Members of Council and Staff:  Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended.  The City Clerk’s Office will not provide additional copies.

Special Assistance for Members of the Public:  City staff can arrange for special assistance with some advance notice.  If you need special assistance, please call (416-392-5227), TTY 416‑338-0889 or e-mail buc@toronto.ca.

Closed Meeting Requirements:  If the Budget Committee wants to meet in closed session (privately), a member of the committee must make a motion to do so and give the reason why the Committee has to meet privately. (City of Toronto Act, 2006)

Notice to people writing or making presentations to the Budget Committee:  The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees.

The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e‑mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

The City videotapes committee and community council meetings. If you make a presentation to a committee or community council, the City will be videotaping you and City staff may make the video tapes available to the public.

If you want to learn more about why and how the City collects your information, write to the City Clerk’s Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or by calling 416-392-7340.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - May 28, 2010

Communications/Reports

2009 Final Year-End Capital Variance

The 2009 Final Year-End Capital Expenditure totalled $1.988 billion, which represents a decrease of $0.135 million from the 2009 Preliminary Year-End Capital Expenditure.  This change is immaterial and was the result of adjustments and accounting entries made subsequent to completion of the 2009 Preliminary Capital Variance report (see Appendix 1).

Capital Variance for the Four Months Ended April 30, 2010

As summarized in Table 1 below, for the four months ended April 30, 2010, actual expenditures for Tax Supported Programs totalled $349.231 million or 10.9% of the 2010 Approved Capital Budget of $3.201 billion.  This spending rate is consistent with prior years.  Rate Supported Programs spent $78.258 million or 9.2% of their 2010 Approved Capital Budget of $849.044 million.  Projected spending rates to year-end will approximate 82.4% of the 2010 Approved Capital Budget for Tax Levy Programs and 78.4% for Rate Supported Programs.  The overall projected spending rate to year end is approximately the same as in the past four years.

(See Report.)

The Deputy City Manager and Chief Financial Officer recommends that:

1.         City Council approve allocation of the additional 2009 year-end operating surplus of $4.780 million to the following: $0.446 million to the Exhibition Place Conference Centre Reserve Fund; $1.4 million to the Capital Financing Reserve to fund a shortfall in the Horse Palace Roof Replacement ISF capital project; and $2.934 million to the Property Tax Stabilization Reserve as a revenue source for the 2011 Operating Budget.

2.         City Council approve an increase to Facilities Management and Real Estate's 2010 Approved Staff Complement of three temporary positions with no financial impact on the 2010 Facilities Management and Real Estate Approved Operating Budget.

3.         Budget Committee forward this report to Executive Committee for its consideration.

The purpose of this report is to provide City Council with the 2009 Final Year-End Operating Variance which was prepared based on audited accounting information; and to obtain approval for the allocation of the additional 2009 year-end operating surplus.  In addition, this report provides City Council with the 2010 Operating Variance for the five-month period ended May 31, 2010 and year-end projections.

The 2009 Final Year-End Operating surplus is $359.597 million or 10.5 per cent under the 2009 Council Approved Net Operating Budget.  This represents an increase of $4.780 million over the surplus reported in the 2009 Preliminary Year-End Operating Variance report.  The increase was attributed to final year-end adjustments which resulted in additional revenues of $5.3 million from Toronto Parking Authority and $1.846 million from Exhibition Place.  The above revenue increases were partially offset by a $2.345 million reduction of parking tag and fine revenues reported by Parking Tag Enforcement and Operation.  This report recommends that the additional year-end operating surplus of $4.780 million be allocated as follows: $0.446 million to the Exhibition Place Conference Centre Reserve to help guarantee repayment of a loan for the new conference centre in compliance with prescribed Council direction; $1.4 million to the Capital Financing Reserve in order to fund a shortfall in the Horse Palace Roof Replacement Infrastructure Stimulus Fund capital project; and the uncommitted, additional surplus balance of $2.934 million to the Property Tax Stabilization Reserve for the purpose of funding the 2011 Operating Budget as prescribed in the in the City of Toronto Act, sub-section 228 (5b).

For the five-month period ended May 31, 2010, actual net expenditures were under budget by $63.870 million or 5.0 per cent.  Projections to year-end indicate that the 2010 Council Approved Net Operating Budget will be under-spent by $103.356 million or 2.9 per cent.  This is attributable to a robust housing market in 2010 which will result in higher than budgeted Municipal Land Transfer Tax (MLTT) revenues of approximately $30.0 million; higher than forecasted rate of return in interest and investment earnings of $23.6 million; projected savings of $19.392 million from lower than budgeted number of households and multi-residential units that will receive rebates under the Solid Waste Management rebate program based on the new solid waste fees structure proposed by Solid Waste Management Services for Council approval in July; an estimated increase of $15.1 million from Toronto Transit Commission (TTC) passenger revenues due to higher than budgeted ridership; and savings of $14.473 million in Transportation Services due to lower than expected winter maintenance costs resulting from mild winter weather condition since early 2010.

It should be noted that cost containment measures started in 2009 continues into 2010 and the five-month operating variance report reflects this.  There will likely be additional savings as the year progresses.  However, continuing uncertainty over the strength of the recovery, impact of the Harmonized Sales Tax (HST) on the housing market, and adverse weather in the fall could have a negative impact on current year-end forecasts.

2009 Final Year-End Operating Variance:

As illustrated in Table 1 in the report, the 2009 Final Year-End Operating Surplus is $359.597 million, which exceeds the previously reported 2009 Preliminary Year-End Operating Surplus by $4.780 million.  It is noted that the preliminary variance report was produced in advance of finalization of the 2010 accounting records and the conclusion of the external audit.  The additional surplus resulted from final year-end accounting entries and adjustments processed by Accounting Services and the external auditors.  The attached Appendices A, B and C detail the 2009 final year-end gross expenditures, revenues and net expenditures by City Program and ABC.

Table 2 in the report outlines the recommended allocation of the additional 2009 Final Year-End Operating surplus:

Operating Variance for the Five Months Period Ended May 31, 2010:

Net expenditures for the five-month period ended May 31, 2010 were under budget by $63.870 million or 5.0 per cent (See Table 3 in the report).  Projections to year-end indicate a favourable net operating budget variance of $103.356 million or 2.9 per cent.  As shown in Table 3 in the report, gross expenditure projections will be under budget by $145.5 million or 1.6 per cent, primarily due to the cost containment measures currently in place, and good financial management practices.  The attached Appendices D, E and F summarize net expenditures, gross expenditures, and revenues by City Program and ABC as at May 31, 2010 and projections to year-end.

The Deputy City Manager and Chief Financial Officer, and the General Manager, Toronto Water, recommend that:

1.         The Water and Wastewater Service Rates, and the water rebate for eligible low-income disabled persons and low‑income seniors, set for 2010, approved by Council and enacted by By-law No. 1206-2009 be extended and continued until such time that Council adopts Toronto Water’s 2011 Operating and Capital Budgets and any corresponding  changes, which may be necessary, to the Water and Wastewater Service Rates and water rebate.

This report seeks authorization to extend and continue the Water and Wastewater Service Rates and water rebate for eligible low-income disabled persons and low-income seniors, set for 2010, approved by Council and enacted by By-law No. 1206-2009, until such time that Council adopts Toronto Water’s 2011 Operating and Capital Budgets and any corresponding changes which may be necessary to the Water and Wastewater Service Rates and water rebate.

Toronto Water and Wastewater Programs are fully funded on a ‘pay as you go’ basis through combined Water and Wastewater Service Rates without any reliance on borrowing/debenture financing. The property tax budget is not impacted by the adoption of the recommendations of this report.

Toronto Water customers will not experience any change in the rate charged on water consumption as a result of the extension and continuation of the current Water and Wastewater Service Rates nor in the water rebate for eligible low-income disabled persons and low-income seniors in 2011, as a result of the recommendation in this report.  However, it is anticipated that rate increases for 2011 will be required when the new Council considers the 2011 Water and Wastewater Capital and Operating Budgets.

The General Manager, Solid Waste Management Services, and the Deputy City Manager and Chief Financial Officer, recommend that:

1.         2010 Solid Waste Rates for Residential Curbside Collection, Residential Units Above Commercial Properties Customers, Curbside Residential Subscription Properties, Agencies, Boards, Commissions and Schools, as set-out in Appendix A of the report (June 11, 2010) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, be adopted, and continue until City Council adopts the 2011 Solid Waste Management Services Operating Budget and Capital Plan and the corresponding solid waste rates are approved.

This report seeks authorization to continue the 2010 Solid Waste Rates for Residential Curbside Collection, Residential Units Above Commercial Properties Customers, Curbside Residential Subscription Properties, Agencies, Boards, Commissions and Schools, until City Council adopts the 2011 Solid Waste Management Services Operating Budget and Capital Plan and new rates have been approved.

The City of Toronto Solid Waste Management Services is a fully funded program. Funding consists of various user fees on a ‘pay as you go’ basis through a volume-based solid waste rate system as well as other program revenues.  The recommendations of this report extend the current solid waste management fees as detailed in Appendix A until the new City Council can consider rates proposed as part of the Recommended 2011 Solid Waste Management Services Operating Budget.  The City of Toronto Solid Waste Management Services customers will not experience any change in their solid waste management bills due to the continuation of current 2010 solid waste rates into 2011, as recommended in the report.

This recommendation report does not affect the solid waste rates for multi-residential bulk collection customers.  The continuation of the multi-residential solid waste rates was addressed at the recent June 15, 2010 Public Works & Infrastructure Committee meeting through Recommendation No. 2, “PW34.3 Proposed New Multi-Residential Billing System and Rate Structure for Bulk Collection Customers” that will be before City Council for its consideration on July 6 and 7, 2010.

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

The Deputy City Manager and Chief Financial Officer recommends that:

1.         The accumulated surpluses of $14,235 be paid to the City of Toronto for two AOCCs and be used to partially fund the payment of operating deficits of $107,740 for the other eight AOCC Community Centres core administration operations resulting in a net payment of $93,505 as detailed in Appendix 1 of the report (June 3, 2010) from the Deputy City Manager and Chief Financial Officer.

2.         Effective immediately, all AOCCs adhere to the following existing City policies and guidelines in accordance with the AOCCs, City of Toronto Relationship Framework:

a.         AOCCs seek approval from the Director of the Financial Planning Division prior to incurring expenditures that are not included in the Approved Operating Budget;

b.         AOCCs submit quarterly operating variance reports in sufficient detail to the Financial Planning Division, including projected year-end variances and explanations; and

c.         AOCCs submit detailed Administration and Program budgets for the annual Operating Budget process, to the Financial Planning Division, consistent with operating budget guidelines and policies, and informal requirements.

3.         The report (June 3, 2010) from the Deputy City Manager and Chief Financial Officer be circulated to all AOCCs Boards of Management for information.

This report recommends settlement with the 10 Community Centres (Association of Community Centres or AOCCs) on their Core Administration Operations for 2008 based on audited financial results. In addition, the report also recommends that AOCCs adhere to existing City policies and guidelines, in accordance with the City of Toronto, AOCC Relationship Framework.  This report has been prepared in consultation with Social Development, Finance and Administration Division, AOCC liaison.

The total surpluses of $14,235 from two Community Centres will partially offset the funding of deficits totalling $107,740, resulting in a net payment of $93,505 from the City to the AOCCs in 2010 arising primarily from the Core Administration Operations’ year end results for 2008. The deficit payment will be funded from under-expenditures reported through the final 2010 year-end variance results.

The Chief Corporate Officer recommends that:

1.         City Council authorize the addition of five new sub-projects to the approved 2010 Capital Budget and 2011-2019 capital plan for FM&RE, with funding provided through reallocations from within the Approved 2010 Capital Budget and 2011-2019 Capital Plan, as illustrated in Appendix 1 of the report (June 1, 2010) from the Chief Corporate Officer, with zero gross and net impact.

2.         City Council authorize the reallocation of funds in Facility Management and Real Estate’s 2010 Approved Capital Budget and 2011-2019 Capital Plan in the amount of $0.56 million, as illustrated in Appendix 1 of the report (June 1, 2010) from the Chief Corporate Officer, with zero gross and net impact.

This report requests Council’s authority to amend the Facilities Management and Real Estate division’s 2010 Approved Capital Budget and 2011-2019 Capital Plan, by creating five new sub-projects and 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 2010 and future cash flows with FM’s program requirements.

There are no additional costs to the City as a result of approval of this report.

The approval of this report will result in the reallocation of $0.56 million in the approved 2010 Capital Budget to 5 new sub-projects, as illustrated in Appendix 1.  These amendments will have a zero net impact.

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

The Fire Chief and General Manager, Toronto Fire Services recommends that:

1.         City Council approve the creation of an in-year Capital project with Fire Services for the acquisition of Bunker Suits in the estimated amount of $5.0 million with offsetting funding from the Capital Financing Reserve, which will be repaid by contributions from Fire’s Operating budget over a five-year period.

2.         Future required acquisitions of Bunker Suits be included as part of Fire Services’ submission for the 2011 to 2020 Capital Plan.

3.         A funding strategy be developed and reviewed as part of the 2011 Budget Process that would include the viability of annual operating budget contributions from Fire Services to the Vehicle Reserve - Fire Equipment to ensure sufficient funds are available for the ongoing replacement of Bunker Suits.

Toronto Fire Service (TFS) has a five-year replacement cycle for firefighter bunker gear. The last replacement was in 2005 for $3.3 million and was funded by a rotating loan from the Capital Financing Reserve which is repaid in annual instalments over the five year lifecycle from Fire Services’ operating account FR0019, 6020 – Contributions to Reserves.

The same financing mechanism is proposed again; however, it is to include the creation of a capital project that would record the acquisition of the suits and show the funding source as a contribution from the Capital Financing Reserve resulting in no debt impact to the approved 2010 Fire Services Capital Program. Repayment of the loan would continue by means of the same operating account, which has 2010 base funds of $0.655 million budgeted for that purpose.

Since amalgamation, for the past two acquisitions of bunker suits, the City has used the Capital Financing Reserve as the acquisition financing source with funding in the Fire Services’ base operating budget used as a repayment to the reserve over the 5-year period equal to the life cycle of the bunker suits. Fire Services has now issued a request for proposal to purchase (RFP) 3,800 new bunker suits for firefighters. This includes an initial order of 2,800 bunker suits plus 200 bunker suits per year over 5 years for new recruits and suits damaged beyond repair. It is recommended that the initial order of 2,800 suits be capitalized while suit replacements and suits for new recruits will continue to be expensed through the operating budget.

Based on previous price submissions and cost escalations from the last acquisition in 2005, a capital project estimated at $5.0 million gross and zero debt to be funded from the Capital Financing Reserve is being recommended.  Due to the proposal process, the actual cost cannot be determined at this time, however, it is expected that the actual cost will be in the range of $3.5 to $5.0 million. The last acquisition in 2005 included pricing for cleaning and maintenance, this new RFP will only address the acquisition of bunker suits. A further separate request for quotations (RFQ) will be issued in 2011 for cleaning and maintenance. By separating the RFP for bunker suits and RFQ for cleaning and maintenance more advantageous pricing should be achieved.

Since 2005, the Capital Financing Reserve repayment schedule has been based on a 5-year repayment cycle with applied annual interest of 4.5%. The current annual loan repayment is $0.655 million, based on an original 2005 expenditure of $3.273 million. For the new acquisition of 2,800 suits, based on a 4% interest rate and a 5-year payback, the operating impact to replenish the reserve is estimated to be in the range of $0.7 million to $1.1 million per year.  The actual revised repayment schedule will be based on the results of the winning bid and current corporate financing arrangements.  If the winning bid reflects a favourable price then the operating impact will either be zero as contributions to replenish the reserve remain constant or will reflect a savings over current contributions. However, any repayment to the reserve over the existing base budget of $0.655 million would be a pressure on the 2011 Operating Budget.  With a cost of up to $5.0 million, the pressure on the operating budget may be up to $0.378 million to start replenishing the reserve. Any pressure will be included as necessary in the 2011 Operating Budget submission.

In addition, Fire Services has $0.520 million in the base operating budget to fund bunker suit maintenance, repair, cleaning, as well as replacement and new suits for recruits. A separate RFQ for cleaning and maintenance will be issued and it is currently anticipated that there will likely be no resulting operating budget pressure. Operating impacts will be clarified as part of the 2011 Operating Budget process.

It is recommended that future bunker suit acquisitions be planned capital projects and that a revised financing strategy be developed.

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

The Chief of Emergency Medical Services recommends that:

1.         An amount of $800,000 in capital funding be transferred from the Station 40 ISF Project (CAM850-04) and a further $635,000 be transferred from the Station Security Project (CAM050-01) in Emergency Medical Services’ (EMS) approved 2010 Capital Program to the Station 19 ISF Project (CAM850-02), resulting in a net zero change in the EMS’ 2010-2011 capital program.

Toronto Emergency Medical Services’ 2010 Capital Budget requires an adjustment in order to complete the approved Infrastructure Stimulus Funded (ISF) Project for Station 19 at 100 Turnberry Avenue as the selected tender exceeds the approved estimate.

The selected bid for the Construction Contract was submitted at $3,041,800 resulting in a project budget shortfall of $1,435,000.  The rebuild and expansion of Station 19 is critical to the deployment of paramedic and vehicle resources in the southwest area of the City.  Any delays in the completion of this project beyond March 31, 2011 will jeopardise the City’s ability to receive previously committed Federal Funding of $701,333 for this project.

The recommendation is to transfer $800,000 in uncommitted 2010 approved funding from Station 40 ISF Project and $635,000 from the Station Security Project for a total transfer of $1,435,000 to the Station 19 ISF Project.

The recommended transfer is a zero net change to the EMS’ 2010 and 2011 capital program and will not impact current or future operating or capital budgets.  As stipulated in the Financial Control By-law, any transfer in excess of $250,000 between capital projects requires Council approval.

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

The Executive Director, Municipal Licensing and Standards recommends that:

1.         The 2010 Operating Budget for the Municipal Licensing and Standards, Animal Services program, be amended by an increase of $316,000 gross, $0 net, funded from the Animal Services deferred revenue account to provide support for non-staff costs for pet sterilization, environmental enrichment and special medical care for animals.

The purpose of this report is to recommend to Council, approval of a 2010 Operating Budget adjustment related to the Animal Services Donation Expenditure Plan to transfer donated funds from the deferred revenue account to the Animal Services 2010 Operating Budget.  This will allow the use of donations collected to fund initiatives such as pet sterilization, environmental enrichment and special medical care for shelter animals for which the donations were collected.

This recommended increase to the 2010 Municipal Licensing and Standards Operating Budget for Animal Services, with no impact on the net cost of operations, arises from the availability of public donations to benefit animals on a one-time basis.  Donated funds totalling $559,932 are currently held by the City for this purpose.  This one-time adjustment for $316,000 gross, $0 net will be reversed in the 2011 Operating Budget submission.  Additional available funds may be included in future Operating Budget processes, for consideration by Council.

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

The Toronto Police Service recommends that:

1.         the Budget Committee approve a cash flow increase of $2.45 Million (M) to the 2010 vehicle replacement project within the Toronto Police Service’s Vehicle and Equipment Reserve (Reserve) and a corresponding cash flow decrease in 2011 for a zero net impact on the Reserve, for the acquisition of 75 additional marked vehicles in 2010; and

2.         the Budget Committee approve a technical adjustment to increase the 2009 carry forward amounts, to reflect final year-end balances, for the Power Supply and Furniture Replacement projects by $18,450 and $4,543 respectively with no net impact on the capital program.

The purpose of this report is to provide the City of Toronto Budget Committee with the 2010 capital budget variance report for the period ending March 31, 2010 and to request a cash flow increase of $2.45M to the 2010 vehicle replacement project within the Toronto Police Service’s (“Service”) Vehicle and Equipment Reserve and a corresponding cash flow decrease in 2011 for a zero net impact on the Reserve for the acquisition of 75 additional marked vehicles in 2010, and to request a technical adjustment to increase the 2009 carry forward amounts, to reflect final year-end balances, for the Power Supply and Furniture Replacement projects by $18,450 and $4,543 respectively with no net impact on the capital program.

There are no financial implications related to the recommendations contained within this report.  The 2010 cash flow adjustment to the Reserve allows the Service to commence the implementation of a strategy to manage the planned phase-out of the current marked police vehicle.  The 2011-2020 capital program submission will reflect the appropriate adjustments to the Reserve to fully implement the strategy.

Capital projects are managed within a total approved project amount that can span over several years.  Any unspent budget allocation approved in a particular year can be carried forward for one year.

The Council-approved gross available funding for 2010 (including carryover from 2009) is $87.8 million (M).  Taking into consideration the recommendations in this report, gross available funding for 2010 will be adjusted to $90.3M ($87.8M + $2.45M + $0.023M).  Total adjusted funding is comprised of $70.8M (debt-funded) and $19.5M (other-than-debt funded).

As of March 31, 2010, the Service is projecting a total gross expenditure of $86.8M, compared to $90.3M in available funding (a spending rate of 96.1% for 2010).  From a net debt perspective, the Service is projecting total expenditures of $55.7M, compared to $57.9M in available funding (a spending rate of 96.1%).  The projected (net) under-expenditure for 2010 is $2.3M.  This amount is still required and will be carried forward to 2011.

Advising that the Executive Committee on June 14, 2010:

1.         Referred the report (May 31, 2010) from the City Manager, entitled "Toronto’s 2008 Performance Measurement and Benchmarking Report", to the Budget Committee; and

2.         Requested the City Manager to give a presentation to the Budget Committee respecting Toronto’s 2008 Performance Measurement and Benchmarking Report.

The Government Management Committee recommended to the Budget Committee that:

1.         City Council grant authority to enter into an Agreement of Purchase and Sale with the Toronto District School Board to acquire the parking lot portion of the property municipally known as 80 Lothian Avenue, shown as Part 1 on Appendix “C” to the report (June 9, 2010) from the Chief Corporate Officer and the General Manager, Parks, Forestry and Recreation, at a purchase price of $1,735,733.00 plus applicable taxes and registration fees, estimated at $55,160.00 substantially on the terms outlined in Appendix “A-1” to the report (June 9, 2010) from the Chief Corporate Officer and the General Manager, Parks, Forestry and Recreation, and on such other terms and conditions as may be acceptable to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

2.         City Council direct that the 2010 Approved Capital Budget for Parks, Forestry and Recreation be increased in the amount of $1,790,893.00 to be funded from the Land Acquisition Reserve Fund (XR-1012) for the acquisition of the parking lot portion of the property, ‘Fairfield Seniors’ Centre Parking Lot’.

3          City Council acquire the open space portion of the property at 80 Lothian Avenue, and grant authority to enter into an Agreement of Purchase and Sale with the Toronto District School Board to acquire the open space portion of the property municipally known as 80 Lothian Avenue, shown as Parts 2, 3, 4, 5 & 6 on Appendix “C” to the report (June 9, 2010) from the Chief Corporate Officer and the General Manager, Parks, Forestry and Recreation, at a purchase price of $4,564,267.00 plus applicable taxes and registration fees, estimated at $147,370.00 substantially on the terms outlined in Appendix “A-2” to the report (June 9, 2010) from the Chief Corporate Officer and the General Manager, Parks, Forestry and Recreation, and on such other terms and conditions as may be acceptable to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

4.         City Council direct that the 2010 Approved Capital Budget for Parks, Forestry and Recreation be increased in the amount of $4,711,637.00 to be funded from the Land Acquisition Reserve Fund (XR-1012) for the acquisition of the open space portion of the property ‘TDSB Lothian Avenue Site”.

5.         City Council consider directing any future Section 37 monies and direct cash-in-lieu of parkland dedication money over and above the initial 5% portion, from the date of Council approval forward, which are generated from development in Ward 5 within the local community of 80 Lothian, as determined in consultation with the local Councillor, back to the Land Acquisition Reserve Fund (XR-1012) up to a period of 3 years.

6.         City Council direct that if at the end of 3 years there has not been enough money collected to refund the Land Acquisition Reserve Fund, then Real Estate Services be requested to report back and Council consider the disposition of all or a portion of the asset.  If the disposition includes the portion of the property funded by Section 37 and cash-in-lieu of Parkland Dedication funds, these funds will be reallocated and invested within the local community and vicinity for park purposes.

7          City Council direct that each of the Chief Corporate Officer and the Director of Real Estate Services be authorized severally to execute, on behalf of the City, the Agreement of Purchase and Sale(s) with the Toronto District School Board.

8.         City Council authorize the City Solicitor to complete the transaction on behalf of the City including making payment of any necessary expenses and amending the closing date and other dates to such earlier or later date and on such terms and conditions as she may from time to time consider reasonable.

9.         City Council direct that the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Advising of the action taken by the Government Management Committee on June 17, 2010.

The Board of Health recommends to the Budget Committee for consideration on June 29, 2010, that:

1.         City Council approve funding for the expanded CINOT dental program totalling $356,460 gross, of which $268,845 is funded by the Ministry of Health Promotion and $89,615 is funded for 2010 only through reallocation from the approved 100 per cent City funded dental services budget.

2.         City Council increase the Toronto Public Health 2010 Operating Budget by $268,845 gross with $268,845 revenue from the Ministry of Health Promotion.

3.         The 2011 additional funding requirement of $358,460 gross/$89,615 net for the expanded CINOT dental program be considered by the Budget Committee during the 2011 Operating Budget process.

The increase in the 2010 TPH Operating Budget of $358,460 gross for the CINOT expansion program will be funded by revenue of $268,845 from the MHP therefore resulting in an additional expenditure for the City of $89,615 net.  In order to mitigate this budget pressure in 2010, the required funding of $89,615 will be reallocated on a one-time basis from 100 per cent City funded dental services that are included in the approved TPH 2010 Operating Budget.

The additional funding requirement of $358,460 gross and $89,615 net for the expanded CINOT dental program in 2011 will be forwarded to Budget Committee for consideration during the 2011 Operating Budget process.

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