December 23, 1999
To: Budget Advisory Committee
From: City Clerk
Subject: Payments to Toronto District School Board for Space Used for Children's Services and Parks and
Recreation
Recommendation:
The School Tax Sub-Committee on December 13, 1999, recommended to the Budget Advisory Committee, the
adoption of the joint report (December 10, 1999) from the Commissioner of Community and Neighbourhood
Services, the Chief Financial Officer and Treasurer, and the Commissioner of Economic Development, respecting
Payments to Toronto District School Board for Space Used for Children's Services and Parks and Recreation.
Background:
The School Tax Sub-Committee at its meeting held on December 13, 1999, had before it a joint report (December 10,
1999) from the Commissioner of Community and Neighbourhood Services, the Chief Financial Officer and Treasurer, and
the Commissioner of Economic Development, respecting Payments to Toronto District School Board for Space Used for
Children's Services and Parks and Recreation, reporting on a payment schedule with the Toronto District School Board
facilities; providing an update on negotiations with the Toronto District School Board with respect to Parks and Recreation
facilities; and recommending that the School Tax Sub-Committee endorse the following recommendations for the
consideration of the Budget Advisory Committee:
(1) the City make remittances to the Toronto District School Board at a rate reflective of the current Provincial Funding
Formula and that these remittances be phased over a four year time period beginning September 1, 1998;
(2) payments to the Toronto District School Board in the amount of $351,059 for 1998 (payable from a 1998 encumbrance
for that purpose within the Children's Services Program in 1999) and $1,404,234 for 1999 in respect of Recommendation
(1) be made using an appropriate transfer mechanism as determined by the Commissioner of Community and
Neighbourhood Services, subject to a satisfactory agreement at the staff level of the basic principles laid out in this report;
and
(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
City Clerk
B. Bushe/bb.
Item No. 6
Attachments
Budadv-hoy.doc
(Joint report dated December 10, 19991, addressed to the
School Taxi Sub-Committee from the
Commissioner of Community and Neighbourhood Services, the
Chief Financial Officer and Treasurer and the
Commissioner of Economic Development, Culture and Tourism)
Purpose:
This report recommends a payment schedule with the Toronto District School Board for children's services programs
located within Toronto District School Board facilities. It also provides an update on negotiations with the TDSB with
respect to Parks and Recreation facilities.
Funding Sources, Financial Implications and Impact Statement:
The 1999 budget contained a total of $5 million for payments to the Toronto District School Board and Toronto Catholic
School Board but, because of the phase-in of payments to the TDSB, only $1.66 million was projected to be required in
1999. Council directed that the balance of $3.34 million be redirected in 1999 as a one-time payment to child care
operators for per-diem costs. The Community and Neighbourhood Services Department's 2000 proposed budget includes
$4.7 million for school rents, of which $2.7 million would be applied through the recommendations contained in this report
for payments to the school boards. This issue will be reviewed as part of the 2000 budget process.
Preliminary estimates of the cost of the space used by Parks and Recreation is a gross cost in 2000 of $2 million and a
projected gross annualized cost of $6 million when fully phased in, before any offsets for City space or services used by the
TDSB.
Recommendations:
It is recommended that the School Tax Sub-Committee endorse the following recommendations for the consideration of
the Budget Advisory Committee:
(1) the City make remittances to the Toronto District School Board at a rate reflective of the current Provincial Funding
Formula and that these remittances be phased over a four year time period beginning September 1, 1998;
(2) payments to the Toronto District School Board in the amount of $351,059 for 1998 (payable from a 1998 encumbrance
for that purpose within the Children's Services Program in 1999) and $1,404,234 for 1999 in respect of Recommendation
(1) be made using an appropriate transfer mechanism as determined by the Commissioner of Community and
Neighbourhood Services, subject to a satisfactory agreement at the staff level of the basic principles laid out in this report;
and
(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background:
At its meeting of February 4, 5, and 6, 1998, in considering a report dated January 15, 1998 from the Chief Financial
Officer and Treasurer, City Council directed City officials to present, in conjunction with school board officials, an
agreement that addresses the City use of daycare and school facilities for parks and recreation purposes.
Further at its meeting of February 2, 3 and 4, 1999 Council approved payments to the Toronto Catholic School Board for
recognizing occupancy costs for child care services.
Comments and/or Discussion and/or Justification:
(A) Children's Services
As a result of Bill 160, the provincial government changed the funding formula for school facilities in the City. The
Bill established a grant formula based on a fixed square footage rate per pupil of $5.20 for operating costs and
$0.91 for capital maintenance costs, times a Province wide square footage allowance for caretaking and
maintenance costs. Because only the space required for educational purposes is funded, the school boards must seek
to recover occupancy costs from programs using school facilities. City staff have met with representatives of both
school boards to quantify the amount and type of school space used by City programs. An agreement has been
reached with the Toronto Catholic School Board as noted above with annual payments of $235 thousand, based on
an earlier negotiated rate of $3.70 per square foot.
The changes in the funding formula to school boards will be phased in over time. The Toronto District School
Board will receive mitigation funding over several years to allow the Board to rationalize its operations. As a result
the Board is not seeking to fully implement the cost recovery for space used by child care programs in the first year.
The formula, adopted by the Toronto District School Board, reflects the provincial funding formula for fully
dedicated space used solely for child care programs, of $5.20 per square foot for operating costs and $0.91 per
square foot for capital costs, for a total cost of $6.11 per square foot. Space that is shared between the City and the
school boards, for example where a classroom is used for educational purposes during the day and for child care
after school will not be separately charged by the TDSB. Square footage calculations have been based on the actual
space used plus common areas (e.g. hallways, stairwells, etc.) similar to the treatment that would be afforded
tenants in a private lease arrangement.
The payments would be phased in over four school years that correspond to the City's fiscal years of 1998, 1999,
2000, and 2001. Full implementation would occur in the City's fiscal year 2002. The phase in provides for 25% of
the agreed occupancy costs for the school year beginning 1998, 50% of the full amount for the year beginning
September 1, 1999, 75% of the full amount for the year beginning on September 2000, and the full amount for the
year beginning September 2001. For children's programs in schools this costing amounts to payments of $351,059
for 1998, $1,404,234 for 1999, $2,457,411 in 2000, $3,510,586 in 2001 and a fully annualized cost of $4,212,704 in
2002. The cost estimates for 2000 and future years are subject to finalization of specific areas within each school as
provided for in the agreement with the TDSB and possible future changes in the cost per square foot rate.
The agreement with the City will reflect a planning process which allows for security of tenure and a rational
approach to identifying those schools where enrollment may impact on the tenure of a child care program.
Programs with significant capital investment will have specific security of tenure provisions in their lease
agreements with the Board.
(B) Parks and Recreation
Protracted negotiations have taken place to seek agreement on the following:
(1) identify the hourly space in schools used by Parks and Recreation and City space and services used by the TDSB for
school purposes. There is general agreement on the issues and staff of the respective organizations are working to resolve
the details thereto;
(2) determine appropriate rates that would apply to the area agreed to. TDSB staff have identified preliminary rate options
and City staff are seeking clarification on the calculations that support those rates;
(3) assessment and discussion of Parks and Recreation interest in specific TDSB pools, if any; and
(4) the terms and conditions related to payment, overall security of tenure, and security of tenure of numerous existing
agreements with the former Boards.
In contrast to children's services, the space used for Parks and Recreation programs is more complex since it
involves a combination of after school and evening services as well as services provided during school breaks.
Consequently, these negotiations have proceeded more slowly than those for children's services, compounded by the
need to calculate a combination of hourly rates these types of services.
Staff will continue to work toward resolution and will report the status during the 2000 operating budget review
process.
For budget purposes, the Parks and Recreation program will be identifying $2 million on a preliminary basis in
their 2000 operating budget submission for a partial year payment to the school board (September to December,
2000). The gross cost, before any offset for City space and services used by the TDSB, is estimated in the order of $6
million on an annualized basis. It must be noted, however, that this is subject to change based on continued
negotiations, including establishing an appropriate rate and an appropriate phase-in of payments.
Conclusions:
It is recommended that the City enter into an agreement as outlined to pay for the occupancy costs for child care programs
located in schools. A further report will detail the finalization of an agreement for the use of school space for Parks and
Recreation programs and for the use of City facilities and services by the TDSB.
Contact Names:
Brenda Patterson, Director, Contracted Services, Children's Services
Phone: (416) 392-3319; Fax (416) 392-4576; email: patterso@csis.csis.csd.metrotor.on.ca
Len Brittain, Director, Treasury and Financial Services
Phone: (416) 392-5380; Fax (416) 392-3649; email: lbrittai@toronto.ca
Gary Stoner, Director, Recreation Services (East District)
Phone (416) 396-4490; Fax (416) 396-4957