2012-11-07 Decision Letter - Budget Committee

The Budget Committee referred the Item, together with the recommendations contained in the Staff Recommended Capital and Operating Budgets for Solid Waste Management Services and the following motions to the November 12, 2012 Budget Committee Rate-Supported wrap-up meeting:

Motion 2 by Councillor Del Grande:

"That City Council request the General Manager of Solid Waste Management Services, in consultation with the Director of Facilities Management, to develop a plan to implement green bin and recycling programs for City-owned facilities beginning in 2013 and report to the Public Works and Infrastructure Committee in the First Quarter of 2013."

Motion 3 by Councillor Del Grande:

"That City Council request the General Manager, Solid Waste Management Services to report to the Public Works and Infrastructure Committee in February 2013 on the Division's Plan for implementing the green bin program in multi-residential buildings for 2013."

The Budget Committee:

1. Requested the General Manager, Solid Waste Management Services, and the Deputy City Manager and Chief Financial Officer to provide Briefing Notes to the Budget Committee at its meeting on November 12, 2012, on:

a. The implementation of solid waste pick up in parks, including frequency, equipment demands and impact on parks grounds, in cooperation with the General Manager, Parks, Forestry and Recreation.

b. Steps to replace the garbage charges on the property tax with rate based legislation.

c. How to have a 100% participation rate for blue and green bins.

d. A review of the bin charges for the smallest bin.

2. Referred motion 1 by Councillor Del Grande to the General Manager, Solid Waste Management Services for a report to the Public Works and Infrastructure Committee in the first quarter of 2013:

“Request the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, to provide Briefing Notes to the Budget Committee at its meeting on November 12, 2012, on the following:

1. Division projection targets showing how and when this plan achieves 70% diversion.

2. The timing and financing of implementing diversion in multi-residential buildings.

3. Whether the "other" funding source described on slide 35 is funding or financing.”

3. Heard a presentation from the General Manager, Solid Waste Management Services, on Solid Waste Management Services 2013 Recommended Operating and Capital Budget and 2014 – 2022 Capital Plan.

This report outlines the recommended 2013 Solid Waste Rates arising from concurrent adoption of the 2013 Solid Waste Management Services Recommended Operating and Capital Budgets. The recommended Rates represent a 0 percent increase from the 2012 Rates. The recommended 2013 Rates balances fiscal constraints while maintaining critical progress on waste diversion initiatives.

The 2013 Recommended Operating Budget for Solid Waste Management Services is fully funded from a combination of user fee revenue, reserve funds, sale of recyclables and industry stewardship funding. The property tax budget is not impacted by adoption of the recommendations contained in this report.

The Recommended 2013 Volume-Based Solid Waste Rates are expected to generate $245.388 million in revenue representing 70 percent of total revenues. The other 30 percent of total revenues ($103.894 million) will be generated from the sale of recyclable materials, industry stewardship funding, tipping fees, paid commercial waste, and recoveries for waste collection from City agencies and programs. These revenues will provide funding to support Solid Waste Management Services’ operations, capital projects and initiatives to help achieve the 70 percent waste diversion goal. For 2013, the recommended user fee rates represent a 0 percent change over 2012 approved user fees. The revenue to be generated from the recommended user fees is reflected in the 2013 Recommended Operating Budget and the 2013 Recommended Capital Budget and 2014 - 2022 Recommended Capital Plan for Solid Waste Management Services.

The Ten-Year Recommended Capital Plan of Solid Waste Management Services is currently primarily funded by recoverable debt, reserve funds and industry stewardship funding. The City issues debt on behalf of Solid Waste Management Services capital works and debt servicing costs are repaid by Solid Waste Management Services through its operating user fee revenues.

In 2013, the Solid Waste Management Services Recommended Operating Budget includes $10.090 million to repay debt issued to fund capital infrastructure needs and $18.500 million to repay debt issued to fund the Green Lane Landfill acquisition. The Program partially funds capital projects through operating contributions to the Waste Management Reserve Fund and the Perpetual Care of Landfills Reserve Fund.

For the 2013 - 2022 Recommended Capital Program, 23 percent of all funding is provided by the Waste Management Reserve Fund which represents a 35 percent increase over the 2012 Plan. The ultimate goal is to primarily fund the Solid Waste Management Services Ten-Year Capital Plan through the Waste Management Reserve Fund, supported by annual operating contributions generated through user fees.

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

Meeting No.	30 (Special)	Contact	Kelly McCarthy, Committee Administrator
Meeting Date	Wednesday, November 7, 2012	Phone	416-397-7796
Start Time	9:30 AM	E-mail	buc@toronto.ca
Location	Committee Room 1, City Hall	Chair	Councillor Mike Del Grande

Committee Decision
The Budget Committee referred the Item, together with the recommendations contained in the Staff Recommended Capital and Operating Budgets for Solid Waste Management Services and the following motions to the November 12, 2012 Budget Committee Rate-Supported wrap-up meeting: Motion 2 by Councillor Del Grande: "That City Council request the General Manager of Solid Waste Management Services, in consultation with the Director of Facilities Management, to develop a plan to implement green bin and recycling programs for City-owned facilities beginning in 2013 and report to the Public Works and Infrastructure Committee in the First Quarter of 2013." Motion 3 by Councillor Del Grande: "That City Council request the General Manager, Solid Waste Management Services to report to the Public Works and Infrastructure Committee in February 2013 on the Division's Plan for implementing the green bin program in multi-residential buildings for 2013."