The Budget Committee:

2014 Capital Budget and 2015-2023 Capital Plan

1.         Requested the Deputy City Manager and Chief Financial Officer submit a corporate report to the January 22, 2014 meeting of the Executive Committee that outlines the 2014 Capital Budget and 2015-2023 Capital Plan as recommended by the Budget Committee, including the following amendments:

            General

a.         City Council approve in-year budget adjustments to the 2013 Approved Capital Budget detailed in Appendix 2 to the report (December 17, 2013) from the Deputy City Manager and Chief Financial Officer, and that the 2013 Approved Capital Budget be adjusted accordingly.

b.         City Council approve the reallocation of funds within the approved 2013 Toronto Transit Commission Capital Budget in the amount of $12.091 million with zero impact to expenditures and funding as detailed in Appendix A to the report (December 23, 2013) from the Chief Financial and Administration Officer, Toronto Transit Commission.

c.         City Council approve technical budget adjustments resulting in the deferral and acceleration of $45.369 million in the approved 2013 Toronto Transit Commission Capital Budget and future year cash flow commitments (including related funding impacts) with zero impact to overall expenditures and funding as outlined in Appendix B to the report (December 23, 2013) from the Chief Financial and Administration Officer, Toronto Transit Commission.

d.         City Council approve the application of additional funding sources including increases in the following for 2013:  $1.040 million in the Provincial Gas Tax Funding (PGT) Reserve Funds XR3018, $42.629 in 2013 Move Ontario 2020 Reserve Funds XR 3025, and reductions to the Canada Strategic Infrastructure Fund (CSIF) Reserve Funds XR3020 by $17.184 million, LRVs Provincial Funding by $9.355 million, Federal Gas Tax (FGT) by $5.334 million, Toronto Transit Commission Depreciation by $11.796 million inclusively as outlined in Appendix B to the report (December 23, 2013) from the Chief Financial and Administration Officer, Toronto Transit Commission.

Parks, Forestry and Recreation

e.         City Council request the General Manager, Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer to report back in 2014 for consideration with the 2015 Budget process on a multi-year sustainable plan for playground replacement.

Transportation Services

f.          City Council approve an adjustment to the 2014 – 2023 Capital Budget and Plan for Transportation Services reflecting revised annual cash flows for the Six Points Interchange Redevelopment project of $2.5 million in 2014; $9.5 million in 2015; $9.5 million in 2016; $8.5 million in 2017; and $10.548 million in 2018.  This adjustment to annual cash flows to not change either the total project cost or annual debt funding for this project as adjustments will be accommodated through acceleration of existing available reserve funding dedicated to this capital project.

            Facilities Management and Real Estate

g.         City Council approve an increase of $1.0 million to the 2014 – 2023 Recommended Capital Budget and Plan for Facilities Management and Real Estate reflecting additional cash flows for the Union Station Revitalization Project for the lighting in the Great Hall ($0.750 million) and the implementation of the Heritage Interpretation Plan ($0.250 million) in 2014, with Section 16 funds secured under a development agreement for 15 York Street (account XR3031).

Fleet Services

h.         City Council request City divisions, agencies and corporations, for 2014 and beyond, to fund their respective vehicle replacement reserves that such reserves do not fall into a negative balance and the reserves are adequate to meet future vehicle replacement.

            Office of the Lobbyist Registrar

i.          City Council defer to the 2015 budget process the capital budget request for the Office of the Lobbyist Registrar (BU52.1m) in the amount of $2.375 million.

            Office of the Ombudsman

j.          City Council approve the 2014-2023 Capital Budget and Plan for the Office of the Ombudsman at $1.230 million as submitted.

            Toronto Transit Commission

k.         City Council request the Toronto Transit Commission to consider restoring the completion date for the Easier Access Phase III renovations under guidelines outlined in the Accessibility for Ontarians with Disabilities Act for Warden Subway Station to year 2020 as originally scheduled as part of the 2015 capital budget plan.

2014 Operating Budget

2.         Requested the Deputy City Manager and Chief Financial Officer submit a corporate report to the January 22, 2014 meeting of the Executive Committee that outlines the 2014 Operating Budget as recommended by the Budget Committee, including the following amendments:

            General

a.         City Council approve an adjustment to the proposed Tax Levy by reducing it to 1.75% from 2% while retaining the .5% special levy for the Scarborough Subway Extension approved by City Council. That the additional funding for the Adjustment to the Tax Levy be offset by increasing 2014 Municipal Land Transfer Tax revenue budget by $6.5 million.

b.         City Council approve the budget adjustments detailed in Appendix D to the report (December 17, 2013) from the Deputy City Manager and Chief Financial Officer to amend the 2013 Approved Operating Budget between Programs with no impact to the 2013 Approved Net Operating Budget.

c.         City Council adjust the 2013 Approved Operating Budget for Toronto Public Health as follows:

i.          a reduction of $1,342.5 thousand gross and $0.0 net for the Healthy Smiles Ontario Dental Program  to reflect confirmed provincial funding; and

ii.         a reduction of $53.8 thousand gross and $13.4 thousand net for the Children In Need of Treatment (CINOT) expansion dental program to reflect confirmed provincial funding.

d.         City Council request the City Manager to report to the Budget Committee on a potential pilot project for implementing a community participatory budgeting program as part of the 2015 Toronto Budget process, such a pilot would allocate a specific amount of the 2015 budget process to participating wards.

            Children’s Services

e.         City Council amend the proposed Children's Services 2014 Operating Budget to reflect the following:

i.          an additional $18.084 million in provincial funding;

ii.         a reduction of $0.900 million on the projected 2014 draw from the Child Care Expansion Reserve Fund, and

iii.        an expenditure increase of $17.184 million gross, $0 net.

f.          City Council approves the following service standard adjustments for inclusion in the 2014 Recommended Operating Budget for Children's Services:

i.          the equity service standard for infant, toddler, pre-school age groups be increased by 668 spaces (5%) for $9.800 million;

ii.         funding for Special Needs Resourcing be increased by $0.854 million as prescribed by Provincial guidelines;

iii.        the provision of grants not to exceed $3.0 million in lieu of wage subsidy to support infant and toddler programs resulting from the   reconfigurations as a part of the Full Day Kindergarten (FDK) transition, with these grants available until a new funding model for child care is implemented in 2016;

iv.        increase the funding to support payment of actual costs to operators to deliver child care by $2.388 million;

v.         designate $0.100 million as stabilization funding to support Aboriginal Child Care, while the City develops, in consultation with the Aboriginal Community, a funding model that supports the unique needs of this community; and

vi.        increase program administration by $1.042 million and the staff complement by the equivalent of six full-time positions to support the delivery of increased service standards.

            Economic Development and Culture

g.         City Council approve the following 4 year phase in of the $25 per capita arts funding increase ( in millions):

h.         City Council approve the following revised increases by category in 2014 as part of the $25 per capita arts and culture spending phase-in plan:

-           Toronto Arts Council Grants Program - $1.8 million

-           Toronto Arts Council Operations - $0.200 million

-           Major Cultural Organizations Grants - $0.500 million

-           Local Arts Services Organizations - $0.500 million.

i.          City Council allocate the additional $1.5 million required to fund these 2014 increases by advancing the draws from the Sign Tax funds, bringing the total draw for 2014 to $7.5 million.

            Emergency Medical Services

j.          City Council delegate authority to the Chief, Emergency Medical Services to enter into annual funding agreements with the Ministry of Health and Long Term Care, subject to the City's budget process.

Parks, Forestry and Recreation

k.         City Council approve the revenue target reduction of $0.229 million in the 2014 Parks, Forestry and Recreation Operating Budget to restore the property tax funding source for the High Park Zoo.

l.          City Council offset the resultant property tax increase of $0.229 million in Parks, Forestry and Recreation's 2014 Operating Budget by new revenues from additional 2013 assessment growth.

m.        City Council approve the implementation of 10 new youth spaces based on the existing model, to be phased in over three years (4 locations in 2014, 3 locations in 2015 and 3 locations in 2016) to begin operation in July 2014, and adjust the Net Expenditure increases in the 2014 recommended operating budget for Parks, Forestry and Recreation accordingly, with the offset to come from new revenues from additional 2013 assessment growth.

n.         City Council request the General Manager, Parks, Forestry and Recreation to report to the Community Development and Recreation Committee on the St. Stephen's Community House model for youth spaces.

o.         City Council authorize the General Manager, Parks, Forestry and Recreation to implement the sports field permit fees (including HST) for children and youth organizations for the 2014 season as follows:

$6/hour for A fields;

$4/hour for B fields;

$2/hour for C fields.

p.         City Council amend Municipal Code Chapter 441, Fees and Charges, as necessary, to include the new sports field permit fees for children and youth organizations.

            Shelter, Support and Housing Administration

q.         City Council, in accordance with Recommendation 3 in EX35.4 "A Ten-Year Capital Financing Plan for Toronto Community Housing" approved by City Council on November 18, 2013, increase the 2014 Recommended Operating Budget for Shelter, Support and Housing Administration by $5.000 million gross and $0 net to fund Toronto Community Housing Company's capital repair backlog, with funding to be provided from the Development Charge Reserve Fund for Subsidized Housing (XR2116).

            Social Development, Finance and Administration

r.          City Council add $0.390 million gross and net to reflect the 2.2% economic factor increase requested for Community Partnership and Investment Program (CPIP) in Social Development, Finance and Administration, with the offset to come from new revenues from additional 2013 assessment growth.

            Municipal Licensing and Standards

s.          City Council adjust the Municipal Licensing and Standards 2014 Operating Budget by adding $190,000 for 2 new by-law officers in 2014 to improve the multi-residential apartment buildings program (MRAB) re-inspection rate to increase compliance of the 10,500 outstanding deficiencies on 817 orders, and other property standards orders, and that the increase be funded from new revenues from additional 2013 assessment growth, with an additional 2 by-law officers added in 2015, subject to the 2015 budget process.

t.          City Council request the Executive Director, Municipal Licensing and Standards, as part of the user fee review, to report to the Licensing and Standards Committee on the feasibility of charging re-inspection fees for licensed business establishments.

            Transportation Services

u.         City Council approve a zero net adjustment to the 2014 Operating Budget for Transportation Services reflecting an increase to the Road and Sidewalk Management Service Budget of $0.350 million gross and $0 net for the StART (StreetARToronto) Program to focus on improving underpasses with art murals, fully funded by contributions from the Public Realm Reserve Fund.

v.         City Council approve the use of existing and approved funds from the Transportation Services Division Public Realm Section for murals under the StART (Street Art) program.

w.        City Council approve an adjustment to the 2014 Operating Budget for Transportation Services' Road and Sidewalk Management Service Budget of $0.800 million gross and $0 net, fully funded from Metrolinx contributions for the StART (StreetARToronto) program to commission street art on behalf of Metrolinx.

x.         City Council authorize the General Manager, Transportation Services to enter into agreement with Metrolinx to receive funding and use the funding to select, administer, manage and oversee the placement, installation and maintenance of graffiti art or art murals on various properties of Metrolinx subject to complete project cost recovery.

y.         City Council authorize the General Manager, Transportation Services to enter into agreements with other levels of government, property owners, or other entities to receive funding and use the funding to select, administer, manage and oversee the placement, installation and maintenance of graffiti art or art murals subject to complete project cost recovery and adjustments to budgeted expenditures and revenues.

z.         City Council authorize the General Manager, Transportation Services, to collect, receive and use funds received under agreements made through the StART program to select, place, install and maintain the graffiti art or art murals.

            City Council

aa.        City Council consider that effective 2014, each Councillor be entitled to $1,000 per year from the Council General Expense Budget for expenses related to the meeting of the Accessibility for Ontarians with Disabilities Act (AODA) accessibility requirements for Councillor events or meetings and that during an election year, the entitlement be pro-rated in accordance with approved Council policies.

            Auditor General’s Office

ab.       City Council add an additional 0.5 full time equivalent employee to the Auditor General's Office.

ac.        City Council approve the recommended 2014 budget for the Auditor General’s Office attached to the report (September 20, 2013) from the Auditor General, as amended.

            Office of the Integrity Commissioner

ad.       City Council approve the 2014 operating budget of $299.1 thousand for the Office of the Integrity Commissioner.

Office of the Lobbyist Registrar

ae.        City Council approve the Lobbyist Registrar’s 2014 Operating Budget Request of $1,087.3 thousand net.

Office of the Ombudsman

af.        City Council not approve the request from the Office of the Ombudsman for $89.2 thousand for an additional staff position.

ag.       City Council approve the 2014-2023 Capital Budget and Plan for the Office of the Ombudsman at $1.230 million, as amended.

Toronto Public Health

ah.       City Council approve the recommendation of Toronto Public Health requesting $214.1 thousand for the economic increase in the cost of food for the Student Nutrition Program, and that the additional funding for the Student Nutrition Program – Economic Increase in the Cost of Food be offset by new revenues from additional 2013 assessment growth.

ai.        City Council approve the recommendation of Toronto Public Health requesting $394.3 thousand gross and net to expand student nutrition programs into 27 additional schools in which there has been identified the need in their student population for a program, with the additional funding for the Student Nutrition Program - Expansion of Locations to be offset by new revenues from additional 2013 assessment growth.

aj.        City Council approve a one-time Toronto Public Health 2014 Operating Budget Request of $232,335 gross and $0 net funded 100 percent by the Public Health Agency of Canada.

            Toronto Public Library

ak.       City Council approve $260,000 for the Toronto Public Library to standardize hours by adding a total of 34.5 additional hours per week for a total of 1,794 hours per year across seven district branches and in so doing, standardize hours at all District and Research and Reference (R&R) Branches at 69 hours/week, including Sundays, ensuring equity of access across the City, and that the additional funding for the Library Standardizing Hours of Operation be offset by new revenues from additional 2013 assessment growth.

al.        City Council request the Toronto Public Library Board to undertake a study of priorities and objectives in terms of capital and operating costs for the Toronto Public Library resulting in reinvestment opportunities for the Toronto Public Library for the next 10 years (2014-2024) with the exact parameters of the study to be confirmed by the Toronto Public Library Board in consultation with major stakeholders including the Toronto Public Library Workers Union.

            Toronto Police Service

am.      City Council request that the briefing note requested from the Deputy City Manager and Chief Financial Officer on the feasibility of Court security options to:

i.          Privatize Court security entirely

ii.         Transfer security duties to the City of Toronto Corporate Security;

be provided as a report to the Executive Committee at its meeting on April 23, 2014, including input from the Police Service Board.

an.       City Council request that the briefing note requested from the Chair, Police Services Board on paid duty officers, how much it is costing the City on an annual basis and what initiatives have been taken to reduce the cost on our capital projects, be provided as a report to Budget Committee at its meeting on May 1, 2014, or sooner if the information is available.

ao.       City Council request that the briefing note requested from the City Manager on the feasibility of outsourcing parking enforcement in future years be provided as a report to the Executive Committee at its meeting on April 23, 2014, including input from the Police Services Board.

ap.       City Council direct the City Manager to convey to the Ontario Ministry of the Attorney General a request from the City of Toronto to amend pertinent provincial legislation to permit the use of Toronto Parking Enforcement and Toronto Police Service written evidence during court hearings rather than requiring the physical presence of such staff in order to assist in the reduction of costs and the better allocation of resources to enforcement of relevant by-laws and provincial offences.

Non-Program

aq.       City Council approve a one-time zero net adjustment to the 2014 Non-Program Expenditure Budget of $0.380 million gross and $0 net funded from deferred interest to Provincial loan to offset the impact of the loss in Toronto Pooling Compensation. This is a technical adjustment to align the amount recommended by Shelter, Support and Housing Administration.

3.         Recommends that City Council receive the following for information:

a.         The letter (September 16, 2013) from the Parks and Environment Committee (item BU52.1b).

b.         The report (December 13, 2013) from the Deputy City Manager, Cluster A (item BU52.1ai).

c.         The report (October 22, 2013) from the Acting Chair, Toronto Police Services Board (item BU52.1y).

d.         The letter (November 25, 2013) from the Chief Financial and Administrative Officer, Toronto Transit Commission (item BU52.1v).

e.         The transmittal (October 18, 2013) from City Council (item BU52.1w).

f.          The letter (November 4, 2013) from the Board of Health (item BU52.1q).

g.         The letter (July 3, 2013) from the Executive Committee (item BU52.1ae).

h.         The report (December 30, 2013) from the Deputy City Manager and Chief Financial Officer (item BU52.1am).

i.          The report (November 15, 2013) from the Treasurer (item BU52.1an).

j.          The letter (April 23, 2013) from the Executive Committee (item BU52.1ad).

k.         The letter (September 17, 2013) from the Economic Development Committee (item BU52.1a).

l.          The letter (September 16, 2013) from the Parks and Environment Committee (item BU52.1b).

m.        The letter (December 5, 2013) from the Community Development and Recreation Committee (item BU52.1c).

n.         The report (December 9, 2013) from the General Manager, Parks, Forestry and Recreation (item BU52.1af).

o.         The transmittal (December 19, 2013) from City Council (item BU52.1ak).

p.         The letter (December 4, 2013) from the Community Development and Recreation Committee (item BU52.1d).

q.         The letter (December 4, 2013) from the Community Development and Recreation Committee (item BU52.1e).

r.          The letter (September 19, 2013) from the Licensing and Standards Committee (item BU52.1f).

s.          The letter (September 20, 2013) from the Public Works and Infrastructure Committee (item BU52.1g).

t.          The letter (September 9, 2013) from the Government Management Committee (item BU52.1h).

u.         The letter (November 4, 2013) from the Board of Health (item BU52.1r).

v.         The letter (November 19, 2013) from the Chief Executive Officer, Sony Centre (item BU52.1u).

That Budget Committee requested the following:

1.         That the General Manager and Chief, Fire Services, report back on a plan to implement the Rebate Program for Homeowners for first time alarms to the Executive Committee Meeting of January 22, 2014.

2.         That the City Manager report directly to City Council on January 29, 2014, on a potential attrition program that could reduce the non-union staff complement by 1% in 2014, and up to 4% over the next 4 years.

This report provides information on shelter system occupancy and use. It also provides the findings of a quality assurance review of shelter access and client satisfaction. The report provides an overview of the Shelter, Support and Housing Administration (SSHA) division's short and longer term actions and strategies to improve access to the shelter system.

There is no financial impact associated with this report. Funding for emergency shelter services is provided in the 2013 Operating Budget for Shelter, Support and Housing

Administration.

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

The Audit Committee on February 15, 2013, considered a report (January 25, 2013) Report from the Auditor General (Audit Committee Item AU10.11).

City Council at its meeting of January 15 and 16, 2013 during its deliberations of the Operating Budget of the Auditor General, “reduced the Auditor General’s 2013 Operating Budget by 0.5 full time equivalent in the amount of $0.046 million and increased the Ombudsman’s 2013 operating budget by 0.5 full time equivalent in the amount of $0.046 million.”

Council further requested that “the Auditor General report to the Budget Committee on the staffing needs to fulfill the work plan requirement.”  The report responds to this specific request.

This report provides information relating to the 2014 budget for the Auditor General’s Office and a budget for approval by the Audit Committee.

An analysis of the budget request is as follows:

The budget request of the Auditor General for 2014 has increased by $461,500 from the 2013 level.  The increase in the Auditor General’s budget from 2013 to 2014 is 11.04 per cent.  This increase is due to the following:

The increase in the Auditor General's budget from 2013 to 2014 excluding the filling of the two previously gapped positions would be $165,900.  This represents a four per cent increase over the 2013 approved budget.

The majority of the Auditor General’s 2014 budget request consists of salaries and benefits.  The percentage of salaries and benefits to the total budget is just under 97 per cent.

The 2014 budget for the Auditor General’s Office is $4,639,100 which is $461,500 more than the 2013 final approved budget of $4,177,600.  This increase is due to the following:

The budget request is as follows:

The majority of the Auditor General’s 2014 budget request consists of salaries and benefits.  Salaries and benefits comprise just under 97 per cent of the total budget.

The Auditor General’s Office currently has two vacancies which have been required to be gapped since 2011.  The remainder of positions are filled.

Should the Auditor General’s Office be required to leave two positions vacant, this will impact the number of reports produced by the office and will increase the backlog of audit projects.

This report provides an overview of the Toronto Public Health (TPH) 2014 Capital Budget and 2015-2023 Capital Plan and Forecast.

TPH is submitting a 2014-2023 Capital Budget and Plan request of $32.255 million, including a 2014 Capital Budget of $4.060 million and future year commitments of $3.641 million and a 2015 – 2023 Capital Plan and Forecast of $24.554 million. The Debt Affordability Target provided by the City for TPH is $3.393 million in 2014, $3.396 million in 2015, $3.392 million in 2016, $3.388 million in 2017, $3.363 million in 2018 and, $14.473 million for 2019 to 2023 for a total of $31.405 million. TPH will receive 100 percent provincial funding for one IT project for $0.667 million in 2014 and $0.183 million in 2015 for a total of $0.850 million.

The 10-Year Capital Budget and Plan request will provide funding for eleven Information and Technology (IT) projects that support improvement of service delivery with the development and enhancement of systems while complying with provincial mandatory reporting requirements. There is no additional operating impact associated with these eleven IT projects.

TPH is submitting a 2014-2023 Capital Budget and Plan request of $32.255 million, including a 2014 Capital Budget of $4.060 million and future year commitments of $3.641 million and a 2015-2023 Capital Plan and Forecast of $24.554 million. The Debt Affordability Target provided by the City for TPH is $3.393 million in 2014, $3.396 million in 2015, $3.392 million in 2016, $3.388 million in 2017, $3.363 million in 2018 and, $14.473 million for 2019 to 2023 for a total of $31.405 million. TPH will receive 100 percent Provincial funding for one IT project (Infectious Disease Control Information System) for $0.667 million in 2014 and $0.183 million in 2015 for a total of $0.850 million.

The 10-Year Capital Budget and Plan request will provide funding for eleven Information and Technology (IT) projects that support improvement of service delivery with the development and enhancement of systems while complying with provincial mandatory reporting requirements. There is no additional operating impact associated with these eleven IT projects.

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

This report outlines the Toronto Public Health (TPH) 2014 Operating Budget Request for consideration by the Board of Health.

The Toronto Public Health (TPH) 2014 Operating Budget Request totals $246,003.8 thousand gross / $51,170.8 thousand net. This request is $2,316.1 thousand gross and $750.9 thousand net above the 2013 Operating Budget. The net increase of $750.9 thousand over the 2013 Approved Operating Budget is comprised primarily of base budget increases for the negotiated collective agreements and inflationary increases for Toronto Urban Health Fund and the Sexual Health Clinic contracts of $708.3 thousand net; a reduction option of $410.6 thousand net; and, new & enhanced services of $453.2 thousand net.

The TPH 2014 Operating Budget Request totals $246,003.8 thousand gross / $51,170.8 thousand net. This request is $2,316.1 thousand gross and $750.9 thousand net (1.5 percent) above the 2013 Operating Budget. The requested increase is comprised of: base increases of $1,958.6 thousand gross and $708.3 thousand net; decreases of $1,455.4 thousand gross and $410.6 thousand net for a budget reduction option; and new and enhanced services request of $1,812.9 thousand gross and $453.2 thousand net. TPH has reviewed its services and expenses and where achievable absorbed expected inflation increases and reduced expenses in the 2014 budget request.  

This report seeks approval to amend the 2013 Approved Operating Budget for Toronto Public Health (TPH) as a result of 2013 funding confirmation received from the Ministry of Health and Long-Term Care (MOHLTC) for the 100% provincially funded Healthy Smiles Ontario (HSO) and the 75% provincially funded Children In Need Of Treatment (CINOT) Expansion Dental Programs.

The 2013 Approved Operating Budget for TPH includes $8,965.5 thousand gross and $13.5 thousand net for the HSO and CINOT programs. The MOHLTC has confirmed funding of $7,569.2 thousand gross and $304.7 net for HSO and CINOT programs, resulting in a funding shortfall of $1,396.3 thousand gross and $13.5 thousand net.

The 2013 funding shortfall of $1,342.5 thousand gross and $0.0 net for Healthy Smiles Ontario Dental Program is expected to have no service level impact as long as there is no significant increase in utilization of the HSO dental program.

The 2013 funding shortfall of $53.8 thousand gross and $13.5 thousand net for Children In Need Of Treatment Program is expected to have no service level impact.

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

The Toronto Police Service’s (the Service) 2014-2023 Capital Program request is below the City’s affordability debt target by $6.4 Million (M) for the first five years of the program, and $8.4M for the full ten-year program.  Table 1 provides a summary of the revised 2014-2023 Capital Program request compared to the City of Toronto’s ten-year debt affordability target.  Additional detail on debt-funded and Reserve-funded projects can be found in Attachments A and B respectively.

(See Table 1 "Summary of 2014-2023 Capital Program Request ($Ms)"

in the Financial Impact section of the report dated October 22, 2013

from the Acting Chair, Toronto Police Services Board)

Attachment C (contained within Appendix A) provides a summary of the estimated operating impacts that result from projects included in the 2014-2023 capital program request.  The 2014 incremental operating impact is $1M.  Approval of the 2014-2023 program, as requested, will result in an estimated annualized pressure to the Service’s operating budget of $5.9M by 2023, mainly due to increased system maintenance and building operational requirements.  These operating impacts will be included in future operating budget requests, as required.

This report and the accompanying Attachment A, entitled "Toronto’s 2011 Performance Measurement and Benchmarking Report", provide approximately 230 service/activity level indicators and performance measurement results in 33 service areas. Up to eleven years of Toronto’s historical data are included to examine short- and long-term internal trends, and 2011 results are compared externally to 15 other municipalities through the Ontario Municipal CAOs Benchmarking Initiative (OMBI).

This 2011 report differs from previous years through the addition of:

-           Five more service areas:

-           City Clerk's Office

-           Court Services

-           Fleet Services

-           Payroll Services

-           Purchasing Services

It should be noted that the annual data collection process for the information published in this report is a result of a joint effort with other OMBI municipalities.  The 2012 data and results will not be available until mid-2013. However, in some instances, Toronto's 2012 results were available and have been included in this report.

More timely information is reported on a quarterly basis to the Executive Committee through the Management Information Dashboard that provides current information for Toronto with respect to economic, social and divisional indicators. The most recent report for 2012 Quarter 4 is available at http://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-56578.pdf.

Toronto’s 2011 Performance Measurement and Benchmarking Report is centred on results that can be quantified. It is equally important to consider achievements from 2012 and initiatives planned for 2013 that can further improve Toronto’s services. These have been included at the end of each service section in Attachment A and highlights are also provided related to continuous improvement initiatives (on pages 11 to 15 of the attached) under the headings of customer service, efficiency, effectiveness and quality of life. These initiatives are illustrative of staff efforts to build and foster a climate and culture of continuous improvement in our services.

Toronto is unique among Ontario municipalities because of its size and its role as the centre of business, culture, entertainment, sporting and provincial and international governance activities in the Greater Toronto Area. Therefore, the most accurate comparison for Toronto is to examine its own year-over-year results and longer-term historical trends. Results from the report show:

-           Toronto's 2011 service or activity level indicators increased or were maintained for 78 percent of the indicators in relation to 2010.

-           Toronto's 2011 performance measurement results in the areas of customer service/quality, community impact and efficiency showed 72 percent of the measures had either improved or stable results relative to 2010.

Notwithstanding Toronto’s unique place in Ontario, there is also value in comparing Toronto’s 2011 results to those of other Ontario municipalities for additional perspective. The report also includes comparative results of the cities of Winnipeg, MB and Calgary, AB in a number of the service areas.

Toronto’s 2011 results have been ranked by quartile in relation to these other municipalities. Results show:

-           Toronto’s service/activity indicators are at or higher than the OMBI median for 59 percent of the indicators. Toronto's much higher population density is a key factor in areas with lower activity levels or resources devoted to the service.

-           Toronto’s performance measurement results in the areas of customer service, community impact and efficiency are at or higher than the OMBI median for 50 percent of the measures.

Factors that influence why Toronto's results are higher or lower in relation to other municipalities include its high population density, its more developed urban form and older infrastructure. These influencing factors are discussed in the report.

There were few changes in Toronto’s quartile ranking for each of the indicators and measures between Toronto’s 2010 and 2011 Benchmarking Reports. Changes in Toronto’s quartile ranking for individual measures are more likely to occur over longer time periods, especially from 2012 and beyond with enhanced efficiencies identified through the City's Service Efficiency Studies.

It has been recognized that Toronto should expand its benchmarking work beyond Ontario to a broader world context. Staff are working with the Global City Indicators Facility (GCIF), based at the University of Toronto, to develop a standardized set of city indicators that measure and monitor city performance and quality of life globally. Toronto staff have made a significant contribution to date, including the sharing of our experiences in benchmarking work done through OMBI and the Federation of Canadian Municipalities (FCM) Quality of Life Indicators. Toronto has been recognized by staff of the World Bank and the GCIF as one of the world leaders in these areas.

This report is in response to a motion approved at the December 4, 2013 meeting of the Community Development and Recreation Committee requesting staff to report to Budget Committee on the financial implications of implementing the designation of new Community Centres where programs are free (formerly Priority Centres) and the Swim to Survive program for consideration in the 2014 Operating Budget.

Funding of $311,760 has been approved by PHAC for work on healthy food access initiatives to be completed by TPH in collaboration with its community, institutional and private sector partners between November 2013 and March 31, 2015. A one-time adjustment of $29,300 gross and $0 net has been made to the 2013 TPH Operating Budget; one-time budget adjustments of $232,335 gross and $0 net in 2014 and $50,125 in 2015 are required to complete the allocation of funding to the completion of the project. No adjustments to TPH complement are required. The TPH 2014 Staff Recommended Operating Budget has been adjusted to reflect this new initiative.

The Deputy City Manager and Chief Financial Officer have reviewed this report and agree with the financial impact information.

The 2014 Recommended Operating Budget for Children's Services, developed prior to the provincial announcement, is $403.463 million gross, $76.716 million net, includes a projected 1% increase in core provincial funding of $2.752 million, and includes a withdrawal of $13.863 million from the Child Care Expansion Reserve Fund to maintain 2013 service levels.

On November 19, 2013, the City received notification from the Province of its 2014 funding allocation. Funding from the Ministry of Education will increase from $275.182 million to $296.018 million, an increase of $20.836 million or 7.6%.

There is no net impact from the additional funding on the 2014 Recommended Operating Budget. Gross expenditures increase by $17.184 million, $0 net, and include a budgeted reduction of $0.900 million in the withdrawal from the Child Care Capital Expansion Reserve Fund.  Table 1 summarizes the operating budget impacts.

(See Table 1 on the operating budget impacts under the Financial Impact

section of the report dated December 18, 2013,

from the General Manager, Children's Services)

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

City Council on December 16, 17 and 18, 2013 directed that the following request be forwarded to the Budget Committee as part of the 2014 capital budget process:

City Council request City divisions, agencies and corporations, for 2014 and beyond, to fund their respective vehicle replacement reserves that such reserves do not fall into a negative balance and the reserves are adequate to meet future vehicle replacement.

City Council on December 16, 17 and 18, 2013 adopted Government Management Committee Item GM26.14 on Vehicle Capital Reserve Contributions Shortfalls.

City Council has, among other things, forwarded a request of City divisions, agencies and corporations regarding the funding of vehicle replacement reserves to the Budget Committee as part of the 2014 capital budget process.

This supplementary report builds on the report from the City Manager and the Deputy City Manager and Chief Financial Officer to the July 3, 2013 Executive Committee EX33.28 titled "Municipal Land Transfer Tax Reduction Options" which was referred to the Budget Committee to be dealt with as part of the 2014 budget process.  That report contained potential options for capping, reducing (by 10%), or eliminating the City's Municipal Land transfer Tax (MLTT) over four years.  This report focuses on the more moderate option for reducing the tax by 10% or less.

The preliminary 2014 budget for net Municipal Land Transfer Tax (MLTT) revenue is $335 million, based on 2014 net revenue of $350 million matching the projected 2013 net actual revenue, and incorporating an offsetting $15 million buffer provision for the risk of housing market slowdown.  The budget figure does not take any potential rate changes into account.  A 10% reduction on its own would reduce revenue by an estimated $35 million, equivalent to a 1.5% residential property tax increase.

The MLTT has been an important City revenue since its 2008 implementation, and has grown to generate almost 10% funding for the net tax-supported operating budget.  To replace it entirely with property tax would require a 15% increase in the residential property tax.  City Council has recently approved, as one of the strategic actions for 2013-2018 under the Fiscal Sustainability theme, the expansion of the City's revenue base including revenues that grow with the economy as part of the long-term fiscal plan.  Reducing the MLTT revenue would be inconsistent with that strategic action, and is therefore not recommended.

This report provides information on reserve and reserve fund balances as at September 30, 2013, activity in reserves and reserve funds during the first nine months of 2013, and projected year-end balances.  The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

There are no financial implications contained in this report.

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

At its meeting on Thursday, December 19, 2013 the Toronto Transit Commission Board considered the attached report entitled, “2013 Capital Budget Technical Adjustments”.

The total financial impact to the 2013 – 2022 Approved Capital Budget and Plan arising from the adoption of the recommended in-year budget adjustments in this report results in an overall increase to the City's 2013 Approved Capital Budget of $25,000 funded by a donations to Animal Services.

Metrolinx has identified many sections of their infrastructure recently built or currently being constructed that could be subject to graffiti and would, therefore, benefit from the resulting beautification and proactive installation of street art. Given the success of the City's StreetARToronto (StART) program in facilitating and coordinating street art installations, Metrolinx approached StART staff about administering and implementing street art projects on its behalf. Apart from administering a grants program, StART's mandate as established in the Graffiti Management Plan (July 2011), has been to enter into partnerships with the public and private sectors for purposes of creating street art and averting graffiti vandalism.  

Due to the scale of Metrolinx's request and the revenue to be received by the City for this purpose, this report seeks Council authority to enter into an agreement with Metrolinx.  The report also seeks authority for staff to enter any other large scale implementation project of this type in the future, subject to the identified agency or partner providing complete cost recovery.

The recommended adjustment to the Transportation Services' 2014 Road and Sidewalk Management Service Operating Budget of $0.800 million gross and $0 net, fully funded from Metrolinx contributions will allow Transportation Services through the StreetARToronto (StART) program to facilitate and coordinate street art installations for 13 projects over a two-year period.

Metrolinx has identified six priority projects for 2014 completion, including one already commissioned by a StART grant, with seven additional potential projects to be completed by summer of 2015.

Over a two-year period, this program will have an overall budget of close to $1 million ($0.8 million in 2014 and $0.2 million in 2015). Accommodated within this amount, StreetARToronto would charge a 10 percent administration fee to cover costs incurred by the City and reserve a portion of the project budget for a five-year maintenance plan.

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