December 17, 1999

Ms. Novina Wong

City Clerk

City of Toronto

Toronto City Hall

100 Queen Street West

Toronto, Ontario

M5H 2N2

Dear Ms. Wong:

At a special meeting on Friday, December 17, 1999, the Commission considered the attached report entitled, "TTC 2000 Operating Budget."

The Commission approved Recommendation Nos. 1, 2 and 4 contained in the above report as listed below:

"1. Approve the TTC 2000 Operating Budget (summarized in Appendix A) as described in this report and as detailed in the following documents:

· TTC 2000 Operating Budget

· TTC 2000 Organization Charts

· TTC 2000 Goals & Objectives

· TTC 2000 Detailed Budget Blue Book.

2. Note the following budget assumptions and highlights:

· Fares to Remain Unchanged (Operating Surplus to TTC Stabilization Reserve Fund to Help Offset Need for 2001 Fare Increase)

· Improved Economy Expected for 2000

· Ridership Growth of 2% to 405 Million in 2000

· Added Service to Provide For Growth Into 2001

· Revenue/Cost Ratio at 80%

· Subsidy/Passenger of 37¢

The TTC remains the most productive and least subsidized mass transit authority in North America.

4. Consider this report in concert with the following reports:

· Wheel-Trans 2000 Operating Budget

· 2000-2004 TTC Capital Program."

The Commission amended Recommendation No. 3 by deleting "$148.9" and the words "this is exactly the same level as provided in 1999 (and noting it's $3.8 million lower than the $152.7 million in City funding that would be available were the City to fund 20% of costs and TTC revenues 80%)," and replacing in lieu thereof "$152.7" and the words "that this is the level required to maintain the Council approved policy of the City funding 20% of cost and TTC revenue 80%," so such Recommendation reads as follows:

"3. Forward this report to the City of Toronto for Council approval of the required 2000 operating subsidy of $152.7 million, noting that this is the level required to maintain the Council approved policy of the City funding 20% of cost and TTC revenue 80%."

The Commission also reports having approved the following:

1. That the Commission request the Budget Advisory Committee to nominate members to meet with the TTC Chair, TTC Vice-Chair, available TTC Commissioners and TTC staff to prepare a three-year funding plan for the TTC; and that the December 17, 1999 Commission report entitled, "TTC 2000 Operating Budget" and supporting documentation form the basis of the discussion at the those meetings; and

2. Request that City of Toronto Council contribute $3.8 million to the TTC Stabilization Reserve Fund, such amount representing the difference between 20% of TTC expenses ($153 million) and the 1999 approved City funding for the TTC ($149 million); and that such funds as may be in the fund be utilized to help offset the 2001 requirement for a fare increase.

The Commission also noted that the following actions would have to be considered if City funding of the TTC 2000 Operating Budget is reduced:

- Cut 2000 Service Plan items held in abeyance;

- Cut poor performing routes;

- Cut service additions which were being implemented to lead ridership growth; and

- Raise fares.

The foregoing is forwarded to the City Budget Advisory Committee and City of Toronto Council for consideration and the necessary approvals.

Sincerely,

Vincent Rodo

General Secretary

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