News Release

March 31, 2008

City’s budget invests in Toronto’s priorities

City’s budget invests in Toronto’s priorities

Fact sheet
Backgrounder

Toronto City Council today approved its 2008 operating budget which will maintain services, make important new investments and take important steps to address the structural deficit that has prevailed since amalgamation.

“This is a historic budget for Toronto,” said Mayor David Miller. “For the first time in many years we're able to invest in this city to create prosperity, liveability and opportunity for all while providing certainty for residents and businesses that we will provide services and keep up with growth. I’m incredibly proud of what we have accomplished working together for the benefit of all Torontonians.”

Investment highlights of the $8.2 billion budget include:

Providing improved public transit through the Ridership Growth Strategy which will see 100 new buses on the road to relieve peak-period congestion, enhanced off-peak service and investments in the cleanliness and appearance of subway stations
Meeting our commitment to reduce the waste that goes to landfill through investments that ensure the City reaches the 70% diversion target by 2010 and expansion of the Green Bin program
Delivering on the City’s plan to fight climate change through initiatives such as Live Green Toronto
Keeping Toronto Clean and Beautiful through increased neighbourhood beautification project funding, clean-up of orphan spaces and improvement of public spaces through new street furniture
Delivering on the vision for a new waterfront - 2008 will see the opening of new waterfront parkland and facilities
Strengthening Nuit Blanche - one of Toronto’s key cultural events
Investing in communities and keeping a safe city safer by providing funding to the Community Partnership Investment Program that keeps pace with inflation
Increasing the support given to the very effective Streets-to-Homes initiative to help people living on the street find and keep permanent housing
Staying the course on improving Toronto’s business climate through investment in an international centre for Financial Services Training and the Financial Services Information Technology Innovation Initiative and establishing green economic sector development initiatives in targeted areas
Adding additional planners to support community and transportation planning, heritage preservation and support good quality urban design ensuring that we are able to keep up with Toronto’s rapid growth and maintain healthy and vibrant neighbourhoods.

The Budget Committee conducted a detailed review of the staff-recommended operating budget in order to keep costs under control and to place funding where it will have the greatest impact. Budget Committee made a number of important changes to the staff-recommended operating budget:

Recreation user fee and permit fee increases will be held to 5 per cent over the 3 per cent COLA adjusted 2008 rates, which maintains the city’s 70 percent subsidy of recreation programs.
Enhanced funding will be provided for the Toronto Arts Council, major arts organizations, local arts services organizations and the Glenn Gould Protégé Award within the Community Partnership & Investment Program ($1.097 million gross and net). This additional investment supports the City’s Culture Plan, and completes Council’s 5-year funding strategy for the arts.
The 2007 year-end net operating surplus of $94.8 million was $16.8 million more than anticipated. The Winter Control Stabilization Reserve, which is the snow removal reserve fund, will receive $9.5 million of the surplus. A new City policy that shifts more of the tax burden off small businesses and onto homeowners was offset with the balance of the surplus. The tax shift would have added approximately $7 to the average homeowner’s property tax bill.
Toronto Animal Services funding was restored to provide continued Pet Owner Surrender Services and Field Service Response to Injured or Distressed Wildlife.

“At the end of the day, we have delivered a budget that protects city services and directs new spending to those areas that most influence the quality of life in this City,” says Councillor Shelley Carroll, Chair of the Budget Committee. “Standard and Poor’s upgrade of Toronto’s AA credit rating from stable to positive shows that we are moving in the right direction.”

Property taxes ($3.315 billion) fund 41 per cent of the City’s operating budget. User fees and charges ($1.273 billion) and Provincial and Federal grants and subsidies ($1.973 billion) fund the balance. The budget includes a property tax increase of 3.75% on single-family residential, a multi-residential and commercial property tax increase of 1.5%, and a reduction to small business taxes of 1.3%. The total new revenue generated by the 2008 property tax increases represents a 2.1% increase overall.

Shirley Hoy, City Manager said, “The City continues to operate efficiently and compares favourably to other municipalities in the delivery of services. This budget maintains frontline services at their current levels and includes investments in City priorities such as climate change, priority neighbourhoods and transit. However, we will continue to work to find permanent solutions to the City’s financial issues.”

“Permanent funding for transit operating costs and the upload of provincial services are critical to the City’s continued success,” said Joe Pennachetti, Chief Financial Officer and Deputy City Manager. “Our hope is that the upcoming report from the Provincial Municipal Fiscal and Service Delivery Review will finally address these issues.”

The City has both an operating and capital budget.

The day-to-day operation of City services is paid for from the City’s operating budget - the money dedicated to salaries and operating expenses such as rent, fuel, electricity, equipment, etc. The City, like everyone else, must pay the increased costs of fuel and electricity and other services when these costs rise. The delivery of City services such as police, fire, emergency medical services, TTC, waste collection and recycling, libraries, parks and recreation, child care and many others are paid for through the City’s Operating Budget.

The 2008 Capital Budget of $1.610 billion was approved by Council last December and is part of an $8.355 billion Five-Year Capital Plan (2008-2012). The City’s capital budget pays for construction and maintenance of roads, the purchase of transit vehicles, the building of major facilities, and the purchase of major equipment. The budget funds the maintenance and construction of City assets and infrastructure, which are needed to support service to residents and businesses.

Toronto is Canada’s largest city and sixth largest government, and home to a diverse population of about 2.6 million people. It is the economic engine of Canada and one of the greenest and most creative cities in North America. In the past three years, Toronto has won more than 70 awards for quality, innovation and efficiency in delivering public services. Toronto’s government is dedicated to prosperity, opportunity and liveability for all its residents.

Media contacts:
Stuart Green, Deputy Director, Communications, Office of Mayor David Miller 416-338-7119
Ryan Merkley, Executive Assistant to Councillor Carroll, Chair of Budget Committee, 416-392-4037
Kevin Sack, Director, Strategic Communications, City of Toronto, 416-397-5277
Cindy Bromley, Manager, Finance Communications, City of Toronto, 416-392-4993

City Budget Fact Sheet

Tax impacts - 2008 Budget

Each property tax class within the City of Toronto is charged a different tax rate and tax policy shift according to City Council direction.

2008	% Budgetary Increase	% Tax Policy Shift	% Net Tax Change
Residential	3.385	0.36	3.75
Multi-residential	1.128	0.36	1.48
Commercial	1.128	0.36	1.48
Small Business	1.128	(2.42)	(1.29)
Industrial	1.128	(2.14)	(1.01)

2008 Operating Budget Highlights
New and Enhanced Services

The following are projects included in the 2008 Recommended Operating Budget. These projects are listed by theme.

Public Transit

Run all City bus routes from 6 am to 1 am on weekdays effective November 2008 ($2.616 million gross and net)
Operate 100 new Ridership Growth Strategy buses to relieve peak overcrowding effective November 2008 ($1.000 million gross and net)
Open new bus garage to house 100 new Ridership Growth Strategy buses ($1.996 million)
Invest in improving the cleanliness and appearance of subway stations ($1.250 million gross and net)
Reduce occupational injury rates by instilling safety as a culture in the TTC ($2.644 million gross and net)
Establish Health and Wellness Program - to reduce absenteeism due to sickness and to improve the general physical well-being of TTC staff ($0.673 million gross and net)

70% Diversion & Climate Change

To achieve the 70% Diversion Target by 2010, ($16.849 million and $0 net), Solid Waste Management Services will:

Implement volume-based user fees for waste collection for apartments, condominiums and single family homes in order to encourage more reuse and recycling
Provide single unit residences with larger recycling carts that will increase their ability to recycle. Multi-unit residences will also be provided with on-floor recycling carts
Expand the range of recyclable materials in the blue box to include polystyrene and plastic file, which could divert 3500 tonnes annually
Expand the Green Bin program to include apartments and condominums.
Implement Collection of Usable and Durable Goods for all residents for reuse and recycling (once every two weeks)
Establish reusable goods drop-off centres to provide residents with a one-stop location for reusable goods.
Honour City's stewardship of the environment by contributing to the Perpetual Care of Landfills Reserve Fund ($3.500 million gross and $0 net)
Develop, maintain and support a new billing system to integrate the solid waste billing system with the current water billing system to produce one utility bill ($1.110 million gross and $0 net)
Live Green Toronto - Establish a social marketing and local food campaign to assist Toronto's neighbourhoods and communities to take action on climate change ($0.800 million gross and net)
Provide tree maintenance on 2,300 trees annually on Arterial / Main Streets and Commercial Areas ($0.700 million gross, $0 net and 1 position)
Remove Tree Hazards on pathways, picnic areas and park entrances ($0.705 million gross and net and 3 positions)
Provide funding for the Smart Commute Initiative to implement workplace-based transportation demand management strategies within Metrolinx ($0.280 million gross and $0.150 million net)
Provide incentives to achieve, through demand response measures, 90 MW of energy savings, in partnership with Ontario Power Authority ($3.220 million gross and $0 net)
Develop and implement a strategy to address forecast changes in weather patterns ($0.085 million gross and net)
Establish dedicated financial portfolio management for the Sustainable Energy Plan initiatives ($0.238 million gross and $0 net)
Establish Green Economic Sector Development Initiatives for the Toronto Discovery District - District Energy Assessment, the Municipal Green Vendors Trade Fare and the Green Manufacturing Action Team/Plan ($0.075 million gross and net)
Purchase Green Power to meet the electricity requirements of City Hall ($0.500 million gross and net)

Public Spaces

Increase Neighbourhood Beautification project funding to $20,000 per ward ($0.220 million gross and $0 net), that will provide $3,000 per ward for a neighbourhood based community project and $17,000 per ward for Demonstration Projects that will transform and enhance neighbourhood
Orphan Spaces Clean-Up - Implement Final Phase of maintenance of 360 landscaped orphaned areas on City streets and boulevards ($0.400 million gross and $0 net)
Establish Public Realm Office- to improve the public realm including the deployment of over 3,500 new street furniture elements in 2008 ($3.598 million gross and $0 net)
Open new Waterfront parkland and facilities ($0.799 million gross and net)
Improve service delivery in Community Planning, Heritage Preservation Services, Urban Design and Transportation Planning ($0.500 million gross and net, and 12 positions)
Establish Unit to begin implementing the Union Station Revitalization project ($0.410 million and $0 net)

Creative City

Install Stingray Touch Tank Exhibit 2008, Toronto Zoo ($0.932 million gross, $1.024 million net revenue)
Improve Nuit Blanche ($0.505 million gross and net)
Begin planning for Bicentennial of War of 1812 ($0.048 million gross and $0.025 million net)
Enhance funding for the Toronto Arts Council, major arts organizations, local arts services organizations, and the Glenn Gould Protégé Award within the Community Partnership & Investment Program mainly to support the Culture Plan established in 2003 ($1.097 million gross and net)

Community Health and Wellness

Enhance funding for the Community Services Partnership Investment Program to address inflationary pressures and increasing service needs in emerging communities and priority neighbourhoods. ($0.467 million gross and net)
Meet safety requirements as recommended by the SARS Commission Report in Homes for Aged for infection prevention and control demands ($0.544 million gross and $0 net)
Enhance Nutritional and Support Services to ensure compliance with the new Long Term Care Act within Homes for the Aged ($0.670 million gross and $0 net)
Increase support for the Streets to Homes Initiative to help people living on the streets find and keep housing ($0.116 million gross, $0 net, 1 position)
Provide necessary training and supports to Ontario Work clients to find permanent employment through the Woodbine Entertainment Redevelopment project ($0.491 million gross and $0 net)

Public Safety and Security

Increase reception relief coverage hours at Eastview Neighbourhood Community Centre to ensure security is maintained during weekend and evenings ($0.016 million gross and net)
Enhance Central Ambulance Communication Centre contingency and disaster recovery planning at EMS ($0.160 million gross and $0 net)
Establish Fleet Safety and Standards to ensure safe operation of City vehicles and equipment ($0.063 million gross and $0 net)
Provide funding to the Native Child and Family Services Toronto to develop two aboriginal child care centres that will create an additional 66 child care spaces ($2.928 million gross and net)
Create new child care centres in three elementary schools that will provide up to 69 additional child care spaces for preschool children and school age children in each site ($2.0 million gross and net)

Improving the Business Climate

Introduce Financial Services Sector Strategic Initiatives to support the development of an International Centre for Financial Services Training and the Financial Services Information Technology Innovation Initiative ($0.100 million gross and net)