program Budget 111.821 53.559

(141) (i) Before any further requests for additional funds are considered, the Medical Officer of Health report back to Budget Committee on accommodating any additional requests for harmonizing the remaining programs through re-prioritizing all Public Health activities within the recommended budget envelope;

(ii) A comprehensive review of Public Health programs be referred to the Chief Administrative Officer, and be included in the review of Public Health's mandatory/non mandatory programs.

(142) The City request the Province to re-evaluate the prescriptiveness of the Provincial mandatory guidelines to allow the municipality to identify and prioritize the recommended levels of service applicable to its community;

(143) The Medical Officer of Health report to Budget Committee on any additional licensing and registration revenues that have been identified to fund program initiatives in animal services and be incorporated into the 2000 budget submission;

(144) The Medical Officer of Health is requested to provide a report to Budget Committee on the possibility of generating user fees or different delivery methods to achieve the outcomes as recommended in the provincial standards guidelines, particularly on the new mandatory regime of public health inspections and be incorporated into the 2000 budget submission;

(145) The Medical Officer of Health, be requested to pursue possible Federal Government funding of public health initiatives given its large surplus and new spending in health e.g., public health awareness programs;

(146) Within the Grants envelope, $100 thousand for Food Access Grants be earmarked for the express purpose of providing capital funding, on a one-time basis only, for the purchase of refrigerators, ovens, etc., on a emergency basis for volunteers providing food to the homeless, and that the said funding to be at the sole discretion of the Commissioner of Community and Neighbourhood Services;

(147) The provision for a level of service for Food Safety, Tuberculosis and Needle Exchange as recommended by the Board of Health on February 22, 1999 in the Report, entitled "Public Health 1999 Budget", dated February 16, 1999, and detailed in report entitled "Meeting Provincial Standards Across the City for Selected Public Health Program and Services", dated January 18, 1999, (Reference #1.3.LL) be adjusted to a service level that meets the Ministry's of Health's minimum program requirements as recommended as follows:

(i) Food Safety -- additional funding in the amount $391.9 thousand (gross) and $195.9 thousand (net) for 1999 and $1,084.0 thousand (gross) and $542.0 (net) for 2000 be provided;

(ii) Tuberculosis -- additional funding of $477.7 thousand (gross) and $238.9 thousand (net) for 1999 and $1,163.8 thousand (gross) and $581.9 thousand (net) for 2000 be provided; and

(iii) Needle Exchange -- additional funding of $185.1 thousand (gross) and $92.6 thousand (net) for 1999 and $413.5 thousand (gross) and $206.8 thousand (net) for 2000 be provided.

(148) The provision for the level of service for the Dental Program as recommended by the Board of Health on January 25, 1999 in the Report entitled "Harmonization of Dental and Oral Health Services" dated January 15, 1999 (Reference #1.3.LL) to harmonize in 1999 across the City by extending the hours of some or all of current clinics be approved with the exception that no capital monies be included and that the following items be adopted to facilitate the Budget Committee review process for the 2000 budget process:

(i) $800 thousand be added for the expansion of the Dental Program for kids and seniors in 1999 and the Commissioner of Community and Neighbourhood Services be requested to report on whether, with this expansion, the pilot program for dental services can be included, providing the Community and Neighbourhood Services Committee with a full review of the expanded program, including its successes and failures, prior to year-end;

(ii) A Dental Task Force be established to set up and examine the methods of providing dental services for the City of Toronto in the year 2000, to include an Action Plan and the cost of same, and report thereon to the Board of Health and the Community and Neighbourhood Services Committee in that regard;

(iii) The aforementioned Dental Task Force be comprised of the Chief Administrative Officer, Chief Financial Officer and Treasurer, Commissioner of Community and Neighbourhood Services, the Medical Officer of Health, and representatives from the University of Toronto's Faculty of Dentistry, the Ontario Dental Association, Ontario Dental Hygienists' Association, and the Society of Denturists.

(iv) The Commissioner of Community and Neighbourhood Services and Medical Officer of Health be requested to report within three months to Community and Neighbourhood Services Committee on the new management structure for dental services.

(v) The City Auditor be requested:

(a) to report back to the Budget Committee on a system of control for the eligibility of clients requesting dental services; and

(b) review the dental services that are now in operation and report back to the Board of Health prior to the Year 2000 budget deliberations.

(vi) The Ontario Dental Association be requested to:

(a) report back to the Budget Committee on the costs related to referrals and administrative fees;

(b) provide Members of Budget Committee with a copy of the FDA "Table of Benefits"; and

(c) consult with the City to work out a plan whereupon every resident in the geographic area requiring dental services could be looked after at a reasonable costs.

(vii) The Ontario Dental Association be requested to report back to Budget Committee and advise whether or not dentists who are members of the Association who acquire work from the City, are prepared to do pro-bono work for the City.

Public Transit Program:

(149) The 1999 Recommended Operating Budget of $760.720 million gross and $188.128 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

TTC Conventional 719.545 148.888

Wheel Trans 41.175 39.240

Total Program Budget 760.720 188.128

(150) The City's level of dollar subsidy remain at the 1998 approved level for Conventional transit, net of a $0.5 million reduction to reflect anticipated traction power savings, and that the TTC absorb any other cost pressures from other sources of funding including a fare increase; and

(151) The Wheel Trans budget include the requested $1.5 million net increase over the 1998 levels to expand the number of trips and maintain the unaccommodated booking rate at 2 percent, as reflected in Recommendation No. (149) above.

Toronto Police Service:

(152) The 1999 Recommended Operating Budget for the Toronto Police Service of $535.9 million (gross) and $522.9 million (net), be approved;

(153) Prior to ordering the 100 unmarked vehicles and the release of the $7.5 million for fleet purchases, the Chair, Police Services Board provide a list of the functions for the unmarked vehicles and the number of vehicles assigned to each function;

(154) The Chair, Police Services Board report back, prior to the next budget cycle, on the feasibility of marking some of the 731 unmarked vehicles so as to show a greater police presence in the City;

(155) The Chair, Police Services Board report back to the Budget Committee, prior to the next budget cycle, with a review of the clothing allowance for plainclothes officers;

(156) The Chair, Police Services Board report back to the Budget Committee prior to the next budget cycle outlining the possibility of re-deploying Superintendent and Staff Inspector positions to enhance the front-line officer strength;

(157) The Toronto Police Service report back to Budget Committee, prior to the next budget cycle, on the Attendance Management Program and consider a policy for the mandatory physical training of officers;

(158) The Corporate fund-raising for the Air Service pilot project provide for the costs of all police personnel re-deployed to the project to prevent degradation to front-line policing and that no additional operating costs accrue to the budget. Consideration be given to an independent analysis for the Air Service pilot project; and

(159) The Toronto Police Service report back, prior to the completion of the 1999 budget process, on the specific allocation of expenditures and revenues of the Budget Committee recommended adjustments.

Theatres and Galleries:

(160) The 1999 Recommended Program Budget of $21.612 million (gross) and $1.472 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

St. Lawrence Centre for the Performing Arts 1.881 1.120

Hummingbird Centre for the Performing

Arts (operating) 10.196 0

North York Performing Arts Centre 5.718 .352

Total Program Budget 17.795 1.472

Hummingbird (capital) 3.817 0

Total Program Budget 21.612 1.472

(161) The $55,000.00 requested for a one time marketing and sponsorship program for the St. Lawrence Centre for the Arts be funded from the St. Lawrence Capital Improvement Fund;

(162) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee on the future of theatres in Toronto, including those occupying City buildings that operate privately, by the end of 1999;

(163) The Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee on options for governance and management of the St. Lawrence Centre for the Arts, and strategies to generate revenue from non-revenue producing programs such as the Forum;

(164) The Chief Financial Officer and Treasurer, in conjunction with the North York Performing Arts Centre, report to the Policy and Finance Committee by June 1999 on the financial performance of the North York Performing Arts Centre;

(165) The Commissioner of Economic Development, Culture and Tourism review the operations of the two galleries (Arts Gallery of North York and the St. Lawrence Market Gallery) and the details of their amalgamation/operating structure be subject to a further report as soon as possible; and,

(166) The combined 1999 Operating Budgets of both galleries be reduced by a total amount of $.236 million.

Toronto Zoo:

(167) The 1999 Operating Budget of $ 22.800 million gross and $ 7.275 million net, comprised of the following services be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Biology and Conservation 7.329 6.908

Marketing and Communications 5.287 .310

General Management/Administrative &

Site Services 10.184 10.001

Revenue 0.0 (9.944)

Total Program Budget 22.800 7.275

Consolidated Grants Program:

(168) The 1999 Recommended Operating Budget of $44.437 million gross and $42.513 million net, comprised of the following services, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Arts and Culture Grants 12.235 12.180

Community Services Grants 13.533 13.533

Recreation Grants 1.327 1.327

Public Health Grants 3.043 3.043

Housing Grants 0.974 0.974

Legion Grants 0.195 0.195

Access and Equity Grants 0.444 0.444

Economic Development Grants 5.116 5.116

Urban Development Grants 0.284 0.284

Misc. City of Toronto Grants 7.286 5.417

Total Program Budget 44.437 42.513

(169) The Commissioner of Community and Neighbourhood Services provide a document to Budget Committee members indicating how the grants' funding is disbursed and the detailed 1998 listing of grants disbursed to specific organizations;

(170) On-going under-expenditures of $898.8 thousand be reallocated within the Consolidated Grants program to begin addressing service levelling requirements;

(171) The Public Health Program's request to expand and fully fund the restoration of Food Access Grants not be approved, but that within the grants envelope, $100.0 thousand be earmarked and allocated from the $898.8 thousand, for the express purpose of providing capital funding, on a one-time basis only, for the purchase of refrigerators, ovens, etc. on an emergency basis for volunteers providing food to the homeless, and that the said funding to be at the sole discretion of the Commissioner of Community and Neighbourhood Services;

(172) The Toronto Arts Council's operating budget requests for an $98.0 thousand increase for grants administration, $400.0 thousand increase for levelling up of service, and a $43.0 thousand transfer from the Loan Program, be referred to the Municipal Grants Review Committee for consideration;

(173) The Commissioner of Economic Development, Culture and Tourism be given authority to negotiate a purchase of service agreement with Tourism Toronto, in consultation with the City Solicitor and the Chief Financial Officer and Treasurer;

(174) The President of Tourism Toronto report to Economic Development Committee and Budget Committee on the progress toward achieving the implementation of a tourism levy before the 2000 operating budget cycle;

(175) During 1999, staff of the Corporate Grants Team deal with the criteria, rationale, and justification for the use of automatic monthly instalment payments, the timing of them, and the application of consistent procedures in all cases where this process is utilized;

(176) During 1999, a corporate review be completed to determine the proper treatment and funding for organizations occupying city-owned properties and that this be used in establishing the occupancy grants policy. Implications of the policy should be incorporated into the 2000 operating budget;

(177) The Heritage Fund report to Municipal Grants Review Committee requesting and justifying the one-time "top-up" requested liability for 1998;

(178) As soon as results are determined for the Toronto District Board negotiations, revised figures for the negotiated rents in Recreation Grants be provided to the Finance Department;

(179) Given that hospital grants are a provincial, not municipal responsibility, all hospital grants be eliminated for the 1999 operating budget;

(180) As soon as the Province responds regarding the tax exemption for all Veteran's clubhouses, Canadian, British and Allied forces, that the Chief Financial Officer and Treasurer report to Municipal Grants Review Committee on the budget impact;

(181) The Economic and Development co-ordinator for BIA's, in consultation with the City's Auditor and Chief Financial Officer and Treasurer, review the audit practices of the new BIA organizations and that there be a rationalization of the audit fees following the review during 1999;

(182) The City of Toronto communicate with the Harbourfront Corporation regarding the upcoming end of the agreement and establish a plan of action for beyond 2001;

(183) The actual expenditures for partial graded exemption grants be reviewed and the grant eliminated during the next five years;

(184) The Finance Department examine the past five year's claims experience for the Drain Claim Grants and prepare estimates of the projected amount for the 2000 operating budget.

Capital and Corporate Financing, Non Program Expenditures, and Non-Program Revenues:

(185) The 1999 recommended budget for Capital and Corporate Financing of $ 330.11 million (net) be approved;

(186) The 1999 recommended budget for Non Program Expenditures of $296.39 million (net) be approved;

(187) The 1999 recommended budget for Non Program Revenues of $449.15 million be approved;

(188) With respect to the report to Budget Committee dated April 1, 1999, "1999 Capital Financing Plan Tax Supported Program" by the Chief Financial Officer and Treasurer, (reference 1.3.RR), the said report incorporating the following recommendations be adopted, subject to final resolution by the Budget Committee on April 16, 1999:

(i) capital from current contributions be increased by $25 million for the 1999 operating budget, and approval in principle be confirmed for additional increases of $7 million, $0 million, $7 million, and $24 million in the year 2000 through 2003 respectively, totalling a minimum of $38 million annually over the next four budget years, to continue to address the TTC capital shortfall;

(ii) the Sheppard Subway reserve fund withdrawal rate be increased to 100 percent of project expenditures, increasing withdrawals by $49.7 million in 1999 for a total contribution from reserve of $198 million;

(iii) effective January 1, 1999 to December 31, 2000, the first $25 million in annual unencumbered proceeds from the sale of surplus properties deposited in the Land Acquisition Reserve Fund be applied to offset capital requirements for the capital program in 1999 and 2000;

(iv) the City's share of the GO Transit 1998 budget surplus, estimated at $5 million, be used to offset debt requirements for the Year 2000 system compliance project in 1999;

(v) effective January 1, 1999 to December 31, 2000, the estimated tax supported operating budget savings of $46.2 million due to the continued suspension of the OMERS premium in 1999 and 2000 be applied to the capital program and thereafter revert to being transferred to the Employee Benefit Reserve;

(vi) total net debt financing (after provision for under expenditure of $50 million) for the 1999 capital program be limited to no more than $321.5 million, consisting of $110 million baseline debt and $211.5 million in new additional debt;

(vii) the City request the second Provincial interest free loan up to $100 million, and that such loan be used for the purposes of funding 1999 amalgamation and related capital costs;

(viii) the portion of the Y2K project attributable to the Water and Waste Water program, in the amount of $12.4 million, be funded from respective capital financing reserves in the rate supported budget; and

(ix) the following additional mitigating measures be pursued and reported on to further reduce the debt financing of $321.5 million:

(a) the potential to enter into a cross border sale/leaseback of subway cars be investigated and reported back by the Chief Financial Officer and Treasurer, and that, if implemented, any resulting up-front proceeds be applied to reduce debt requirements for the TTC capital program in 1999;

(b) the Province be requested to recognize the TTC capital subsidy elimination under the "Who Does What" downloading compensation formula, which may entitle the City to ongoing annual funding from the Community Reinvestment Fund; and

(c) the Province be urged to provide ongoing financial support to the City's unique (in Ontario) transit system, particularly in the area of funding subway car purchases on an ongoing basis, and that this financial support be in the form of a sustaining grant or access to additional revenue sources.

(189) With respect to the report dated April 8, 1999, "Policy on Interest Paid on Assessment Appeal Refunds Financial Implications of Interest Paid on Prime", from the Chief Financial Officer and Treasurer, (reference 1.3.RR), the said report incorporating the following recommendations be adopted;

(i) the interest on assessment appeal refunds for 1997 and prior tax years be calculated based on the policies and rates that existed in each of the former area municipalities at that time;

(ii) that the rate of interest to be paid on assessment appeal refunds be set at the average rate paid by the six major Canadian chartered banks on savings account balances (or a minimum of 1 percent), as determined by the Chief Financial Officer and Treasurer, from time to time;

(iii) that the City of Toronto pay interest on assessment appeal refunds from 1998 and 1999 at a rate of 1 percent retroactive to January 1, 1998;

(iv) that the Province of Ontario be responsible for the amount of interest earned on an overpayment due to the time lag between the filing of an assessment appeal and the final disposition of the appeal by the Assessment Review Board;

(v) that the Province of Ontario be requested to reimburse the City for interest earned from the date of overpayment to the date of receipt by the City of the Notice of Decision;

(vi) that By-law No. 29097 of the former City of North York, which allows for the payment of interest on assessment appeal refunds for properties in the former City of North York, be amended to reflect the changes as set out in Recommendations Nos. (2) and (3) above;

(vii) that the former City of Toronto's Municipal Code be amended to provide that any overpayments made on, or after, January 1, 1998, which are eligible for assessment appeal refunds, shall have the interest applied from the day the overpayment is made;

(viii) that the City Solicitor be authorized to submit the necessary by-law to give effect to these recommendations.

(190) With respect to the communication dated April 6, 1999, "School Tax Sub-Committee Recommendations: City of Toronto 1999 Operating Budget respecting Children's Services and School rents Master Service Agreement and Related Agreements", from the City Clerk, (reference 1.3.RR), Recommendations Nos. (3), (4), and (5) be adopted, viz:

(i) that the Master Agreement be ratified as soon as possible and that the City not be confined to $3.70 per square foot for child care spaces used to provide child care services;

(ii) that the City have security of tenure for City programs such as Day Care and Community and Recreation space;

(iii) that the Chief Financial Officer and Treasurer, and other appropriate staff including Children's Services, Public Health and Parks and Recreation review the opportunities for service exchanges between the City and the School Boards, i.e., hydro, water, and garbage pick-up;

and further:

(iv) that City Council support the School Boards in their efforts to have their temporary borrowing costs reflected in the funding allocation formula;

(v) the report dated April 7, 1999, "Financial Relationship between the City of Toronto and School Boards" by the Chief Financial Officer and Treasurer, (reference 1.3.RR), be received.

(191) With respect to the report dated April 1, 1999, "Annual Sinking Fund Levies for 1999", from the Chief Financial Officer and Treasurer (reference 1.3.RR), that the said report incorporating the following recommendations be adopted:

(i) the 1999 Sinking Fund Levies, as detailed in the report, be approved;

(ii) no reduction of Sinking Fund Deposits be approved for 1999; and

(iii) the appropriate City of Toronto officials be authorized to take the necessary actions to give effect thereto.

(192) The City of Toronto's 1999 contribution to the Greater Toronto Services Board (GTSB) of $550,000.00 be approved for inclusion in the Non-Program Expenditures budget.

(193) Further to revised estimates of Provincial downloading costs and the recent Provincial announcements on Local Services Realignment (LSR):

(i) a Provincial Local Services Realignment section be established in Non Program Expenditures to include the following:

(a) $13.20 million recoverable from Public Health;

(b) $ 5.90 million recoverable from Ambulance Services;

(c) $ 2.50 million as a reserve for adjustments to the Provincial subsidy;

(ii) the budget for the cost of the Assessment Function downloaded by the Province in Non Program Expenditures be increased by $1.06 million; and

(iii) that staff be directed to allocate the corporate recovery charges from Public Health and Ambulance Services to the appropriate program budgets, following approval of the 1999 Operating Budget.

Parking Tags:

(194) The 1999 Recommended program Budget for Parking Tag Operations of $ 25.938 million (gross) and $26.211 million (net revenues), comprised the following services on the gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Non-Program Expenditures:

- Parking Tag Operation (City Finance) 4.490 4.490

- Parking Enforcement Unit (Police Services) 21.448 21.448

Non-Program Revenues:

- Parking Tag Revenues (52.150)

Total Program Budget 25.938 (26.212)

(195) The Parking Enforcement Unit expenditures be approved as submitted on the basis that the program improve productivity in parking tag issuance so as to generate an additional $1 million in revenues, pro-rated to result in a $500,000.00 increase in 1999 budgeted revenues and the Budget Analyst be directed to work with the Parking Enforcement staff to ensure that this revenue target is met at year end and provide an updated report to the Budget Committee in September, 1999 in that regard.

TEDCO:

(196) The 1999 Operating Budget for the Toronto Economic Development Corporation (TEDCO) of $6.177 million gross expenditures, $8.374 million revenues, and a retained surplus of $2.197 million (as detailed in Appendix A and summarised below), be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

TEDCO 6.177 (2.197)

(197) With regards to an additional reduction target of $103,000.00 agreed to by TEDCO and recommended by the Budget Committee:

(i) TEDCO be given the flexibility to apportion the revised additional reduction target of $103,000.00 to expenditure line items in the manner it considers most appropriate;

(ii) the expenditure reductions of up to $103,000.00 be restored, if necessary, contingent on the 1999 actual surplus exceeding the budgeted surplus of $2,196,300.00.

(198) TEDCO report to the Budget Committee in 1999 on appropriate statistics and performance measures that would indicate how TEDCO's operations compare with industry standards;

(199) With respect to the study currently being undertaken by the Chief Administrative Officer and the Economic Development Committee regarding TEDCO's governance structure, its future role and its financial accountability to the City:

(i) the Chief Financial Officer and Treasurer be requested to determine the financial implications of the recommendations of the study;

(ii) the Chief Financial Officer and Treasurer, in consultation with TEDCO, report to the Budget Committee on the necessary adjustments to TEDCO's approved 1999 Operating Budget, to reflect the financial implications of the study;

(200) The City Solicitor, in consultation with the Chief Financial Officer and Treasurer, report to the Budget Committee, for its regular business meeting scheduled for May 25, 1999, on the most appropriate process for the disposition of grants/subsidies in TEDCO's portfolio of grants/subsidies to third parties; and

(201) The Chief Financial Officer and Treasurer, in consultation with TEDCO, report to the Budget Committee on the necessary adjustments to TEDCO's approved 1999 Operating Budget, to reflect the recommendations of the report.

Toronto Parking Authority:

(202) The 1999 Recommended Operating Budget for the Toronto Parking Authority of $30.726 million (gross, before contributions to City and retaining earnings) and ($29.593) million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget Net Budget

Service ($, mil) ($, mil)

Off-Street Parking 28.383 (16.159)

On-Street Metered Parking 2.343 (13.434)

Total Program Budget 30.726 (29.593)

(203) The Chief Administrative Officer, in consultation with the President, Toronto Parking Authority ensure that the appropriate staff are made available to process expeditiously all legal and other requirements to give effect to changing the by-laws respecting a new rate policy for the City.

Water and Waste Water:

(204) The 1999 Recommended Operating Budget for Water and Waste Water of $442.033 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

Gross Budget

($, mil)

Net Budget

($, mil)

Water
Water Production 52,567.1 52,567.1
Water Distribution 70,552.0 70,552.0
Administration & Other 27,192.5 27,192.5
Capital Financing 51,722.6 51,722.6
Total Water Expenditures 202,034.2 202,034.2
Revenues (202,034.2) (202,034.2)
Net Total - Water Program 0.0 0.0
Waste Water
Wastewater Treatment 84,735.4 84,735.4
Wastewater Collection 38,173.2 38,173.2
Administration & Other 28,258.2 28,258.2
Capital Financing 88,832.4 88,832.4
Total Waste Water Expenditures 239,999.2 239,999.2
Revenues (239,999.2) (239,999.2)
Net Total - Waste Water Program 0.0 0.0

(205) The 1999 Recommended Operating Budget for Water and Waste Water of $442.033 million (gross) and $0 million (net), comprised of the following Services on a gross and net basis, be approved:

(206) The General Manager, Water and Waste Water, in conjunction with the Chief Financial Officer and Treasurer report back to Budget Committee by June 30, 1999 on the following matters:

(a) savings realization schedule for the years 1999 to 2003 in relation to the Best Practices Program, and the initiation of the Program for District operations;

(b) the extent, nature and impact of water loss in the distribution system relating to the former City of Toronto; and

(c) the overall financial impact of the termination of industrial waste agreements;

(207) (From the Chief Financial Officer and Treasurer's report "Financing the 1999 Water and Waste Water Capital and Operating Budgets" dated March 22, 1999 to Budget Committee, (refer section 1.3.UU)):

In the absence of capital expenditure reductions in 2000 and 2001:

(a) the capital financing strategy as outlined in Option C(ii) and table 12 of the report, which provides for a combination of debenture financing (in the amount of $65.0 million over the 2000-2003 capital works plan) and an increase in the average water rate (projected at 2.0 percent in the years 2000 and 2001), be endorsed in principle;

(b) the combined water and sewer rates, and the rate charges to flat rate customers, be increased by 2.0 percent effective January 1, 2000; and

(c) the rate increases for 2001 and debenture financing proposed, as shown in recommendation (a) above for the years 2000 and 2001, be subject to a review of the 2000-2004 Water and Waste Water Program requirements prior to approval;

(208) The Chief Financial Officer and Treasurer, in consultation with the General Manager Water and Waste Water be requested to consider spreading the capital expenditures more evenly over five years; and

(209) The Chief Financial Officer and Treasurer, and the Commissioner of Works and Emergency Services be required to provide a defined list of policies upon which the Water Rate can be based; and, the Chief Financial Officer and Treasurer be requested to submit a policy statement in this regard.

Background:

The 1998 operating budget maintained service levels at 1997 levels and achieved a zero budget increase with the use of a $50 million grant and $69 million loan from the Province. The 1998 operating budget absorbed a net impact of $131 million of Provincial operating budget downloading along with other City budget pressures. Amalgamation savings were targeted over three years to be 10 percent of the gross expenditures of the amalgamating programs or $150 million with approximately $50 million budgeted to be realized in 1998 to offset budget pressures.

1999 Operating Budget Process:

The preparation of the 1999 operating budget began in late summer 1998 with the creation of a budget forecast for 1999. This forecast identified $267 million in net pressures in a presentation to Council in November 1998 that set the context for the 1999 operating budget process.

In the Fall of 1998, departments and their respective program areas were issued instructions to prepare a detailed 1999 operating plan and submission that included continued restructuring targets together with a '10 percent options' list - items prioritized that could be considered for the 1999 budget, if necessary.

Through January and February 1999, staff in the Budget Services Division of the Finance Department reviewed each program submission against the 1998 approved budget. Budget staff assessed the budget pressures now totalling $180 million and worked with program managers to identify potential further savings and made recommendations for final program review.

Detailed program reviews were performed from February 8-12, 1999, resulting in recommended adjustments being made to the program submissions. A consolidation of the City's budgetary position determined that a corporate 'gap' of $95 million existed.

The Senior Management Team developed a package of budget savings that reduced the 'gap' to $63 million and recommended the use of Provincial assistance to bring the budget to a zero tax increase for 1999. This resulted in the 1999 recommended Corporate Budget.

The recommended Corporate Budget was submitted to the Budget Committee for its review beginning February 9, 1999 and throughout the week of February 22, 1999. The recommended Corporate Budget, together with Budget Committee's preliminary motions, were referred to Standing Committees and Community Councils for their consideration. Recommendations arising out of these deliberations were forwarded to the Budget Committee for consideration at its wrap-up sessions of April 6 to 8, 1999, when recommendations were finalized.

Further to the Budget Committee meeting of April 8, 1999, staff incorporated best estimates of the financial impact of the March 23, 1999, provincial announcement. Appendix A outlines the City's 1999 recommended gross expenditures, revenues and net expenditures, adjusted to reflect the Provincial subsidy amendments.

1999 Budget Highlights:

(1) No tax increase in 1999

(2) Reliance on Provincial Operating Budget Support Eliminated

As noted previously, the City used $109 million of Provincial support in the form of a $50 million grant and $59 million of the provincial loan (originally $69 million but reduced as a result of provincial upload for supportive housing costs). The Provincial funds were provided to bridge the City through the amalgamation period and to deal at the same time with the significant impact of provincial downloading. These funds are not recurring.

The Provincial announcement of March 23, 1999 provides ongoing provincial subsidy to public health and ambulance services that has allowed this budget to not use any of the second $100 million Provincial loan in this operating budget.

(3) Core Services Maintained

There are a wide variety of services and programs that the City is mandated to provide by Provincial legislation, such as homes for the aged, hostels, daycare, and welfare. There are other services that our residents and taxpayers require as basic hard service infrastructure, namely, roads, bridges, sidewalks, parks, community centers.

This budget has been developed to maintain core services.

(4) Amalgamation Savings Continue

$72.5 million has been achieved in amalgamation savings with this budget. The amalgamation target of $150 million focussed on achieving savings from three areas: $130 million from organization restructuring; $10 million from service rationalization and $10 million from service harmonization.

In 1998, amalgamating programs met their FTE targets as budgeted. $48 million of amalgamation savings were budgeted with a target reduction of 1248 FTEs. The June and September variance reports outlined those program areas with particular challenges where either the FTE or salary savings would not be met.

1999 restructuring targets were set to ensure that the full 10 percent reductions would be met within the three year time horizon in the restructuring plan. $72.5 million of amalgamation savings are budgeted in 1999. A total of $120.7 million has been budgeted in 1998 and 1999 excluding service harmonization.

Appendix B demonstrates the detailed program targets and progress towards achieving the overall 10 percent target for the organization restructuring and service rationalization efforts to date.

Impacts that demonstrate that amalgamation is working:

(i) Senior management has been reduced by 60 percent (381 to 164);

(ii) Savings in insurance and banking services of $12M annually;

(iii) $30 M in collapsed leases and property sales;

(iv) A streamlined development process in the City of Toronto; and

(v) 25 percent more investment inquiries from business.

(5) Key Services Harmonized

This budget addresses the harmonization of key services which have been identified as part of the $150 million in amalgamation savings. The significant services harmonized in this operating budget include: residential garbage collection, sidewalk snow clearing, windrow clearing, parks and recreation fees, commercial garbage collection and corporate grants.

Appendix C outlines the total costs or (savings) over the period 1999, 2000 and post 2000 that relates to the harmonization of each of these key areas. Harmonization of these key services results in total savings of $.49 million in 1999 and costs of $2.3 million in 2000 and $5.3 million for the years 2001 to 2003 inclusive.

The following summarizes Budget Committee recommendations respecting the various service harmonization areas:

Solid Waste Harmonization:

(a) Effective September 1999, the Budget Committee has recommended once per week pickup of garbage collection; once every two weeks for recyclable material for savings of $533k in 1999 and further savings of $1.1M in 2000;

(b) It is also recommended that twice a week collection be implemented in up to one third of the City in Summer 2000 at a cost of $800k in 2000;

(c) The net impact of these recommendations in 2000 will be a net saving $300k;

(d) Yard waste will be picked up once a week from mid April to May 31 and October 1 to November 30; and once every two weeks in between, resulting in savings of $200k in 1999;

(e) Budget Committee has recommended to provide this service only to low density residential properties where only disabled persons reside. This is an increase to the Program's budget of $25k in each of the years 1999 and 2000 to provide this service in Scarborough, Etobicoke, York and East York. This cost is to absorbed by the Program;

(f) The Budget Committee has recommended a three year phase in of harmonizing the City's approach to commercial garbage collection. Currently approximately 22,000 small commercial properties are served by City services distributed as follows: 14,000 in former Toronto; 900 in former North York; 3000 in former Scarborough; 1345 in former Etobicoke; 1645 in former York and 1200 in former East York;

(g) For these 22,000 businesses currently receiving garbage collection, this service will continue to be delivered by the City through 1999 and 2000;

(h) In 1999, a fee will be charged on a mandatory basis to all businesses receiving greater than twice a week collection (generally in former Toronto, Etobicoke and York) effective July 1, 1999 as follows: three times per week - $ 150.00; four times per week - $300 ; five times per week - $600.00; six times per week - $800.00;

(i) In 2000, the annual fee charged on a mandatory basis to all businesses receiving greater than twice per week collection will be as follows: three times per week - $300.00; four times per week - $ 600; five times per week - $1200.00; six times per week - $1600.00; and

(j) In 2001, the Commissioner of Works and Emergency Services will report on how to complete the harmonization of garbage collection to all small commercial businesses in the City.

Winter Maintenance:

(a) The Budget Committee has recommended that all sidewalks - local and arterial - in the City be cleared of snow eight times per year within 4 years of the Winter 1999/2000 season. An additional $8 million will be required to be added to the budget as follows; 1999-$250,000; 2000 - $2 M; 2001 - $2 M; 2002 - $2 M; 2003 - $1.5M;

(b) In Winter 1999/2000, those areas of the City that received sidewalk snow clearing services will be harmonized to eight clearings per year (North York will be adjusted to eight from the current fourteen; East York will be adjusted to eight from six; Scarborough and York remains the same);

(c) In Winter 1999/2000, year one of the expansion has been provided;

(d) The Budget Committee has recommended that windrow clearing four times per season be expanded to all areas of the City where it is technically feasible i.e., non permit parking areas at an annualized cost of $1.6M with $400k in the 1999 operating budget. For Winter 1999/2000, all of the former Etobicoke and parts of Toronto, York and East York will receive windrow snow clearing; and

(e) The Budget Committee has recommended a $1M expansion to the City's snow removal program in permit parking areas of the City. ($250k in 1999; $750k in 2000 and increased removal capability of $160K in 1999).

Recreation Fees:

(a) The Budget Committee has recommended Option B as described by Parks and Recreation staff. Effective September 1, 1999, this option provides for free recreation programs for children and youth while retaining fees for adults at a harmonized rate plus 20 percent. This option will cost the City $800k in 1999 and an additional $1.1 M in 2000. There may be increased demand that results from implementation of this option. The Budget Committee has recommended a reserve amount of $300k to provide for this potential increased demand; and

(b) This option will collect fees of $2.1M from the former Toronto; and reduce fees collected by $949k in former North York; $347k in former Scarborough; $2.0 M in former Etobicoke; $246k in former York; and $547k in former East York.

Permit Parking Fees:

(a) Residential on street parking fees are recommended by the Budget Committee will harmonize to an annual fee of $84. For former Toronto, this fee will increase from the current annual fee of $60. For former Etobicoke and East York, the rates will decrease from levels of $120 and $ 100k respectively. This recommendation will increase revenues in 1999 of $810k and a further $578k in 2000;

(b) Vending Box fees are recommended by the Budget Committee to be harmonized at $18.50 per box commencing in 2000, generating additional revenue of $71,300.00;

(c) Road allowance fees are recommended by Budget Committee to be harmonized effective June 1999 raising $221k in 1999 and a further $191k in 2000;

(d) Residential boulevard fees are recommended to be harmonized to an annual fee of $84. This recommendation would be effective January 2000 and raise $659k in 2000 predominantly in former Toronto ($523k); former York ($133k); former East York of ($18k) and decreases in Etobicoke of $21k; and

(e) Commercial boulevard parking fees are recommended at $290 downtown and $220 for all other areas of the City to raise $100k in 1999 and a further $200k in 2000.

Public Health:

(a) The Budget Committee has recommended the expansion of the dental treatment programs formally in North York, and in Toronto at a cost of $800k in 1999. The expansion is recommended through existing clinics with longer hours. No capital costs are recommended for new clinics until a full review is done on how the program should be delivered in 2000. A Task Force has been recommended to assist the Budget Committee in time for the 2000 operating budget;

(b) The Budget Committee has recommended the harmonization and expansion of the Tuberculosis program to meet the mandatory programs of the Ministry of Health at the minimum level as outlined in the staff report. The gross cost of this recommendation is $478k in 1999 with a further cost of $686k in 2000 for a total cost of $1.164M. The service harmonization results in increased service to former Toronto ($372k); North York ($268k); Scarborough ($256k); Etobicoke ($151k); York ($70k); East York ($47k). This program should be eligible for new provincial subsidy;

(c) The Budget Committee has recommended the harmonization and expansion of the Needle Exchange program to meet the mandatory programs of the Ministry of Health at the minimum as outlined in the staff report. The gross cost of this recommendation is $185k in 1999 with a further cost of $228k in 2000 for a total cost of $413k. The service harmonization results in increased service to former North York ($86k); Scarborough ($160k); Etobicoke ($94k);York ($43k); and East York ($31k). This program should be eligible for new provincial subsidy; and

(d) The Budget Committee has recommended the harmonization and expansion of the Food Safety Program to meet the mandatory programs of the Ministry of Health at the minimum level as outlined in the staff report. The gross cost of this recommendation is $392k in 1999 with a further cost of $692k in 2000 for a total cost of $1.084M. The service harmonization results in increased service to former Toronto ($645k); North York ($49k); Scarborough ($320k); Etobicoke ($70k). This program should be eligible for new provincial subsidy.

Consolidated Grants:

(a) 1998 surplus funds in the Consolidated Grant program totalling $.9 million has been recommended by the Budget Committee for reallocation between the existing grant envelopes to begin the leveling of grant funding City-wide.

(6) Other Highlights

The 1999 Recommended Operating Budget reflects the following changes:

Current Service Priorities, Expansions and Enhancements:

(a) Absorption of the 1998 Budget deficit/Provincial Loan carry forward ($109 million);

(b) Absorption of Provincial downloading pre March 23, 1999 ($40.8 million);

(c) Reduced Social Housing mortgage costs ($5.6 million);

(d) Increased cost of daycare in schools ($3.3 million);

(e) Implementation of Golden Task Force recommendations on homelessness ($5.1 million);

(f) Increased cost of Police, Fire and Zoo wage settlements ($13.6 million);

(g) Increased cost of waste disposal ($2.9 million);

(h) Millennium project funding ($2.85 million gross and $.85 million net);

(i) Increased tax deficiencies ($34 million);

(j) 306 front-line police officers - 170 replacements from attrition and 136 new positions ($.4 million);

(k) Wheel Trans service expansion to maintain unaccommodated rate of demand at 2 percent ($1.5 million);

(l) City contribution to the Greater Toronto Services Board ($.6 million);

(m) Etobicoke Secondary Plan ($.1 million);

(n) Expansion of Healthy Babies, Healthy Children and Provincial Food Services programs with full provincial funding ($3 million gross and $0 net);

(o) Operating costs for the opening of Fairmount,, Trinity-Bellwoods, Oakdale and Antibi recreation centres and Burrow's Hall Library ($ .3 million);

(p) Re-opening of Robertson House;

(q) Year 2 of a 10 year plan to address Provincial downloading of the TTC with $25 million in new Capital from Current funding redirected from other non-program expenditure savings; and

(r) Increased funds to accelerate the processing of tax appeals ($.3 million from Transition funding, $0 net)

Savings:

(i) Welfare caseload decrease to 74,500 ($12.2 million);

(ii) Councillor office budgets reduced from $70,000 to $59,000 each and reductions to other Council expenses ($.9 million);

(iii) Reduced corporate contingency ($15 million);

(iv) General reductions from cost-savings and efficiencies ($5.4 million); and

(v) Reduction in Fire services costs from improved management of absenteeism, restructuring and efficiencies ($2.5 million).

Revenue Changes:

(i) Increased Provincial Offences revenue ($8.0 million);

(ii) Reduced recycling revenues ($2.8 million);

(iii) Increased building permit fees ($6.5 million);

(iv) Increased ferry, golf and ice rental revenues ($1.6 million);

(v) Increased Parking Authority revenue ($11.7 million);

(vi) Increased tonnage for waste disposal ($7.1 million);

(vii) Increased investment income ($15 million); and

(viii) Additional revenue from parking tag fines; birth and death certificates and marriage license fees ($.7 million)

(7) New Provincial Subsidy Reflected

Overview - Provincial Announcement:

On March 23, 1999 the Province announced a new partnership arrangement to deliver ambulance and public health services. Effective January 1, 1999, the Province will share 50 percent of municipal costs for public health and ambulance approved by the Ministry of Health. Since the announcement, staff from the City have been working with provincial staff to determine details of the eligible expenditures. At this time, we have not received conclusive information about these programs. Given the need to finalize the 1999 Operating Budget, staff's best estimates have been incorporated into this report and into the affected program areas.

In summary, the Provincial announcement of March 23, 1999 provides for $76.3 million of new subsidy for the City's Public Health and Ambulance programs effective January 1, 1999. It also creates additional costs of $5.44 million to the Children's Services program, representing a change to the cost-sharing formula for administration from 80/20 to 50/50 and the cost of pay equity implementation.

In addition, the Ontario Property Assessment Corporation costs have increased by $1.059 million relating to the Property Assessment function. There is a $2.45 million addition to the Ambulance program for service expansion initiatives. A $2.502 million line item retained as a reserve for adjustments to provincial subsidy is strongly recommended to provide for potential future adjustments to the cost-sharing arrangements.

As a result, the net benefit to the City amounts to $62.231 million. Therefore, the Provincial loan is no longer required to offset the 1999 operating budget pressures. To balance the 1999 operating budget, it is proposed to eliminate the transfer from the Transition Reserve Fund in the Capital and Corporate Financing program by the amount of $62.231 million. The impact of Provincial Announcement of March 23, 1999 is outlined in Appendix D.

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public health - imp of prov announcement

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ambulance imp of prov announcement

The Province will now cost share the Ambulance program on a 50 percent basis effective January 1, 1999.

To achieve the full Provincial funding allocation, and to be consistent with Public Health, Corporate charges of $5.9 million have been added to the Ambulance program. The Corporate charges were based on 3.0 percent of total Corporate administration costs. The costs will be recovered through Non-Program expenditures, resulting in no net impact to the budget.

The Province will also cost share on a 50 percent basis, two new programs; the Paramedics for Re-direct ($2.7 million) and Critical Care Transportation ($0.4 million). The revised program budget was approved by the Budget Committee at its meeting of April 16, 1999.

The net change from Budget Committee's 1999 Recommended Budget is a $8.350 million increase to gross expenditures, offset by a $32.465 million increase in revenues, for a net reduction of $24.114 million.

Children's Services:

Previously, the Province provided 80 percent funding for the administration component of the Children's Services program. On March 23, 1999, the Province announced that the cost sharing for administration will now be provided on a 50/50 basis, effective July 1, 1999. Municipalities will cost share 50 percent of the administrative costs for fee subsidies, wage subsidies, special needs resourcing and resource centres.

The preliminary estimate of the annualized impact of the child care administration to the City is $3.44 million net. The annualized amounts have been incorporated into the 1999 Recommended Budget. A more precise calculation of the 1999 impact will be forthcoming when actual negotiations with the provincial area office transpire. This will identify the costs approved for cost sharing and the actual date of transfer for the downloaded programs.

Although not specifically referenced in the March 23, 1999, announcement, the Province has advised that there will be an annualized increase in the wage subsidy program currently being cost shared 80:20 with the Province to reflect the funding of pay equity obligations for eligible community child care programs up to January 1, 1998. The Province has not yet confirmed the actual increase in wage subsidy costs resulting from the pay equity adjustments. However, the department estimates that the annualized net increase to the City will be approximately $2.0 million. This has been incorporated into the 1999 Recommended Budget. A detailed estimate will be provided once the Province provides more information concerning recipients of the wage subsidy.

The impact of the additional administrative cost sharing of $3.44 million and the additional $10.0 million (gross) and $2.0 million (net) for pay equity results in a net increase of $5.44 million.

Ontario Property Assessment Corporation:

The Province has advised that the cost of providing assessment services has increased. The Ontario Property Assessment Corporation (OPAC) is responsible for the provision and billing of assessment services directly to municipalities.

OPAC will recover its costs based on a formula provided by legislation. The formula is based on the current assessment roll. The impact on the City's budget is as follows:

1999 Recommended Budget (per Budget Committee) $24.70 million

Revised Provincial Forecast $25.759 million

Increase $1.059 million

The impact of $1.059 million has now been incorporated into the Non-Program expenditures in the 1999 Recommended Budget.

Non-Program Adjustments :

In addition to the increased costs for the Property Assessment function, the following adjustments have been made to the Non-Program area:

(a) A $2.502 million line item in Non-Program retained as a reserve for adjustments to Provincial subsidy has been provided in the 1999 Recommended Budget. Since the Provincial numbers are subject to fine-tuning adjustments as more details are known, it is strongly recommended to set aside this amount to mitigate potential budgetary impacts from further adjustments in the Provincial cost sharing arrangements; and

(b) An expenditure recovery of $19.1 million has been incorporated into the 1999 Recommended Budget to recover the Corporate charges allocated to the Public Health program ($13.2 million) and to the Ambulance program ($5.9 million).

Net Impact on the 1999 Budget:

As indicated in Appendix D, the net impact of the Provincial announcement on the City's 1999 Operating Budget is a benefit of $62.231 million. Prior to the Provincial announcement, the 1999 Recommended Budget tabled at the Budget Committee included a recommendation to offset the $62.8 million residual amount by using a portion of the available Provincial loan. As a result of the new Provincial funding, the Provincial loan is no longer required to offset operating budget pressures. Therefore, a transfer from the Transition Reserve Fund within the Corporate and Capital Financing program is not required for 1999.

Conclusion:

The 1999 Recommended Operating Budget presents a zero tax increase for 1999 and eliminates reliance on Provincial assistance in the Operating Budget. This has been accomplished while achieving the harmonization of key services such as garbage collection, snow removal, recreation and public health programs and expanding or enhancing current services. Continued progress in the City's 3 year restructuring plan resulting in additional 1999 amalgamation savings of $72.5 million together with savings from efficiencies and additional revenue generation have enabled the City to maintain its core services delivered to the public.

Contact Name:

W. A. Liczyk, Chief Financial Officer and Treasurer, 392-8773.

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1999 operating budget prog summary

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1999 operating budget prog summary

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1999 operating budget prog summary

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1999 operating budget prog summary

The Strategic Policies and Priorities Committee submits the following communication (April 19, 1999) from the City Clerk:

City Council, at its meeting held on April 13, 14 and 15, 1999, had before it Clause No. 1 of Report No. 3 of The Audit Committee, headed "Review of Staff, Councillors' and Mayor's Office Expenses".

Council directed that this Clause, together with the following motions, be referred to the Budget Committee for further consideration, with a request that all Members of Council be advised when the Budget Committee will be dealing with this matter:

Moved by Councillor Duguid:

"That the Clause be amended by:

(1) adding to Recommendation No. (3) of the Audit Committee the words 'and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation', so that such recommendation shall now read as follows:

'(3) the City Clerk, in the outline of the purpose of the global office budget requested in Recommendation No. 3(d) of the report (January 15, 1999) from the City Auditor, clarify in a detailed manner what is permitted and what is not, particularly, whether a Councillor paying for City pins and T-Shirts for community groups promoting the City, or a Councillor paying for the costs of advertising activities done by local groups, would be permitted, and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation;'; and

(2) adding to Recommendation No. (7) of the Audit Committee the words 'provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space', so that such recommendation shall now read as follows:

'(7) the Commissioner of Corporate Services, in her expected report on charge-back for all office space, base the report on a policy of full-cost accounting for such space for all Members of Council, provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space.' "

Moved by Councillor Mahood:

"That Recommendations Nos. (5) and (7) of the Audit Committee be referred to the appropriate Standing Committees for consideration."

(Clause embodied in Report No. 3 of the Audit Committee,

as adopted by the Council of the City of Toronto at its meeting

held on April 13, 14 and 15, 1999, entitled "Review of Staff,

Councillors' and Mayor's Office Expenses")

(City Council on April 13, 14 and 15, 1999, referred this Clause, together with the following motions, to the Budget Committee for further consideration, with a request that all Members of Council be advised when the Budget Committee will be dealing with this matter:

Moved by Councillor Duguid:

"That the Clause be amended by:

(1) adding to Recommendation No. (3) of the Audit Committee the words 'and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation', so that such recommendation shall now read as follows:

'(3) the City Clerk, in the outline of the purpose of the global office budget requested in Recommendation No. 3(d) of the report (January 15, 1999) from the City Auditor, clarify in a detailed manner what is permitted and what is not, particularly, whether a Councillor paying for City pins and T-Shirts for community groups promoting the City, or a Councillor paying for the costs of advertising activities done by local groups, would be permitted, and the City Clerk consider the procedures followed by Members of Parliament and Members of Provincial Parliament when considering this recommendation;'; and

(2) adding to Recommendation No. (7) of the Audit Committee the words 'provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space', so that such recommendation shall now read as follows:

'(7) the Commissioner of Corporate Services, in her expected report on charge-back for all office space, base the report on a policy of full-cost accounting for such space for all Members of Council, provided that those Members of Council who require office space in the former Civic Centres due to the geographical location of their Wards are not unfairly discriminated against with regard to any cost allocations for that space.' "

Moved by Councillor Mahood:

"That Recommendations Nos. (5) and (7) of the Audit Committee be referred to the appropriate Standing Committees for consideration.")

(City Council on March 2, 3 and 4, 1999, deferred consideration of this Clause to the next regular meeting of City Council to be held on April 13, 1999.)

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(Clause No. 2 of Report No. 2 of the Audit Committee)

The Audit Committee recommends that:

(1) the following report (January 15, 1999) from the City Auditor be adopted;

(2) staff, Members of Council and the Mayor's Office be requested to refund all monies which they have received for expense claims for which proper supporting documentation was not submitted, or for matters which do not comply with Council's policy and accepted business practices;

(3) the City Clerk, in the outline of the purpose of the global office budget requested in Recommendation No. 3(d) of the report (January 15, 1999) from the City Auditor, clarify in a detailed manner what is permitted and what is not, particularly, whether a Councillor paying for City pins and T-Shirts for community groups promoting the City, or a Councillor paying for the costs of advertising activities done by local groups, would be permitted;

(4) the City Auditor, in consultation with the Chief Administrative Officer and the City Solicitor, report to the Audit Committee on a policy on the receipt of donations of cash, goods, services and other benefits by Members of Council; and

(5) a charge-back fee be established immediately for the City's limousine service;

(6) Council request that the City of Toronto Act, 1997 be amended to delete the provision that Members of Toronto City Council receive a third of their salary tax-free;

(7) the Commissioner of Corporate Services, in her expected report on charge-back for all office space, base the report on a policy of full-cost accounting for such space for all Members of Council.

The Audit Committee reports, for the information of Council, having:

(1) requested the City Auditor to:

(a) report to the Audit Committee on whether the cost of design, lay-out and printing of Councillors' newsletters being done by the City Clerk is on a full cost recovery charge-back basis;

(b) report to the Audit Committee on the establishment of a charge-back policy for those Councillors who use civic space for second offices;

(c) clarify that senior staff cannot receive a car allowance and a full mileage allowance, and report thereon to the Audit Committee, at its meeting to be held on April 7, 1999;

(2) directed that the Audit Committee receive:

(a) a detailed breakdown of each individual Councillor's office expenses, including the Mayor's office and staff;

(b) a list of remuneration and expenses received by each individual Councillor for activities in their duties as a Member of a local Agency, Board or Commission; and

(3) referred the following motion by Councillor Lindsay-Luby to the Budget Committee for consideration:

"That the global office budget for Councillors be $40,000, such monies to include the charge-back of all office expenses."

The Audit Committee submits the following report (January 15, 1999) from the City Auditor:

Background:

On March 17, 1998, the Chief Administrative Officer issued an expense claim policy for staff. This policy pertains to all City departments and covers the requirements with respect to attendance at conferences/seminars, business trips, meterage claims for use of personal auto, meal allowances, business meetings, etc.

A separate policy, entitled "Office Administration and Expenses for Members of Council", adopted by City Council on June 3, 1998, established the requirements with respect to the office, travel and other expenses of Members of Council.

Comments:

As part of our on-going evaluation of internal controls across the Corporation, a review of staff expense claims, as well as expenditures relating to Members of Council and the Office of the Mayor was completed.

The objective of this review was to ensure awareness of and compliance with the expense policies, and to identify any areas where clarification or corrective action was required.

The review included an examination of records and documents for the period January to October 1998, interviews with applicable staff and the testing of transactions on a sample basis.

Recommendations:

It is recommended that:

(1) To increase awareness of and ensure compliance with the expense claim policy, the Chief Administrative Officer:

(i) ensure all staff and Councillors are aware of the new City's expense claim and related policies;

(ii) in consultation with the Chief Financial Officer and Treasurer and the City Auditor, formalize policies and procedures governing expenditures in the Office of the Mayor, specifically the administrative and approval requirements with respect to the purchase of goods and services, business meetings, travel, etc., as well as appropriate expenditure control procedures;

(iii) advise all staff, Members of Council and the Mayor's Office that business meeting expense claims must be supported by original restaurant receipts, with the names of the attendees and the purpose of the meeting documented, and that payment will be withheld if the required supporting documentation is not provided;

(iv) advise all staff that business lunch and dinner meetings involving City staff should be kept to a minimum and should only occur when time schedules do not permit such a meeting during normal working hours;

(v) reiterate to department heads that all staff travel outside of Canada requires the Chief Administrative Officer's written pre-approval;

(vi) advise all staff, Councillors and the Mayor's Office that it is their responsibility to abide by all parking and traffic regulations, even when on City business, and that fines and penalties relating to violations of such regulations will not be reimbursed; and

(vii) advise staff that meal allowances should not be claimed when visiting another Civic Centre, and request the Executive Director of Human Resources to formulate a mileage reimbursement policy for staff who have been re-located to a new location. Costs related to travel to and from permanent work places is considered a taxable benefit by Revenue Canada;

(2) To ensure that costs are encumbered against Councillors' global budgets and that management reports are accurate, complete and provide a proper audit trail:

(a) the City Clerk advise Councillors that all their expenses, including any requests for services (ie. printing, postage, distribution) be processed directly through Council Services, Clerks Division, and all payments be made directly to suppliers;

(b) Finance Department ensure that all Councillors' expenses, which have been processed through their former municipalities, are allocated to the proper accounts on a timely basis. In order to improve controls, Councillors' expenses should not be processed through their former municipalities;

(c) Clerks Division staff review with Finance Department staff, system deficiencies with respect to the timely reporting of Councillors' staff salary costs, for appropriate corrective action; and

(d) Finance staff advise all departments/divisions that all business meeting expenses, cellular phone charges and kilometres reimbursements be charged to specific accounts, established for these types of expenses;

(3) With respect to the "Office Administration and Expenses for Members of Council" policy, the City Clerk:

(a) advise Councillors that any additional work performed by Councillors' staff be remunerated in the form of lieu time or paid overtime and not through the Accounts Payable system as payment for consulting services or an honorarium;

(b) reiterate to Councillors the policy requirements with respect to consulting services, and advise that payment will be withheld if proper supporting documentation (i.e., nature of services provided, per diem or hourly rate) is not provided;

(c) prepare a policy with respect to expenditures incurred by Members of Council in their capacities as members of local boards, including whether such expenditures should be charged to the Councillors global office budget; and

(d) clearly outline to Councillors and their staff the purpose of the global office budget and that payments to community organizations, including sports teams, in the form

of sponsorships, donations, etc. are not permitted;

(4) To ensure the necessary supporting documentation is provided for expense approval and reimbursement and to promote consistency across the Corporation, the Chief Financial Officer and Treasurer:

(a) advise all staff, Councillors and the Mayor's office that travel expense reimbursements must be accompanied by a properly completed and approved Request for Travel form;

(b) develop a standard kilometres claim form for the Corporation and advise all staff, Councillors and the Mayor's office that when submitting kilometres claims, appropriate supporting detail must be provided for each trip, specifically, the destination and purpose of the trip and the number of kilometres travelled; and

(c) advise all staff, Councillors and the Mayor' s Office that reimbursement of expenses, whether processed through petty cash, payroll or accounts payable, must be supported by original receipts indicating what was purchased and be approved by the individual's immediate supervisor, in accordance with the department's delegation of financial signing authority;

(5) Due to the delay in settling travel claims, and the fact that many expenses (ie. air fare, registration fees) relating to travel can be paid directly by the Corporation:

(a) the Chief Financial Officer and Treasurer consider eliminating travel advances; and

(b) Accounting staff follow up on all advances currently outstanding for more than 30 days, to either recover any unspent funds or to settle the advance, and that any travel advance still outstanding after follow up by Accounting, be escalated to the respective department head for appropriate action;

(6) With respect to cellular telephones:

(a) the Telecommunications Division, Corporate Services, in consultation with Departments, Agencies and Commissions, develop a policy covering the criteria and authorization for purchase and issuance of cellular telephones, guidelines for business and personal use, and procedures for the reassignment and return of these telephones;

(b) a complete inventory of all cellular telephones be undertaken by each department, and a listing indicating the staff member assigned each telephone be forwarded to the Telecommunications Division, Corporate Services;

(c) all future purchases of cellular telephones be made through the Telecommunications Division, Corporate Services, which will also maintain an inventory of cellular telephones for the Corporation; and

(d) cellular telephone bills be reviewed and approved by the appropriate departmental staff and any personal calls reimbursed to the City;

(7) To ensure that travel arrangements are made at the lowest possible cost, more than one quote be obtained and documented for all travel by Councillors and the Mayor's Office, including a quote from the corporate travel agent; and

(8) In view of the fact the majority of Councillors' expenses will be well below the $70,000.00 allocated to each Councillor for office expenses in 1998, the Councillors' global office budget should be reviewed.

Conclusions:

The new City is comprised of staff and Councillors from former municipalities, each of whom had its own culture, policies and practices with respect to general expense claims. Consequently, what may have been an appropriate expenditure in one municipality may have not been permitted in another. The level of supporting documentation and approvals also differed, to a certain extent, from municipality to municipality. The policies approved by City Council in 1998, for both staff and Councillors, have helped to standardize the administrative requirements (approval and supporting documentation) for various types of expenditures as well as defining, to the extent possible, what are considered to be permitted expenditures. It is difficult, however, to have a policy that covers every situation and consequently, good judgement must be exercised in terms of the types of expenditures incurred. In this regard, all expenses incurred by staff and elected officials in the City must be able to withstand scrutiny by an outside third party.

Our review noted a general lack of awareness of the current policies, as well as instances of non-compliance on the part of some staff, Councillors and the Mayor's office with respect to proper approval and adequacy of supporting documentation for business meeting expenses, meal allowances, consultants, travel advances and other general expenses. The City's purchasing policy was also not followed by some Councillors with respect to general purchases made for their respective offices. These problems were especially prevalent prior to the introduction of the policies, although in some situations, they continued to persist even after the policies were established. While the dollar value of each individual transaction is not significant, many of these items are of a sensitive nature. It is therefore essential that all staff and elected officials comply with the policies.

Considering we are in the first year of the amalgamated City and the fact that standard policies were not developed until mid 1998, this report focuses on the corrective action required to remedy the problems identified during our review. My office will be performing a follow-up review in the third quarter of this year and will report any continuing or new problems to the Audit Committee and Council.

Finally, it should be noted that our review also included an analysis of the Councillors' $70,000.00 global office budget. Preliminary year end expenditures indicate that approximately 65 percent of all Councillors will spend less than $50,000.00 in 1998, with an average and median spending of approximately $40,000.00. With the benefit of one years spending experience, a lower global office budget in the range of $40,000.00 to $50,000.00 would result in a savings of between $1.1 and $1.7 million for the Corporation.

Contact Name and Telephone Number:

Tony Veneziano, Senior Audit Manager, 392-8353

(The following Members of Council, at the meeting of City Council on April 13, 14 and 15, 1999, declared their interest in those portions of the foregoing Clause pertaining to staff of Members of Council, in that a member of their family is an employee in their office:

- Councillor Cho;

- Councillor Fotinos;

- Councillor Gardner;

- Councillor Kelly;

- Councillor Mahood; and

- Councillor Shiner.)

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The Strategic Policies and Priorities Committee reports, for the information of Council, having also had before it the following communications, copies of which are on file in the office of the City Clerk:

(i) (March 10, 1999) from the City Clerk advising that City Council on March 2, 3 and 4, 1999, referred Clause No. 1 of Report No. 4 of the Economic Development Committee, headed "Other Items Considered by the Committee", respecting the Harmonization of User Fees, to the Strategic Policies and Priorities Committee;

(ii) (March 30, 1999) from the City Clerk advising that, having regard that the matter of sidewalk snow clearance was considered at the joint meeting of the Urban Environment and Development Committee and the Works and Utilities Committee on March 16, 1999, The Toronto Pedestrian Committee's action is being forwarded to the special meeting of The Strategic Policies and Priorities Committee to be held on April 20, 1999 for consideration with the harmonization of services; and that the Toronto Pedestrian Committee reiterated the position taken at its meeting held on March 4, 1999, with respect to sidewalk snow clearance, wherein it recommended to the Urban Environment and Development Committee that:

(i) sidewalks should be cleared first;

(ii) pedestrians should have unimpeded access to the T.T.C.;

(iii) bus and streetcar routes should be the first streets plowed;

(iv) bus stops should be cleared and made accessible;

(v) in a snow emergency, parking on any bus or streetcar route should be prohibited;

(vi) street plowing should facilitate pedestrian access; and

(vii) windrows should be cleared at intersections and transit stops to provide accessibility to the T.T.C.;

(iii) (April 1, 1999) from the City Clerk advising that the Assessment and Tax Policy Task Force on April 1, 1999, recommended to the Budget Committee and the Strategic Policies and Prioriaties Committee that:

(1) full notification of tax increases and decreases to all tenants and landlords in the City of Toronto be undertaken again in 1999;

(2) the Province be requested to undertake the notification process and cost for all tenants and landlords as it relates to the rent reduction provisions of the Tenant Protection Act;

(3) the Province of Ontario be requested to review and amend Ontario Regulation 455/98 which requires that a ratio of 20 percent of taxes to rental income be used in the calculation of rent reductions and ensure it reflects a more appropriate ratio for rental properties of less than 7 units and that it be completed prior to September 1999 which is the latest date for notices to be mailed to landlords in 1999;

(4) the Assessment and Tax Policy Task Force refer this report to the Budget Committee for its consideration; and

(5) required funding be provided to implement Recommendation No. (1);

(iv) (April 19, 1999) from Councillor Joan King, Seneca Heights, submitting a motion moved by Councillor Joan King, seconded by Councillor Adams, the operative part of which recommends that the City Clerk be directed to convey, on behalf of the Members of Toronto City Council, an expression of appreciation to AMO and their staff for their dedication to the issue of funding for public health and land ambulance;

(v) (April 19, 1999) from Mr. Peter Clutterbuck, Co-Director, Community Social Planning Council of Toronto and Coordinator, Community Voices of Support, expressing concerns with regard to the grants budget and requesting that the Strategic Policies and Priorities Committee recommend to City Council that, given the level of community support, it vote for re-allocation of the full $1.3 million to the 1999 consolidated grants budget;

(vi) (April 19, 1999) from Ms. Anne Dubas, President, CUPE Local 79, expressing concerns with regard to harmonization and levels of service, user fees, the reduction of 161 FTE's in the Parks and Recreation Division, the trend to change jobs from permanent and full-time to part-time in divisions such as Homes for the Aged and Parks and Recreation, and the contracting out of cleaners and caretakers in the Police Stations;

(vii) (April 20, 1999) from Community Budget Watch urging the Strategic Policies and Priorities Committee to support the funding of community programs as a top priority for 1999, Option B+ which allows for no fees for drop-in programs for all age groups, as well as no fees for subscriber and instructional programs for children and youth, and the policy framework for the delivery of recreation services as recommended by the User Fee Committee last autumn; and

(viii) (March 8, 1999) from Mr. Harold Peerenboom, Chairman, Toronto Harbour Commissioners, addressed to Mr. David Crombie, Chair, Toronto Olympic Bid Corporation, circulated to the Strategic Policies and Priorities Committee by Councillor Olivia Chow, regarding a number of issues in the Toronto 2008 Toronto Olympic Bid Corporation Source and the use of funds by the Corporation from October 1, 1998 to December 31, 1999.

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The Chief Financial Officer and Treasurer and the Chief Administrative Office made a presentation to the Strategic Policies and Priorities Committee on the 1999 Operating Budget and filed a copy of their presentation material.

The following persons appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Mr. Ken Amoroso, Membership Secretary, CUPE Local 79;

- Mr. Jim Leech, Volunteer Vice-President, and Ms. Rita Davies, Executive Director, Toronto Arts Council;

- Mr. Peter Clutterbuck, Co-Director, Community Social Planning Council of Toronto and Coordinator, Community Voices of Support;

- Ms. Karen Wirsig, Community Budget Watch;

- Mr. Gary Reid, General Manager, The Toronto Harbour Commissioners, and filed the 1999 Operating Plan and Budget for The Toronto Harbour Commissioners;

- Chief David Boothby, Toronto Police Service; and

- Councillor Norman Gardner, Chair, Toronto Police Services Board.

The following Members of Council appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

- Councillor Olivia Chow, Downtown;

- Councillor Joe Mihevc, York Eglinton;

- Councillor Blake Kinahan, Lakeshore Queensway;

- Councillor George Mammoliti, North York Humber; and

- Councillor Mario Giansante, Kingsway Humber.

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Councillor Ashton declared his interest in any portion of the 1999 Operating Budget dealing with child care and the Building Division in that:

(i) his daughter is registered in a non-profit child care centre in the City; and

(ii) his wife is employed by the City of Toronto.

Mayor Lastman declared his interest in those portions of the 1999 Operating Budget dealing with business improvement areas in that his son is President of the Kennedy Road Business Improvement Area.

Councillor Pantalone declared his interest in those portions of the 1999 Operating Budget dealing with child care in that his children are registered in a child care centre which has a purchase of service agreement with the City of Toronto.

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A copy of each of the staff reports referred to in the foregoing Clause, together with background reports, which were before the Budget Committee at its meeting of April 16, 1999, and the Strategic Policies and Priorities Committee at its meeting of April 20, 1999, is contained in Volume 3 of the 1999 Operating Budget books distributed to all Members of Council with the agenda for the City Council meeting of April 26, 1999.

(A copy of Volumes 1, 2 and 3 of the Operating Budget books is also on file in the office of the City Clerk.)

(City Council on April 26, 27 and 28, 1999, had before it, during consideration of the foregoing Clause, the following communication (April 26, 1999) from the City Clerk:

Recommendations:

The Strategic Policies and Priorities Committee:

A. Recommends:

RR. CAPITAL AND CORPORATE FINANCING, NON PROGRAM EXPENDITURES, AND NON-PROGRAM REVENUES.

(i) the adoption of the report (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled "Non-Program Expenditures - Tax Deficiencies", wherein it is recommended that:

(1) the tax deficiencies budget be increased by $46.46 million in anticipation of additional 1999 tax deficiencies resulting from vacancy changes, capping/tax relief for new construction, the aggressive processing of assessment appeals, the tax imbalance (billing loss) of the residential phase-in program and maintenance of the frozen assessment listing in 1999, and that this expenditure increase be funded from potential new tax revenue arising from the 1999 assessment roll;

(2) the Chief Financial Officer and Treasurer report in October 1999, on the actual tax losses resulting from the issues noted in Recommendation No. (1) above;

(3) the Province of Ontario be requested to proactively work with City of Toronto officials to review its policies and practices on vacancy changes and new construction; and

(4) the Ontario Property Assessment Corporation (OPAC) focus resources to address the issues raised in this report, and potential errors identified on the assessment roll, in order that the City of Toronto and other Ontario municipalities be provided with sustainable, non-volatile, realizable tax revenue;

and that Recommendation No. (211) embodied in Clause No. 1 of Report No. 8 of the Strategic Policies and Priorities Committee be amended accordingly; and

(ii) the adoption of the report (March 30, 1999) from the Chief Administrative Officer, addressed to the Budget Committee, entitled "Toronto Atmospheric Fund, 1999 Operating Budget", wherein it is recommended that:

(1) the 1999 Operating Budget for the Toronto Atmospheric Fund totalling $625.6 thousand (gross) and $0 (net) be approved;

(2) the 1999 Operating Budget for the Toronto Atmospheric Fund be forwarded to the Works and Utilities Committee for information; and

(3) the Chief Financial Officer and Treasurer be requested to report back, in consultation with the Toronto Atmospheric Fund, with a resolution on the Street Lighting and Lane Conversion Program loan prior to the consideration of the 2000 Operating Budget"; and

(B) advises Council that the Toronto Harbour Commission budget has been submitted in an acceptable form; and that given the subsidy level is the same as last year the THC Budget will be considered by the Budget Committee at its meeting on April, 30, 1999.

The Strategic Policies and Priorities Committee reports, for the information of Council having:

(a) requested the Chief Financial Officer and Treasurer to ensure that the THC Budget is forwarded to Members of the Budget Committee at least 48 hours prior to the meeting of the Budget Committee;

(b) received the report (April 26, 1999) from the Executive Director of Human Resources, addressed to City Council, entitled "Toronto Community Council Area - Front Line Staffing Levels"; and having directed that it be forwarded to Council for information; and

(c) received the following report and communication:

(i) (April 23, 1999) from the Chief Financial Officer and Treasurer, entitled "Parking Enforcement - Additional Tag Issuance"; and

(ii) (April 21, 1999) from the City Clerk, advising that the Strategic Policies and Priorities Committee at its meeting on April 20, 1999, tabled motions respecting the portion of the Operating Budget pertaining to TEDCO; and requested further staff reports pertaining to the 1999 Operating Budget.

Background:

The Strategic Policies and Priorities Committee on April 26, 1999, had before it the following reports and communication:

(i) (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled "Non-Program Expenditures - Tax Deficiencies", recommending a budget increase to tax deficiencies, based on a review of the 1999 assessment based to be used for the 1999 tax billing;

(ii) (March 30, 1999) from the Chief Administrative Officer, addressed to the Budget Committee, entitled "Toronto Atmospheric Fund, 1999 Operating Budget", providing an analysis of the 1999 Operating Budget submission for the Toronto Atmospheric Fund; and forwarding recommendations in regard thereto;

(iii) (April 26, 1999) from the Executive Director of Human Resources, addressed to City Council, entitled "Toronto Community Council Area - Front Line Staffing Levels", respecting front line staffing levels in the former City of Toronto in 1991 and 1997 and front line staffing levels at present in the Toronto Community Council area;

(iv) (April 23, 1999) from the Chief Financial Officer and Treasurer, entitled "Parking Enforcement - Additional Tag Issuance", reporting, as requested by the Strategic Policies and Priorities Committee at its meeting of April 20, 1999, respecting parking tag issuances; and advising that the Budget Committee did not direct, nor did it intend that officers would be expected to issue more tickets to meet a quota, or a revenue target; that considering the significant under expenditures in the Parking Enforcement program in prior years, Budget Committee directed that the program utilize its entire budget allocation, effectively eliminating any gapping, while generating additional revenues from having the approved number of officers on the street enforcing parking regulations; and

(v) (April 21, 1999) from the City Clerk, advising that the Strategic Policies and Priorities Committee at its meeting on April 20, 1999, tabled motions respecting the portion of the Operating Budget pertaining to TEDCO; and requested further staff reports pertaining to the 1999 Operating Budget;

The following Members of Council appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter:

Councillor Olivia Chow, Downtown; and

Councillor Blake F. Kinahan, Lakeshore - Queensway.

(Report dated April 24, 1999,

addressed to the Strategic Policies and Priorities Committee,

from the Chief Financial Officer and Treasurer.)

Purpose:

This report recommends a budget increase to tax deficiencies, based on a review of the 1999 assessment based to be used for the 1999 tax billing.

Financial Implications:

Additional tax deficiencies of $46.46 million to offset anticipated tax billing losses due to vacancy changes, capping/tax relief for new construction, correction of errors on the phase-in tape, the aggressive processing of assessment appeals, and billing losses from the residential phase-in program and the capping program in 1999 will be offset by additional tax revenue associated with the 1999 assessment roll, resulting in no tax increase.

Recommendations:

It is recommended that:

1. The tax deficiencies budget be increased by $46.46 million in anticipation of additional 1999 tax deficiencies resulting from vacancy changes, capping/tax relief for new construction, the aggressive processing of assessment appeals, the tax imbalance (billing loss) of the residential phase-in program and maintenance of the frozen assessment listing in 1999, and that this expenditure increase be funded from potential new tax revenue arising from the 1999 assessment roll.

2. The Chief Financial Officer and Treasurer report in October 1999 on the actual tax losses resulting from the issues noted in Recommendation 1 above.

3. The Province of Ontario be requested to proactively work with City of Toronto officials to review its policies and practices on vacancy changes and new construction.

4. That the Ontario Property Assessment Corporation (OPAC) focus resources to address the issues raised in this report, and potential errors identified on the assessment roll, in order that the City of Toronto and other Ontario municipalities be provided with sustainable, non-volatile, realizable tax revenue.

Comments:

The 1999 Operating Budget has been built using an assumption of no assessment loss. This was an aggressive assumption given that the City experienced an assessment loss of $60 million in 1998 and assessment losses in the previous four consecutive years.

Each year the Ontario Property Assessment Corporation (OPAC) provides the City with a new assessment roll, to be used for taxation purposes. The new roll is updated by OPAC to reflect that:

(1) Physical changes, such as new buildings, additions or demolitions are recorded accurately and that the property assessment is changed accordingly.

(2) Ontario Municipal Board or Assessment Review Board decisions processed in the previous year are reflected in the assessments placed on the roll.

  • Tax class and subclass changes are made to reflect the current use of the property. Examples of this are changes in occupancy levels in industrial and commercial properties, or when a residential property is converted to a commercial office use.
  • Incorrect values from the previous year's assessment roll are corrected.

1999 Assessment Base:

Initial comparison between the roll returned for 1999 taxation to the roll returned for 1998 taxation showed an increase in assessment of $1,313 million or 0.81%, with a corresponding tax increase for City purposes of $46.46 million. Appendix 1 summarizes the assessment changes between 1998 and 1999 by property class.

It is apparent from the table in Appendix 1 that there is the shift of assessment from commercial and industrial vacant units to commercial or industrial occupied units. This shift accounts for $24.8 million of the total $46.46 million in tax growth. There is only slight real assessment growth in the commercial class ($212.9 million in CVA or 0.75%, raising $7.28 million in City taxes), and assessment loss in the industrial class ($5.39 million or 0.15%, with a corresponding loss of $0.257 million in City taxes).

This unexpected increase has been investigated by staff in order to determine the true realizability and sustainability of the revenue increase. Staff's preliminary review indicates this revenue is extremely volatile and likely unrealizable due to various issues that could require regulation changes by the Province. This report identifies that the additional realized taxes generated in 1999 will be offset by increased tax deficiencies. It should be noted that the tax deficiencies budgeted amount of $150 million is allocated to offset taxes lost due to the processing of 1997 and prior years assessment appeals. No amounts have been budgeted to deal with the 1998 and 1999 issues (i.e., appeals for error corrections and billing losses).

The most significant areas of volatility and uncertainty on revenue realization are as follows: vacancy changes; residential phase-in adjustments; 1997 assessment and tax appeals for properties in the capped classes; errors on the phase-in tape; CVA corrections and new construction.

1. Vacancy Changes

Prior to 1998, provincial legislation allowed landlords to appeal vacancy levels in their buildings, utilizing section 442 of the Municipal Act. If the appeal was successful, the vacant unit would attract a lower rate of taxation effective the day the tenant vacated. Under the new current value assessment legislation put in place in 1998, landlords must apply to prior to November in each year, to ensure their property, or a portion of their property, included in the vacant units/excess land subclass for taxation in the following year. If the landlord fails to apply, the property is returned on the roll as fully occupied.

To qualify for vacant status in 1999, a property or a portion of a property would have to be vacant for the months of July, August, and September of 1998, and the landlord or property owner would have had to apply to OPAC stating this fact by November 1, 1998. Unfortunately, many landlords and property owners were not aware of the new rules before the time the appeal deadline had passed. Staff at OPAC indicated after the initial deadline, that only 10% of commercial/industrial property owners had filed vacancy applications by the November 1st deadline.

In early 1999, after the new roll had been delivered to the City, the Province extended the vacancy application deadline to February 28, 1999 for the 1999 tax year. The City used the new roll to bill the 1999 interim taxes, and a significant number of inquiries from small commercial property owners were generated where their interim taxes had increased dramatically compared to 1998 due to the way vacancy changes are now reflected on the assessment roll. Due to fact that only 10% of commercial/industrial property owners had responded to the first deadline, and given to significant number of inquiries from small commercial properties owners regarding the 1999 interim bill, further analysis of the vacancy changes on the assessment roll was undertaken.

It was estimated that most of the assessment growth and resulting additional taxes shown on the year end assessment roll would be eroded by additional changes in vacancies resulting from the appeal deadline extension. The assessment growth noted above was, therefore, not factored into the 1999 Operating Budget estimates.

Updated vacancy information was received from OPAC on April 13, 1999 affecting only 360 properties. The revised vacancy data has been processed, with $181.5 million in assessment being changed from occupied to vacant status. The resulting tax loss is $4.3 million, of which the City's share is $1.98 million.

Despite the extended notification deadline, and based on the revised vacancy data received, it still appears that the majority of commercial and industrial properties (89%) did not participate in the vacancy application process.

Analysis of the vacancy changes on the assessment roll shows that $24.8 million in potential new revenue is due to properties changing from vacant in 1998 to occupied in 1999. This translates into a City-wide average vacancy rate in the commercial and industrial sector of 6.20%, a decrease from 14.88% in 1998 of 8.68 points, or 58%.

Of the $24.8 million in tax growth due to vacancy changes, $8.2 million or 30% relates to 3,243 properties that were 100% vacant in 1998, and 100% occupied in 1999 according to the data on the assessment roll. It is staff's strong view that the majority of this group are in fact, coding errors on the tax roll in 1998 and that capping protection should be applied. Further investigation by the City and OPAC is required.

Appendix 2 attached shows the comparison between the 1998 and 1999 vacancy rates as set out on the assessment roll, by property types within the commercial/industrial property class. Due to the change in the way vacancies are reported under CVA legislation, and the fact that most commercial/industrial property owners are not aware of the annual vacancy application requirement, data on the 1999 assessment roll shows a decline in vacancy rates across the City of 8.68 points, or 58%. While a substantial decline in vacancy rates from 1998 would be welcome news for the economy, it is not a realistic year over year assessment change, particularly when the City experienced a $60 tax loss due to assessment loss between 1997 and 1998.

It is important to note that Toronto is the first, and probably only municipality that has used the 1999 assessment data for the billing of interim taxes for commercial/industrial properties. Toronto will also be the first municipality to send out final tax bills for 1999, using an assessment roll where vacancies have been adjusted under CVA legislation. All other municipalities in Ontario that are subject to the provisions of Bill 79, are currently in the process of recalculating their 1998 tax bills, prior to being able to send out final 1999 tax bills.

Appendix 2 shows quite clearly that the assessment roll reflects significantly lower or inaccurate vacancy rates than actually exist under current real estate market conditions. For example, the vacancy rates shown for small retail properties on the 1998 assessment roll ranged between 13.2% and 19.0%. The 1999 assessment roll shows vacancy rates for the same properties ranging between 2.51% and 5.28%. What is apparent from the change in vacancy rates for small retail is that the majority of small commercial and industrial property owners are either unaware of the vacancy application process and the resulting tax consequences, or significant vacancy errors existed on the 1998 assessment roll.

In addition, 85% of the properties assessed as vacant land are shown as fully occupied on the 1999 assessment roll. The revenue increase due to the occupied status of vacant land amounts to $2.82 million, which is also not reasonable due to the intrinsic nature of this type of property (i.e., how can vacant land be "occupied").

The Province has repeatedly responded to CVA-related implementation issues by either extending tax-related deadlines or introducing legislation that further mitigates the impact of CVA. It is therefore anticipated that, once 1999 final tax bills have been issued by other municipalities in Ontario, the Province may provide a further extension of the vacancy application deadline, or revise its policy regarding vacancy tax adjustments. If this occurs, and vacancies are adjusted to reflect a more realistic average vacancy rate of 10% (compared to 14.88% in 1998), the tax growth that would be lost is at least $12.8 million. If the vacancy adjustments result in average vacancy rates that reflect current real estate conditions in the commercial and industrial sectors, the minimum tax growth that would be lost is $6.67 million.

2. Residential Phase-in Program

In 1998, Council adopted a residential phase-in program which used fixed threshold amounts for tax increases ($300) and decreases ($200). The program would be self-balancing if there were no changes to the 1997 or 1998 assessments of individual residential properties. However, changes in either the 1997 or 1998 assessments due to an assessment appeal result in the phase-in portion of the tax bill being recalculated and the City has no mechanism to recover these tax losses.

The decisions for most 1998 assessment appeals will not be received by the City until later in 1999. Due to the threshold option, the majority of the loss to the City due to the recalculation of the residential phase-in program is expected to impact for the year 2000. However, some properties in the residential property class that have received significant CVA reductions of which the City is aware include 11 golf courses in the former North York where the CVA values have been reduced from a total of $117 million to $27.9 million. The total assessment loss for these properties of $89.1 million.

3. 1997 Assessment and Tax Appeals - Capped Property Classes

The implementation of CVA with capping requires municipalities to also adjust the notional 1997 taxes which forms the base amount for the cap calculation. As a result, where an assessment or tax appeal occurs, the phase-in or cap amount must be recalculated. These adjustments relate directly to the City's CVA mitigation policies and not assessment appeals and result in tax billing losses.

Any assessment or tax appeal that affects the 1997 tax year, also affects the taxes levied for 1998 and 1999 for properties in the capped classes. The cap on tax increases is calculated using 1997 taxes as the base amount. As the City receives and processes the 1997 appeals, the assessment on the frozen listing must be recalculated, and the 1998 and 1999 taxes with the cap or clawback must be revised. Reductions in assessed values for 1997 also reduce the base amounts on which the capped taxes are calculated and therefore result in additional reductions for 1998 and 1999.

These reductions would not be included in the clawback calculation and therefore, would negatively impact on taxes collected from these classes. Due to the fact that the disposition and processing of 1997 appeals is ongoing, the full extent that 1997 assessment and tax appeals will affect the total taxes raised from the capped classes in 1999 is not known. However, based on the 1997 taxes for City purposes for the capped classes of $1,663 million, it is estimated that the City could incur a further $16.63 million, or 1% in additional tax billing losses for 1998 and 1999 due to outstanding 1997 assessment and tax appeals not yet processed.

4. Errors on the Phase-in Tape

Due to the compressed time frame in which the Province had to revalue all properties in Ontario and prepare phase-in data for the municipalities, inevitably errors or omissions of assessments on the phase-in tape were made.

It has become apparent through the significant number of taxpayer inquiries received at interim billing, and through OPAC and City staff review that a significant number of errors and omissions are on the phase-in tape. Some corrections have been made, including 9,946 assessment corrections made to reflect 1997 assessment appeal data not originally included on the tape by the Province. It is difficult to quantify the remaining errors, but as a safeguard to offset further tax billing losses, additional contingencies of 0.25% of the tax base, or $6.32 million should be allocated.

5. CVA Corrections

Changes to the frozen assessment listing are only done in situations where a property's physical attributes, character or use has changed, and this change has resulted in a change in CVA assessment. However, in some circumstances, the CVA assessment may also be changed by OPAC to correct an error in the CVA value shown on the previous year's assessment roll. In these circumstances, where no physical change has occurred to the property, no change is to be made to the frozen assessment, and no additional taxes are realized due to the change in the CVA value.

OPAC has provided the City with a preliminary list of 28 properties with major value changes between 1998 and 1999, where the change is due to a correction to the CVA of the property. These 28 properties account for $119.8 million in CVA assessment growth. However, because there has been no physical change to these properties, the frozen assessment is not increased to reflect the increase in CVA and taxes remain capped based on the original frozen assessment. Therefore, the increase in revenue attributable to the increase in CVA for these properties in the amount of $5.3 million will not be realized.

City staff do not currently have sufficient information to identify the total number of properties across the City in similar circumstances but estimate there may be several hundred properties where the CVA has been increased due to a correction.

6. New Construction

The Municipal Act sets out how the frozen assessment is to be recalculated where the CVA of a property increases due to new construction. The legislated calculation for new construction, using the municipal factor to calculate the new frozen realty assessment, results in the new taxes being nearly equivalent to the full CVA.

Using the municipal factor to calculate the new frozen assessment moves the effective tax rate for new construction to the municipal average for that property class. The average effective tax rate for all properties in the commercial property class is 7.5%. Therefore, properties where the existing effective tax rate is less than 7.5% are severely impacted, while those with effective tax rates of more than 7.5% benefit from the municipal factor calculation for new construction.

Analysis of the 1999 assessment tape shows there are 54 properties in the capped property classes that can be identified as new construction. The average existing effective tax rate for these properties is 1.596%, which will result in significant tax increases for these properties in 1999 if the legislated new construction calculation is used.

At its meeting on March 4, 1999, City Council requested the Chief Financial Officer and Treasurer to report on the impact of the new construction calculation and methods to ameliorate the impact on new businesses in Toronto. The 54 properties identified represent $173.3 million in CVA assessment growth and $8.7 million in City tax revenue in 1999. If Council recommends to the Province that tax relief be provided for these properties by changing the new construction calculation, a resulting tax loss would occur. It is estimated the possible tax loss, depending on the change in the calculation or the tax relief provided, could amount to $6.1 million. The Chief Financial Officer and Treasurer will be tabling a report on this subject with the Assessment and Tax Policy Task Force for consideration its meeting on May 3, 1999. The report will recommend that the Province provide tax relief through a legislated change in the calculation for new construction.

7. Revenue Sustainability

The analysis completed to date does not provide any sense of ongoing sustainability of the additional 1999 tax revenue. It is very difficult to believe that the City can experience a $100 million swing in tax revenue in one year (i.e., 1998 loss of $60 million and 1999 gain of $46 million) and therefore, that this revenue is in any way sustainable. As it stands, the likely outcome is that the business community will become educated in 1999 as they receive their 1999 final tax bills, and will ensure that for 2000 taxes, that the vacancy changes will be reported. Therefore, our 2000 assessment roll will decrease causing significant budget pressures for 2000 if the additional potential revenue is spent on sustained, ongoing expenditures.

Summary of Estimated Tax Billing Losses:

A summary of the estimated tax billing losses which may occur in 1999 is set out, by category, below:

Estimated Tax Billing Loss % of Levy - City Share
Vacancy Changes
- OPAC updates (April 13, 1999) $1.98 million 0.08%
- Adjustments due to changes in vacancy application process $7.28 to 12.04 million 0.29% to 0.48%
- Vacant land $2.82 million 0.11%
Adjustments to Frozen Listing -

1997 Assessment and Tax Appeals (capped classes)

$16.63 million 0.66%
Errors on the Phase-in Tape $6.32 million 0.25%
CVA Corrections $5.30 million 0.21%
New Construction $6.10 million 0.24%
Total $46.43 to $51.19 million 1.84% to 2.03%

Other Issues:

Notwithstanding the major uncertainty of actual realization of the returned assessment roll's revenue, there are other issues that have not been provided for in this budget that would be areas for provisions of the funds, if the proposed staff recommendations of increasing the tax deficiencies by the full amount of the growth is not adopted.

(i) Policy "Contingency" - At the Strategic Policies and Priorities Committee meeting of April 20, 1999, the Police Chief advised that every effort will be made by the Toronto Police Service to manage within the recommended $522.9 million budget. However, it was recommended by the Chief that a $10 million contingency be provided in case there was overspending in 1999.

(ii) January Snowstorms - It has been reported that the Transportation program is overspent on its snowclearing budget by $30 million to $40 million. The 1999 Operating Budget has not been increased to cover this overexpenditure. In order to not place pressure on the 2000 Operating Budget, other savings must be found either through revenue increases or expenditure reductions.

(iii) Vehicle Replacement Reserves - The 1999 Operating Budget only provides for $18.4 million as the contribution to the Vehicle Replacement Reserve. Preliminary replacement costs in 1999 are $59 million. The existing reserve will be in a deficit position of $33 million at the end of 2000.

(iv) Provincial Offences Act - Bill 108, the Streamlining of Administration of Provincial Offences Act, 1998, provides for the transfer of responsibility for Courts Administration and Court Support Services for offences under Parts I and III of the Provincial Offences Act (POA) and for prosecutions of offences under Part 1 of the Act from the Ministry of the Attorney General to the municipalities. As of January 1, 1998 the Province has been setting aside the net revenues received for POA offences for each court area/municipality within the Province. The City's 1999 Operating Budget provides for $13.0 million in additional revenue from the transfer of Parts 1 and III of the POA to the City. At its April 13th meeting Council established a Task Force to determine whether it would be to the benefit of the City to exercise its legal option to assume responsibilities for Parts I and III of the POA. Should the City choose not to assume responsibility for Parts I and III of the POA, other savings must be found to offset the foregone revenue of $13 million.

Conclusion:

The assessment roll for 1999 taxation indicates there is assessment growth of $1,313 million, which translates into $46.64 million of estimated revenue. This amount, net of the vacancy changes received from OPAC on April 13, 1999, is $44.59 million.

The "assessment growth" and resulting tax growth is unexpected, given the history of consecutive assessment losses in Toronto over the last five years. The tax growth has been investigated by staff in order to determine the true viability and sustainability of the revenue increase. Analysis shows this revenue is extremely volatile and likely unrealizable due to various issues that could require regulation changes by the Province.

Vacancy changes account for $24.8 million of tax growth. However, as noted in this report, the majority of commercial and industrial property owners are not aware of the change in the vacancy application process. It is anticipated that further education of commercial/industrial taxpayers resulting from other municipalities mailing their final tax bills will result in the Province either extending the vacancy application deadline, or revising the vacancy process and the full tax growth of $24.8 million will not be realized. Any resolution would be processed as an appeal, and result in additional unbudgeted tax deficiencies.

The decisions for most residential 1998 assessment appeals will not be received by the City until later in 1999 and the impact of the recalculation of the residential phase-in will not be known until after the 1999 Operating Budget has been approved. Additional deficiencies should be provided for recalculation of these phase-in amounts.

The disposition and processing of 1997 assessment and tax appeals for properties in the capped property classes is ongoing. These appeals also affect the cap and clawback calculation for 1998 and 1999. The extent to which these recalculations will negatively affect the total taxes raised from the capped classes in 1999 is not yet known.

There are a significant number of errors and omissions are on the phase-in tape. While some corrections have been made, it is difficult to quantify the remaining errors and as a safeguard to offset further tax losses, additional contingencies should be allocated.

The total estimated tax billing losses that will result from the above issues is between $46.43 million and $51.19 million. This report therefore strongly recommends that the tax deficiencies budget be increased by $46.46 million representing the potential new tax revenue from the assessment roll. Anticipated tax losses due to vacancy changes, capping/tax relief for new construction, errors on the phase-in tape, the aggressive processing of assessment appeals, the tax imbalance of the residential phase-in program and capping program in 1999 are identified as very real reductions to the 1999 billed revenue. Finally, the 1999 budget process has identified substantial pressures on both 1999 and 2000 expenditures, where additional continency provisions would be financially prudent.

The 1999 tax levy for City purposes, after providing additional tax deficiencies budget of $46.46 million, will be $2,575,758,896. This amount will result in a 0% tax increase for City taxpayers using the 1999 assessment roll.

Contact Names:

Lynne Ashton, 397-4203

Paul Wealleans, 397-4208

Giuliana Carbone, 392-8065

Appendix 1

Comparison of 1998 and 1999 Assessment - By Property Class

Tax ClassF 1998

Assessment($)

1999

Assessment($)

Assessment

Change($)

City Tax

Change($)

Residential $117,863,376,058 $118,961,504,389 $1,098,128,331 $8,781,754
Multi-residential $12,428,576,381 $12,439,248,408 $10,672,027 $446,821
Commercial Occupied $23,512,866,474 $25,961,318,674 $2,448,452,200 $83,723,501
Commercial - Vacant Units $3,863,527,873 $1,672,030,252 ($2,191,497,621) ($52,455,425)
Commercial - Vacant Land $584,748,950 $540,706,030 ($44,042,920) ($1,054,206)
Sub-Total: Commercial $27,961,143,297 $28,174,054,956 $212,911,659 $30,213,870
Industrial Occupied $2,604,790,075 $3,037,390,069 $432,599,994 $20,648,089
Industrial - Vacant Units $696,320,475 $246,074,635 ($450,245,840) ($13,968,625)
Industrial - Vacant Land $265,557,254 $277,811,539 $12,254,285 $380,182
Sub-Total: Industrial $3,566,667,804 $3,561,276,243 ($5,391,561) $7,059,646
Farmlands $2,009,800 $2,039,500 $29,700 $59
Farmland Awaiting Dev. $11,921,000 $11,100,000 ($821,000) ($2,298)
Managed Forests $0 $109,980 $109,980 $220
Pipelines $236,035,180 $233,497,165 ($2,538,015) ($39,033)
Total $162,069,729,520 $163,382,830,641 $1,313,101,121 $46,461,039

Appendix 2

Comparison of Vacancy Rates - 1998 vs. 1999

per Returned Assessment Roll

Property Type # of Props 1998 Vacancy Rate 1999 CU/IU 1999 CT/IT 1999 Vacancy Rate Increase/

Decrease in Vacancy Rate

Tax Loss if Vacancy Rate = 10% Tax Loss if Vacancy Rate = Real Estate
Retail Properties (410) 2,949 16.30% $88,291,437 $1,716,180,422 4.89% -11.41% ($945,387) ($667,717)
Retail w/

Res

10,424 13.20% $68,345,015 $1,865,430,834 3.53% -9.67% ($1,282,657) ($985,090)
Retail w/ Office 707 17.10% $17,288,935 $359,621,067 4.59% -12.51% ($209,296) ($151,298)
Office Conv. Resid 528 19.00% $8,891,112 $159,503,889 5.28% -13.72% ($81,539) ($55,627)
Retail Conv. Resid 138 18.60% $852,060 $33,088,404 2.51% -16.09% ($26,077) ($20,854)
Restaurants 342 7.10% $3,539,740 $274,887,795 1.27% -5.83% ($249,314) ($206,470)
Theatre/

Cinema

30 5.60% $66,500 $72,404,815 0.09% -5.51% ($73,663) ($62,511)
Bank

Branch

260 4.50% $2,809,919 $206,851,031 1.34% -3.16% ($186,257) ($153,994)
Auto

Related

1,219 6.60% $23,673,650 $1,203,132,330 1.93% -4.67% ($1,015,671) ($826,891)
Multi-Use Complex 109 19.20% $80,880,773 $604,565,385 11.80% -7.40% $126,551 $232,027
Vacant

Land

653 70.30% $48,663,400 $275,121,933 15.03% -55.27% ($2,822,360) ($2,822,360)
Parking

Lots

353 9.60% $0 $509,908,237 0.00% -9.60% ($523,093) ($444,629)
Parking Garage 22 6.30% $1,644,135 $65,033,125 2.47% -3.83% ($51,535) ($41,275)
Motel/

Tavern

87 9.10% $1,886,320 $69,100,270 2.66% -6.44% ($53,471) ($42,548)
Community/

Nghd Shop Ctr

691 11.60% $196,505,153 $2,879,806,445 6.39% -5.21% ($1,139,995) ($666,616)
Regional Shop Ctr 10 4.10% $64,486,235 $1,970,656,109 3.17% -0.93% ($1,426,230) ($1,113,065)
Dept/Disc Store 69 1.30% $3,250,000 $273,712,925 1.17% -0.13% ($250,784) ($208,166)
Hotel 302 2.90% $27,312,928 $1,352,822,988 1.98% -0.92% ($1,135,632) ($923,258)
Medical/

Dental

127 19.10% $25,510,578 $286,819,537 8.17% -10.93% ($58,704) ($10,643)
Commercial Condo 2,642 29.50% $42,620,545 $279,409,835 13.23% -16.27% $106,869 $156,422
Office Bldg 1,347 20.20% $690,415,691 $7,996,734,744 7.95% -12.25% ($1,829,098) ($492,331)
Other Comm 270 13.80% $29,742,175 $292,506,595 9.23% -4.57% ($25,469) $24,118
Standard Indust 4,881 22.70% $275,180,388 $4,796,275,986 5.43% -17.27% ($2,379,634) ($1,599,245)
Other N.E.C 6,032 13.40% $216,248,198 $1,455,134,042 12.94% -0.46% $503,799 $760,989
Total / Average 34,192 14.88% $1,918,104,887 $28,998,708,743 6.20% -8.68% ($12,039,228) ($7,281,789)
Assessment Split if Vacancy Rate = 10.00% $3,091,681,363 $27,825,132,267
Increase/Decrease from Year End Assessment Roll $1,173,576,476 ($1,173,576,476)
Tax Loss ($12,039,228)

Assessment Split if Vacancy Rate = Real Estate

(Comercial - 8.5% per JJ Barnicke/LePage

Industrial - 7.0% per Colliers)

$2,578,677,188 $28,338,136,442
Increase/Decrease from Year End Assessment Roll $660,572,301 ($660,572,301)
Tax Loss ($7,281,789)

Note: Tax loss due to changes in vacancies for vacant land calculated assumes this property type should be 100% vacant.

Tax loss for other property types calculated only if vacancy rate shown on assessment roll is lower than 10% and/or average real estate rates.

(Report dated March 30, 1999,

addressed to the Budget Committee,

from the Chief Administrative Officer.)

Purpose:

This report presents the 1999 Recommended Operating Budget for the Toronto Atmospheric Fund. A summary of budget implications and recommendations is also provided.

Financial Implications:

The 1999 recommended operating budget for the Toronto Atmospheric Fund reflects gross expenditures of $625.6 thousand and revenues of $625.6 thousand, resulting in a net budget of $0. This compares to a 1998 gross budget of $982.7 thousand ($357.1 thousand or 36.3% reduction) and a 1998 net budget of $0 (no change).

Recommendations:

It is recommended that:

(1) The 1999 Recommended Operating Budget for the Toronto Atmospheric Fund totaling $625.6 thousand (gross) and $0 (net) be approved;

(2) The 1999 Recommended Operating Budget for the Toronto Atmospheric Fund be forwarded to the Works and Utilities Committee for information;

(3) The Chief Financial Officer and Treasurer be requested to report back, in consultation with the Toronto Atmospheric Fund, with a resolution on the Street Lighting & Lane Conversion Program loan prior to the consideration of the 2000 operating budget.

Discussion:

Background

The Toronto Atmospheric Fund (TAF) was established in 1992 with an endowment of $23.0 million from the sale of City of Toronto property. The Fund was created to help Toronto meet its goal of reducing greenhouse gas emissions by 20 per cent by 2005. It is managed by a Board of Directors made up of City Councillors, City staff and citizens.

TAF provides loans and grants to a variety of groups and organizations which take action to stop greenhouse gas emissions, global warming and climate change. Its funding programs address energy efficiency, renewable energy, urban planning, transportation and the greening of the City. The operation of TAF is self-sustaining. Loans are returned with interest and fund equity is placed in conventional investments. Income earned on the investments is available for grants and administrative expenses.

The TAF Board established a policy that the value of fund equity be maintained at $23.0 million in 1992 dollars and that an amount be provided in the annual budget, if necessary, to adjust for the increase in the Consumer Price Index from December 10, 1992. This policy was endorsed by the former Toronto City Council.

TAF's mandate expanded January 1, 1998 to cover the new, amalgamated City of Toronto. At its meeting on October 1 and 2, 1998, City Council adopted the recommendation from Budget Committee that a process be developed so that TAF's expenditures for the coming year be subject to the same scrutiny as other departments, agencies, boards and commissions, for which the Corporation is responsible.

1998 Experience

In 1998, expenditures were under spent by $83.4 thousand or 8.5% of the overall operating budget. The under expenditures can be broken down in the following categories: administration was under spent by $3.2 thousand or 2.1% of the administration budget, consulting was under spent by $27.0 thousand or 15.1% of the consulting budget and projects and grants were under spent by $53.2 thousand or 8.2% of the projects and grants budget.

As a result of the under expenditures outlined above, a contribution was not required in 1998 to maintain the real value of fund equity at $23.0 million in 1992 dollars. Of the prior year surplus budgeted at $226.7 thousand in 1998, $105.1 thousand was not utilized resulting in a remaining prior year surplus of $121.6 thousand being available for 1999.

1999 Recommended Budget

The 1999 recommended budget of $625.6 thousand as outlined in Appendix A is $357.1 thousand or 36.3% below the 1998 budget of $982.7 thousand. It should be noted that there are no recommended adjustments to the budget request submitted by the TAF Board.

The budget reduction is due to a decrease in revenues available to TAF. Investment income is budgeted at $755.0 thousand, a reduction of $45.0 thousand or 5.6%. In addition, the prior year surplus available in 1999 is $121.6 thousand, a reduction of $105.1 thousand or 46.4%. The total budgeted revenues of $876.6 thousand are further reduced by $251.0 thousand, which represents the contribution required to maintain the value of fund equity at $23.0 million in 1992 dollars.

The 1999 recommended budget assumes that the City will not be paying interest payments totaling $590.9 thousand in 1999 from the Street Lighting & Lane Conversion Program loan to the City. The original TAF loan to the City for this program was $15.3 million, issued on December 1, 1994 and maturing on December 1, 2002 at an interest rate of 8.76%. At the end of 1998, the principal outstanding was $7.6 million. TAF waived the 1996, 1997 and 1998 interest payments totaling $2.551 million, at the request of the City. The interest payment to TAF has not been included in the Transportation program's 1999 recommended operating budget.

TAF has taken measures to maximize the amount of project and grant funding available in the 1999 recommended budget. Administration expenses have been reduced to $134.6 thousand, a reduction of $18.9 thousand or 12.3% of the administration budget and consulting fees have been reduced to $24.5 thousand, a reduction of $154.7 thousand or 86.3% of the consulting budget. The remaining budget of $466.5 thousand is available for projects and grants. However, the budget for projects and grants has been reduced by $183.5 thousand or 28.2% from 1998 levels.

2000 Outlook

The 2000 operating budget outlook for TAF is outlined in Appendix B. TAF has presented four scenarios based on potential outcomes involving the Street Lighting & Lane Conversion Program loan to the City. Continuation of the current practice of waiving interest payments due from the City under this program are outlined in scenario 3 and will reduce project and grant funding to $405.5 thousand in 2000, a reduction of $61.0 thousand or 13.1% from the 1999 recommended budget. The decrease in project and grant funding in comparison to the 1998 budget would be $244.5 thousand or 37.6%. It is recommended that the Chief Financial Officer and Treasurer be requested to report back, in consultation with TAF, with a resolution on the Street Lighting & Lane Conversion Program loan prior to the consideration of the 2000 operating budget.

Conclusion:

Approval of the 1999 recommended operating budget for TAF will provide project and grant funding of $466.5 thousand to a variety of groups and organizations which take action to stop greenhouse gas emissions, global warming and climate change. Additional funding is also available in the form of repayable loans in order to further these initiatives.

Contact Names:

Bruce Shintani, 397-4228

Val Sequeira, 397-4225

Shekhar Prasad, 392-8095

Wanda Liczyk, 392-8773

Appendix A -

1999 Recommended Operating Budget, Toronto Atmospheric Fund

Appendix B

- 2000 Operating Budget Outlook, Toronto Atmospheric Fund

(Report dated April 26, 1999,

addressed to City Council,

from the Executive Director, Human Resources.)

Comments:

In response to the 1999 Budget submission, the Toronto Community Council requested that the Executive Director of Human Resources report directly to Council at its special meeting to consider the 1999 Operating Budget on the front line staffing levels in the former City of Toronto in 1991 and 1997, and front line staffing levels at present in the Toronto Community Council Area.

Information available for the positions is listed below. In cases where the 1991 data is not available, 1992 numbers are provided.

Former City of Toronto Toronto

Community

Council Area

1999

Position 1991 1992 1997
Street By-law Officers + Officers - 36 43 39
Noise Inspectors 6 - 6 6
Building/Municipal Standards Inspections in South 118 - 90 79
Licensing Inspectors 10 - 12 6
Public Health Inspectors

(Environmental Health Officer)

-
48 43 41
Animal Control Officers - 14 9 6

+ 3 seasonal

Street Cleaners - 212 208 208
Parks Maintenance Staff - 63 63 50

+ fluctuating seasonal

Finance Inquiry Staff - Tax & Water - 12 15 17

Reasons for staffing level decreases where they have occurred include downsizing, re-deployment of staff to other areas and response to fluctuation in demand through use of seasonal workers.

Departments will respond to questions specific to their areas. The request with respect to Police Officers on patrol in Divisions 14, 51 and 52 has been referred to the Police Services Board to report directly to Council.

Contact Name:

Alison Anderson

Director, Employment Services

392-5028

(Report dated April 23, 1999,

addressed to the Strategic Policies and Priorities Committee

from the Chief Financial Officer and Treasurer.)

Purpose:

At its meeting of April 19, 1999, Strategic Policies and Priorities Committee requested the Chief Financial Officer and Treasurer to submit a report to the Special Meeting of the Strategic Policies and Priorities Committee to be held on April 26, 1999, providing written assurance that no additional tag issuances are required.

Financial Implications:

There are no financial implications as a result of this report.

Recommendations:

This report is for the information of the Strategic Policies and Priorities Committee.

Discussion:

The 1999 Parking Enforcement budget of $21.45 million provides funding for 339 FTEs, 81% of these are Parking Enforcement Officers. The recommended 1999 budget is $750,000 higher than in 1998 as a result of additional costs for wage settlements negotiated in 1998, an increase in the reserve contribution for Parking Enforcement vehicles, and technological improvements to systems.

On April 8, 1999, while considering the Non-Program Expenditures budget, Budget Committee noted that Parking Enforcement has underspent its expenditure budget in prior years, by $1.80 million, $1.20 million and $0.85 million in 1996, 1997 and 1998 respectively, largely as a result of not staffing up to approved FTEs. Maintaining the full complement in each year, would have resulted in higher Parking Tag revenue in each of those years, since Parking Enforcement staff have indicated that each salary dollar generates $3 in revenues.

Finance staff had previously recommended $250,000 in expenditure reductions for this program, including $175,000 in gapping. Recognizing that any budget cuts might reduce the ability of the program to meet its mandate, Budget Committee recommended no reduction to Parking Enforcement expenditures. However, it directed that the program utilize the entire budget allocated to it, ie. it eliminate this historical gapping, in order to meet its parking enforcement mandate. The objective of the committee was to ensure that, rather than underspend, and have the underexpenditure be carried forward into the City's surplus, the program increase productivity by fully utilizing the entire budget and FTE allocation made available to it by Council, so as to ensure adequate enforcement of parking regulations across the city. This would, in and of itself, result in higher revenues.

Conclusion:

Budget Committee did not direct, nor did it intend that officers would be expected to issue more tickets to meet a quota, or a revenue target. Considering the significant under expenditures in the Parking Enforcement program in prior years, Budget Committee directed that the program utilize its entire budget allocation, effectively eliminating any gapping, while generating additional revenues from having the approved number of officers on the street enforcing parking regulations.

Contact Name:

Val Sequeira - 397-4225

(Communication dated April 21, 1999,

addressed to the Strategic Policies and Priorities Committee,

from the City Clerk.)

The Strategic Policies and Priorities Committee on April 20, 1999, during its consideration of the 1999 Operating Budget, amongst other things, took the following action:

(A) tabled the following motions for consideration at its Special meeting scheduled to be held on Monday, April 26, 1999, respecting the portion of the Operating Budget (Section SS) pertaining to TEDCO:

Moved by Councillor Ootes on behalf of Councillor Chow:

"That:

(1) the Toronto Harbour Commission's (THC) budget and its monthly operating fund through TEDCO, not be approved nor funding released from TEDCO to the THC until:

(i) THC submit the 1998 actual spending and the 1999 proposed line by-line budget for approval;

(ii) City of Toronto Financial staff review THC's line-by-line detailed budget; and

(iii) the Budget Committee, Strategic Policies and Priorities Committee and Council approve the THC's budget; and

(2) the THC provides, for the City's budget deliberation, a detailed accounting on:

(i) consultants, clearly describing who received funds, in what amounts, and what services were performed for the payments;

(ii) travel budget, who spent what to go where; and

(iii) hospitality funds, save as above.

Moved by Councillor O'Brien:

"That the Chair of the Budget Committee be requested to write to the Toronto Harbour Commission forwarding the concerns raised by the Strategic Policies and Priorities Committee having regard that THC's Operating Budget was not submitted in appropriate time for consideration by the Budget Committee.

(C) requested the Executive Director of Human Resources to submit a report to the Strategic Policies and Priorities Committee for its Special Meeting to be held on April 26, 1999, with regard to front line staffing levels for various positions in various Departments, as requested by the Toronto Community Council at its meeting on March 30, 1999; and

(D) requested the Chief Financial Officer and Treasurer to submit a report to the Special Meeting of the Strategic Policies and Priorities Committee to be held on April 26, 1999, providing written assurance that no additional tag issuances are required.)

--------

(City Council also had before it, during consideration of the foregoing Clause, the following report (April 26, 1999) from the Chief Administrative Officer:

Purpose:

This report responds to a Budget Committee request (April 6-8, 1999), regarding the possibility of savings in Secretariat support from consolidating Council task forces and sub-committees. Staff from the Mayor's Office and the Clerk's Division were consulted in the preparation of this report. Reports have already been submitted to the Budget Committee on budget requests, appropriate budget location and program staff support requirements for task forces (March 5, 1999), and on the allocation of resources from the Clerk's Division to support task forces (March 24, 1999).

Financial Implications:

There are no financial implications arising from this report.

Recommendations:

It is recommended that City Council re-confirm its policies concerning the rationalization of task forces and advisory bodies, and formally apply those policies when recommendations come forward to reconstitute or establish new task forces and advisory bodies.

Comments:

There are different types of Council committees, sub-committees and task forces. City Council, together with its standing committees and community councils, represents the core components of the Council-committee structure through which Council's legislative process is conducted. A primary function of the Secretariat, Printing and Distribution unit within the Clerk's Division is to provide secretariat support to City Council and its standing committees and community councils. Secretariat support services encompass, but are not limited to, committee membership, meeting schedules, procedures and interpretation, notices and agendas, motions and decisions, minutes and by-laws, supporting research, and information dissemination. While the specific arrangements of the Council-committee structure change from time to time, Secretariat support is a prerequisite to the operation of Council's legislative process.

Council and its standing committees also have the ability to establish sub-committees (e.g., Budget Committee, Personnel Sub-Committee). Sub-committees are an extension of the Council or committee to which they report, and provide for a better allocation of the legislative workload and more efficient use of Council Members' time. The additional workload that these sub-committees place on the Secretariat is manageable, since the primary driver of Secretariat resources is the legislative workload which is, for the most part, independent of the Council-committee structure.

A variety of task forces and other ad-hoc committees and advisory bodies also exist. These are established at the sole discretion of City Council, usually for issue-specific purposes. Many of them receive Secretariat support, which provides greater rigour to the proceedings and supports public access to the decision making process. However, the provision of Secretariat support is often based on historical factors and the different practices of the former municipalities. The March 24, 1999, report to the Budget Committee identified some criteria which would assist in determining whether the provision of Secretariat support is appropriate. Greater clarity and consistency are desirable, and examination of this issue is ongoing.

To-date, it has been possible to extend Secretariat support to new task forces and ad-hoc committees through existing resources. However, the impact of extending Secretariat support to new task forces and ad-hoc sub-committees has resulted in delays in the production of minutes, backlogs in responding to directives and research requests, extensive staff over-time, outstanding amalgamation work, and the inability to enhance training, procedures and systems to improve productivity. In the event that task forces and ad-hoc committees were consolidated, any staff time coming available would be re-deployed to address these priorities.

Simply consolidating task forces and ad-hoc committees, and shifting the issues and workload to alternate committees or to program staff, offers little scope for savings. Further, this approach may not be practical since each task force and ad-hoc committee has a different mandate, involves different stakeholders, has different work program requirements, and may appropriately require Secretariat support in addition to input from program areas. Each task force or committee needs to be considered individually to ensure consolidation of disparate activities does not add confusion while yielding no tangible benefits.

If Council were to expand the number of task forces and ad-hoc committees, a risk exists that the increased Secretariat support requirements would exceed the current threshold in resources. Therefore, while reducing current task forces and ad-hoc committees may not yield any savings, establishing more of them would likely lead to the need for additional Secretariat resources.

Conclusions:

City Council has recognized this issue and has taken steps to rationalize the number of task forces and ad-hoc committees in the future. Before establishing new task forces in the future, Council must ensure that the work cannot be undertaken by an existing standing committee, and that the mandate is time-limited by a sunset date (Clause 1, Report 17 of Strategic Planning & Priorities Committee, approved by Council October 1-2, 1998). In addition, commissioners have been requested to review and report on the mandate, composition and continuation of existing task forces and advisory bodies related to their area of responsibility (Clause No. 1, Report No. 1 of Special Committee to Review the Final Report of the Transition Team, approved by Council February 2-4, 1999).)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 6, 1999) from the Secretary, Board of Health:

The Board of Health at its meeting on April 6, 1999, in considering a verbal report from the Medical Officer of Health with respect to the status of the 1999 Operating Budget for Toronto Public Health, recommended that Council ensure that any savings achieved by virtue of 50 percent provincial funding of mandatory public health programs be directed first for public health purposes, in particular levelling-up services across the City, and secondly for any other purposes.)

(City Council also had before it, during consideration of the foregoing Clause, the following report (April 27, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Council, at its meeting of Monday, April 26, 1999, directed staff to articulate the difference between user fees Option "B" and "B+".

Recreation User Fee Option "B" provides for:

(a) drop-in Subscriber and Introductory programmes for early childhood, children and youth at no fee;

(b) drop-in programmes for Older Adults at no fee; and

(c) all other programmes would be levied a fee at a harmonized rate plus 20 per cent.

This is further described in the Operating Budget, Volume 1, Appendix C, page 341.

Recreation User Fee Option "B+"

Option "B+" can be described as an enhancement to Option "B" that further includes all Adult Drop-in programmes at no fee.

This would include such activities such as leisure lane swim, leisure swim and skate scheduled exclusively for adults, indoor bocce, indoor basketball, volleyball and badminton. The cost of Option "B+" on an annual basis equals $1.674 million.)

(City Council also had before it, during consideration of the foregoing Clause, the following report (April 20, 1999) from the City Librarian:

Purpose:

To respond to the Budget Committee Motion as quoted under the Council Reference section.

Recommendations:

It is recommended that this report be received for information.

Council Reference:

The following motion was adopted at the Budget Committee meeting of April 16, 1999:

Toronto Public Library (volume 2, page 706)

The Chief Librarian be requested to report directly to City Council with regard to the purchasing and materials budget, the said report to include the purchasing of multilingual materials.

Comments:

The following comments are offered in response to the concern raised in the above motion. Amalgamated expenditures for library material purchases over the last five (5) years have remained fairly constant at an annual average of $13.0 million exclusive of development charge funding for growth. Of this amount, multicultural purchases represent approximately 10 per cent or $1.3 million per annum. This portion of multicultural spending is also constant with a budget allocation of $1.3 million for 1999.

Annual expenditures for the purchase of library materials equate to $5.45 per capita in the City of Toronto. This figure compares favourably with per capita spending by other North American cities.

Contact Name:

Ann Eddie, Director of Administration, Phone: 393-7091, Fax: 393-7083.)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 23, 1999) from the General Secretary, Toronto Transit Commission:

A special meeting of the Toronto Transit Commission was held on Thursday, April 22, 1999 to consider a matter entitled, "Budget Strategy - Including Potential Fare Increase."

The Commission directed that the following motion by Vice-Chair Davis be forwarded to City of Toronto Council for consideration and approval during its deliberations of the 1999 Operating Budget on Monday, April 26, 1999:

"That City of Toronto Council increase its subsidy to the 1999 Operating Budget of the Toronto Transit Commission by $13.6 million to offset additional costs associated with the current labour settlement and other budgetary impacts."

The Commission also directed:

1. That a copy of the staff presentation concerning this matter be forwarded to City of Toronto Council for information at its meeting on April 26, 1999; and

2. That a copy of the Commission's decision from its November 4, 1998 meeting concerning the TTC 1999 Operating Budget be forwarded to City of Toronto Council for information at its meeting on April 26, 1999.

Also attached for the information of Council is a memorandum dated April 23, 1999 from David L. Gunn, Chief General Manager to Members of the Toronto Transit Commission entitled, "Staff Response to Commission Inquiry - Impact of 1999 Labour Strike."

(A copy of each of the following documents, which was referred to in the foregoing communication from the General Secretary, Toronto Transit Commission, is on file in the office of the City Clerk:

(i) the staff presentation respecting the TTC's 1999 - 2002 Operating Budget;

(ii) excerpt from the Commission meeting held on November 4, 1998; and

(iii) communication (April 23, 1999) from the Chief General Manager, Toronto Transit Commission, entitled "Staff Response to Commission Inquiry - Impact of 1999 Labour Strike".)

(City Council also had before it, during consideration of the foregoing Clause, a table (undated), headed "Amount to be Raised", submitted by the Chief General Manager, Toronto Transit Commission, outlining additional funding requirements for 1999, 2000 and 2001.)

(City Council also had before it, during consideration of the foregoing Clause, a submission (undated) from Councillor Miller, High Park, headed "Why No Fare Hike?".)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 27, 1999) from the Chief Administrative Officer:

This responds to Councillor Rae's request for additional information pertaining to staffing levels for the Toronto Police Service. The information is included in the 1999 Operating Plan and Budget Submission of the Toronto Police Service. The relevant pages from this submission are attached.

The following summarizes the 1998 Budget and Actual for salary costs for the Toronto Police Service:

1998 Budget $393 million

1998 Actual $399 million *

* The 1998 Actual includes the part-year impact ($7.7 million) of the approved salary settlement.

Please be advised that Chief Boothby will join the Council meeting today at 2:30 p.m. to answer questions and provide additional information.)

(A copy of the 1999 Operating Budget - Program Breakdown by Command, which was appended to the foregoing communication, is on file in the office of the City Clerk.)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 22, 1999) from Councillor Lindsay Luby, Kingsway Humber:

I am writing to ask you to support Toronto Arts Council's request to re-direct their portion of the unallocated Consolidated Grants Budget to operating funds.

Since amalgamation, TAC has assumed the responsibility for 320 grant files from the Culture Office. In addition, they anticipate an increase in applications from individual artists from the 1998 level of 600 to potentially 1200. In 1999, TAC will be assessing and responding to approximately 1,600 applications. That's a 60% increase in their workload. Even with the additional funds, they will be able to do this for less than 7% of total funds managed.

I will be moving the attached motion concerning the Toronto Arts Council's administration budget request at the April 26th Council meeting.

I hope you are able to support this recommendation. If you have any questions, please call me or TAC's Associate Director, Anne Bermonte at 392-6802 ext. 205.)

(Motion appended to the foregoing

communication from Councillor Lindsay Luby.)

Moved By: Councillor Gloria Lindsay Luby

Seconded By: Councillor Betty Disero

WHEREAS City Council approved the Toronto Arts Council as the city-wide arts funding agency resulting in increased mandate and responsibilities without providing it with additional administration monies; and

WHEREAS the Toronto Arts Council has identified their need for a $98,000 increase to its administration funds for operating purposes to fulfill its increased mandate and responsibilities in providing core arts and culture services to Toronto's arts community; and

WHEREAS Budget Committee and Strategic Priorities and Planning Committee recommended that the additional funds to deal with the increased mandate and responsibilities come from within the Consolidated Grants Budget; and

WHEREAS Toronto Arts Council is eligible for at least $64,000 from the unallocated portion of the Consolidated Grants Program; and

WHEREAS the Grant Agreement between the Toronto Arts Council and the City of Toronto does not allow them to move funds between the cultural grants and administration programs without City Council's permission; and

WHEREAS there is no additional cost to the City as a result of this motion;

THEREFORE BE IT RESOLVED THAT the Board of Directors of the Toronto Arts Council be authorized to use the amount for which it qualifies from the unallocated portion of the Consolidated Grants Budget (up to $64,000.00) towards addressing increased administration costs resulting from the expanded mandate and responsibilities of the Toronto Arts Council, until such time as the Commissioner of Economic Development, Culture and Tourism has reported on the administration issues pertaining to the Culture Office and the Toronto Arts Council.)

(City Council also had before it, during consideration of the foregoing Clause, a table (undated), headed "Total Impact of Harmonization on Residential, Commercial and Industrial Sectors", submitted by Mayor Lastman.)

(City Council also had before it, during consideration of the foregoing Clause, communications from the following individuals and organizations:

(i) (April 22, 1999) from Ms. Anna Zapletal, Chair, Bloorcourt Village Business Improvement Area, expressing opposition to the recommendation to implement a system of chargebacks for commercial garbage collection;

(ii) from the following individuals, expressing concern about the future of the Waste Watchers' Volunteer Program:

- (March 19, 1999) Ms. Nancy Martins;

- (March 19, 1999) Linda Schadlinger, Administrative Coordinator, Practicum, Faculty of Social Work, University of Toronto;

- (March 25, 1999) Mr. Pradeep Sibal, P.Eng., Toronto;

- (March 17, 1999) Ms. Joy McIntosh, Scarborough;

- (March 16, 1999) Parham Khajeh-Naini;

- (March 16, 1999) Mr. Richard Wong; and

- (March 26, 1999) Ms. Martha Bell, Toronto;

(iii) (April 23, 1999) from Ms. Pam Prinold, Coordinator, Rexdale Partners, submitting comments with respect to funding for dental care, user fees, the Toronto Transit Commission and housing;

(iv) (April 26, 1999) from Mr. Robert Hansen, Toronto, expressing opposition to a TTC fare increase;

(v) (undated) from Mr. Howard Tessler, Federation of Metro Tenants Associations, requesting funding for additional staff and resources for the Tenant's Hotline in order to implement Recommendation No. (44) of the Mayor's Homelessness Action Task Force report;

(vi) (April 26, 1999) from Ms. Debra DeMonte, President, The Town of North Toronto Merchants Association, expressing opposition to the implementation of user fees on small commercial businesses for garbage removal;

(vii) (April 26, 1999) from Ms. Lisa Marsden, Manager of Government Affairs, Ontario Restaurant Association, expressing opposition to the implementation of user fees on small commercial businesses for garbage removal;

(viii) (April 22, 1999) from Mr. Jeffery Lyons, Morrison Brown Sosnovitch, Barristers and Solicitors, on behalf of the Film Liaison Industry Committee and the Directors Guild of Canada, regarding film permit user fee; and

(ix) (April 20, 1999) a copy of presentation material filed by the Chief Administrative Officer and the Chief Financial Officer and Treasurer, with respect to the City of Toronto's 1999 Operating Budget.)

(Councillor Ashton, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to Children's Services and the Building Division, in that:

(i) his daughter is registered in a non-profit child care centre; and

(ii) his wife is an employee of the Building Division of the Urban Planning and Development Services Department.)

(Councillor Cho, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to remuneration paid to Members of Council by the Toronto and Region Conservation Authority, in that he is an Authority Member.)

(Councillor Giansante, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to the Revenue Services Division of the Finance Department, in that his son is a temporary employee of such Division.)

(Councillor Jones, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared her interest in those portions of the foregoing Clause pertaining to the Community Grants Program, in that her husband provides accounting assistance to various organizations which apply for grants.)

(Councillor Layton, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in a motion put by Councillor Davis with respect to other income received by Members of Council, in that he occasionally teaches at the University of Toronto.)

(Councillor Pantalone, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to Children's Services, in that his children are registered in a child care centre which has a purchase of service agreement with the City of Toronto.)

(Councillor Prue, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to the Toronto and Region Conservation Authority - Watershed Health, in that his principle residence is adjacent to the subject area of a project included under such Program.)

(The following Members of Council, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared their interest in those portions of the foregoing Clause pertaining to the Council Budget - Salaries and Benefits, in that a member of their family is an employee in their office:

- Councillor Cho;

- Councillor Fotinos;

- Councillor Gardner;

- Councillor Kelly;

- Councillor Mahood; and

- Councillor Shiner.)

2

1999 Levy By-law and the 1999 Levy of a Special Charge

for Certain Business Improvement Areas

(City Council on April 26, 27 and 28, 1999, amended this Clause by adding thereto the following:

"It is further recommended that:

(1) the following recommendation of the Strategic Policies and Priorities Committee, embodied in the communication dated April 26, 1999, from the City Clerk, be adopted:

'The Strategic Policies and Priorities Committee recommends the adoption of the report (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled "1999 Tax Levy - City and Education Purposes" wherein it is recommended that:

(1) the levy and collection of a special charge for 1999 for the Upper Village (York) Business Improvement Area be authorized; and

(2) authority be granted for the introduction of the necessary bills in Council to levy taxes for the year 1999 and to provide for the collection of taxes for 1999 other than those levied under By-law No. 960-1998, to impose a penalty charge for non-payment of taxes, to provide for interest to be added to tax arrears, and to levy a special charge for 1999 for certain Business Improvement Areas and provide for its collection, in the form or substantially in the form of the draft by-laws attached hereto.'; and

(2) the levy and collection of a special charge in the amount of $85,750.00, for the Long Branch Business Improvement Area for the 1999 taxation year, as recommended in the report dated April 19, 1999, from the Commissioner of Finance and Treasurer, be approved.")

The Strategic Policies and Priorities Committee recommends the adoption of the following report (April 19, 1999) from the Chief Financial Officer and Treasurer and that the necessary Bills be introduced in Council to give effect thereto:

Purpose:

The purpose of this report is to obtain Council's authority for the adoption of by-laws for the levying and collection of taxes for the 1999 tax year, to impose a penalty charge for non-payment of taxes, to provide for interest to be added to tax arrears, and for the levying of a special charge for 1999 for certain Business Improvement Areas.

Recommendations:

It is recommended that:

(1) the levy and collection of taxes for the 1999 taxation year, the imposition of a penalty charge for non-payment of taxes, and the provision of interest to be added to tax arrears be authorized;

(2) the levy and collection of a special charge for 1999 for the following Business Improvement Areas be authorized: Bloor/Bathurst-Madison; Bloor by the Park; Bloorcourt Village; Bloordale Village; Bloor West Village; Bloor-Yorkville; Corsa Italia; Danforth by the Valley; Eglinton Way; Gerrard India Bazaar; Greektown on the Danforth; Harbord Street; Junction Gardens; Keele-Eglinton; Kennedy Road; Kingsway; Lakeshore; Little Italy; Mimico Village; Old Cabbagetown; Roncesvalles Village; Weston; Parkdale Village; Pape Village and St. Lawrence Neighbourhood;

(3) a special meeting of the Strategic Policies and Priorities Committee be held on April 26, 1999 prior to Council to consider the levying by-laws and Business Improvement Area by-laws; and

(4) authority be granted for the introduction of the necessary bills in Council to levy taxes for year 1999 and to provide for the collection of taxes for 1999 other than those levied under By-law 960-1998, to impose a penalty charge for the non-payment of taxes, to provide for interest to be added to tax arrears, and to levy and collect a special charge for 1999 for the Business Improvement Areas listed in Recommendation No. 2.

Comments:

By-laws for the levy and collection of taxes for the 1999 taxation year, the imposition of a penalty charge for non-payment of taxes in the 1999 taxation year at the rate of 1.25% per month, the provision of interest, at the rate of 1.25% per month to be added to tax arrears and for special charges for Business Improvement Areas as listed in this report are currently being drafted. It is intended that these by-laws will be introduced for approval by Council at its meeting on April 26 and 27, 1999.

The budgets for the following Business Improvements Areas were approved by City Council at its meeting of April 13, 14 and 15, 1999: Bloor/Bathurst-Madison; Bloor by the Park; Bloorcourt Village; Bloordale Village; Bloor West Village; Bloor-Yorkville; Corsa Italia; Danforth by the Valley; Eglinton Way; Gerrard India Bazaar; Greektown on the Danforth; Harbord Street; Junction Gardens; Keele-Eglinton; Kennedy Road; Kingsway; Lakeshore; Little Italy; Mimico Village; Old Cabbagetown; Roncesvalles Village; Weston; Parkdale Village; Pape Village and St. Lawrence Neighbourhood.

The final tax rates for 1999 will be set based on the final 1999 Operating Budget requirements as adopted by Council at that meeting. This report recommends that authority be granted for the introduction of the necessary bills in Council on April 26 and 27, 1999.

Contact Names:

Lynne Ashton, 397-4203

Paul Wealleans, 397-4208

________

Mayor Lastman declared his interest in the foregoing matter in that his son is President of the Kennedy Road Business Improvement Area.

(City Council on April 26, 27 and 28, 1999, had before it, during consideration of the foregoing Clause, the following communication (April 26, 1999) from the City Clerk:

Recommendation:

The Strategic Policies and Priorities Committee recommends the adoption of the report (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled "1999 Tax Levy - City and Education Purposes" wherein it is recommended that:

(1) the levy and collection of a special charge for 1999 for the Upper Village (York) Business Improvement Area be authorized; and

(2) authority be granted for the introduction of the necessary bills in Council to levy taxes for the year 1999 and to provide for the collection of taxes for 1999 other than those levied under By-law No. 960-1998, to impose a penalty charge for non-payment of taxes, to provide for interest to be added to tax arrears, and to levy a special charge for 1999 for certain Business Improvement Areas and provide for its collection, in the form or substantially in the form of the draft by-laws attached hereto.

The Strategic Policies and Priorities Committee reports, for the information of Council, having requested the Chief Financial Officer and Treasurer to ensure that the Long Branch BIA is incorporated into the levying by-law.

Background:

The Strategic Policies and Priorities Committee reports, for the information of Council, having had before it a report (April 24, 1999) from the Chief Financial Officer and Treasurer, entitled "1999 Tax Levy - City and Education Purposes", providing information on the 1999 tax levy for City purposes and the 1999 education tax rates set by the Province.

Councillor Blake F. Kinahan, Lakeshore - Queensway, appeared before the Strategic Policies and Priorities Committee in connection with the foregoing matter.

(Report dated April 24, 1999,

addressed to the Strategic Policies and Priorities Committee,

from the Chief Financial Officer and Treasurer.)

Purpose:

This report provides information on the 1999 tax levy for City purposes and the 1999 education tax rates set by the Province.

Financial Implications:

The 1999 tax levy of $2,575,758,896 results in a 0% tax increase for City purposes. The 1999 education tax rates set by the Province for the residential and multi-residential property classes are 0.46%, which is a 0% tax increase for school purposes for these classes. The 1999 education tax rates for the commercial and industrial property classes are 4.09% and 5.52% respectively. The rate for the commercial property class is 3.1% lower than the 1998 rate and the rate for the industrial property class is 6.3% lower than the 1998 rate. These reductions in education tax rates for the commercial and industrial property classes reflect the Province's business education tax reduction that will be fully phased-in by 2005.

Recommendations:

It is recommended that:

1. The levy and collection of a special charge for 1999 for the Upper Village (York) Business Improvement Area be authorized.

2. That authority be granted for the introduction of the necessary bills in Council to levy taxes for the year 1999 and to provide for the collection of taxes for 1999 other than those levied under By-law No. 960-1998, to impose a penalty charge for non-payment of taxes, to provide for interest to be added to tax arrears, and to levy a special charge for 1999 for certain Business Improvement Areas and provide for its collection, in the form or substantially in the form of the draft by-laws attached hereto.

Background:

At its meeting on April 20, 1999, the Strategic Policies and Priorities Committee adopted the report "1999 Levy By-law and the 1999 Levy of a Special Charge for Certain Business Improvement Areas" (April 19, 1999). The report recommended, among other things, that a special meeting of the Strategic Policies and Priorities Committee be held on April 26, 1999 prior to Council to consider the levying by-laws and Business Improvement Area by-laws.

Recommendation 2 of the report of April 19, 1999 requested authorization for the levy and collection of a special charge for certain Business Improvement Areas. The Upper Village (York) BIA was inadvertently omitted from the BIAs listed in the recommendation. Therefore, authorization for the levy of a special charge for 1999 for this BIA is requested in Recommendation 1 above.

This report provides information on the 1999 tax levy for City purposes and the tax rates set by the Province for education purposes. The draft by-laws respecting the 1999 tax levy and Business Improvement Area levies are attached.

Comments:

1999 Tax Levy - City Purposes:

The Strategic Policies and Priorities Committee also has before it the report "Non-Program Expenditures - Tax Deficiencies" (April 24, 1999) which recommends an amendment to the tax deficiencies budget amount. Adopting this report will increase the 1999 tax levy for City purposes to $2,575,758,896. This levy amount will, however, result in a 0% tax increase for City taxpayers, after accounting for potential new tax revenue from the 1999 assessment roll.

1999 Education Tax Rates:

- Residential and Multi-Residential:

The 1999 education tax rate established by the Province for the residential and multi-residential property classes is 0.46%. This rate was prescribed by regulation in 1998, which remains in place until such time as it is changed by the Province.

- Commercial and Industrial:

The 1998 Ontario Budget set out the proposed commercial and industrial education tax cuts for those municipalities whose tax rates are above the provincial average. The budget document also noted that the proposed tax cuts were based on preliminary 1998 assessment data and may be adjusted when the assessment data and provincial education rates are finalized.

The education tax cut for commercial and industrial properties in the City of Toronto was estimated to be $50 million per year for eight years, totalling $400 million by 2005. For 1998, the actual cut allocation for the City was $38.78 million for commercial property class and $12.58 million for industry property class (total=$51.66 million). Due to the education tax cuts, the 1998 education taxes levied for commercial properties was $1,122.9 million with a tax rate of 4.22% and $190.3 million for industrial properties with a tax rate of 5.89%. The above levies are based on returned 1998 current value assessment of $27,922.5 million for commercial properties and $3,566.7 million for industrial properties.

Bill 79 amended the Education Quality Improvement Act, 1997 with a new section 257.12.2 on the school tax rates for commercial and industrial property classes. This section legislated the education tax rates for commercial and industrial property classes to be no greater than 3.3 percent starting in 2005 and thereafter. This section contains the separate rules for the calculations of education tax rates for the years after 1998 and before 2005 for municipalities whose rate are below 3.3 percent and for those with tax rates above 3.3 percent.

Being above 3.3 percent, subsection (5 ) of this section is applicable to the City. Calculations in accordance with subsection 257.12.2 (5) produce resultant tax rates of 4.09 percent for commercial properties and 5.52 percent for industrial properties.

Under subsection 257.12.2(1), the Minister of Finance must confirm these rates through a regulation. As of the date of this report, the Minister of Finance has not yet filed a regulation, prescribing the tax rates for school purposes for the commercial and industrial properties for 1999. Staff have been working with the Ministry of Finance to ensure that such a regulation is filed by April 27, 1999 (or before the end of the Council meeting, whichever is first) so that the City will have authority to pass a by-law levying a rate for school purposes on the commercial and industrial property classes.

The new tax rates reduce the 1998 education tax rates by 3.1 percent and 6.3 percent for commercial class and industrial class respectively. Using the 1998 assessment as a base, the new rates produce an effective 1999 reduction of $35.1 million for commercial properties and $12.0 million for industrial, totalling $47.1 million as compared to $51.36 for 1998 from 1997. The following table shows the comparison of education tax reductions:

1997 Adjusted Education Taxes

(000,000)

1998 Current Value Assessment

(000,000)

1998 Business Edu. Taxes using 1998 CVA

(000,000)

1999 Business Edu. Taxes using 1998 CVA

(000,000)

Commercial $ 1,161.8 $ 27,922.5 $ 1,122.9 $ 1,087.8
Industrial $ 202.8 $ 3,566.7 $ 190.3 $ 178.3
Total $ 1,364.6 $ 31,489.2 $ 1,313.2 $ 1,266.1

While the 1998 education tax reduction of $51.3 million was greater than the estimated annual average decrease of $50 million, the 1999 education tax cut will be $47.1 million.

Conclusion:

The 1999 tax levy for City purposes, including additional contigencies in the tax deficiencies budget of $46.46 million, will be $2,575,758,896. This amount will result in a 0% tax increase for City taxpayers when using the current 1999 assessment roll.

The 1999 education tax rate for the residential and multi-residential property clases is 0.46%, and is the same as the 1998 education tax rate established by the Province for these property classes.

The 1999 education tax rates of 4.09 percent and 5.52 percent for commercial and industrial properties will produce an effective reduction of $47.1 million, which is slightly shy of the$50 million annual reduction originally estimated in the 1998 Ontario Budget. The education tax rates for the commercial and industrial classes for 1999 must be prescribed by a regulation which, as of the date of this report, has not yet been filed by the Minister of Finance.

Contact Names:

Lynne Ashton, 397-4203

Paul Wealleans, 397-4208

Giuliana Carbone, 392-8065)

Authority: Strategic Policies and Priorities Committee Report No. 8(2),

April 26 and 27, 1999

Adopted by Council:

CITY OF TORONTO

BY-LAW No.

To Levy and Collect Taxes for the Year 1999,

to Impose a penalty charge for non-payment of 1999 taxes, and

to Provide for interest to be added to tax arrears

WHEREAS subsection 367(1) of the Municipal Act, as amended (the "Act"), provides for the council of a local municipality in each year to prepare and adopt estimates of all sums required during the year for the purposes of the municipality including amounts sufficient to pay all debts of the municipality falling due within the year, amounts required to be raised for sinking funds and amounts required for any board, commission or other body; and

WHEREAS subsection 368(2) of the Act provides that for the purposes of raising the general local municipality levy, the council of a local municipality shall, each year, pass a by-law levying a separate tax rate, as specified in the by-law, on all the assessment in each property class in the local municipality rateable for local municipality purposes; and

WHEREAS paragraph 1 of subsection 257.7(1) of the Education Act, as amended, requires every municipality in each year to levy and collect the tax rate prescribed by the Minister of Finance for school purposes on residential property and business property taxable for school purposes in the municipality according to the last returned assessment roll; and

WHEREAS O.Reg 383/98 establishes a first and a second subclass for farmland awaiting development in the residential/farm, multi-residential, commercial and industrial property classes and establishes allowable tax reduction percentages for each subclass; and

WHEREAS subsection 368.1(3) of the Act, provides that the council of a local municipality shall specify, by by-law, the percentage reductions of the tax rates for municipal purposes for subclasses of property classes prescribed by regulation where the regulations require tax rates to be reduced by a percentage within a range described in the regulations; and

WHEREAS subsection 2(2) of the City of Toronto Act, 1997 provides that the City of Toronto is a local municipality for all purposes; and

The Council of the City of Toronto HEREBY ENACTS as follows:

1. In this by-law, except where otherwise specified:

"Tax Collector" means any person who was a collector or tax collector appointed, pursuant to the provisions of the Act, by by-law of a former area municipality which was in force on December 31, 1997, or any person subsequently appointed by Council to hold that office; and

"Treasurer" means the Chief Financial Officer and Treasurer of the City of Toronto; and

2. The taxes for the year 1999, together with all other rents or rates payable as taxes shall be due and payable on and from the 1st. day of January, 1999.

3. The percentage reduction of the total tax rate for the 1999 taxation year for the subclasses set out in Column II of the property class set out in Column I shall be established as the amount set out in Column III below:

Column I

(Property Class)

Column II

(Subclasses of Column I)

Column III

(Percentage Reduction)

Residential/Farm - Farmland Awaiting Development

(First Subclass)

(Second Subclass)

65% of Residential/Farm rate

0% of Residential/Farm rate

Multi-Residential
- Farmland Awaiting Development

(First Subclass)

(Second Subclass)

65% of Residential/Farm rate

0% of Residential/Farm rate

Commercial
- Vacant Units and Excess Land 30% of Commercial rate
- Vacant Land 30% of Commercial rate
- Farmland Awaiting Development

(First Subclass)

(Second Subclass)

94% of Commercial rate

30% of Commercial rate

Industrial
- Vacant Units and Excess Land 35% of Industrial rate
- Vacant Land 35% of Industrial rate
- Farmland Awaiting Development

(First Subclass)

(Second Subclass)

96% of Industrial rate

35% of Industrial rate

4. There shall be levied and collected as taxes on the assessment of all real property in the City of Toronto rateable for local municipal purposes according to the assessment roll for 1999 as finally altered, amended and corrected, in amounts calculated for each property class set out in Column I, the rate set out in Column II, which shall produce, when levied upon the total assessment for each property class as set out in Column II of Schedule "A" attached hereto, the total tax levy for municipal purposes of $2,575,758,896:

Column I Column II

(Property Class/Subclass) (Tax Rate)

Residential/Farm 0.799702

Multi-Residential 4.186840

Commercial 3.419446

- Vacant Units and Excess Land 2.393588

- Vacant Land 2.393588

Industrial 4.773021

- Vacant Units and Excess Land 3.102444

- Vacant Land 3.102444

- Farmland Awaiting Development 0.279896

Farmlands 0.199926

Pipelines 1.537907

Managed Forest 0.199926

5. There shall be levied and collected as taxes on the assessment of all real property in the City of Toronto rateable for school purposes according to the assessment roll for 1999 as finally altered, amended and corrected, in amounts calculated for each property class set out in Column I, the rate set out in Column II, which shall produce, when levied upon the total assessment for each property class set out in Column III of Schedule "A" attached hereto, the total tax levy for school purposes of $1,917,463,144:

Column I Column II

(Property Class/Subclass) (Tax Rate)

Residential/Farm 0.460000

Multi-Residential 0.460000

Column I Column II

Commercial 4.091405

- Vacant Units and Excess Land 2.863984

- Vacant Land 2.863984

Industrial 5.520842

- Vacant Units and Excess Land 3.588547

- Vacant Land 3.588547

- Farmland Awaiting Development 0.161000

Farmlands 0.115000

Pipelines 2.029400

Managed Forest 0.115000

6. All taxes and all other rents or rates payable as taxes, shall, subject to the provisions of section 11, be paid in 3 instalments which shall be equal or as nearly equal as practicable, and shall be due and payable on or before the respective dates set out below:

Instalment 1 - July 5, 1999

Instalment 2 - August 3, 1999

Instalment 3 - September 1, 1999

7. The payment of taxes, or any instalment thereof, may be made at the following locations:

850 Coxwell Avenue

399 The West Mall

5100 Yonge Street

150 Borough Drive

100 Queen Street West

2700 Eglinton Avenue West

8. Taxes shall be payable to the Treasurer, City of Toronto.

9. When not in default, the payment of taxes, or any instalment thereof, may also be made at any financial institution permitted by the Act and the Treasurer is hereby authorized to determine, in accordance with the provisions of the Act, the financial institutions where payment may be made.

10. When in default of payment of such instalments of taxes or any part of any instalment by the date for payment set out in section 6 hereof, the remaining instalment or instalments shall become due and payable immediately.

11. The Treasurer or the Tax Collector shall be and they are hereby authorized to accept part payment from time to time on account of any taxes due, and to give a receipt for such part payment provided that acceptance of any such part payment shall not affect the collection of any percentage charge imposed or collectable under section 14 or section 15 in respect to non-payment of any taxes or any class of taxes or of any instalment thereof.

12. A percentage charge of 1.25 per cent is imposed as a penalty for non-payment of taxes or any class or instalment thereof and shall be added to every tax or any instalment remaining unpaid on the first day of default and on the first day of each calendar month from then on in which default continues but not after December 31, 1999.

13. Interest charges in respect of unpaid taxes, other than those levied for the current year, shall be at the rate of 1.25 per cent per month for each month or fraction of it until the taxes are paid.

14. Except in the case of taxes payable under sections 33 and 34 of the Assessment Act, as amended, the percentage charge imposed by section 12 as a penalty for non-payment of taxes and monies payable as taxes shall be added to every tax or assessment, rent or rate or any instalment or part thereof remaining unpaid on the first day of default and on the first day of each calendar month thereafter in which such default continues but not after December 31, 1999; and it shall be the duty of a Tax Collector, immediately after the installment dates named in section 6 hereof to collect at once, by distress or otherwise under the provisions of the applicable statutes all such taxes, assessments, rents, rates or instalments or parts thereof that have not been paid on or before the aforesaid dates named as aforesaid, together with the said percentage charges as they are incurred.

15. In respect of taxes payable under sections 33 and 34 of the Assessment Act, as amended, the percentage charge imposed by section 12 as a penalty for non-payment of taxes and moneys payable as taxes shall be added to every amount of taxes so payable remaining unpaid on the first day after twenty-one days from the date of mailing by the Treasurer or a Tax Collector of a demand for payment thereof and on the first day of each calendar month thereafter in which default continues but not after December 31, 1999; and it shall be the duty of a Tax Collector immediately after the expiration of the said twenty-one days to collect at once by distress or otherwise under the provisions of the applicable statutes, all such taxes as shall not have been paid on or before the expiration of the said twenty-one-day period, together with the said percentage charges as they are incurred.

16. Nothing herein contained shall prevent the Tax Collector from proceeding at any time with the collection of any rate, tax or assessment, or any part thereof, in accordance with the provisions of the statutes and by-laws governing the collection of taxes.

17. Where the sum of the total annual taxes for which any person is chargeable in the 1999 taxation year for municipal, school, local improvement and other special purposes, upon any real property assessed in one parcel to the same owner would according to the assessment thereon be less than $10.00, the sum of such taxes shall be deemed to be $10.00 and shall be so entered on the Tax Collector's roll and the difference between the sum that would have been entered but for this section and the sum of $10.00 shall form part of the general funds of the City of Toronto.

18. Where tenants of land owned by the Crown or in which the Crown has an interest are liable for the payment of taxes and where any such tenant has been employed either within or outside the municipality by the same employer for not less than thirty days, such employer shall pay over to the Treasurer or Tax Collector on demand out of any wages, salary or other remuneration due to such employee, the amount then payable for taxes under this by-law and such payment shall relieve the employer from any liability to the employee for the amount so paid.

19. The Treasurer or Tax Collector may mail, or caused to be mailed, all notices of taxes required in accordance with the provisions of the Act, to the address of the residence or place of business of the person taxed, the notice specifying the amount of taxes payable pursuant to this by-law. Notices will not be mailed to tenants. It is the responsibility of the person taxed to notify and collect taxes from tenants or other persons.

20. All moneys raised, levied or collected under the authority of this by-law shall be paid into the hands of the Treasurer, to be applied and paid to such persons and in such manner as the laws of Ontario and the by-laws or resolutions of the Council direct.

21. The Tax Collector shall deposit daily all sums of money received to the credit of the Treasurer in the bank or banks or other places of deposit approved by Council, from time to time, as directed by the Treasurer, and the Tax Collector shall immediately produce the bank or other certificates of the deposits to the Treasurer, who will credit the Tax Collector with the amounts of the certificates and issue a receipt for them, or the Treasurer may require the Tax Collector to pay over the sums received for taxes directly to the Treasurer or such officer as the Treasurer may direct to receive them.

22. The Tax Collector's roll for the year 1999 shall be returned by the Tax Collector to the Treasurer under the provisions of the applicable statutes, on or before the 31st day of December, 2001, and no extension of time for the return of the rolls shall be made until a report has been made by the Treasurer to Council.

23. (1) Subject to subsection 2 hereof, this By-law shall come into force on the day it is enacted and passed.

(2) Section 5 of this By-law shall come into force on the day that the Minister of Finance files a regulation, pursuant to clause (b) of subsection 257.12(1) of the Education Act as amended, and in accordance with subsection 2(1) of the Regulations Act, prescribing the tax rates set out in Column II for the property classes set out in Column I of section 5 hereof.

ENACTED AND PASSED this day of , A.D. 1999.

MEL LASTMAN, NOVINA WONG,

Mayor City Clerk

(Corporate Seal)

SCHEDULE "A"

Rateable Assessment

Column I Column II Column III

(Property Class/Subclass) (1999 Rateable Assessment (1999 Rateable Assessment

For Municipal Purposes) For School Purposes)

Residential/Farm $118,961,504,389 $118,985,604,124

Multi-Residential $ 12,439,248,408 $ 12,439,248,408

Commercial $ 25,792,374,642 $ 25,753,772,767

- Vacant Units and Excess Land $ 1,840,974,284 $ 1,840,974,284

- Vacant Land $ 540,706,030 $ 540,706,030

Industrial $ 3,024,831,192 $ 3,024,831,192

- Vacant Units and Excess Land $ 258,663,512 $ 258, 663,512

- Vacant Land $ 277,811,539 $ 277,811,539

Farmlands $ 2,039,500 $ 2,039,500

Farmland Awaiting Development $ 11,100,000 $ 11,100,000

Managed Forests $ 109,980 $ 109,980

Pipelines $ 233,497,165 $ 233,497,165

Total $163,382,860,641 $163,368,358,501

Authority: Strategic Policies and Priorities Committee Report No. 8(1),

April 26 and 27, 1999

Enacted by Council:

CITY OF TORONTO

Bill No.

BY-LAW No. [By-law number]

To Provide for the Levy and Collection of Special Charges for the Year 1999

in Respect of Certain Business Improvement Areas.

WHEREAS subsection 220(17) of the Municipal Act, as amended, provides that the council of a municipality shall in each year levy a special charge upon rateable property in a business improvement area which has been designated under subsection 220(1); that is in a prescribed business property class sufficient to provide a sum equal to the sum of money provided for the purposes of the board of management for that area, together with interest on the sum at such rate as is required to repay any interest payable by the municipality on the whole or any part of such sum.

The Council of the City of Toronto HEREBY ENACTS as follows:

1. There shall be levied and collected for the purposes of the board of management of each business improvement area set out in Column I, in amounts calculated for each prescribed business property class and subclass set out in Column II, on the assessment of real property in a prescribed business property class rateable for such purposes as set out in Column III, the special charge rate set out on Column IV which shall produce the total special charge for that business improvement area set out in Column V:

Column I

(Business Improvement Area)

Column II

(Prescribed Business

Class/Subclass)

Column III

(Rateable

Assessment in

Prescribed

Business

Class/Subclass)

Column IV

(Special Charge Rate)

Column V (Total Special Charge)
Bloor - Bathurst - Madison Commercial 60,358,615 0.039437% $23,804
- Vacant Units and Excess Land 1,435,708 0.027606% $396
Total 61,794,323 $24,200
Bloor - by - the park Commercial 25,240,905 0.160369% $40,479
- Vacant Units and Excess Land 1,568,043 0.112258% $1,760
- Vacant Land 99,000 0.112258% $111
Total 26,907,948 $42,350
Bloor Court Village Commercial 44,537,160 0.124537% $55,465
- Vacant Units and Excess Land 2,918,870 0.087176% $2,545
- Vacant Land 333,000 0.087176% $290
Total 47,789,030 $58,300
Bloor West Village Commercial 125,783,380 0.179378% $225,628
- Vacant Units and Excess Land 1,678,515 0.125565% $2,108
- Vacant Land 3,400,615 0.125565% $4,270
Total 130,862,510 $232,006
Bloor - Yorkville Commercial 880,385,563 0.115901% $1,020,376
- Vacant Units and Excess Land 66,563,857 0.081131% $54,004
- Vacant Land 9,204,000 0.081131% $7,467
Total 956,153,420 $1,081,847
Bloordale Village Commercial 16,397,175 0.246500% $40,419
- Vacant Units and Excess Land 832,240 0.172550% $1,436
Total 17,229,415 $41,855
Corso Italia Commercial 47,110,958 0.365554% $172,216
- Vacant Units and Excess Land 1,478,853 0.255888% $3,784
Total 48,589,811 $176,000
Danforth - by - the -Valley Commercial 57,981,258 0.121090% $70,210
- Vacant Units and Excess Land 1,166,412 0.084763% $989
- Vacant Land 265,000 0.084763% $225
Total 59,412,670 $71,424
Eglinton Way Village Commercial 47,402,462 0.315726% $149,662
- Vacant Units and Excess Land 1,885,823 0.221008% $4,168
Total 49,288,285 $153,830
Gerrard Indian Bazaar Commercial 10,758,530 0.613467% $66,000
Total 10,758,530 $66,000
Greektown-on-the-Danforth Commercial 86,566,935 0.317904% $275,200
- Vacant Units and Excess Land 4,554,635 0.222533% $10,136
Total 91,121,570 $285,336
Harbord Street Commercial 10,501,895 0.257162% $27,007
- Vacant Units and Excess Land 251,000 0.180013% $452
- Vacant Land 634,000 0.180013% $1,141
Total 11,386,895 $28,600
Junction Gardens Commercial 27,026,470 0.361012% $97,569
- Vacant Units and Excess Land 2,855,905 0.252709% $7,217
Total 29,882,375 $104,786
Keele-Eglinton Commercial

- Vacant Units and Excess Land

Total

10,349,040

535,225

10,884,265

0.150449%

0.105314%

$15,570

$564

$16,134

Kennedy Road
Commercial 139,878,034 0.158701% $221,988
- Vacant Units and Excess Land 8,950,330 0.111091% $9,943
- Vacant Land 8,936,540 0.111091% $9,928
Industrial 3,536,901 0.158701% $5,613
- Vacant Land 27,000 0.103156% $28
Total 161,328,805 $247,500
Kingsway Commercial 61,072,637 0.234252% $143,064
- Vacant Units and Excess Land 631,793 0.163977% $1,036
Total 61,704,430 $144,100
Lakeshore Village Commercial 21,905,992 0.151895% $33,274
- Vacant Units and Excess Land 1,353,126 0.106326% $1,439
Industrial 157,820 0.151895% $240
Total 23,416,938 $34,953
Little Italy Commercial 45,292,375 0.248987% $112,772
- Vacant Units and Excess Land 131,560 0.174291% $229
Industrial 212,730 0.248987% $530
Total 45,636,665 $113,531
Long Branch Commercial 16,251,446 0.320439% $52,076
- Vacant Units and Excess Land 973,619 0.224307% $2,184
- Vacant Land 330,000 0.224307% $740
Total 17,555,065 $55,000
Mimico Village Commercial 3,556,791 0.233035% $8,289
- Vacant Units and Excess Land 179,725 0.163124% $293
Industrial 93,665 0.233035% $218
Total 3,830,181 $8,800
Old Cabbagetown Commercial 50,074,951 0.257034% $128,710
- Vacant Units and Excess Land 3,846,160 0.179924% $6,920
Total 53,921,111 $135,630
Pape Village Commercial 20,979,345 0.183684% $38,536
- Vacant Units and Excess Land 827,810 0.128579% $1,064
Total 21,807,155 $39,600
Parkdale Village Commercial 28,382,925 0.413084% $117,245
- Vacant Units and Excess Land 1,194,460 0.289159% $3,454
Industrial
- Vacant Land 112,000 0.268505% $301
Total 29,689,385 $121,000
Roncesvalles Village Commercial 28,161,150 0.209213% $58,917
- Vacant Units and Excess Land 330,000 0.146449% $483
Total 28,491,150 $59,400
St Lawrence Neighbourhood Commercial 43,718,127 0.168921% $73,849
- Vacant Units and Excess Land 1,328,449 0.118245% $1,571
Industrial 935,334 0.168921% $1,580
Total 45,981,910 $77,000
Upper Village (York) Commercial 9,360,330 0.614203% $57,491
- Vacant Units and Excess Land 699,760 0.429942% $3,009
Total 10,060,090 $60,500
Weston Commercial 32,205,830 0.163912% $52,789
- Vacant Units and Excess Land 1,056,190 0.114738% $1,212
- Vacant Land 114,000 0.114738% $131
Industrial 529,700 0.163912% $868
Total 33,905,720 $55,000

2. Sections 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 20, 21 and 22 respectively of By-law No. (insert Levy By-law number) apply to the special charges levied by section 1.

ENACTED AND PASSED this day of , A.D. 1999.



Mayor City Clerk)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 27, 1999) from Councillor Kinahan, Lakeshore-Queensway and Councillor Jones, Lakeshore-Queensway:

(Clause No 2 of Strategic Policies and Priorities Report No. 8

Moved by: Councillor Kinahan

Seconded by: Councillor Jones

"WHEREAS The Economic Development Committee at its meeting held on April 23, 1999, approved without amendment the budget for the Long Branch Business Improvement Area contained in the attached report of the Chief Financial Officer and Treasurer dated April 19, 1999 which was before the said Committee;

WHEREAS the Long Branch Business Improvement Area was not included in Clause No. 2 of the Strategic Policies and Priorities Report No. 8; and

NOW THEREFORE BE IT RESOLVED THAT Council approve the levy and collection of a special charge for the Long Branch Business Improvement Area for the 1999 taxation year at its special meeting of April 26 and 27, 1999.

(Report dated April 19, 1999,

addressed to the Economic Development Committee,

from the Chief Financial Officer and Treasurer.)

Purpose:

This report brings forward the proposed 1999 operating budget for the Long Branch Business Improvement Area (BIA) for Council's approval. Council approval of this budget is required by the Municipal Act to permit the City to collect funds on behalf of the BIA through a special tax levy.

Source of Funds:

No City funding is required since Business Improvement Area budgets are raised by a special levy on members.

Recommendations:

It is recommended that:

1. the Economic Development Committee adopt and certify to City Council the 1999 expenditures of the Long Branch Business Improvement Area of $85,750;

2. a copy of this report be forwarded to the Budget Committee for its information; and,

3. the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Long Branch BIA Budget:

The Long Branch BIA's proposed 1999 budget was approved by its Board of Directors on March 16, 1999 and by its general membership on April 7, 1999, and further approved, as revised to reflect delays in commencing expenditures budgeted in 1998, by the Board of Directors on April 16, 1999.

Appendix A sets out the Long Branch BIA's proposed 1999 budget, including the net 1999 levy requirement.

Appendix B sets out the current status of BIA budget submissions.

Contact Name:

Joe Borowiec, Budget Services Division, Finance Department, 397-4298

APPENDIX A

Long Branch BIA Budget Summary

1998

Approved

Budget

$

1998

Projected

Actual

$

1999

Budget

Request

$

Revenue:

- Prior Years' Surplus

- Net Levy Requirement

- Other Revenue

Total:

5,500

50,000

1,500

57,000

0

50,000

6,261

56,261

33,546

50,000

2,204

85,750

Expenditures:

- Administration

- Capital

- Maintenance

- Promotion & Advertising

- Contingency

Total:

5,750

18,000

18,250

15,000

0

57,000

2,015

0

12,804

7,896

0

22,715

15,750

28,000

17,000

25,000

0

85,750

(Surplus)/Deficit

0

(33,546)

0

_________

APPENDIX B

Business Improvement Area Former Municipality Stage in Budget Process

(Expected Date of Submission)

Bloor/Bathurst-Madison Toronto A
Bloor by the Park Toronto A
Bloorcourt Village Toronto A
Bloordale Village Toronto A
Bloor West Village Toronto A
Bloor-Yorkville Toronto A
Corso Italia Toronto A
Danforth by the Valley Toronto A
Dovercourt Village Toronto NA (no 1998 budget)
Eglinton Way Toronto A
Elm Street Toronto NA (no 1998 budget)
Forest Hill Village Toronto NA (May/June)
Gerrard India Bazaar Toronto A
Greektown on the Danforth Toronto A
Harbord Street Toronto A
Hillcrest Village Toronto NA (May/June)
Junction Gardens Toronto A
Keele-Eglinton York A
Kennedy Road Scarborough A
Kingsway Etobicoke A
Lakeshore Village Etobicoke A
Little Italy Toronto A
Long Branch Etobicoke B
Mimico by the Lake Etobicoke NA (no 1998 budget)
Mimico Village Etobicoke A
Mount Dennis York NA (no 1998 budget)
Old Cabbagetown Toronto A
Pape Village East York A
Parkdale Village Toronto A
Queen/Broadview Village Toronto NA (May/June)
Roncesvalles Village Toronto A
St. Clair Gardens Toronto NA (no 1998 budget)
St. Lawrence Neighbourhood Toronto A
Upper Village Toronto C
Upper Village (York) York A
Village of Islington Etobicoke NA (May/June)
Village of Weston York A
Yonge/Queen-Dundas Toronto NA (no 1998 budget)
York-Eglinton York NA (no 1998 budget)

A - Budget Reported Previously

B - Budget Included in this Report

C - Budget awaiting approval at annual general membership meeting.

NA - No budget submitted)

(Mayor Lastman, at the Special Meeting of City Council on April 26, 27 and 28, 1999, declared his interest in those portions of the foregoing Clause pertaining to the levy and collection of special charges for Business Improvement Areas, in that his son is the President of the Kennedy Road Business Improvement Area.)

Respectfully submitted,

MEL LASTMAN

Chair

Toronto, April 20, 1999

(Report No. 8 of The Strategic Policies and Priorities Committee, including additions thereto, was adopted, as amended, by City Council on April 26, 27 and 28, 1999.)

 

   
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