Social Planning Toronto

Budget 2010

City of Toronto Budget 2010 Updates

• Update on City of Toronto’s Operating Budget – March 5
• Update on City of Toronto’s Operating Budget – March 4
• Update on City of Toronto’s Operating Budget – February 25
• Analyst Notes Now Available
• City Introduces 2010 Proposed Operating Budget – February 16
• City Council Passes Capital Budget
• Update on City of Toronto’s Capital Budget – December 3
• Update on City of Toronto’s Capital Budget – November 26
• Update on City of Toronto’s Capital Budget – November 16
• Update on City of Toronto’s Capital Budget – November 13

Update on City of Toronto’s Operating Budget – March 5

The Budget Committee met very briefly this morning to review budgets from Agencies, Boards and Commissions (ABCs), with the exception of Toronto Public Health which was reviewed on Wednesday, and Toronto Police Services and Toronto Police Services Board which will be reviewed on March 12.  It was an extremely short session – no staff presentation, no questions and no motions – with the exception of an in camera question from Councillor Mihevc on Toronto Parking Tag Enforcement and Operations.  As it was a confidential matter, the committee discussed the matter in private.  Councillors were invited to reconvene at 11 a.m. and it’s possible that they may bring forward questions on the ABC budgets at that time, but there was no sense from the 9:30 a.m. call for questions that any further discussion will take place at 11 a.m.

Next dates:

• Friday, March 12 at 2 p.m. in Committee Room 1 – Budget Committee meets to review Toronto Police Service and Toronto Police Services Board budgets, receive presentation on long-term fiscal plan update and have wrap-up.
• Friday, March 26 at 9:30 a.m. in Committee Room 1 – Budget Committee holds final wrap-up
• Wednesday, April 7 at 9:30 a.m. in Committee Room 1 – Executive Committee reviews operating budget
• Thursday and Friday, April 15 and 16 in Council Chambers – City Council reviews and votes on operating budget

Update on City of Toronto’s Operating Budget – March 4

This week is a busy one on the City budget front.  On Monday and Tuesday, by my count, there were around 80 deputants that took part in the public hearings.  On Wednesday, the Budget Committee met to review services in Cluster A (311, Affordable Housing Office, Children’s Services, Court Services, Economic Development and Culture, EMS, Long-term Care Homes and Services, Parks, Forestry and Recreation, Shelter, Support and Housing Administration, Toronto Employment and Social Services, and Community Partnership and Investment Program), Toronto Public Health, City Manager’s Office, Legal Services, City Clerk’s Office and the Accountability Offices.  This morning, the Budget Committee reviewed services in Cluster B (City Planning, Fire Services, Municipal Licensing and Standards, Policy, Planning, Finance and Administration, Technical Services, Toronto Building, Toronto Environment Office, Transporation Services, Waterfront Secretaritat) and Internal Services (Facilities and Real Estate, Fleet Services, Information and Technology, Office of the Deputy City Manager and Chief Financial Officer, and Office of the Treasurer).  Tomorrow, March 5, they move on to Agencies, Boards and Commissions budgets, with the exception of Toronto Police Service and Toronto Police Services Board which will be discussed on March 12.

Highlights on the Budget Process:

• Child care workers, and the arts community were in particular out in full force at the public hearings.  Main message from child care: Don’t cancel the rental agreement arrangements with school boards; it will present a real financial burden for full fee-paying parents and destabilize a system that is going through major change at the moment.  Main message from the arts groups:  City Council committed to an annual 2% cost of living increase from the arts, and they need to deliver (arts groups like community groups receiving City funding are flatlined).  Beautiful City and arts groups also spoke about the billboard tax that the arts group helped the City initiate last year.  Groups are feeling betrayed that that money has not been directed to community arts as had been the goal.
• Other items: Cancel the $50 recreation set-up fee for new families, seed the affordable housing plan including funds to support community-City advocacy efforts directed at senior levels of government, direct 50% of Section 37 funds to affordable housing, need for additional funding for rental housing inspections, cancel the plan for some Sunday closings at libraries, keep the cost of living increase promise to community agencies,
• On Monday evening, John Tory held a radio show encouraging people to come to City Hall to depute.  At the end of the evening, there were a handful of angry residents deputing against property tax increases, resulting in quite a heated exchange.  Earlier in the evening, the Toronto Board of Trade deputed recommending that the City call in the Auditor General to review the TTC budget saying the budget increase was too high.  Councillors responded that the gross budget goes up when we have more riders, and that a decision was made to expand non-peak bus routes in the suburbs which deliver better service, but raise costs.  When asked how they would cut down costs in the budget, TBOT didn’t offer much but did mention contracting out.  There was another heated exchange between TBOT and Councillors challenging the board’s analysis.

While not included in the budget overview, it is come out in recent days that City staff are advising the City to lease out/privatize its two ski hills and campground.  This would result in the loss of affordable access to skiing for low income residents through the Welcome Policy (Parks and Rec subsidy program) and would result in higher prices for use of these facilities by private operators, as well as, hundreds of jobs lost.

The Budget Committee had a full day session on March 3 on the Cluster A or soft services.  There was much discussion and several motions are coming forward to be voted on on March 12 at the budget wrap up.  Motions include scrapping the plan to end City rental agreements with the school boards for child care space, scrapping the $50 family fee for new recreation users and drop-in fees at City pools.  Councillors also asked for more information regarding the ski hills.  I was not able to stay for the entire discussion but would refer you to more details in this article:  http://www.torontosun.com/news/torontoandgta/2010/03/03/13102446.html

This morning the Budget Committee focused on Cluster B or the hard services and internal services.  Councillors requested briefing notes on heritage districts, fire service over-time and licensing programs for dogs and cats (on the latter point, the staff are recommending to shut down a summer program where students go door to door registering dog and cat licenses).  One note outside budget process:  Staff will be bringing forward a report that looks at the Heat Program, a program out of the Toronto Environment Office that provides grants to single dwelling homeowners for home renovation and improvement related to home heating efficiencies and the like.  The staff report will focus on assisting more low income homeowners with access to grants for weatherstripping and caulking for example.

We encourage residents and groups to contact the Budget Committee members before March 12 (wrap-up) to express their concerns/support regarding the budget and motions coming forward on March 12, as well as, contacting their City Councillors directly.

For Budget Committee:  http://www.toronto.ca/committees/budget-committee.htm

For City Councillors:  http://app.toronto.ca/im/council/councillors.jsp

Excellent analysis in Reality Check: Toronto’s Budget Crunch in Perspective by Hugh Mackenzie:  http://www.local416.org/files/file/CUPE%20report_Hugh%20Mackenzie_Reality%20check_Toronto%20s%20budget%20crunch%20in%20perspective.pdf

Update on City of Toronto’s Operating Budget – February 25

The City of Toronto’s Budget Committee held Councillor hearings on the morning of February 25 to hear questions from City Councillors on the overview of the City’s operating budget. Public deputation sessions will be held on March 1 and 2. There’s still time to sign up to make a 5-minute presentation on the operating budget (contact Merle MacDonald at 416-392-7340 or mmacdona@toronto.ca). Sessions to burrow down on the details of specific program areas will take place on March 3, 4, 5 and 12. Details below on these meetings and public deputations.

Councillors were permitted to ask questions of City staff on the overview of the operating budget and recently distributed briefing notes on the operating budget. Find briefing notes, including one on user fees, here: http://www.toronto.ca/budget2010/briefingnotes_operating.htm

Highlights from discussion:

• Councillor Stintz asked why the budget is up if departments were requested to cut spending by 5%. City staff responded that departments were asked to cut an amount equivalent to 5% of the property tax levy related to their department. Additional dollars come from provincial and federal governments and other sources.
• Councillor Davis asked how much more/less City is spending on consultant fees, numbers of temporary jobs that City Council approves that turn into permanent jobs, and the impact of the City charging TDSB for the rent of child care centres that are located in schools, how this would impact families, what would happen if they didn’t make the change and used funds from reserves instead. Briefing notes to be provided on these items.
• Councillor Hall also raised concerns about the child care centre rent issue. Both Councillors requesting briefing note.
• City staff responded to questions regarding charging rent to TDSB saying that full fee paying parents were enjoying reduced child care rates because the City was covering the rents and the City by charging TDSB will be “correcting this inequity and improving accountability”. She said that it will result in an increase of $2 per day for full fee paying families and will not affect families receiving child care subsidies. For child care centres not in schools, centres have the responsibility of negotiating directly with landlords. She also said that subsidy per diem rates provided to child care centres to subsidize individual children include an amount for the centre’s overhead.
• Other issues were raised re subsidized child care and potential loss of 5,000 spaces (2011-2012, but advocates say lost spaces will begin as early as June 2010 without provincial intervention, represents a loss of 21% of subsidized spaces in Toronto) with expiring funding from senior levels of government. Councillor Hall in particular raised questions about equity issues in the delivery of subsidized child care with regard to the potential losses. Report on this subject will be presented to the City’s Community Development and Recreation Committee in June.
• Councillor Shiner asked about staffing level changes, use fees increases, and debt financing costs over time and into 2011 for each of these issues. Briefing notes to be provided.
• Councillor Chow raised concerns about the recreation user fee increases and impacts on single mothers, including 10% increase for camp fees. He asked if staff had looked into how users would be impacted. Staff responded that the welcome policy which provides subsidies for qualifying low income families and individuals remains in effect and the amount has been increased to $8 million. Also that the recreation fees are lower than found in other municipalities, and that there are no private options that will be cheaper than what the City offers. Staff also mentioned that they will be conducting a review of the welcome policy and making recommendations before the 2011 budget to City Council. In particular, they are looking at capping the welcome policy amount at $8 million, allocating it by season (so once the seasonal allocation of funds runs out, no one else would get a subsidy) and shifting from a program-based subsidy to a dollar-based subsidy where users could apply dollar subsidies to the programs of their choice, and pay the difference when the subsidy amount runs out. These are possible changes for 2011, not 2010. Process of welcome policy review unknown. Councillor Chow also asked about the impact of reducing the property tax increase from the proposed 4% for residential to 3% and raising the business property tax so that the total revenue would remain the same. Staff informed him that by provincial law, non-residential property taxes could be no more than half of residential rates so 1.5% if residential rates are 3%, which would result in a substantial decrease in revenue ($12-13 million) compared to scenario that budget committee is proposing – 4% residential, 1.33% business. Councillor Chow also asked about having a hiring freeze with the exception of police, fire and EMS to save money. Budget Chief Shelley Carroll informed him that there is a hiring slowdown in place now where only front line positions for Council-approved projects are being filled. Otherwise departments have to go to the City Manager and Chief Financial Officer to request additions of any other new positions. Many new positions being hired to address service need issues such as 206 new OW caseload workers.
• Councillor Vaughan asked about staffing level reductions and additions related to the TTC. The briefing note regarding the TTC staffing levels may be in error, with numbers transposed for TTC conventional and TTC wheeltrans service re staffing levels. He also asked about where development charges go to fund operating costs. Staff explained most funds go to capital but there are some exceptions such as development charges, flowed thru reserve funding, fund library acquisitions. Councillor Vaughan requested further details in a briefing note. He spoke about the possibility of tweaking development charges to address the funding cuts proposed for libraries (which would result in some Sunday closures). He also began to talk about a desire to use Section 37 funds for avenue studies (S37 funds come from developers that are given permission to develop properties beyond the usual height/density restrictions, in exchange the developers are required to provide funds that are to be used for community benefit; City planning department conducts avenue studies to envision the land use and design of particular major arteries in the City; e.g. St. Clair avenue study). He also asked about the planning budget which is now less than 1%. He requested a briefing note to look at the connection of development fees and planning department workload, mentioning that despite applications numbers being down, the planning department is busy as ever. Staff confirmed that development applications were way down last year, starting to improve in 2010.
• Councillor Milczyn spoke about how budgeted revenues in the past have not been met, and asked why we believe that the revenue budgeted in this year’s budget will be met. Staff referenced the impact of the recession and how they are seeing increases in revenues this year. This discussion flowed into a discussion of Ontario Works caseloads. At present, the number of families/individuals receiving OW in Toronto is at just under 94,000. Last year’s average was 89,000 and it was budgeted for about 90,000. This year, the OW caseload is expected to increase to 105,000 on average. City consulted with Province and their figures are in agreement.
• Councillor Holyday asked for briefing note on the new and enhanced service costs in the budget.
• Councillor Davis asked why there is a separate budget line for the Toronto Police Services Board and not other boards and asked for a briefing note comparing budgets of the City’s boards. Staff confirmed that legislation requires that the TPSB be listed separate from Toronto Police Services in the budget. Staff to provide briefing note on board budgets. Councillor Davis also discussed inequities in who is bearing brunt of cuts re more libraries as a % of their budget, less police services.
• Councillor Stintz asked if organized sports clubs will have to pay the new $50 fee for recreation account set-up as families will. Staff reported that a similar fee for organized sports groups was introduced last year. Councillor Stintz also asked questions about the Toronto Environment Office funding, whether it had been funded through the Hydro note, reserves, etc. A briefing note will follow.
• Councillor Holyday mentioned that past police chiefs Boothby and Fantino both stated that contracting out cleaning services for police services could save $3.5 million. He requested a briefing note on the issue. Budget Chief Shelley Carroll mentioned that while City Council decides on the envelope of funds provided to police services, it is the polices services’ own budget committee that decides how money is allocated.
• Budget Chief Shelley Carroll asked staff to highlight the highly prescribed recreation programs with user fees identified in the briefing notes. She also asked for a briefing note on staffing reductions – which are vacant positions, which occupied. This will be an in camera issue. She also asked for a briefing note that gives a breakdown of the total tax levy related to new positions. The existing note refers to additional positions, some which are funded 50-50 with the Province.
• Register now to make 5-minute presentation on City operating budget on March 1 or 2 and/or provide written comments – Contact Merle MacDonald, Toronto City Hall, 100 Queen Street West, 10th floor, West Tower, Toronto, ON M5H 2N2 e-mail: mmacdona@toronto.ca phone: 416-392-7340, fax: 416-392-1879. See in chart below: “Making a public presentation”

Next Meetings:

Operating Budget – Public Hearings (Stakeholder Groups & General Public) Budget Committee	March 1, 2010 Council Chamber 6:30 p.m. – 9:30 p.m. March 2, 2010 Council Chamber 1:30 p.m. – 9:30 p.m. Making a public presentation(deputation)
Operating Budget Reviews Budget Committee	March 3, 2010 Citizen Centred Services ‘A’ (soft services; will also include Mayor’s Office, Accountability Offices and Toronto Public Health) Committee Room 1 – 9:30 a.m. March 4, 2010 Citizen Centred Services ‘B’ (hard services) & Internal Services ‘C’ Committee Room 1 – 9:30 a.m. March 5, 2010 Agencies, Boards, Commissions & Other City Programs (except Toronto Public Health and Toronto Police Services) Committee Room 1 – 9:30 a.m. March 12, 2010 Operating Budget Review & Regular Business Items (will include Toronto Police Services review) Committee Room 1 – 2:00 p.m.
Operating Budget Final Wrap-up Budget Committee	March 26, 2010 Committee Room 1 – 9:30 a.m.
Operating Budget Special Executive Committee	April 7, 2010 Committee Room 1 – 9:30 a.m.
2010 Operating Budget City Council	April 15 & 16, 2010 Council Chamber – 9:30 a.m.

Analyst Notes Now Available

The detailed analyst notes are now available for the 2010 proposed operating budget at http://www.toronto.ca/budget2010/analystnotes_operating.htm

City Introduces 2010 Proposed Operating Budget – February 16

The 2010 proposed operating budget was introduced in Council Chambers this morning.  Mayor David Miller and Budget Chief Shelley Carroll made introductory remarks following which City Manager Joe Pennachetti, Director of Financial Planning Josie La Vita and Chief Financial Officer Cam Weldon presented the staff recommended 2010 operating budget.

Documents:

• City of Toronto Staff Recommended 2010 Operating Budget: http://www.toronto.ca/budget2010/pdf/op2010_presentation_budgetcom.pdf
• Mayor David Miller’s Opening Remarks:  http://www.toronto.ca/budget2010/pdf/op2010_speakingnotes_mayormiller.pdf
• City of Toronto media release and budget fact sheets:  http://www.toronto.ca/budget2010/news_releases.htm
• 2010 Operating Budget Schedule:  http://www.toronto.ca/budget2010/operating_schedule.htm

Detailed analyst notes are not yet available, but will be posted at www.toronto.ca/budget2010 (left column under Operating)

The 2010 operating budget is balanced.

Actions taken to balance the budget:

• $87 million from property tax increase – 4% residential and 1.33% business
• $172 million in cost reductions, service efficiencies and service changes (City Manager directed all departments and agencies, boards and commissions to cut budgets by 5%; internal review took place to identify areas to cut; no reference to any community input in this process; some details re cuts from media release see below; need analyst notes for full details, not yet posted)
• $50 million in TTC fare increase (already announced)
• $13 million in user fee increases and new user fees (few details in budget intro; mentions Oct 2009 budget directions and guidelines including increase user fees by at least the rate of inflation but protect the most vulnerable; need analyst notes once available for details)
• Capital refinancing strategy to lessen debt and interest payments (approved during capital budget process)
• Applying 2009 surplus to 2010 revenues (including $31 million savings from City workers’ strike)
• Using reserve funds
• No assets being sold

Budget priorities:

• Protecting key services – EMS, fire, police, maintaining TTC service levels, children’s services, recreation and social services, 311 customer service strategy, increased pay-as-you go funding for capital program (i.e. debt restructuring that brings down principal and interest payments from operating budget)
• Funding the ongoing impact of the recession – Ontario Works (105,000 OW cases on average projected for 2010; up from 90,000 in 2009; resulting from continued high unemployment thru 2010)

City Council Passes Capital Budget

City Council passed the 2010 capital budget and 10-year capital plan this afternoon. With the exception of one minor amendment (related to the timing of a sidewalk repair), the capital budget passed as recommended by the Budget Committee and Executive Committee.

Some highlights not mentioned in previous updates:

• Under the 10-year plan, 3 community centres (Edithvale, Warden Corridor and Railway Lands) will be built in the next 3 years.
• 72% of funds in 10-year plan and 73% of funds from 2010 capital budget will go to TTC, transportation, GO/Union Station revitalization
• The 30-year amortization period on Waterfront Revitalization and Spadina Subway extension will increase the overall cost of these projects by 1.6 billion; this additional amount will be spread out over the last 20 years of a 40-year financial cycle (2030-2050); other cities like Montreal and Winnipeg have done similar long-term financing; Chief Financial Officer, responding to a Councillor’s question, agreed it was not possible to finance projects of this size and expense without longer-term amortization periods; Montreal and Winnipeg have done so as well
• 2009 capital budget was 1.6 billion; 2010 capital budget is 2.431 billion; increase largely driven by desire to take-up federal stimulus funding which required 2/3 municipal funding to access
• City knew this day would come when they would be facing increased infrastructure costs related to TTC, had planned for it; opportunity to use federal stimulus funding pushed forward the date for these cash outlays; not replacing vehicles can have the effect of adding cost on the operating side in maintenance and repair
• As mentioned in last update, Parks, Forestry and Recreation and Toronto Public Library are projected to both have state of good repair backlogs of over 10% of their asset values in 2019; the City Manager identified 5% as a benchmark for SOGR backlogs and identified the need for further investment; he said that the City would have more flexibility after 2015 to deal with these issues; for the next five years, there will be little room in the capital budget to add new initiatives because of the transit and transportation projects already committed
• Chief Financial Officer pointed out that the choices for financing the capital plan are to either raise taxes or refinance; advantage of refinancing while interest rates are low; rate will be locked in for length of debenture; 25% of debt (about $200 million) will be amortized over 30 years and 75% ($600 million) over 10 years
• Councillor Del Grande said the refinancing option was his idea that he presented 2 years ago and it was rejected
• Most TTC projects are funded 1/3 feds, 1/3 prov, 1/3 municipal; projects under the Infrastructure Stimulus Fund are funded 1/3 fed, 2/3 municipal
• 1 billion in TTC projects were removed from the capital plan and deferred until after 2019 in order to fund the current TTC priorities
• Refinancing will lower the City’s debt repayment costs over the next 15 years, the additional costs of 1.6 billion related to refinancing being paid out between 2030-2050
• City revisits 10-year capital budget plan every year and can change it depending on the financial circumstances (e.g. if new federal funding becomes available)
• City staff are having discussions with TTC and Province about possibly fast tracking the construction of the Scarborough/Malvern line related to Pan Am Games
• Councillor Rob Ford moved several motions to cut large amounts out of the capital budget including, but not restricted to, funding for construction of community centres, shelter-related capital projects, bike plan, waterfront revitalization, library construction and expansion, environmental initiatives, and expanded exhibitions at the Toronto Zoo for orangutan, giraffe, gorilla, elephant, mandrill, Euroasia and the penguin. All motions failed. The mandrills are safe, for now.

The meeting concluded with the passing of all capital budget motions.

Operating budget process begins in the new year. I will send updates as dates become available. We are anticipating a longer timeframe between the release of the recommended operating budget and public deputations, as well as, day and evening deputation times, giving community members and groups more opportunity to have their say in this important budget.

Update on City of Toronto’s Capital Budget – December 3

The City of Toronto’s Executive Committee passed the capital budget at their meeting this morning. The capital budget now proceeds to City Council for a final vote on December 8.

Executive Committee members present: Mayor David Miller, Deputy Mayor Joe Pantalone, Councillors Shelley Carroll, Janet Davis, Glenn De Baeremaeker, Norm Kelly, Joe Mihevc, Howard Moscoe and Kyle Rae
Non-committee members present: Councillors Doug Holyday and Cliff Jenkins

Following a detailed presentation on the capital budget by City staff, Councillors asked questions, made statements and then voted on the motions to pass the capital budget and send it on to a final vote at City Council.

2010 capital budget and 2010-2019 capital plan presentation provides details: http://www.toronto.ca/budget2010/pdf/presentation2010recommended_capital_budget.pdf

Questions and Comments from Councillors:

Councillor Holyday criticized the plan to borrow more funds to pay for capital projects, and the extension from 10- to 30-year amortization periods on longer term capital projects such as the Spadina subway extension, suggesting that this was irresponsible and put the burden of debt on future generations. He also contrasted the increased spending on capital with the requirement of City departments to cut 5% from their operating budgets. Several Councillors challenged his comments, stating the plan to pay down debt to lower borrowing charges (by cashing in a Toronto Hydro promissory note) and extending amotization periods for longer term projects lessens the debt repayment burden in 2010, is financially prudent, and a smart use of resources that will allow City Council to take advantage of the rare opportunity of accessing federal and provincial stimulus funding for capital projects such as TTC. Councillor Davis spoke on how the capital budget and 10-year plan is making good on City Council’s 2005 fiscal plan, and that under the capital plan, the City will incur no new debt by 2014. Mayor Miller pointed out that the City’s credit rating will remain at a double-A rating under the current capital plan, unlike the provincial government that has seen a recent downgrading of their rating. Regarding the 30-year amortization period, Mayor Miller supported this approach saying that the people of today should not pay the full cost of infrastructure that will be enjoyed by people well into the future – in the case of the Spadina subway extension for 100 years. He also spoke highly of the Budget Committee’s work and the capital budget referring to the ‘headline’ for this budget as “City builds responsibly”.

Councillor Jenkins commented on City Council’s earlier decision to freeze development fees for new projects, challenged the notion that development would slow in the City as a result of raising development fees and suggested that the City’s need to borrow more funds was affected by its decision to freeze fees. There was considerable disagreement on this question. City staff estimated that revenues would be an additional $100,000-$200,000 over the next five years had there not been a fee freeze if fee increases had no impact on the rate of development and no appeals were made regarding fee increases – both assumptions that City staff and several Councillors doubted would be the case. Councillor Jenkins also asked about how much more the City will pay in the long-run for increasing amortization from 10- to 30-year periods for certain long term capital projects. Staff could not provide a dollar figure (related to the changing value of money, inflation) but answered that the extension of amorization period results in about a 10% increase based on present value basis and that the amount paid in full over time is also offset by the decision to pay down debt now. However it would not be a simple calculation to arrive at the full dollar amount that the City would pay in the end under different scenarios.

The majority of funds from the capital budget and 10-year capital plan are allocated to state of good repair (SOGR) capital projects – repair to existing infrastructure as opposed to service improvements and responding to new growth (although considerable dollars are going to growth related capital projects over the next five years which is related to the availability of stimulus money). The SOGR backlog is projected to be under 10% in most divisions by 2019 (as a % of the asset values) except for Parks, Forestry and Recreation (projected to decrease from 13% in 2010 to 10% in 2019) and Toronto Public Libraries (projected to increase from 7.4% in 2010 to 10% in 2019). Councillor Davis suggested that these divisions were carrying a greater burden of the backlog than other divisions and that needed to be addressed in future capital budgets. As well, she pointed out the need for more focus in future capital budgets on service improvements and growth related capital projects (particularly in the last five years of the 10-year plan) to respond to changing community needs.

The Executive Committee concluded the meeting after passing all motions pertaining to the capital budget.

Final Meeting on the Capital Budget:

Special City Council Meeting takes place at City Hall in Council Chambers on December 8 at 9:30 a.m.

Update on City of Toronto’s Capital Budget – November 26

The Budget Committee passed the capital budget in this morning’s meeting. The capital budget now goes to the Executive Committee on December 3 for review before going to City Council on December 8.

This morning’s meeting was a quick one. The Budget Committee passed all relevant motions to move the capital budget on to Executive Committee. A few cost-neutral motions were passed for the disposition of Section 37 funds for specific projects within the capital budget.

Four budget briefing notes were circulated at the meeting regarding: the allocation of funds from 2001-2009 for state of good repair work on Toronto arenas; results from a 2006 survey of users of municipal indoor ice facilitaties (this was brought forward in response to Councillor discussions re recent media reports on girls and women not getting equitable access to municipal indoor ice rinks in prime time); a response to a letter from Citizens Concerned about the Future of the Etobicoke Waterfront; and 2010 civic improvement capital projects (this is primarily about improving landscape/streetscape in specific areas of the city, and how places were selected).

The Toronto Board of Trade’s submission on the capital budget was received by the committee with no discussion. TBOT’s submission includes eight recommendations focused on taking advantage of stimulus funding, finding a sustainable long-term fiscal strategy for financing infrastructure, pursuing a sound asset management and growth strategy, and ensuring Toronto’s global performance is best “in class” not just in Canada or in Ontario. Included in their recommendations: “…the City needs to focus on what it can do best and consider if it should be divesting itself of certain assets or services”. They go on to say: “Are there better ways of delivering these services and assets? Should the City even be divesting itself of certain programs or assets? This examination needs to consider things like the monetization of public property assets and the creative use of partnerships between governments and the private sector.” [Read: contracting out and privatization.]

Next Capital Budget Meetings:

December 3: Executive Committee at 9:30 AM at City Hall, Committee Room 1
December 8: Special City Council Meeting at 9:30 AM at City Hall, Council Chambers

Update on City of Toronto’s Capital Budget – November 16

The City’s Budget Committee met this morning to review the 2010 Recommended Capital Budget and 2010-2019 Recommended 10-Year Capital Plan. The following will give you the gist of the motions passed. Please check the Budget Committee minutes for exact wording.

• That the Deputy City Manager investigate the potential for the City to purchase any schools/school properties from the Toronto District School Board and Toronto Catholic District School Board as the school boards are moving to close several schools. Councillors discussed the potential for schools as community centres and community hubs. Councillor Davis also cautioned councillors against signalling that the City wants to acquire these properties, as much is left to be determined regarding school closures, boards will be looking for full market value and the schools may or may not be suitable for City needs. The Deputy City Manager is to report back to committee on these issues.
• A few motions were passed regarding Section 37 funds. Section 37 of the Planning Act permits the City to authorize increases in permitted height and/or density through the zoning bylaw in return for community benefits, provided that there are related Official Plan policies in place (section 5.1.1 of the Official Plan as well as certain area-specific policies). There has long been a problem in being able to track where Section 37 funds from developers have been allocated and this issue has been part of the capital budget discussion among councillors.
• The motions passed request a staff report on how it happened that section 37 funds for a Scarborough day care were lost for over two decades (City staff mentioned that they have been making changes to fix the section 37 issue for the past two years, so this work will likely be part of that staff report). Also two motions were passed to release section 37 to specific projects which had been approved in the past.
• A motion calling for a feasibility study for a Don Mills Community Centre was referred to Parks, Forestry and Recreation, that PFR rather than conduct these one-off studies should consider it within the larger recreation service plan and facilities review process. The City has a priority list for where new community centres are to be built over the next 10 years.
• A motion was passed regarding the disposition of funds for the Pan-Am Games – a total of $49.5 million gross overall for facilitities and upgrade projects. See also 2009 briefing note: http://www.toronto.ca/budget2010/pdf/cap2010_bn_panam.pdf
• A motion was passed regarding the disposition of funds for the approved acquisitiion of 819 Sheppard Avenue West related to TTC operations.
• Councillor Mihevc moved a motion referring a small change to the TTC capital budget (no financial implications) to the Budget Committee’s final capital budget wrap up on Thursday. Essentially he wanted to change one of the recommendations in the capital plan that called for further discussion with senior orders of government to increase funding for specific capital projects, and that the City should not restrict it’s ask of senior orders of government to just 1/3 or 2/3 of the capital project cost.

Next meetings in the capital budget process:

November 26: Capital Budget Wrap-Up at 9:30 AM at City Hall, Committee Room 1
December 3: Executive Committee at 9:30 AM at City Hall, Committee Room 1
December 8: Special City Council Meeting at 9:30 AM at City Hall, Council Chambers

Although there are no further opportunities to make public presentations on the capital budget, individuals and groups can contact their Councillors and are encouraged to send comments or recommendations to the Executive Committee prior to their December 3.

Executive Committee Secretariat contact:
Patsy Morris
Toronto City Hall
pmorris@toronto.ca or 416-392-9151

Update on City of Toronto’s Capital Budget – November 13

The Budget Committee held a public hearing on the capital budget today (Nov 13). Today’s meeting was the only opportunity for the public to make deputations on the capital budget – however there are still opportunities to send comments and recommendations to City Councillors including the Executive Committee before the capital budget is voted on by City Council in December.

Send comments or recommendations on the capital budget to the Executive Committee prior to their December 3 meeting:
Executive Committee Secretariat contact:
Patsy Morris
Toronto City Hall
pmorris@toronto.ca or 416-392-9151

A very short list of speakers made deputations today (likely because of the short timeframe to review the capital budget (introduced Nov 3) and prepare a deputation (Nov 13)):

• Nancy Smith Lea with the Toronto Coalition for Active Transportation (TCAT) (support for better cycling and pedestrian environment; concerns with delays in implementing trail and pathway projects; recommendations supporting increased funding for trails and pathways, creating complete streets);
• Rosemarie Powell with Jane/Finch Community and Family Centre (recommendations around local hiring strategies; sorry did not hear full dep);
• Michael Rosenberg (recommendations to reallocate funds for technology to other priorities; need for capital and operating budgets to be considered together as they affect one another);
• David McDonald from Merit Openshop Contractors Association of Ontario (arguing that City staff underestimate how much is spent on restricted tendering; too much spent on unionized shops that are allies of government); and
• Ron Fletcher with the Toronto Bicycling Network (more roads not answer to congestion; increasing TTC fares counterintuitive to promoting transit use, getting people out of cars; need to implement plans to create walkable, bikeable, pro-transit city)

Following the deputations, City Councillors posed questions of staff and made statements regarding their intent to bring forward motions at Monday’s Budget Committee meeting. Councillors included Budget Committee and non-Budget Committee members. Discussion highlights:

• Councillor Minnan-Wong: City of Toronto received federal stimulus money ($200 million) and Recreational Infrastructure Canada funding ($40 million) which moves capital projects forward but 10-year capital budget remains the same; if budget was offset by this $240 million in funding, where did original funds get allocated? Staff: combination of money added to TTC capital projects, funds for old city hall, police evidence facility
• Councillor Thompson: Media reports have shown that section 37 funds have been lost, rediscovered after two decades in Scarborough. How does this happen? Staff: City has been working for the past two years on a project to improve tracking of section 37 and section 45 funds; always on the books, but not recorded in the same place; can’t answer specific questions about the Scarborough funds, will report back
• Councillor Stintz: Did streetcar deal signed in July create cashflow problems that resulted in City needing to take out 30-year debt amortization? Staff: No, it was a combination of TTC capital purchases, federal stimulus, and more conservative forecast on debt charges (30-year amortization hasn’t affected City’s bond rating)
• Councillor Stintz: Does capital budget include our commitments re Pan-Am Games? Is there a problem in meeting these commitments? Staff: Staff are working on a briefing note re spending on Pan-Am Games which will be part of the 2010 City Budget; most funds for Pan-Am Games are not in budget yet; 30-year amortization has created more cushion for City
• Councillor Del Grande: Will City be selling assets this year (like previous years with telephone polls)? Staff: No
• Councillor Minnan-Wong: Discussed need for Don Mills community centre, and work on Don East Regional Trail
• Councillor Thompson: Supports use of section 37 funds for improvements to local child care facility
• A few Councillors brought up the Toronto District School Board’s plan to sell schools and opportunity for City to purchase, use space for community use, much cheaper than building from scratch, could provide community centres that City can’t afford to build
• Councillors discussed motions that they would bring forward at Monday’s meeting covering many of these issues