Finance & Treasury Services
Finance and Treasury Services (formerly named, Office of the Chief Financial Officer) ensures the effective use of the Corporation’s financial resources by providing sound financial planning and management advice; maintaining financial control; developing and implementing effective financial strategies and by providing timely, accurate, and efficient services to Programs, Agencies, Council and the public.
2018 Budget Summary
The total cost to deliver these services to Toronto residents is $17.627 million gross and $10.202 million net.
The Program was able to meet the budget target through aligning salary and benefits costs to actual workforce cost requirements and increased recoveries for costs associated with direct support for Rate Programs and corporate functions (debt management and insurance).
- Manages the City’s investment portfolio totalling $5 billion
- Manages $1.8 billion in sinking funds and supports the City’s pension and trust funds
- Insures $16.2 billion worth of property
- Manages a financial planning and budgeting process that delivers the City’s Operating Budget for over 155 services and 10-Year Capital Plan for $76 billion in City assets
- Provides financial oversight on a $12.3 billion Operating Budget and a $39.7 billion 10-Year Capital Plan for both Tax- and Rate-Supported Programs in accordance with the City’s Financial Control By-law and quarterly reporting to Committees and Council
- Maintains the City’s fiscal health, through the management of debt servicing costs within affordability limits and other financial strategies
- Provides financial analysis, advice and oversight of the City’s financial affairs
- Returns on General Funds Market one-year terms show the most volatility, while the ten-year annualized returns show stability over a ten-year investment horizon.
- As at December 31, 2016, the City’s investment program has out-performed the benchmark by
- 0.88% in 1-year annualized return
- 0.12% in 3-year annualized return,
- 0.41% in 5-year annualized return, and
- 0.31% in 10-year annualized return.
Key Service Deliverables for 2018
The Office of the Chief Financial Officer provides quality financial services; corporate strategic, financial and risk management expertise; and corporate financial planning, management, reporting and control services to ensure the fiscal sustainability of the City in delivering programs and services to the public.
The 2018 Operating Budget will enable Office of the Chief Financial Officer to continue to:
- Deliver a Long-Term Financial Plan that provides for sustainable services and reliable infrastructure with modest impacts to taxpayers.
- Deliver the City’s 2018 and 2019 Budget process
- Review tax/revenue policies to improve City revenue growth (e.g. new revenue tools)
- Assist or lead negotiations with the Province in the key areas of social housing, transit, transportation and long-term care
- Maintain positive relations with the City’s credit rating agencies
- Close the funding gap on the City’s operating budget while addressing growing demands for service expansion and escalating costs to deliver current service levels
- Continue to address capital funding challenges from rising state of good repair (SOGR) needs and growth demands
- Leverage City assets and other non-debt strategies to generate funding for unmet capital needs and help offset new debt requirements
- Implement process changes resulting from corporate business transformation projects requiring support for implementation.
Our Key Issues & Priority Actions
- Delivering a Long-Term Financial Plan with new and sustainable financing sources to support programs, services and infrastructure by:
- Strengthening the City’s strategic decision-making, financial planning and oversight
- Implementing a Multi-year expenditure management plan
- Implementing a Multi-year revenue strategy
- Enhancing transparency and accountability of financial control and management by updating the Financial Control Bylaw with a detailed review of the existing bylaw.
- Establish Bylaw that incorporates financial management and control best practices
- Provide foundation for managing City resources
- Support transformation of the City into a service-based and performance-focused organization
- Ensure compliance with Provincial and other related legislation
2018 Operating Budget Highlights
- The 2018 Operating Budget for Office of the Chief Financial Officer is $17.627 million gross and $10.202 million net representing an increase of 4.3% to the 2017 Approved Operating Budget.
- Staff complement will increase by 4.0 from 2017 to 2018.
- New and enhanced funding of $0.549 million gross, $0 net is provided to support the new Investment Board and to increase service levels for financial planning and analysis.
- The 2018 Operating Budget provides funding for:
- Provision of accounting, payroll, purchasing services to support CFO divisions
- Financial oversight of 2018 Operating Budget and 10-Year Capital Plan and Budget process
- Provision of project analysis, advisory, negotiation and research services for major corporate initiatives and multi-lateral projects
- Provision of financial planning and management analysis and advice, review of all Committee reports with financial implications