The Budget Committee recommended to the Executive Committee that:

 

1.         Council approve additional carry forward funding for Toronto Public Library for unspent 2008 capital projects totalling $1.126 million as detailed in Appendix 3.1 of the report (September 15, 2009) from the Deputy City Manager and Chief Financial Officer, in order to continue work on 2008 approved capital projects.

 

2.         City Council approve carry forward funding for unspent 2007 and prior year capital projects totalling $0.295 million with no incremental increase on the 2009 Council approved debt funding as detailed in Appendix 3.2 of the report (September 15, 2009) from the Deputy City Manager and Chief Financial Officer, and that the 2009 Approved Capital Budget be adjusted accordingly.

 

3.         City Council approve closure of the completed capital projects detailed in Appendix 4 of the report (September 15, 2009) from the Deputy City Manager and Chief Financial Officer, and that uncommitted funds from under-spent completed projects be utilized to fund overspent completed projects with no incremental impact on debt, after which any remaining unspent funds be returned to the original funding source.

 

4.         City Council approve the technical adjustments to the 2009 Approved Capital Budget as detailed in Appendices 2.1 and 2.2 of the report (September 15, 2009) from the Deputy City Manager and Chief Financial Officer.

The purpose of this report is to provide the City of Toronto 2008 Final Year-end Capital Variance Report, the 2009 Capital Variance for the Six Months Ended June 30, 2009 and projected actual expenditures to December 31, 2009.  Furthermore, the report seeks Council’s approval for in-year budget adjustments, additional 2008 carry-forward funding and project closures. 2008 Final Year-end Capital Variance was prepared using audited accounting information for the year ended December 31, 2008.

 

The 2008 Final Year-End Capital Expenditure totalled $1.754 billion or 69.9% of the 2008 Council Approved Capital Budget of $2.509 billion.  This represents an increase of $0.147 million over the expenditures reported in the 2008 Preliminary Year-End Capital Variance report.  The increase is attributed to final year-end adjustments proposed by the external auditors and final year end transactions processed primarily by TTC and Toronto Water.

 

Capital expenditures for the six months ended June 30, 2009 totalled $592.634 million or 21.5% of the 2009 Approved Capital Budget of $2.752 billion.  Tax Supported Programs spent $392.111 million, representing 18.3% of their collective 2009 Approved Capital Budget of $2.148 billion (see Appendix 1 in the report).  City Operations spent $122.592 million or 12.9% of the 2009 Approved Capital Budget of $948.191 million; while Agencies, Boards and Commissions (ABCs) spent $269.519 million or 22.5% of their collective 2009 Approved Capital Budget of $1.2 billion.  In total, Rate Supported Programs spent $200.523 million or 33.2% of their 2009 Approved Capital Budget of $603.744 million (see Chart 1 in the report).  This spending pattern is consistent with prior years; typically, capital project activities tend to be concentrated in the latter half of the year; therefore, capital-spending rates will accelerate significantly during the second half of the year, consistent with capital project plans and schedules.

 

As detailed in Appendix 1 of the report, projected actual expenditures to year-end are estimated at $2.132 billion or 77.5% of the total 2009 Approved Capital Budget of $2.752 billion.  Tax Supported Programs project spending to year end of 78.1%; while Rate Supported Programs project spending of 75.1% of their total 2009 Approved Capital Budget

 

In accordance with the City’s Carry Forward Policy, this report requests Council’s approval to carry forward funds for unspent 2008 approved capital project budget as well as for 2007 and earlier years’ approved capital projects not previously identified and included in the 2009 Approved Capital Budget.  The additional carry forward funding request totals $1.126 million as detailed in Appendix 3.1 for 2008 approved capital projects; funding for 2007 and prior years approved capital projects totals $0.295 million with no increase to the 2009 Council Approved debt funding as shown in Appendix 3.2 of the report. 

The Budget Committee recommended to the Executive Committee that:

 

1.         City Council approve the allocation of the additional 2008 year-end net operating surplus of $9.051 million to the Exhibition Place Conference Centre Reserve Fund ($0.942 million), Building Code Act Service Improvement Reserve ($0.127 million) and the 2010 Operating Budget – Prior Year Surplus Revenue ($7.982 million).

 

2.         City Council approve an expenditure increase of $0.033 million in the 2008 Theatres Operating Budget funded from the Sony Centre Improvement Reserve Fund to cover the legal expenses for the Sony Centre Redevelopment project.

 

3.         City Council approve an increase of $75.0 million gross and $0 net to the Shelter, Support and Housing Administration 2009 Operating Budget with funding from the Toronto Community Housing Corporation (TCHC) State of Good Repair Reserve Fund (XR1062) for state of good repair expenditures associated with the backlog of capital maintenance with TCHC.

 

4.         City Council approve the budget adjustments including the approved position changes detailed in Appendix G of the report (September 8, 2009) from the Deputy City Manager and Chief Financial Officer, to amend the 2009 Council Approved Operating Budget between Programs with no Net Budget impact.

The purpose of this report is to provide City Council with the 2008 Final Year-End Operating Variance which was prepared based on audited accounting information; and to obtain approval for the allocation of the additional 2008 year-end operating surplus.  The report also provides City Council with the 2009 2nd Quarter Operating Variance for the six-month period ended June 30, 2009 and requests Council’s approval for amendments to the 2009 Council Approved Operating Budget with no change to the Net Operating Budget.

 

The 2008 Final Year-End Operating surplus totals $88.577 million or 2.7 per cent under the 2008 Council Approved Net Operating Budget.  The final year-end surplus exceeds the amount reported in the 2008 Preliminary Year-End Operating Variance by $9.051 million which is primarily attributed to a reduction of $4.8 million of bad debt provisions in Parking Tag Enforcement and Operation; an increase of $1.260 million in Shelter, Support & Housing Administration recovery of overpayments from Toronto Community Housing Corporation; and Toronto Employment & Social Services’ final reconciliation of Ontario Municipal Partnership Fund (OMPF) that has increased OMPF funding by $0.802 million.  It is recommended that the additional 2008 year-end operating surplus be allocated as follows: $0.127 million to the Building Code Act Service Improvement Reserve to meet future legislated performance requirements as provided for in the Building Code Act Section 7 (2);  $0.942 million to the Exhibition Place Conference Centre Reserve Fund to help guarantee repayment of a loan for the new conference centre as approved by City Council; and that the uncommitted balance of $7.982 million be used as a funding source for the 2010 Operating Budget in compliance with the City of Toronto Act Section 228 (5b).

 

Actual net expenditures for the six-month period ended June 30, 2009 were over budget by $2.214 million or 0.2 per cent.  Analysis indicates that the unfavourable results were primarily driven by the impact of the recession on key non-tax revenues.  It is noted that the recession resulted in the underachievement of revenues in Programs such as Toronto Building, City Planning, Municipal Land Transfer Tax (MLTT) and the Toronto Transit Commission (TTC).  The Deputy City Manager and Chief Financial Officer will continue working with Division Heads to explore opportunities to mitigate the impact of these revenue losses.

 

Projections to year-end indicate that the 2009 Council Approved Net Operating Budget will be under-spent by $32.651 million or 0.9 per cent.  The favourable variance projected at year-end will be largely due to a one-time contribution of $20.0 million from the Toronto Parking Authority; higher than budgeted interest and investment earnings of $10.0 million; under expenditures in a number of City Programs resulting from the 2009 labour disruption, to be significantly offset by TTC’s projected passenger and advertising revenue shortfall and revenue losses arising from both the labour disruption and the 2009 recession.  A separate report on the 2009 labour disruption impact on revenues and expenditures will be submitted to the Executive Committee for its October 2, 2009 meeting; however, the final impact will be included in the 2009 3rd Quarter Operating Variance Report for the Nine-Months Ending September 30, 2009.

The purpose of this report is to provide information on reserve and reserve fund balances as at December 31, 2008, and activity in reserves and reserve funds during the year then ended.  The vast majority of these funds have been committed to fund capital projects and known future liabilities, leaving minimal amounts for discretionary spending.

 

The Budget Committee recommended to the Executive Committee that:

 

1.         City Council authorize the reallocation of funds in the 2009 approved Facilities and Real Estate capital budget in the amount of $503,000, as illustrated in schedule “A” of the report (September 3, 2009) from the Chief Corporate Officer, with zero gross and net impact.

 

2.         City Council authorize deferral and acceleration of funds in the 2009 Approved Facilities and Real Estate Capital Budget and 2010-2013 Capital Plan in the amount of $352,000 as illustrated in Schedule “B” of the report (September 3, 2009) from the Chief Corporate Officer, with a zero gross and net impact.

 

 

This report requests Council’s authority to amend the Facilities and Real Estate Division’s (F&RE) 2009 Approved Capital Budget and 2010-2013 Capital Plan by reallocating funding within the budget and plan, to better meet program requirements.  The adjustment of funds will have a zero net impact corporately and will better align 2009 and future cash flows with F&RE’s program requirements.

 

The Budget Committee recommended to the Executive Committee that:

 

1.         City Council increase the Shelter, Support and Housing Administration 2009 Approved Operating Budget by $98,676,948 gross and $0 net to reflect the funding of the Social Housing Renovation and Retrofit Program.

 

This report updates Budget Committee on “details of any additional projects and final provincial approvals for the Social Housing Renovation and Retrofit Program” as requested by City Council at its meeting of May 25-27, 2009.

 

This report also requests budget adjustments of $98,676,948 gross and $0 net to Shelter, Support and Housing Administration’s 2009 Approved Operating Budget to reflect the additional revenues from the Federal and Provincial Governments.

 

The Budget Committee recommended to the Executive Committee that:

 

1.         City Council approve the following adjustments with no net impact to sub-projects within the “Waterfront Revitalization Initiative” Project in the Waterfront Renewal 2009 Approved Capital Budget:

 

a.         an increase of $3.358 million in 2009 funding for Waterfront Toronto Corporate Costs;

 

b.         an increase of $7.460 million in 2009 funding for Portlands Preparation;

 

c.         an increase of $1.887 million in 2009 funding for Sports Fields, Facilities and Parks Development;

 

d.         an increase of $0.513 million in 2009 funding for Lake Ontario Park (Phase 1);

 

e.         a decrease of $0.843 million in 2009 funding for Port Union Linear Park;

 

f.          a decrease of $0.871 million in 2009 funding for Mimico Linear Park;

 

g.         a decrease of $9.388 million in 2009 funding for Precinct Implementation Projects;

 

h.         a decrease of $1.226 million in 2009 funding for Transportation Initiatives;

 

i.          a decrease of $0.681 million in 2009 funding for the West Don Lands/East Bayfront District Energy;

 

j.          a decrease of $0.020 million in 2009 funding for Pier 4 Rehabilitation;

 

k.         a decrease of $0.055 million in 2009 funding for Urban Planning Resources; and

 

l.          a decrease of $0.134 million in 2009 funding for the Waterfront Project Secretariat.

 

2.         City Council approve that the City act as “Eligible Recipient”, and approve the creation of a new project, entitled “Regional Sports Complex Planning and Design”, in the 2009 Capital Budget for Waterfront Renewal with total funding of $3.511 million ($1.231 million in 2009 and $2.280 million in 2010), fully funded by Waterfront Toronto, which has asked the City to act as an ”Eligible Recipient” on its behalf.

 

3.         City Council request staff to report to Council as part of the 2010 capital budget process on total project costs, confirmed and projected project revenues and the critical path for delivery of the Regional Sports Complex.

 

4.         City Council authorize and direct appropriate City officials to take the necessary action to give effect thereto.

This report seeks approval to reallocate $13.218 million of funding among various sub-projects within the “Waterfront Revitalization Initiative” Project in the 2009 Approved Capital Budget for Waterfront Renewal.  This change reflects Waterfront Toronto’s updated financial requirements for the year, and ensures that Federal funds are expended by March 31, 2011, the current Federal sunset date for the Waterfront Initiative.

 

The proposed adjustments will not affect implementation of any on-going priority Waterfront projects.

 

The City’s contribution to the 2009 Capital Budget for the “Waterfront Revitalization Initiative” Project will remain unchanged at the approved level of $70.713 million.  The City’s overall net contribution to Waterfront Renewal will also remain unchanged at $500.000 million.

 

The report also seeks approval for the creation of a new project in the Capital Budget for Waterfront Renewal entitled “Regional Sports Complex Planning and Design” with a total funding of $3.511 million, fully funded by Waterfront Toronto.  The City has been asked by Waterfront Toronto to implement this initiative on its behalf as the “Eligible Recipient”.  Initial activities will focus on planning, design, environmental work and business planning. This work is included in the tri-government Long-Term Funding Plan for Waterfront Renewal. It is also recommended that staff report to Council as part of the 2010 capital budget process on total project costs, confirmed and projected revenue sources and the critical path for delivery of the Regional Sports Complex.