POLICY AND FINANCE COMMITTEEAGENDA

Date of Meeting: Thursday, February 17, 2000 Enquiry: Patsy Morris

Time: 9:30 a.m. Administrator

Location: Committee Room 1 (416) 392-9151

City Hall pmorris@toronto.ca

100 Queen Street West

DECLARATIONS OF INTEREST PURSUANT TO

THE MUNICIPAL CONFLICT OF INTEREST ACT.

CONFIRMATION OF MINUTES. (January 20, 2000)

COMMUNICATIONS/REPORTS:

1. CONSOLIDATION OF AUDIT ACTIVITIES.

Chief Administrative Officer.

(February 7, 2000)

Recommending that:

(1) the City acknowledge the requirement of the Chief of Police to maintain an audit related Policing Standards Review Unit in order to address concerns and projects identified by the Chief of Police;

(2) the City Auditor and the civilian component of the Policing Standards Review Unit jointly develop a structured audit work plan based on an evaluation of audit risk and this work plan be approved by the Police Services Audit Sub-Committee;

(3) this report be forwarded to the Chief of Police and the Toronto Police Services Board for comment and review and a response to the report be submitted to the next meeting of the Policy and Finance Committee;

(4) the City Auditor be requested to report to the next meeting of the Policy and Finance Committee on those issues raised by the Chief of Police in his report to the Toronto Police Services Board dated April 28, 1998, relating to the consolidation of City Audit activities; and

(5) the appropriate officials be authorized to take the necessary action to give effect thereto.

2. LONGER TERM RESERVE AND RESERVE FUND

ADEQUACY AND FUNDING STRATEGIES.

Chief Financial Officer and Treasurer.

(February 7, 2000)

Recommending that:

(1) the Chief Financial Officer and Treasurer be requested to continue to report on the adequacy of reserves and reserve funds, and identify funding strategies to enhance the City's financial position; and

(2) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

3. ADMINISTRATION OF RESERVES AND RESERVE FUNDS.

Chief Financial Officer and Treasurer.

(February 7, 2000)

Recommending that:

(1) Clause No. 11 of Report No. 6 (April 16, 1998) of the Strategic Priorities and Policies Committee, entitled "Establishment of City Reserves and Reserve Funds" from the Chief Financial Officer and Treasurer adopted, as amended, by Council on April 29 and 30, 1998, be further amended as set out in the body of this report and the appendices attached thereto;

(2) the rules for the establishment and use of reserves and reserve funds be adopted and incorporated into a Reserve and Reserve Fund By-law as follows:

(a) a reserve or reserve fund is established by Council on the recommendation of the Chief Financial Officer and Treasurer and the report must include:

(i) statement of purpose;

(ii) designation of the service area >owner=, or beneficiary program;

(iii) rationale for the appropriate level to be maintained in the account (where appropriate);

(iv) initial contribution, if any;

(v) contribution policy;

(vi) withdrawal policy; and

(vii) review cycle which would provide a periodic review to ensure a suitable level of funds, the appropriateness of the account, and conditions for closing;

(b) annual estimates of inflows to and outflows from reserve and reserve funds shall be presented to the Policy and Finance Committee for approval as part of the annual budget process. The Treasurer, in consultation with the program area, where not contrary to law, shall determine if the use of a reserve and reserve fund is appropriate as a funding source in either operating or capital budgets or if funds should be contributed to a reserve or reserve fund from a particular source;

(c) should funds be withdrawn from either a reserve or reserve fund for a specific purpose or capital project and subsequently it is determined that the funds are not necessary in whole or in part for that purpose (project), then these surplus funds should be returned to their original reserve or reserve fund.

In such cases where such time has elapsed that the original reserve or reserve fund cannot be traced or is no longer appropriate, the funds would be transferred, subject to compliance with any legislative restrictions, upon recommendation to Council of the Chief Financial Officer and Treasurer, to general revenues, reserves or reserve funds as appropriate. Similarly, if reserve or reserve funds are provided to acquire an asset and subsequently the asset is sold, the net proceeds would go back to the originating reserve or reserve fund;

(d) the Chief Financial Officer and Treasurer shall be authorized to make contributions to any tax supported reserve or reserve fund, where it is not contrary to law, to reduce or eliminate unanticipated changes in future years' tax rates that would otherwise occur based on changes in the surplus from year to year or to fund unfunded reserve and reserve funds. Such contributions are to be reported to Council in the next corporate variance report;

(e) that reserve and reserve fund increases and decreases should be reported as appropriations to and from reserve funds; and

(f) when the purpose for which a reserve or reserve fund has been accomplished, and it is deemed no longer necessary, the Chief Financial Officer and Treasurer, in consultation with the program area, will report to Council recommending closing the account, the disposition of any remaining funds, and the necessary amendment to the Reserve and Reserve Fund By-law;

(3) the reserve and reserve funds identified in Appendix A (Column C) be established and incorporated into the Reserve and Reserve Fund By-law;

(4) the Chief Financial Officer and Treasurer be authorized to administer reserve and reserve funds as set out in this report;

(5) any changes in accounting for reserve or reserve funds which result from the adoption of the Reserve and Reserve Fund By-law as outlined in this report shall be effective from January 1, 2000;

(6) the by-laws and resolutions of the former municipalities creating reserve and reserve funds be repealed;

(7) the by-laws of the new city creating reserve funds from January 1, 1998 to the present be repealed;

(8) leave be granted for the introduction of the necessary bill in Council to give effect to the foregoing; and,

(9) the effective date of the reserve and reserve fund by-law be January 1, 2000.

4. FINANCIAL CONTROL BY-LAW.

Chief Financial Officer and Treasurer.

(February 1, 2000)

Presenting a Financial Control By-law that includes procedures for funds control to replace the Interim Financial Control By-law; advising that the Financial Control By-law will establish procedures for the payment of accounts and for funds control over expenditures including the transfer of funding between programs in the operating budget and capital projects in the capital budget; that the proposed by-law provides senior City officials with the ability to manage their departmental operating and capital budgets within reasonable limits; that the by-law also provides the mechanism for Council to be advised of changes from approved budget and requires Council approval for certain transfer of funds; and recommending that Authority be granted for the introduction of a bill in Council substantially in the form of the draft by-law attached as Appendix "A" hereto, to confer certain authorities and responsibilities with respect to the commitment of funds and the payment of accounts.

5. PURCHASING POLICIES AND BY-LAW.

Chief Financial Officer and Treasurer.

(February 3, 2000)

Respecting the development of uniform Purchasing Policies for the new City of Toronto to report on Bid Committee activity and to replace the Interim Purchasing By-law with a new Purchasing By-law; advising that to ensure consistent policies resulting in an efficient purchasing process which satisfies operational requirements and public accountability, it is recommended that the draft policies in Appendix "A" be adopted; that it is further recommended that to ensure continuity and efficiency in the purchasing function on behalf of the City, authority be granted for the introduction of a bill in Council in the form of the draft By-law, attached as Appendix "B"; and recommending that:

(1) new Purchasing Policies for the Ban of Purchase of Products Manufactured in Factories where Children are used as Slave Labour, Canadian Content and Live Animal Testing, outlined in Appendix "A" of this report be adopted;

(2) a new Purchasing By-law, as outlined in Appendix "B", be adopted; and

(3) authority be granted for the introduction of a Bill in Council in the form of the draft By-law, attached to establish procedures and authority for the Procurement of Goods and Services.

6. ISSUANCE OF TAX RECEIPTS FOR EARLSCOURT PARK AMPHITHEATRE.

Chief Financial Officer and Treasurer.

(Undated)

Requesting Council approval to receive donations and issue receipts for the construction of the Earlscourt Park Amphitheatre and the payment of any funds received for the project to the Advisory Board of the Piccininni Recreational Centre; and recommending that Council approve the request for the City to issue income tax receipts for donations received for the "Earlscourt Amphitheatre" and the payment of the Advisory Board of the Piccininni Recreational Centre of any monies received for the project.

7. AMENDMENTS TO THE POLICE SERVICES ACT TO

RESTRAIN CIVIL LITIGATION AGAINST COUNCIL MEMBERS

AND A SURVEY OF HARASSMENT PROVISIONS CONTAINED

IN THE CRIMINAL CODE.

City Solicitor

(February 1, 2000)

Responding to a request made by City Council on January 27, 2000, for a report to the Policy and Finance Committee on the subjects identified above; advising that an amendment to the Act to restrict the right of members of the Police Service or the Police Association to initiate civil litigation against City Councillors could be requested from the provincial government; that there may be various public policy considerations that would effect the desirability of enacting that type of legislation; that there are various provisions in the Code that deal with harassment and intimidation; that most of these provisions are general in scope and, in order to obtain a conviction for these forms of criminal activity, proof beyond a reasonable doubt would have to be established in court; and recommending that this report be received for information.

8. ZOO FOOD SERVICES - CAPITAL IMPROVEMENTS.

General Manager and CEO, Toronto Zoo.

(February 5, 2000)

Requesting approval for a reallocation of funds within the Capital Works Program for the renovation of restaurant facilities; and recommending that:

(1) funds in the amount of $500.00 thousand be reallocated within the approved Building and Services Refurbishment 2000 Capital Program for the renovation of food services buildings; and

(2) approval be granted for the demolition of the existing front entrance snack bar and the construction of a new larger snack bar at the front entrance.

9. DISPOSITION OF DOMAIN RIDE EQUIPMENT.

Secretary, Board of Management, Toronto Zoo

(January 27, 2000)

Advising that the Board of Management of the Toronto Zoo on January 27, 2000, recommended to the Policy and Finance Committee the adoption of the report (January 14, 2000) from the Executive Director, Administrative and Site Services, Toronto Zoo, wherein it is recommended that approval be granted to dispose of the Domain Ride System, including the demolition of sections of the track and the sale or auction of the cars and associated equipment.

10. CHILDREN'S ACTION PLAN AND YOUTH VIOLENCE

PREVENTION INITIATIVES: BUDGET IMPLICATIONS

FOR PUBLIC HEALTH.

Secretary, Board of Health

(January 25, 2000)

Advising that the Board of Health, at its meeting on January 24, 2000:

(1) adopted, in principle, the report dated January 14, 2000, from the Medical Officer of Health, outlining the financial implications for the Public Health 2000 operating budget of implementing the "Action Plan for the Children's Report Card 1999" and the "Follow-up on Initiatives Addressing Youth Violence: and

(2) directed that a copy of the report be forwarded to the Policy and Finance Committee for consideration and to the Budget Advisory Committee Administrator for the budget process pending file in accordance with the Financial Control Protocols adopted by Council, and in accordance with Recommendation No. (2).

11. MUNICIPAL, PROVINCIAL AND FEDERAL TAX

INCENTIVES FOR HERITAGE CONSERVATION.

City Clerk

(January 31, 2000)

Advising that the Assessment and Tax Policy Task Force on January 25, 2000, recommended that:

(1) City Council endorse as City policy the 10 principles for heritage conservation incentives set out in Appendix A to the report (December 12, 1999) from the Acting Commissioner of Urban Development Services;

(2) City Council endorse a heritage tax back grant programme incorporating the principles outlined in the report (December 12, 1999) from the Acting Commissioner of Urban Development Services;

(3) City Council endorse the creation of a tax sub-class for heritage buildings with Heritage Easement Agreements, with the intent of reducing the property tax on such buildings;

(4) the Commissioners of Economic Development, Culture and Tourism, Urban Development Services and the Chief Financial Officer and Treasurer, in consultation with Heritage Toronto, jointly bring forward to Council a detailed implementation schedule, to begin taking effect in the year 2000, for a heritage tax back grant programme incorporating the principles outlined in this report;

(5) the City Solicitor brings forward an enabling by-law to permit the establishment of a heritage tax back grant programme;

(6) City Council request the Provincial Government, through the Minister of Finance, to amend Provincial regulations to permit municipalities in Ontario to opt-in to a separate heritage property tax class and amend Provincial legislation to create a sub-class for entire designated heritage buildings that are subject to Heritage Easement Agreements, and allow municipalities to opt-in to this sub-class, and request the Association of Municipalities of Ontario to support this initiative;

(7) the Commissioners of Economic Development, Culture and Tourism, Urban Development Services and the Chief Financial Officer, in consultation with Heritage Toronto, jointly continue to examine and report on, by May 2000, the creation of a separate heritage property tax class or heritage property sub-classes for whole heritage buildings in their original location that are subject to Heritage Easement Agreements within the City. This report shall make recommendations as to the nature of Provincial legislative and regulatory amendments that would best meet the heritage objectives of the City;

(8) City Council endorse, for the consideration of the Business Reference Group, that upon the expiry of the cap on commercial and industrial tax classes in the year 2001, all designated heritage buildings be assessed and taxed under current value assessment and in current use without clawbacks or limitations on tax decreases; and also request the Provincial Government, through the Minister of Finance, to enable this tax policy through any changes to provincial acts and/or regulations;

(9) City Council request the Provincial Government to enact special legislation to extend to the entire City, demolition controls that require Council approval of a new replacement building prior to issuance of a permit to demolish a designated heritage building;

(10) City Council endorse the concept of priority processing for all development applications that entail the restoration and conservation of a designated heritage building, and request the Commissioner of Urban Development Services to report directly to Planning and Transportation Committee on the implementation of such a priority processing mechanism;

(11) City Council request the Government of Canada to initiate a long-term ongoing Federal Tax Credit for costs incurred in the rehabilitation of designated heritage buildings and structures; and request the Federation of Canadian Municipalities to support this initiative;

(12) City Council request the Government of Canada to initiate a long-term ongoing Goods and Services Tax rebate for the GST paid on goods, material, services and labour in the rehabilitation of designated heritage buildings; and request the Federation of Canadian Municipalities to support this initiative;

(13) City Council request the Province to initiate a long-term Provincial Tax Credit to supplement the recommended federal tax credit, for costs incurred in the substantial rehabilitation of designated heritage buildings; and request the Association of Municipalities of Ontario to support this initiative;

(14) City Council request the Province to initiate a long-term Provincial Sales Tax rebate without caps for PST paid on goods, materials, services and labour in the substantial rehabilitation of designated heritage buildings and request the Association of Municipalities of Ontario to support this initiative;

(15) City Council request the Province to establish a Tax Back Grant Programme to partner municipal programmes to rebate, in the form of grants, the incremental property taxes set by the Province for school purposes attributable to significant restoration work on designated heritage buildings and request the Association of Municipalities of Ontario to support this initiative;

(16) City Council request the Province to include the restoration and conservation of heritage structures in the proposed Provincial "Superbuild Growth Fund" infrastructure program;

(17) City Council request the Acting Commissioner of Urban Development Services to report to the Task Force on ways and means to include in the Official Plan and Zoning By-law policies to require development applicants for Official Plan and/or Zoning By-law Amendments to contribute toward a Municipal Revolving Fund for Heritage Preservation to assist in long-term restoration and preservation of designated heritage buildings with registered easements, and tradeable density bonuses, and to report on the administrative arrangements therefore;

(18) City Council endorse in principle that all entire buildings, designated under the Ontario Heritage Act, that are subject to Heritage Conservation Easements, be taxed without clawbacks as to tax decreases to which they would be entitled were it not for the "cap"; that these buildings be exempted from the clawbacks for the full three years that the "cap" has been in effect; and that the Province of Ontario be requested to provide the requisite legislative and regulatory authority;

(19) the Chief Financial Officer and Treasurer report back to the Task Force on the impact of Recommendation No. (18);

(20) the above recommendations and the report (December 12, 1999) from the Acting Commissioner of Urban Development Services be forwarded to the Association of Municipalities of Ontario and the Federation of Canadian Municipalities for their consideration and support; and

(21) the City of Toronto give consideration to hosting a one-day conference with other municipalities across Ontario and Canada, perhaps in June, 2000, in London, Ontario at the Annual General Meeting of the Federation of Canadian Municipalities; and that a small committee be formed to report on this matter as soon as possible to the Economic Development and Parks Committee.

12. BILL 14 - MORE TAX CUTS FOR JOBS,

GROWTH AND PROSPERITY ACT, 1999.

City Clerk

(January 31, 2000)

Advising that the Assessment and Tax Policy Task Force on January 25, 2000:

(1) recommended that the Province of Ontario be requested to address how the tax rebate program for new construction and improvements for 1998 and 1999 that were subject to the cap after January 1, 1998 but before January 1, 2000 are to be funded especially in a "revenue neutral" taxation system; and

(2) requested the Chief Financial Officer and Treasurer to report directly to the Policy and Finance Committee on the estimates on the financial implications contained in the report (January 10, 2000) from the Chief Financial Officer and Treasurer.

13. EWART ANGUS HOMES INC. (268 MERTON STREET) -

REQUEST FOR ASSESSMENT CLASS TRANSFER.

City Clerk

(January 31, 2000)

Advising that the Assessment and Tax Policy Task Force on January 25, 2000:

(1) submitted this matter to Council without recommendation; and

(2) requested the Chief Financial Officer and Treasurer to report to the Policy and Finance Committee, at its meeting to be held on February 17, 2000, on the request for a transfer to the new rental property class for newly constructed apartment buildings to be taxed at the residential rate, with the new class being effective for the 1999 tax year, with respect to Ewart Angus Homes Inc. (268 Merton Street).

14. CREDIT AND/OR DEBIT CARD PAYMENT METHOD - TAXES.

City Clerk

(January 31, 2000)

Advising that the Assessment and Tax Policy Task Force on January 25, 2000, recommended the adoption of the report (January 24, 2000) from the Chief Financial Officer and Treasurer, wherein it was recommended that:

"(1) the City of Toronto continue to encourage payment of property taxes by debit cards, the pre-authorized tax payment plan and electronic fund transfers; and

(2) the City of Toronto not approve payments of property taxes by credit cards because of the extra expenditure of $3.3 million to $6.7 million that would be created by the fees of credit card companies."

15. FEASIBILITY STUDY FOR EARLY CHILDHOOD

EDUCATION AND DEVELOPMENT - PILOT PROJECT.

City Clerk.

(February 10, 2000)

Advising that the Community Services Committee on February 10, 2000, during its consideration of a report (January 25, 2000) from the Commissioner of Community and Neighbourhood Services respecting the feasibility study for early childhood education and development pilot project, recommended to the Policy and Finance Committee the adoption of the aforementioned report subject to deleting Recommendations Nos. (2) and (3) and inserting in lieu thereof the following new Recommendations Nos. (2) and (3):

"(2) funding of the City's $20,000.00 contribution be found from the funds set aside in the Social Services Reserve Fund for "seamless day pilot programs", as directed by City Council in its adoption of the 1999 Operating Budget on April 26, 27 and 28, 1999; and

(3) this report be forwarded to the Policy and Finance Committee for consideration;".

16. PROVINCIAL HOMELESSNESS INITIATIVES

FUNDING FOR EVA'S PHOENIX.

City Clerk.

(February 10, 2000)

Advising that the Community Services Committee on February 10, 2000, recommended to the Policy and Finance Committee the adoption of the report (January 28, 2000) from the Commissioner of Community and Neighbourhood Services respecting the Provincial Homelessness Initiatives Funding for Eva's Phonix, wherein it is recommended that:

(1) the Commissioner of Community and Neighbourhood Services be authorized to contract with the Ministry of Community and Social Services in order to receive an additional allocation of $250,000 through the Provincial Homelessness Initiatives Fund;

(2) Council authorize a grant of $250,000 to Eva's Place for Eva's Phoenix, using the additional provincial contribution;

(3) the report be forwarded to the Policy and Finance Committee for consideration and to the Budget Advisory Committee secretary for the budget process pending file, in accordance with the Financial Control Protocols adopted by Council; and

(4) the appropriate City officials be authorized to take the necessary action to give effect thereto.

17. PRIVATIZATION OF WHEEL-TRANS SERVICES.

General Secretary

(January 14, 2000)

Advising that the Toronto Transit Commission, on January 12, 2000, during its consideration of a report (January 12, 2000) entitled "Privatization of Wheel-Trans Services", adopted the following recommendation:

"It is recommended the Commission inform Council that another assessment regarding the further privatization of Wheel-Trans services is inappropriate and an unnecessary expense."; and

forwarded the foregoing action to the to City of Toronto Council through the Policy and Finance Committee for information.

18. TORONTO DISTRICT HEARING CORPORATION

SHAREHOLDER APPROVALS.

Chief Administrative Officer

(February 7, 2000)

Recommending that:

(1) the attached corporate By-law No. 1 of the Toronto District Heating Corporation be approved by Council as shareholder;

(2) the TDHC report concerning a change of the corporate name of the Toronto District Heating Corporation be transmitted by the Chief Administrative Officer directly to Council for consideration in camera it its meeting of February 29, 2000; and

(3) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

19. YEAR 2000 PRIORITY ONE BUSINESS FUNCTIONS

STATUS REPORT - JANUARY 2000.

Chief Financial Officer and Treasurer.

(February 3, 2000)

Submitting the following information as requested by Council at its November 1998 meeting:

(a) Status report of each Priority One business function (January 31, 2000);

(b) Status report on the ABC=s and their state of readiness;

(c) Status report on expenditures for Priority 1 Year 2000 functions (January 31, 2000); and

(d) Change requests;

and recommending that this report be received for information.

20. FEASIBILITY OF TRANSFERRING INFORMATION

AND TECHNOLOGY FROM THE CORPORATE SERVICES

DEPARTMENT TO THE FINANCE DEPARTMENT.

Chief Administrative Officer.

(January 21, 2000)

Responding to a request from the Budget Advisory Committee respecting the feasibility of transferring Information and Technology from the Cororporate Services Department to the Finance Department; providing information as to why a transfer should not take place at this point in time; and that advising that such a review is planned for the next term of Council.

IN CAMERA.

21. CITY POWER PURCHASE IN THE COMPETITIVE MARKET.

Chief Administrative Officer.

(February 3, 2000)

Confidential report respecting City Power Purchase in the Competitive Market.

22. THE ESTABLISHMENT OF TAX RATIOS FOR 2000.

(NOTE: A REPORT FROM THE CHIEF FINANCIAL OFFICER AND TREASURER, RESPECTING THE FOREGOING MATTER, WILL BE DISTRIBUTED PRIOR TO THE MEETING.)

ANY OTHER MATTERS.