The Budget Committee:

1.         Directed the Deputy City Manager and Chief Financial Officer to incorporate the following into the 2010 Operating Budget:

Children’s Services

a.         That the recommended reduction of $1.075 million in school-based child care rent subsidy with the four Toronto school boards be reversed and offset by an increase in a contribution from the Child Care Expansion Reserve Fund.

b.         That the General Manager of Children's Services continue to work with the Province on a funding strategy to address funding pressures on base service delivery, on the elimination of the National Child Care strategy, the elimination of Best Start funding and the introduction of the new Early Learning Program (ELP) on the City and report to Community Development and Recreation Committee, and Budget Committee in June 2010, on the outcome.

c.         City Council approve funds of up to $3.8 million for the construction of a new child care centre at Thorncliffe Park Elementary School, 80 Thorncliffe Park Drive, to be funded from the Child Care Capital Reserve fund. (BU68.1a)

d.         City Council increase the 2010 Operating Budget for Children's Services by $3.8 million gross and $0 net with funding from the Child Care Capital Reserve fund.

e.         City Council delegate authority to the General Manager of Children's Services Division to negotiate and execute agreements on behalf of the City with the Toronto District School Board for the design and construction of this project, and such agreements be on terms and conditions satisfactory to the General Manager and the City Solicitor. 

Parks, Forestry and Recreation

f.          That the one-time account set up fee included in the 2010 Recommended Operating Budget for Parks, Forestry and Recreation be reduced from $50 to $25, thus reducing the incremental revenue to be generated from the introduction of this fee from $1.575 million to $0.788 million in 2010 and from $0.525 million to $0.263 in 2011.

g.         That the 2010 Recommended Operating Budget for Parks, Forestry and Recreation be amended by:

i.          increasing by $55,835.66 gross, $0 net, funded on a one-time basis from Section 37 Benefits Agreements related to Ward 30, 201 Carlaw Avenue and 66 Boston Avenue with the following details:

1.         Improvements to Jimmy Simpson Community Centre - $35,000;

2.         Improvements to Matty Eckler Community Centre - $20,835.66;

ii.         increasing by $40,175 gross, $0 net, funded on a one-time basis from Section 37 Benefits agreements related to Ward 30, 90‑100 Broadview with the following details:

1.         Improvements to Matty Eckler Community Centre - $40,175;

iii.        increasing by $75,000 gross, $0 net, funded on a one-time basis from Section 37 Benefits Agreements related to Ward 30, 201 Carlaw Avenue and 66 Boston Avenue with the following details:

1.         Improvements for local parks in Ward 30.

Shelter, Support and Housing Administration

h.         That the 2010 Recommended Operating Budget for Shelter, Support and Housing Administration Division be increased by $350,031.25 gross and $0 net, funded by three Section 37 agreements: $100,000 from the Section 37 agreement for 126 Simcoe Street (source account XR3026-3700198); $50,031.25 from the Section 37 agreement for 306-322 Richmond St. W. (source account XR3026-3700241); and $200,000 from the Section 37 agreement from 300 Front Street West (source account 220096) for capital improvements and capital maintenance of Toronto Community Housing Corporation properties in Ward 20, with the use of the funds guided by a signed Undertaking with TCHC that identifies the financial reporting requirements.

Fire Services

i.          Appendix B - Schedule 1, Fire Services of Chapter 441, Fees, of the Municipal Code be amended to require Owners to pay a fee of $350.00 per hour for each fire vehicle dispatched in response to the first and subsequent malicious false alarms, in respect of the same address, per year, and to require Owners to pay a fee of $350.00 per hour for each fire vehicle dispatched in response to the first and subsequent nuisance false alarms, in respect of the same address, per year.  (BU68.1c)

j.          Authorization be given to add two positions; one Financial Analyst (TF0351) position at $93,610.00 (Salary & Benefits), one Accounting Assistant 2 (TF0113) position at $79,663.00 (Salary & Benefits) to the establishment, plus associated equipment and supplies of $6,000.00 for the two positions and additional mailing costs for the additional invoices of approximately $9,600.00 on an annual basis, for a total annual cost of approximately $188,873.00.

k.         The appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Municipal Licensing and Standards

l.          That the Animal Services Council Reference Group be requested to consider within the strategic planning process that is underway the following:

1.         strategies to ensure that revenue targets around licensing are met;

2.         additional revenue options such as:

-           dog adoption fees;

-           rental of traps;

-           cremation and euthanasia services;

-           dead animal pick-up on private property;

-           fundraising.

City Council

m.        That the Councillors' Office Expense Budget be reduced by 5% or $2,655, from $53,100 to $50,445 resulting in a total reduction of $116,820 to the City Council 2010 Recommended Operating Budget.

Auditor General's Office

n.         That the Audit Committee Recommended 2010 Operating Budget for the Auditor General's Office be reduced by $0.183Million due to savings arising from the recently Council approved contract for external Audit Services.

o.         That the Audit Committee Recommended 2010 Operating Budget for the Auditor General's Office be reduced by $0.043 million by not approving the requested additional position.

The Accountability Offices (excluding The Auditor General’s Office)

p.         That the Accountability Offices’ (excluding The Auditor General’s Office) 2010 Operating Budget be reduced by $0.314 million as per the following breakdown:

i.          The Office of the Integrity Commissioner’s 2010 Operating Budget be reduced by $0.029 million for Non-Salary Expenses.

ii.         The Office of the Lobbyist Registrar’s 2010 Operating Budget be reduced by $0.149 million for Salary Expenses by gapping two (2) positions, and $0.053 million for Non-Salary Expenses.

iii.        The Office of the Ombudsman’s 2010 Operating Budget be reduced:

-          by $0.027 million for Non-Salary Expenses; and

-          by $0.056 million by deleting one Intake Assistant position.

q.         The Lobbyist Registrar submit a report to the Executive Committee on a full cost-recovery fee plan for the 2011 budget process.

Toronto Public Library

r.          That the Toronto Public Library’s 2010 Recommended Operating Budget be increased by $0.208 million gross and net, by reversing the reduction proposal to reduce hours of operations on Sundays by $0.325 million and partially offset by increasing the unallocated reduction by $0.116 million to $0.443 million as recommended by the Toronto Public Library Board on January 18, 2010.

s.          The Toronto Public Library Board report to Budget Committee in August 2010 with specific sustainable budget reductions and associated service impacts to accommodate the $0.443 million net unallocated reduction included in Toronto Public Library Board Recommended Operating Budget on January 18, 2010.

Toronto Police Services Board

t.          That Council approve the 2010 net Operating Budget for the Toronto Police Services Board of $2,347,800, a 2.0% increase over the 2009 net approved budget. (BU68.1f)

Toronto Police Service

u.         That Council approve a one-time unallocated reduction of $4.1M for a revised net operating budget request for the Toronto Police Service of $888.1 million. (BU68.1r)

v.         That Council approve an increase of 80 (including 38 current transit officers) additional uniform positions required for public transit policing, for a revised uniform establishment of 5,588 for the Toronto Police Service.

w.        That Council join with the Toronto Police Services Board in advocating for the Federal government to assume its share of the costs of policing.

x.         That Council request the City Manager and the City’s Chief Financial Officer to meet with the Chief of Police and the Toronto Police Services Board prior to the commencement of the 2011 operating budget process, to consider the impact of the 2010 operating budget.

y.         That Council request the City Manager and the Chief Financial Officer to meet with the Chief of Police and the Toronto Police Services Board prior to the commencement of the 2011 Operating Budget process to consider the impact of the 2010 Operating Budget.

z.         That Council request the City Manager and the Chief Financial Officer to work with the Chief of Police and the Board to develop a process for multi-year financial planning and forecasting.

aa.        That Council conduct a review of applicable City by-laws with a view to more cost effective use of police resources, as it relates to potential savings in the City budget.

bb.       That Council request the City Manager and the Chief Financial Officer to review chargebacks, including cleaning services and legal services, in order to determine the most cost effective way of delivering services, while respecting any applicable collective agreements.

cc.        That Council renew its consideration of cost recovery mechanisms related to the Entertainment District and other high risk licences in order to cover costs of policing.

dd.       The Council request the Deputy City Manager and Chief Financial Officer  to provide a timetable for the  initiatives contained in the report (March 11, 2010) from the Acting Chair, Toronto Police Services Board, entitled "Toronto Police Service – 2010 Operating Budget Submission – Revised", as amended. (BU68.1r)

Toronto Transit Commission

ee.        That City Council request the Toronto Transit Commission to direct the Chief General Manager of the Toronto Transit Commission to ensure that all future budget submissions are in accordance with City of Toronto budget submission requirements that include compliance with all City financial/budgetary policies and provision of complete, detailed budget information in the format and standards set out by the City, to be made available within the timelines of the budget process review schedule, as assigned by the Financial Planning Division, to ensure appropriate time to review, assess and make recommendations and consolidate within the City of Toronto’s financial and budgeting systems.

ff.        Amend Recommendation 79 to read as follows:

79.       That Council approve the recommendations contained in Confidential Attachment II (BU65.1 Attachment 2) and that the recommendations remain confidential until the outcome of Council's decision has been communicated to the Union and affected staff.

Community Partnership and Investment Program (CPIP)

gg.       That the CPIP Investment, Partnership and Administration Programs be increased by 2.0% economic factor adjustment totalling $0.889 million in 2010.

hh.       That the Student Nutrition Program be increased by an additional $0.476 million over the 2.0% economic factor of $0.065 million that will provide enhanced funding totalling $0.541 million for the projected increase in food costs and enhancement for new school communities in 2010, as recommended by the Board of Health.

ii.         That the Toronto International Film Festival Group’s funding be increased by an additional $0.107 million over the 2.0% economic factor increase of $0.014 million to provide a total annual grant of $0.800 million in 2010, in accordance with City Council's recommendation.

jj.         The transforming of the triannual grant of $15,000 to the Glenn Gould Foundation to an annual grant of $15,000.

Non-Program Operating Budget

kk.       That the Non-Program Revenue Budget – Prior Year Surplus be increased by $25.721 million in order to offset the recommended 2010 property tax reduction from 4% residential and 1.33% non-residential to 2.9% residential and 0.967% non-residential of $23.912 million, and to offset other budget adjustments of $1.809 million recommended by Budget Committee.

Preliminary Operating Variance Report for the Year Ended December 31, 2009

ll.         Council approve the allocation of the 2009 preliminary year-end operating surplus of $354.817 million to the following: $0.156 million to the Exhibition Place Conference Centre Reserve Fund to guarantee repayment of a loan for a new conference centre; $2.958 million to the Social Assistance Stabilization Reserve Fund to offset future Toronto Employment & Social Services budget pressures and provide funding for the French Language Service Enhancement initiative for 2010; $275.721 million as Prior Year Surplus Revenue to fund the 2010 Operating Budget; and that the unapplied balance $75.982 million be transferred to the Property Tax Stabilization Reserve. (BU68.2)

mm.     Council approve the withdrawal of $1.3 million from the Building Code Act Service Improvement Reserve Fund to fund the net revenue shortfall for Toronto Building resulting from lower building permit volumes impacted by the economic downturn.

nn.       Council approve that after funding the Green Lane Landfill Operations of $2.449 million, the $12.986 million of the Solid Waste Management Services’ 2009 preliminary net operating surplus be transferred to the Waste Management Reserve Fund.

oo.       Council approve that $2.449 million be reimbursed to the Waste Management Reserve Fund when the Green Lane Landfill Operations generates a sufficient operating surplus.

pp.       Council approve the budget adjustments including the approved position transfers as detailed in Appendix D to amend the 2009 Council Approved Operating Budgets between Programs with no net impact to the 2009 Tax-Levy Operating Budget.

qq.       Council request the Deputy City Manager and Chief Financial Officer to report to the Budget Committee on any changes to the City of Toronto’s 2009 year-end financial position after the 2009 financial statements are finalized.

General

rr.         That the staff recommended property tax increases be reduced from 4% residential and 1.33% non-residential to 2.9% residential and 0.967% non-residential resulting in a property tax revenue reduction of $23.912 million to be offset by 2009 surplus funds.

2.         Deleted Recommendations 25 (Toronto Employment and Social Services), 70 (Toronto Police Services Board, 74 (Toronto Public Library) and 85 (Toronto Transit Commission).

3.         Requested the Toronto Police Services Board to provide a Briefing Note to the final wrap-up meeting on March 26, 2010, on a comparison of Police operations with other jurisdictions in the Province.

4.         Received the following Briefing Notes for information:

CORPORATE ISSUES

•           Account Set Up and Online Fees (BN#10 – Mar 2)

•           Account Set Up and Online Payments with No Charge (BN#19 – Mar 11)

•           Disposition of Temporary Positions for 2008 and 2009 (BN#20 – Mar 11)

•           Economic Factors (BN#1 – Feb 24)

•           Changes to Existing User Fees/Charges and New User Fees/Charges in the 2010 Recommended Operating Budget (BN#2 – Feb 24)

•           Operating Costs of Boards of Agencies, Boards and Commissions (BN#16 – Mar 5)

•           Positions Recommended for Deletion with Funding Impacts (BN#17 – Mar 5)

•           Staff Recommended Approved Position Changes (Revised) (BN#3 – Feb 26)

•           The City of Toronto’s 1998 – 2009 Historical Tax-Supported Debt and Debt Charges and the 2010 – 2019 Forecast (BN#21 – Mar 11)

•           2010 Staff Recommended Gapping (BN#4 – Feb 24)

•           2010 Staff Recommended Operating Budget - New & Enhanced Services (BN#18 – Mar 5)

CITIZEN CENTRED SERVICES “A”

Children’s Services:

•           Provincial Best Start Funding (BN#5 – Feb 24)

•           Rent Payment by Child Care Centres Operating in Schools (Revised) (BN#6 – Mar 2)

Parks, Forestry and Recreation:

•           High Volume User Fees (BN#22 – Mar 11)

•           Parks, Forestry and Recreation User Fees Changes (BN#13 – Mar 3)

•           PF&R Ski Hills Direct Operating Cost Recovery (BN#34 – Mar 12)

•           Ski Hill Reviews (BN#35 – Mar 12)

•           Sustaining and Expanding the Urban Forest (BN#14 – Mar 3)

Social Development, Finance & Administration:

•           Progress on Downloaded Program Costs and Provincial Funding Shortfalls (BN#11 – Mar 2)

Toronto Employment & Social Services:

•           2010 Staff Recommended Ontario Works Caseload Projection (BN#23 – Mar 11)

CITIZEN CENTRED SERVICES “B”

Fire Services:

•           Charges for Nuisance and Malicious False Alarms Do Not Apply to Calls from Citizens Concerned About a Perceived Threat from Fire, Smoke or Emergency Hazards (BN#7 – Feb 24)

•           Fire Services Overtime Analysis (BN#24 – Mar 11)

Toronto Environment Office:

•           Toronto Environment Office: Program Delivery & Reserve Funding (BN#15 – Mar 4)

Transportation Services:

•           Changes to the Transportation Services’ User Fees (BN#8 – Feb 24)

•           Winter Maintenance – Road Salt Usage and Expenditures (BN#25 – Mar 11)

•           The Health of the Winter Maintenance Reserve (BN#26 – Mar 11)

INTERNAL SERVICES

Accounting Services:

•           Harmonized Sales Tax (HST) – Preliminary Financial Impact (9 – Feb 24)

COUNCIL APPOINTED PROGRAMS

Office of the Auditor General:

•           Request For Additional Part-time Administrative Assistant (BN#27 – Mar 11)

Office of the Lobbyist Registrar:

•           Additional reduction to bring the 2010 Operating Budget of the Office of the Lobbyist Registrar to the -5% target (BN#28 – Mar 11)

•           Registration Fees – Lobbyist Registry (BN#29 – Mar 11)

AGENCIES, BOARDS AND COMMISSIONS

Toronto Police Service:

•           Toronto Police Service – Facility Caretaking Costs (BN#30 – Mar 11)

•           Toronto Police Service – Premium Pay Budgets (BN#31 – Mar 11)

Toronto Public Health:

•           Student Nutrition Programs in Toronto (BN#32 – Mar 11)

CORPORATE ACCOUNTS

Community Investment & Partnership Program:

•           Community Partnership and Investment Program: Response to Motions Made During the 2010 Operating Budget Process (BN#33 – Mar 11)

Non-Program:

•           Non-Program Budget – Parking Tag Enforcement and Operations 2010 Impact (BN#12 – Mar 2)

5.         Received the following reports and letters for information:

a.         (April 24, 2009) letter from the Budget Committee, entitled "Creative City Framework Implementation" (BU68.1b);

b.         (January 25, 2010) report from the Chair, Toronto Police Services Board, entitled "Toronto Police Service – Parking Enforcement Unit: 2010 Revised Operating Budget Request" (BU68.1d);

c.         (February 1, 2010) report from the Chair, Toronto Police Services Board, entitled "Toronto Police Service – Revised 2010 Operating Budget Submission" (BU68.1e);

d.         (January 25, 2010) report from the Chair, Toronto Police Services Board, entitled "Toronto Police Service – 2010 Operating Budget Submission" (BU68.1g);

e.         (June 15, 2009) letter from the Toronto Board of Health, entitled "Board of Health Item HL 24.3 – A Five Year Plan for Strengthening Student Nutrition Programs in Toronto" (BU68.1h);

f.          (November 16, 2009) letter from the Toronto Board of Health, entitled "Board of Health Item HL26.16 – Toronto Public Health 2010 Operating Request" (BU68.1i);

g.         (November 20, 2009) letter from the City Librarian, entitled "Toronto Public Library Board – 2010 Operating Budget Request" (BU68.1j);

h.         (February 24, 2010) letter from the City Librarian, entitled "2010 Toronto Public Library Board Operating Budget – Reductions to Meet City Manager Recommendation" (BU68.1k);

i.          (December 18, 2009) letter from the General Secretary, Toronto Transit Commission, entitled "2010 Toronto Transit Commission (TTC) Operating Budget" (BU68.1l) included in budget;

j           (December 18, 2009) letter from the General Secretary, Toronto Transit Commission, entitled "2010 Wheel Trans Operating Budget" (BU68.1m) included in budget;

k.         (December 16, 2009) letter from the Audit Committee, entitled "Audit Committee Item AU14.8 – Auditor General's Office – 2010 Budget" (BU68.1n);

l.          (February 9, 2010) report from the Integrity Commissioner, entitled "2010 Budget Report for the Office of the Integrity Commissioner" (BU68.1o) included in budget;

m.        (February 9, 2010) report from the Lobbyist Registrar, entitled "Office of the Lobbyist Registrar – 2010 Budget" (BU68.1p) included in budget;

n.         (February 11, 2010) report from the Toronto Ombudsman, entitled "2010 Budget Report for the Office of the Ombudsman" (BU68.1q) included in budget;

o.         Wrap-up Notes to the Budget Committee (March 12, 2010) which are on file in the Office of the City Clerk (BU68.1s).

The recommendation in this report is to charge for Fire’s attendance at all false alarms categorized as nuisance or malicious beginning in 2010. Fire Services currently charges for attendance for the second and subsequent nuisance false alarms in a two-month period and for the second and subsequent malicious false alarms in an annual period.

To deal with the issue requires updating Appendix B - Schedule 1, Fire Services of Chapter 441, Fees, of the City of Toronto Municipal Code identifying fees to be charged for nuisance and malicious alarms.  An administration fee of $350.00 per hour for each vehicle dispatched will be charged (based on the Ministry of Transportation schedule for emergency vehicle dispatched) when the following criteria are met:

1.         the first and subsequent malicious false alarms, for same address, per year, per fire vehicle dispatched, and

2.         the first and subsequent nuisance false alarms, for same address, per year, per fire vehicle dispatched.

The purpose of this report is to provide the City of Toronto Budget Committee with the Toronto Police Service – Parking Enforcement Unit’s 2010 revised operating budget request.

Advising that the Toronto Public Library Board, at its meeting on November 16, 2009, approved the following motion:

That the Toronto Public Library Board:

1.         adopt the 2010 Operating Budget request (Attachment 1) of $170.339 million net ($183.139 million gross), which has been provided to the City for discussion and consideration;

2.         adopt the 2010 Program Overview (Attachment 2), which has been provided to the City for discussion and consideration;

3.         adopt the principles of the Budget Reduction Framework provided on page 6 of the report;

4.         review the Preliminary Reduction Options to meet City targets provided on page 7 of the report, and provide guidance to staff; and

5.         authorize and direct the appropriate staff to take the necessary action to give effect thereto.

Advising that the Toronto Transit Commission on December 16, 2009, considered Toronto Transit Commission Report No. 12 (December 16, 2009), entitled "2010 TTC Operating Budget", and forwarded the report to the Budget Committee for approval of Recommendation No. 4 in the report:

"4.        Forward this report to the City of Toronto requesting approval of:

a.         the required 2010 Transit Operating subsidy to the TTC;

b.         confirmation of the establishment of an additional long-term subsidy receivable in the amount of $17.6 million to cover post-retirement benefit non-cash expenses for 2010 consistent with previous accounting treatment approved by Council; and

c.         confirmation of the establishment of an additional long-term subsidy receivable in the amount of $25.8 million to cover accident claims non-cash expenses for 2010 consistent with previous accounting treatment approved by Council as noted in (b) above."

Advising that the Toronto Transit Commission on December 16, 2009 considered Toronto Transit Commission Report No. 13, entitled "2010 Wheel Trans Operating Budget", and forwarded the report to the Budget Committee for approval of Recommendation No. 5 of the report:

"5.        Forward this report to the City of Toronto requesting approval of:

a.         the City’s required 2010 Operating Subsidy for Wheel-Trans;

b.         confirmation of the establishment of an additional long-term subsidy receivable in the amount of $0.83 million to cover post-retirement benefit non-cash expenses for 2010 consistent with previous accounting treatment approved by Council;

c.         confirmation of the establishment of an additional long-term subsidy receivable in the amount of $325,000 to cover accident claims non-cash expenses for 2010 consistent with previous accounting treatment approved by Council; and

d.         the contribution of any 2009 net operating surplus to the TTC Stabilization Reserve Fund for utilization against the 2010 Operating Budget shortfall."

The Budget Committee recommends to the Executive Committee that:

1.         City Council approve the allocation of the 2009 preliminary year-end operating surplus of $354.817 million to the following: $0.156 million to the Exhibition Place Conference Centre Reserve Fund to guarantee repayment of a loan for a new conference centre; $2.958 million to the Social Assistance Stabilization Reserve Fund to offset future Toronto Employment & Social Services budget pressures and provide funding for the French Language Service Enhancement initiative for 2010; $250.0 million as Prior Year Surplus Revenue to fund the 2010 Operating Budget; and that the unapplied balance $101.703 million be transferred to the Property Tax Stabilization Reserve.

2.         City Council approve the withdrawal of $1.3 million from the Building Code Act Service Improvement Reserve Fund to fund the net revenue shortfall for Toronto Building resulting from lower building permit volumes impacted by the economic downturn.

3.         City Council approve that after funding the Green Lane Landfill Operations of $2.449 million, the $12.986 million of the Solid Waste Management Services’ 2009 preliminary net operating surplus be transferred to the Waste Management Reserve Fund.

4.         City Council approve that $2.449 million be reimbursed to the Waste Management Reserve Fund when the Green Lane Landfill Operations generates a sufficient operating surplus.

5.         City Council approve the budget adjustments including the approved position transfers as detailed in Appendix D of the report (March 9, 2010) from the Deputy City Manager and Chief Financial Officer to amend the 2009 Council Approved Operating Budgets between Programs with no net impact to the 2009 Tax-Levy Operating Budget.

6.         The Deputy City Manager and Chief Financial Officer be requested to report back to the Budget Committee on any changes to the City of Toronto’s 2009 year-end financial position after the 2009 financial statements are finalized.

The purpose of this report is to provide Council with the City of Toronto Preliminary Operating Variance for the year ended December 31, 2009 and to obtain Council’s approval of recommendations for the allocation of the 2009 preliminary year-end operating surplus.  The approval is required in order to balance the 2010 Operating Budget and provide property tax stabilization funds to manage tax impacts in 2011.

For the year ended December 31, 2009, the preliminary year-end operating surplus (unaudited) amounted to $354.817 million or 10.3 per cent under the 2009 Council Approved Net Operating Budget.  City Operations contributed $33.405 million towards the preliminary year‑end operating surplus due to prudent expense management as well as the implementation of cost savings strategies introduced in the fourth quarter which included a hiring slowdown and expenditure constraints.  Agencies, Boards and Commissions (ABCs) collectively reported a favourable net expenditure variance of $4.188 million.

Corporate Accounts contributed $317.224 million due to considerable savings in expenditures and higher than budgeted revenues realized within the Non-Program Operating Budget.  Through prudent financial management including labour disruption, wage settlement savings, reduced assessment appeals, related tax reductions and higher investment earnings, the Corporate Accounts were reduced by about $178.0 million.  At the same time, other tax and Non-Program revenue increases and expenditure decreases realized about $139.2 million in budgetary savings.

This report recommends that the 2009 preliminary year-end operating surplus be allocated as follows: $0.156 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; $2.958 million to the Social Assistance Stabilization Reserve Fund to offset future Toronto Employment & Social Services (TESS) Operating Budget pressures and provide funding for the French Language Service Enhancement initiative for 2010; $250.0 million be utilized as a funding source to balance the 2010 Operating Budget; and that the uncommitted balance of $101.703 million surplus be transferred to the Property Tax Stabilization Reserve to be utilized for the 2011 Operating Budget in compliance with the new City of Toronto Act, 2006, Section 228 (5b).  In addition, this report recommends that a withdrawal of $1.3 million from the Building Code Act Service Improvement Reserve Fund be made to fund the net revenue shortfall for Toronto Building, resulting from lower building permit volumes due to the economic downturn, as provided for in the Building Code Act Section 7 (2).

With respect to the Non-Levy Operations, this report recommends that the preliminary year-end operating surplus of $12.986 million in Solid Waste Management Services, after the transfer of the $2.449 million to fund the Green Lane Reserve Fund to offset the 2009 Green Lane operating deficit, be allocated to the Waste Management Reserve Fund.  Solid Waste Management Services will need to reimburse $2.449 million to the Waste Management Reserve Fund when the Green Lane Landfill Operation generates an operating surplus.  Toronto Water reported a 2009 preliminary year-end operating surplus of $21.949 million which will be contributed to the Water and Wastewater Capital Reserve Funds in the 2009 Final Year-end Operating Variance Report.

Council’s approval is also required for amendments to the City of Toronto’s 2009 Operating Budget between Programs to ensure accurate reporting and financial accountability with no increase to the 2009 Council Approved Net Operating Budget.