Summary of Deputations on 1998 Capital and Operating Budgets

 The Strategic Policies and Priorities Committee submits, without recommendation, the following transmittal letter (April 21, 1998) from the Budget Committee:

 Recommendations:

The Budget Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, that:

(1)as previously recommended, the funding requests for the Cedarvale and McCormick Recreation Centres and the Eatonville Library be considered in the context of the five-year Capital Plan and a report be submitted to the Budget Committee no later than October 1998;

 (2)the grant requests for Serena Toronto and the Toronto Arts Council be referred to the Municipal Grants Review Committee; and

 (3)all other issues referred to the report (April 17, 1998) from the Chief Financial Officer and Treasurer be received.

Background:

The Budget Committee on April 20, 1998, had before it a report (April 17, 1998) from the Chief Financial Officer and Treasurer summarizing the budgetary implications of responses from deputants to the Committee of the Whole of Council held on April 14 and 15, 1998.

(Report dated April 17, 1998, addressed to the Budget Committee from the Chief Financial Officer and Treasurer)

 Purpose:

 To summarize the budgetary implications of responses from deputants to the Committee of the Whole of Council held on April 14 and 15, 1998 for consideration of the Budget Committee.

Financial Implications:

Any funding changes made as a result of the information in this report would affect the 1998 Operating and Capital Budgets, respectively, as recommended by the Budget Committee at its meeting of March 31 and April 2 and 3, 1998.

Recommendations:

It is recommended that the Budget Committee consider the specific funding issues raised by deputants as contained in this report and make recommendations to Council through the Strategic Policies and Priorities Committee as it deems appropriate.

Council Reference:

During its special meeting of April 14 and 15, 1998, Council heard from deputants with respect to the 1998 Capital and Operating Budgets. Both budgets are scheduled to be before Council for formal debate at its meeting scheduled for April 28, 1998.

Discussion:

The Attachment to this report contains a brief synopsis of the issues raised by each of the deputants and an indication of the resolution or disposition of those issues in the context of the budgets as currently recommended by the Budget Committee. Specific funding recommendations made by the deputants and relevant background for the consideration of the Budget Committee is summarized below.

(1)Day Care Issues:

The primary issue raised by the deputants with respect to child care issues is the re-investment of a $12 million Awindfall@ received by the former Metro back into the child care program. As well, certain deputants wished to expand the number of day care spaces by the filling of 2,000 vacancies, and expressed concern over the pressures facing the child care program, e.g. pay equity costs and the fact that per diems costs paid to operators had not been increased over the past several years.

During 1997, as a result of the Provincial change to Regulation 262, the former Metro received unanticipated financial relief totalling approximately $14 million. The Province would contribute a greater proportion of the child care program costs by virtue of the fact that Metro was now able to retain 100 percent of user fees (as opposed to having the user fees shared 80 percent:20 percent with the Province, as was previously the case). However, the Regulation also required that the City must maintain the number of subsidized fee spaces at 24,216.

As part of the 1997 Operating Budget process, approximately half of the $14 million was applied immediately to child care and used to fund some child care expansion in the Ontario Works program, to establish a child care capital reserve of $1 million, and to eliminate the arbitrary minimum user fee of $1.00 per day per child. While the balance was used to address budget pressures on the mill rate, Council nevertheless Areserved@ $7.43 million within the 1997 Corporate Contingency Account for possible child care uses later in the year. In fact, in September, Council approved a strategy to use these monies, which focused on one-time assistance to operators and providers of subsidized child care to provide help with program expenses and costs associated with property operators.

The 1998 funding for child care, as recommended by the Budget Committee, maintains the 1997 service levels and the number of child care spaces at the required 24,216.

(2)Request for Recreational Facilities:

(a)Cedarvale Recreational Centre

(b)McCormick Recreational Centre

Mr. Kalevar addressed City Council advising of his petition from over 1,000 residents in support of building a recreation centre in Cedarvale Park. It was also suggested that at a minimum, a clubhouse and washrooms should be provided for local residents.

The recommended 1998 Parks and Recreation Capital Budget does not include any funding for the this project nor has this project been identified in future year projections. The Budget committee has recommended that the Cedarvale Recreation Centre be referred for consideration with the Parks and Recreation five-year capital works programme to be developed by September 1998.

Toronto Community Council, at its meeting of March 27, 1998, recommended that $350,000.00 for the design work for McCormick Recreation Centre be accelerated to 1998. The Budget Committee has recommended that the McCormick Recreation Centre project be referred for consideration with the Parks and Recreation five- year capital works programme requested for Budget Committee=s consideration in September 1998.

(3)Transportation / Cycling / Environment Issues:

The primary issues raised in the above areas include that Council re-consider the $30 million request for the demolition of the east end of the Gardiner Expressway and the capital budget reduction of $500,000.00 for High Occupancy Volume lanes be re-instated in the 1998 Capital Budget.

Other issues expressed through the deputation process relate primarily to review of transportation systems and policies, which may not have immediate budget implications but which will require future consideration. Some specific concerns / issues raised include:

(i)introduction of toll roads for main highways;

(ii)improvement to Public Transit;

(iii)expansion of bike paths in the City;

(iv)ensure pedestrian safety issues (ie sidewalk users, cyclist safety) are addressed through better education, improved signage;

(iv)consider environmentally friendly alternatives in developing policies (ie promote walking, cycling, use of transit); and

(v)support demonstrated for Toronto Atmospheric Fund=s arm=s length relationship with the City.

(4)Public Health Services:

In summary, the majority of the deputants, commended the Budget Committee for not reducing Public Health services in 1998; and for expanding the Healthy Births, Healthy Parenting and School Food programs.

The Budget Committee was requested to recommend that Community Health Grants be maintained at 1997 levels; and, that future budgets maintain the current level of Health Services - the programs / services specifically mentioned were:

(i)Dental Care for low income seniors

(ii)High Risk Pregnant Women

(iii)Mental illness

(iv)Disease & other prevention programs

(v)Child nutrition

(vi)Aids and Sexual Health

(vii)Needle exchange

(viii)Enforcement of Food Regulations & Inspections

(viv)Wellness promotion

Grant to Serena Toronto - ($5,000.00) - Recommended Reduction Proposal:

One of the deputants requested re-instatement of $3.5 thousand for Serena Toronto. Reduction proposal # 14 recommends that the $5,000.00 grant paid to Serena Toronto be discontinued in 1998. The grant was paid in-lieu of counselling services offered with respect to natural child births. Public Health staff have taken the position that this service is an enhancement to the counselling services already provided in-house and therefore brought it forward as a reduction proposal which could be supported.

(5)Animal Services:

The issues raised included:

(i)Giving the Toronto Humane Society Business Plan proposal fair consideration

(ii)Maintaining the status quo ie. in York and East York and allow for community input

(iii)Supporting an independent 3rd party review of animal services delivery in Toronto

(iv)No contracting out of services - maintain in-house

(v)Do not allow for one provider of shelter services

(vi)Revisit policy respecting the (former) City of Toronto Park Patrol Service ($181,000.00)

The Animal Services 1998 Recommended Budget provides the necessary funds to maintain the status quo with respect to the operations of its animal shelters and the full year=s funding for the Toronto Humane Society Contract.

The issues noted above should be deferred for consideration with the independent report requested of the Chief Administrative Officer which will be reviewing animal services across the entire City

(6)Housing:

The primary issue raised by the deputants who spoke in support of the Housing program was the preservation of public housing (including maintaining service and funding levels), and the opposition to any sale/privatization of social housing units (a Provincial issue with respect to the potential privatization of 7,000 units). The deputants also requested that tenants be included in all decision-making processes.

The 1998 recommended budget for the Housing Program maintains services at the 1997 levels. Any recommended reductions have resulted from efficiencies (implementation of best practices, elimination of duplication upon amalgamation, restructuring), and are therefore not expected to impact operations.

(7)Cultural Grant to Toronto Arts Council:

 In keeping with the general understanding that the grants= programs for the City of Toronto will be maintained at the 1997 level, the 1998 grant level to the Toronto Arts Council, as recommended in the operating budget, for both the administration and the cultural grant component of the Cultural grants have been sustained at the 1997 level.

 The Toronto Arts Council will assume the responsibility for providing grants to individual artists throughout the new City of Toronto. The TAC is requesting an additional requirement of $250,000.00 to provide the same service levels to individual artists throughout the new City of Toronto, beyond its former boundaries.

The issue of service levels must be determined in context with both priorities of the New City of Toronto and funding availability. The Municipal Grants Review Committee is in the process of reviewing current policies and practices of the former municipalities, in order to implement common principles for the municipal grants policies. In addition, given the current corporate pressures it is premature to allocate any additional funding.

It is therefore recommended that the TAC in consultation with appropriate City officials, review the issue of service levelling of grants to individual artists and report its findings to the Municipal Grants Review Committee and the Budget Committee, in September, prior to the commencement of the 1999 operating budget.

(8)Property Tax Issues:

The deputants expressed their common concern respecting the impact of assessment reform and tax policy changes on the residential and commercial property classes. The points raised included favouring a tax freeze for all homeowners, repealing the Current Value Assessment (CVA) system, and creating new property classes to avoid significant shifts in taxes. Several deputants indicated their support of tax rebates for charitable organizations, and property tax relief for seniors.

An Assessment and Tax Policy Task Force has been established and is currently considering various tax policy options available to the City to deal with the tax impacts resulting from assessment reform. These options include the phase-in of increases and decreases, tax relief for low-income seniors and low-income disabled persons, tax rebates for charitable and similar organizations, as well as the recently introduced option of capping tax increases to 2.5 percent for the commercial, industrial, and commercial-residential property classes, and creation of new sub-classes of property.

Conclusions:

The deputants that appeared in front of the Committee of the Whole of Council on April 14 and 15, 1998 made a number of specific recommendations with respect to the 1998 Capital and Operating Budgets. Budget Committee will debate these items at its meeting on April 20, 1998 and will make recommendations as it deems appropriate for the formal Council debate on the budgets scheduled for April 28, 1998.

Contact Name:

Shekhar Prasad, 392-8095

April 14, 1998Appendix

April 15, 1998