The purpose of this report is to provide Council with the City of Toronto Capital Variance for the year-ended December 31, 2013, to seek Council’s approval for in-year budget and 2013 carry forward funding adjustments that have no incremental impact on debt.

Capital expenditures for the twelve months ended December 31, 2013 totalled $2.386 billion or 57.9% of the 2013 Approved Capital Budget of $4.125 billion (see Table 1).  This spending pattern is consistent with prior years.  As detailed by City Program and Agency in Appendix 1, it is noted that 14 of 33 City Programs and Agencies spent in excess of 60% of their respective 2013 Approved Capital Budget.

For the twelve-months period ended December 31, 2013, Tax Supported Programs and Agencies reported capital expenditures of $1.837 billion representing 55.7% of their collective 2013 Approved Capital Budget of $3.298 billion; Rate Supported Programs reported capital expenditures of $548.752 million, representing 66.3% of their collective 2013 Approved Capital Budget of $827.125 million.

(See Table 1 of the Report dated June 4, 2014 from the Deputy City Manager and Chief Financial Officer)

The rate of spending in 2013  was driven largely by difficulty in finding and securing suitable sites for constructions in accordance with initially planned timeframes; delays in securing funds from cost-sharing partners; longer than planned timelines to obtain necessary approvals or required permits; extensive community consultations; delays in tendering contracts; unanticipated delays in construction start-up; and resources constraints.  Unspent funds for projects that have not been completed have been carried forward to 2014 on an as needed basis, in accordance with the City's Carry Forward Policy. 

In addition, several projects were completed under-budget. Through this report staff recommends closing 67 projects which have came in under budget by $35.354 million.