The Budget Committee recommends to the Executive Committee that:

1.         City Council approve the in-year adjustments to the 2010 Approved Capital Budget as detailed in Appendix 2 of the report (June 24, 2010) from the Deputy City Manager and Chief Financial Officer.

2.         City Council approve carry forward funding for unspent 2009 capital totalling $196.577 million as detailed in Appendix 3.1 of the report (June 24, 2010) from the Deputy City Manager and Chief Financial Officer, in order to continue work on these capital projects, and that the 2010 Approved Capital Budget be adjusted accordingly with no incremental impact on debt.

3.         City Council approve carry forward funding for unspent 2008 and prior year capital projects totalling $0.410 million with no incremental increase to the 2010 Council approved debt funding as detailed in Appendix 3.2 of the report (June 24, 2010) from the Deputy City Manager and Chief Financial Officer, and that the 2010 Approved Capital Budget be adjusted accordingly. 

The Budget Committee recommends to the Executive Committee 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.

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.

The Budget Committee recommends to the Executive Committee that:

1.         City Council extend and continue 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 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.

The Budget Committee recommends to the Executive Committee that:

1.         City Council adopt and 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, 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 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 Budget Committee recommends to the Executive Committee that:

1.         City Council direct that 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.         City Council circulate the report (June 3, 2010) from the Deputy City Manager and Chief Financial Officer 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 Budget Committee recommends to the Executive Committee that:

1.         City Council authorize the addition of five new sub-projects to the approved 2010 Capital Budget and 2011-2019 capital plan for Facilities Management and Real Estate, 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.

The Budget Committee recommends to the Executive Committee 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.         City Council direct that future required acquisitions of Bunker Suits be included as part of Fire Services’ submission for the 2011 to 2020 Capital Plan.

3.         City Council direct that 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.

4.         City Council approve the donation of obsolete fire fighting equipment currently in Toronto Fire Services Inventory, consisting of 60 bunker suits and helmets, 40 pairs of firefighting boots and 6 Medical Equipment storage bags, which has no resale value in North America, to the Bulgarian Fire Services.

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.

The Budget Committee recommends to the Executive Committee that:

1.         City Council transfer an amount of $800,000 in capital funding from the Station 40 ISF Project (CAM850-04) and transfer a further $635,000 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 Budget Committee recommends to the Executive Committee that:

1.         City Council amend the 2010 Operating Budget for the Municipal Licensing and Standards, Animal Services program by an increase of $316,000 gross, $0 net, to be 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.

The Budget Committee recommends to the Executive Committee that:

1.         City Council 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.

The Budget Committee received the following Recommendation 2 of the report (June 2, 2010) from the Chair, Toronto Police Services Board, as it has been reflected in the report (June 14, 2010) from the Deputy City Manager and Chief Financial Officer entitled "2009 Final Year-End Capital Variance Report and Capital Variance Report for the Four Months Ended April 30, 2010":

            2.         City Council 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.

The Budget Committee heard a presentation from the City Manager and the Manager, Performance Management, Executive Management Division, respecting Toronto's 2008 Performance Measurement and Benchmarking Report.

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 Budget Committee recommends to the Executive 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 authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.

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

The Budget Committee recommends to the Executive Committee that:

1.         City Council approve funding for the expanded CINOT (Children in Need of Treatment) 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 (Children in Need of Treatment) dental program be considered by the Budget Committee during the 2011 Operating Budget process.