City of Toronto Logo Agenda

Regular



Budget Committee


Meeting No. 70   (Special)   Contact Merle MacDonald, Committee Administrator
Meeting Date Monday, March 29, 2010
  Phone 416-392-7340
Start Time 9:30 AM
  E-mail buc@toronto.ca
Location Committee Room 1, City Hall
  Chair   Councillor Shelley Carroll  


Budget Committee

Councillor Shelley Carroll (Chair)

Councillor Paul Ainslie (Vice-Chair)

Councillor Maria Augimeri

Councillor A. A. Heaps

Councillor Joe Mihevc

 

Councillor Gord Perks

Councillor Kyle Rae

 

 

Members of Council and Staff:  Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended.  The City Clerk’s Office will not provide additional copies.

 

Special Assistance for Members of the Public:  City staff can arrange for special assistance with some advance notice.  If you need special assistance, please call (416-392-5227), TTY 416‑338-0889 or e-mail buc@toronto.ca.

 

Closed Meeting Requirements:  If the Budget Committee wants to meet in closed session (privately), a member of the committee must make a motion to do so and give the reason why the Committee has to meet privately. (City of Toronto Act, 2006)

 

Notice to people writing or making presentations to the Budget Committee:  The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees.

 

The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e‑mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

 

The City videotapes committee and community council meetings. If you make a presentation to a committee or community council, the City will be videotaping you and City staff may make the video tapes available to the public.

 

If you want to learn more about why and how the City collects your information, write to the City Clerk’s Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or by calling 416-392-7340.

 

 

 

Declarations of Interest under the Municipal Conflict of Interest Act

 

Communications/Reports

 

BU70.1

ACTION 

 

 

Ward: All 

Preliminary Capital Variance Report for the Year Ended December 31, 2009
Origin
(March 22, 2010) Report from the Deputy City Manager and Chief Financial Officer
Recommendations

The Deputy City Manager and Chief Financial Officer recommends that:

 

1.         City Council approve the budget and technical adjustments to its 2009 Approved Capital Budget as detailed in Appendix 2 attached to the report (March 22, 2010) from the Deputy City Manager and Chief Financial Officer.

 

2.         City Council approve carry forward funding for unspent 2009 capital projects totalling $180.326  million gross and funding sources as detailed in Appendix 3.1 to the report (March 22, 2010) from the Deputy City Manager and Chief Financial Officer, in order to continue work on 2009 approved capital projects, and that the 2010 Approved Capital Budget be increased accordingly with no incremental impact on debt funding.

 

3.         City Council approve carry forward funding for unspent 2008 and prior year capital projects totalling $17.445 million with no incremental increase to the 2010 Council approved debt funding as detailed in Appendix 3.2 to the report (March 22, 2010) from the Deputy City Manager and Chief Financial Officer, and that the 2010 Approved Capital Budget be adjusted accordingly.

 

4.         City Council approve the closure of completed capital projects detailed in Appendix 4 to the report (March 22, 2010) from the Deputy City Manager and Chief Financial Officer, and that uncommitted funds from under-spent completed projects be utilized to fund overspent completed projects with no incremental impact on debt, after which any remaining unspent funds be returned to the original funding source.

 

5.         City Council request the Deputy City Manager and Chief Financial Officer to report back to the Budget Committee on any changes to the City of Toronto’s 2009 year-end financial position after the external audit of the 2009 financial statements is finalized, if necessary.

 

6.         The Budget Committee forward this report to the Executive Committee for its consideration.

Summary

The purpose of this report is to provide the City of Toronto 2009 Preliminary Capital Variance for the year-ended December 31, 2009 and to request Council’s approval for budget adjustments which reallocate funds between projects with no incremental impact on its 2009 Approved Capital Budget.  This report is provided in advance of concluding the external audit of the City’s accounting information, therefore, if necessary, a final report will be submitted to Council after the 2009 financial statements are finalized.

 

City of Toronto capital expenditures for the year-ended December 31, 2009 totalled $1.988 billion or 67.5% of the 2009 Approved Capital Budget of $2.943 billion.  The under-spending is primarily attributed to the inability to find and secure suitable sites in accordance with the planned timeframes; delays in securing funds from cost-sharing partners; unanticipated delays in construction start-up and deferral of work; and the impact of the labour disruption. In addition, several projects were completed under-budget. Unspent funds for incomplete projects will be carried forward to 2010 on an as required basis, in accordance with the City’s Carry Forward Policy

 

Tax Supported Programs spent $1.436 billion, representing 61.5% of their collective 2009 Approved Capital Budget of $2.334 billion (see Appendix 1).  City Operations spent $533.565 million or 53.1% of the 2009 Approved Capital Budget of $1.006 billion; while Agencies, Boards and Commissions (ABCs) spent $902.442 million or 68.0% of their collective 2009 Approved Capital Budget of $1.328 billion.  In total, Rate Supported Programs spent $551.688 million or 90.6% of their 2009 Approved Capital Budget of $609.025 million (see Chart 1 in the report). 

Financial Impact

As summarized in Table 1 in the report, for the year-ended December 31, 2009, actual expenditures for Tax Supported Programs totalled $1.436 billion or 61.5% of the 2009 Approved Capital Budget of $2.334 billion.  By comparison, these Programs spent 68.4% of their 2008 Approved Capital Budget.

 

Rate Supported Programs spent $551.688 million or 90.6% of their collective 2009 Approved Capital Budget of $609.025 million.  By comparison, these Programs spent 73.5% of their 2008 Approved Capital Budget.

Background Information
Preliminary Capital Variance Report
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28574.pdf)

Capital Variance Report Appendix 1
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28640.pdf)

Capital Variance Report Appendix 1.1
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28641.pdf)

Capital Variance Report Appendix 2
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28642.pdf)

Capital Variance Report Appendix 3.1 and 3.2
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28643.pdf)

Capital Variance Report Appendix 4
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28644.pdf)


BU70.2

Information 

 

 

Ward: All 

Preliminary Reserves and Reserve Funds Variance Report - December 31, 2009
Origin
(March 18, 2010) Report from the Treasurer
Summary

The purpose of this report is to provide preliminary information on reserve and reserve fund balances as at December 31, 2009, and activity in reserves and reserve funds during the year then ended.  The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

Financial Impact

There are no financial implications contained in this report.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

 

Background Information
Preliminary Reserves and Reserve Funds Variance Report
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28575.pdf)

Appendices A, B, C
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28636.pdf)


BU70.3

ACTION 

 

 

Ward: All 

City Council - New Business - CC46.1 - Open Meeting Investigation: Request to Investigate 2008-2009 Budget Committee Process
Origin
(February 26, 2010) Letter from the City Clerk
Summary

Advising that City Council on February 22 and 23, 2010 adopted this Item as amended, and in so doing requested the Budget Committee to consider several options to remedy the deficiency found in the 2009 Operating Budget process, including:

 

a.         converting the committee briefings into open meetings held in compliance with COTA and the Procedures By-law;

 

b.         holding the committee briefings in a closed session of a meeting of the Budget Committee for the purpose of “education” in compliance with COTA and the Procedures By-law, including opening and closing the meeting in public, providing notice, with the presence of staff of the City Clerk to monitor and take minutes; or

 

c.         discontinuing the committee briefings stage of the budget process, and adopting some other process, ensuring that such a process complies with COTA and the Procedures By-law.

 

City Council also requested the Budget Committee to submit its recommendations on this matter to the May 11, 2010 meeting of City Council, through the Executive Committee.

Background Information
Letter from City Council re Open Meeting Investigation
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28576.pdf)

Report February 16, 2010 from Open Meeting Investigator
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28577.pdf)


BU70.4

ACTION 

 

 

Ward: All 

Transportation Services - 2010 Cash Flow Reallocations and Deferrals Progress Report No. 2
Origin
(February 26, 2010) Report from General Manager, Transportation Services
Recommendations

The General Manager, Transportation Services recommends that:

 

1.         City Council authorize the reallocation of funds in the Transportation Services’ 2010 Capital Budget and 2011-2019 Capital Plan in the amount of $13,000,000, with cash flows in the amount of $3,150,000  for 2010 and $9,850,000 for 2011 detailed in Table 1, Part A, attached to the report (February 26, 2010) from the General Manager, Transportation Services, with a zero gross and net impact.

 

2.         City Council authorize the decrease in project costs  and corresponding cash flow in 2010,  in the amount of $5,000,000 detailed in Table 1, Part B, attached to the report (February 26, 2010) from the General Manager, Transportation Services, resulting in a reduction of $5,000,000 gross, zero net of the 2010 Approved Budget for Transportation Services.

 

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

Summary

The Transportation Services Division is recommending the reallocation of funds, within the 2010 Approved Capital Budget and 2011-2019 Capital Plan, in order to better align cash flows with program requirements. The impact on project costs resulting from the cash flow reallocations for this report is a decrease of $5,000,000 million essentially for third party work that will not be carried-out this year or next. This is the second such report for 2010 and involves the reallocation of 2010 and 2011 approved cash flows along with a corresponding acceleration and increase within other Transportation Services Capital Budget items that yield a zero net impact on the approved debt target for 2010.

Financial Impact

Funding in the total amount of $13,000,000 with cash flows of $3,150,000 and $9,850,000, in 2010 and 2011 respectively, already approved within the Transportation Services’ 2010 Capital Budget and 2011-2019 Capital Plan will be reallocated between various projects for a number of reasons, as outlined in the body of this report, with a zero net impact corporately (Table 1, Part “A”)  The approval of this report will also authorize a reduction of $5,000,000 in the Program’s 2010 Approved Capital Budget for third party work that will not be carried out in 2010, with a zero impact on the Program’s debt funding.  Transportation Services staff, in advance  of the upcoming 2011 budget process and consistent with the Divisional submission, has reassessed all ongoing and imminent project cash flows and all available funding sources in order that the realign project costs will have no net impact on the approved ten year debt targets for Transportation Services.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Background Information
Transportation Services - 2010 Cash Flow
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28578.pdf)


BU70.5

ACTION 

 

 

 

Facilities Management and Real Estate - 2010 Capital Plan Adjustments
Origin
(March 2, 2010) Report from the Chief Corporate Officer
Recommendations

The Chief Corporate Officer recommends that:

 

1.         City Council authorize the reallocation of funds in the 2010 approved Facilities Management and Real Estate capital budget in the amount of $1.351 million, as illustrated in Appendix 1 of the report (March 2, 2010) from the Chief Corporate Officer, with zero gross and net impact.

 

Summary

The purpose of this report is to request Council’s authority to amend the Facilities Management and Real Estate capital program’s approved 2010 cash flow plan.  The reallocation will have a zero net impact corporately and will better align 2010 cash flows with the Division’s program requirements.

Financial Impact

There are no additional costs to the City as a result of approval of this report.

 

The approval of this report will result in the reallocation of 2010 approved cash flows in the total amount of $1.351 million (see appendix 1 of the report).    It will also authorize the spending in four previously approved capital projects, which had no approved cash flows in 2010, but require additional funding due to unforeseen circumstances (see comments in appendix 1).  These amendments will have a zero net impact on Facilities and Real Estate’s total approved 2010 Capital Budget and 2011-2019 Capital Plan.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

 

Background Information
Facilities Management and Real Estate - 2010 Capital Plan Adjustments
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28579.pdf)


BU70.6

ACTION 

 

 

Ward: All 

2009 Rent Reduction for Lease and Licence Agreements Due to the Impact of the Labour Disruption
Origin
(March 3, 2010) Report from the General Manager, Parks, Forestry and Recreation
Recommendations

The General Manager of Parks, Forestry and Recreation recommends that:

 

1.         City Council grant authority to reduce the 2009 fixed rent receivables for the properties noted in Appendix “A” of the report (March 3, 2010) from the General Manager, Parks, Forestry and Recreation for existing Lease and Licence Agreements within the Parks, Forestry and Recreation Business Services Unit to offset the financial loss incurred due to the 2009 labour disruption, for an overall reduction of $831,064.

 

2.         City Council grant authority to reduce the rent to those tenants listed in Appendix “A” of the report (March 3, 2010) from the General Manager, Parks, Forestry and Recreation after payment in full of any outstanding rent and related property tax.

Summary

The purpose of this report is to request authority to reduce the 2009 rent for some Lease and Licence Agreements managed by the Parks Forestry and Recreation Division’s Business Services Unit.  Those Lease and Licence Agreement holders that would receive a rent reduction were negatively impacted financially by the 2009 labour disruption.  Parks, Forestry and Recreation is seeking City Council approval to reduce the 2009 rent for those Lease and Licence Agreements impacted by the labour disruption. 

 

This report replaces the report dated January 27, 2010 and titled the same (Item BU62.1), which the Budget Committee at its meeting of February 17, 2010, referred back to the General Manager of Parks, Forestry and Recreation for further consideration and to report back to the Budget Committee on March 12, 2010.

Financial Impact

The amount of $831,064, detailed in Appendix “A” of this report, which has been billed to tenants for fixed rent for the period of the labour disruption, is included in Parks, Forestry and Recreation’s total of $15.8 million of foregone user fee revenue, commission and rents.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.  

 

Background Information
2009 Rent Reduction for Lease and Licence Agreements
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28580.pdf)


BU70.7

ACTION 

 

 

 

Toronto-York Spadina Subway Extension Project - Request for Full Project Commitment Approval
Origin
(March 25, 2010) Report from General Secretary, Toronto Transit Commission
Recommendations

The Toronto Transit Commission recommends that:

 

1.         City Council approve additional in-year project cost commitment of $2,148.829 million on this fully funded, stand-alone project, bringing the total commitment up to the approved project cost for the TYSSE Project to $2,634.171 million.

Summary

Advising that the Toronto Transit Commission, at its meeting on Wednesday, March 24, 2010, considered the report, entitled “Toronto-York Spadina Subway Extension Project – Request for Full Project Commitment Approval”, and took the following action:

 

1.         Approved an increase of $2.149 billion in project approval for the Toronto-York Spadina Subway Extension (TYSSE) Project.

 

2.         Forwarded the report to the City of Toronto for City Council approval.

Background Information
Letter from TTC
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28690.pdf)

Report March 24, 2010 from TTC
(http://www.toronto.ca/legdocs/mmis/2010/bu/bgrd/backgroundfile-28573.pdf)