Payments to the Toronto District School Board for Space
Used for Children's Services and Parks and Recreation
The Policy and Finance Committee recommends the adoption of the Recommendation of the Budget Advisory Committee
embodied in the following communication (January 12, 2000) from the City Clerk:
Recommendation:
The Budget Advisory Committee on January 12, 2000, recommended to the Policy and Finance Committee, and Council,
the adoption of the Recommendations of the School Tax Sub-Committee embodied in the communication (December 23,
1999) from the City Clerk.
Background:
The Budget Advisory Committee had before it a communication (December 23, 1999) from the City Clerk, advising that
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, Culture and Tourism, respecting
payments to the Toronto District School Board for space used for Children's Services and Parks and Recreation.
_________
(Communication dated December 23, 1999, addressed
to the Budget Advisory Committee
from the City Clerk)
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, Culture and Tourism, respecting
Payments to the 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, Culture and Tourism, respecting payments to the 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 $351,059.00 for 1998, (payable from a 1998
encumbrance for that purpose within the Children's Services Program in 1999) and $1,404,234.00 for 1999 in respect of
Recommendation No. (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.
_________
(Joint report dated December 10, 1999, addressed to the
School Tax 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 Toronto District
School Board 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 the Toronto
Catholic School Board but, because of the phase-in of payments to the Toronto District School Board, only $1.66 million
was projected to be required in 1999. City 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
Toronto District School Board.
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 $351,059.00 for 1998, (payable from a 1998
encumbrance for that purpose within the Children's Services Program in 1999), and $1,404,234.00 for 1999 in respect of
Recommendation No. (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:
City Council, 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, 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, City 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 Toronto District School Board to rationalize its operations. As a
result, the Toronto District School 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 Toronto District School Board. 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 percent of the agreed
occupancy costs for the school year beginning 1998, 50 percent of the full amount for the year beginning September 1,
1999, 75 percent 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 cost amounts to payments of $351,059.00 for 1998, $1,404,234.00
for 1999, $2,457,411.00 in 2000, $3,510,586.00 in 2001 and a fully annualized cost of $4,212,704.00 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 Toronto District School Board 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 Toronto
District School Board 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; Toronto District School Board 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 Toronto District School Board 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 Toronto District School Board, 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 Toronto District School Board.
Contact Names:
Ms. Brenda Patterson, Director, Contracted Services, Children's Services, Phone: 392-3319; Fax 392-4576; email:
patterso@csis.csis.csd.metrotor.on.ca;
Mr. Len Brittain, Director, Treasury and Financial Services, Phone: 392-5380; Fax 392-3649; email:
lbrittai@toronto.ca;
Mr. Gary Stoner, Director, Recreation Services (East District), Phone 396-4490; Fax 396-4957.
