Item - 2016.EX15.1

Tracking Status

  • City Council adopted this item on June 7, 2016 with amendments.
  • This item was considered by Executive Committee on May 24, 2016 and was adopted with amendments. It will be considered by City Council on June 7, 2016.

EX15.1 - The City of Toronto's Long-term Financial Direction

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on June 7, 8 and 9, 2016, adopted the following:

 

1.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on a framework for the City's multi-year financial and budget process.

 

2.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on strategies and processes to strengthen the City's strategic decision-making and financial oversight that will:

 

a.  support Council in setting priorities and outcomes in order to deliver its strategic agenda;

 

b.  have a multi-year focus;

 

c.  incorporate the use of data-analytics to improve outcome measurement;

 

d.  integrate program planning for City services and the infrastructure delivered by City programs, through divisions and agencies, with the City's financial planning and budgeting to achieve the strategic allocation of resources to meet intended outcomes; and

 

e.  strengthen the City's financial management and oversight of City programs and agencies.

 

3.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on the framework for a multi-year Expenditure Management Plan, which should include short-term and long-term strategies to deliver a business transformation program that:

 

a.  modernizes processes, improves productivity, embeds efficiencies to achieve excellence in service delivery and maximizes value for residents; and

 

b.  strategically manages assets to maximize their use in supporting service delivery.

 

4.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on a multi-year revenue strategy that:

 

a.  examines ways the City can optimize revenue generation from existing and new sources;

 

b.  identifies implementation costs, timing, and the sustainability of revenue options;

 

c.  establishes principles to guide the selection of potential revenues; and

 

d.  establishes a framework for the further application of both existing and new revenues.

 

5.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to undertake an asset optimization study, including consideration of how possible proceeds could be used to address the City's capital deficit through the City Building Fund and report in the fall of 2016.

 

6.  City Council direct the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B to include in their fall 2016 framework report, a financial summary with commentary on City of Toronto transfers and in-kind services to local school boards, including, but not restricted to:

 

a.  Student Nutrition Programs;

b.  School Resource Officers;

c.  swimming pools funding agreement;

d.  Section 37 funds to playgrounds and other asset improvements;

e.  daycare capital and operating; and

f.  any other cost centres not mentioned above.

 

7.  City Council request the City Manager to consider the Ontario Auditor General's Reports respecting alternate service delivery and asset sales when reporting on the long term financial direction.

 

8.  City Council request the City Manager and Deputy Manager and Chief Financial Officer to review existing service levels delivered by City divisions and agencies and identify strategies, including an interdepartmental strategy to co-ordinate and provide innovative approaches to service delivery.

 

9.  City Council request the City Manager and Deputy Manager and Chief Financial Officer to report on possible areas for contract and alternate service delivery that may provide the potential for service efficiencies and further savings. 

 

10. City Council request the City Manager to report to the June 28, 2016 meeting of the Executive Committee with a proposed comprehensive consultation plan for the reports requested in this Item.

 

11. City Council direct the Deputy City Manager and Chief Financial Officer to prepare a fiscal impact summary for each Council meeting which summarizes the financial and staffing implications of Standing Committee reports on that agenda.

City Council Decision Advice and Other Information

The City Manager gave a presentation on the City of Toronto's Long-term Financial Direction.

Background Information (Committee)

(May 16, 2016) Report and Attachment 1 from the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B on the City of Toronto's Long-Term Financial Direction
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-92968.pdf
(May 24, 2016) Presentation from the City Manager and the Deputy City Manager and Chief Financial Officer on the City of Toronto's Long-Term Financial Direction
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-93367.pdf

Background Information (City Council)

Presentation from the City Manager on the City of Toronto's Long-term Financial Direction
https://www.toronto.ca/legdocs/mmis/2016/cc/bgrd/backgroundfile-94252.pdf

Communications (Committee)

(May 19, 2016) Letter from John Kiru, Executive Director, Toronto Association of Business Improvement Areas (TABIA) (EX.Supp.EX15.1.1)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-60907.pdf
(May 24, 2016) Letter from Helen Armstrong, St. Stephen's Community House (EX.Supp.EX15.1.2)
(May 20, 2016) E-mail from Hamish Wilson (EX.Supp.EX15.1.3)
(May 20, 2016) Letter from Tim Maguire, President, CUPE Local 79 (EX.Supp.EX15.1.4)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61023.pdf
(May 20, 2016) Letter from Brooks Barnett, Manager, Government Relations and Policy, Real Property Association of Canada (REALPAC) (EX.Supp.EX15.1.5)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61024.pdf
(May 20, 2016) Letter from Henrik Bechmann (EX.Supp.EX15.1.6)
(May 19, 2016) Letter from Ryan Noble, Executive Director, North York Harvest Food Bank (EX.Supp.EX15.1.7)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61032.pdf
(May 24, 2016) Letter from Sheila Block, Canadian Centre for Policy Alternatives Ontario Office (CCPA) (EX.New.EX15.1.8)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61046.pdf
(May 24, 2016) Letter from John Camilleri, President, Canadian Union of Public Employees (CUPE) Local One - Toronto Hydro Workers (EX.New.EX15.1.9)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61047.pdf
(May 19, 2016) Letter from Michael Polanyi on behalf of the Commitment 2 Community Coalition (EX.Supp.EX15.1.10)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61048.pdf
(May 24, 2016) Submission from Paul Codd (EX.New.EX15.1.11)

Communications (City Council)

(May 25, 2016) E-mail from John Alexopoulos (CC.Main.EX15.1.12)
(June 2, 2016) E-mail from John Alexopoulos (CC.Supp.EX15.1.13)

Motions (City Council)

1 - Motion to Amend Item moved by Councillor Josh Matlow (Lost)

That City Council refer Executive Committee Recommendation 4 to the City Manager for further consideration.

 

Recommendation to be referred:

 

4.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on multi-year revenue strategy that:

 

a.  examines ways the City can optimize revenue generation from existing and new sources;

 

b.  identifies implementation costs, timing, and the sustainability of revenue options;

 

c.  establishes principles to guide the selection of potential revenues; and

 

d.  establishes a framework for the further application of both existing and new revenues. 

Vote (Amend Item) Jun-07-2016 4:31 PM

Result: Lost Majority Required - EX15.1 - Matlow - motion 1
Total members that voted Yes: 8 Members that voted Yes are Sarah Doucette, Paula Fletcher, Mark Grimes, Stephen Holyday, Jim Karygiannis, Josh Matlow, Pam McConnell, Anthony Perruzza
Total members that voted No: 35 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Mary Fragedakis, Michelle Holland, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Ron Moeser

2 - Motion to Amend Item (Additional) moved by Councillor John Campbell (Carried)

That:  

 

1.  City Council request the City Manager and Deputy Manager and Chief Financial Officer to review "existing service levels delivered by City divisions and agencies" and identify strategies, including an interdepartmental strategy to co-ordinate and provide "innovative approaches to service delivery".

 

2.  City Council request the City Manager and Deputy Manager and Chief Financial Officer to report on possible areas for "contract and alternate service delivery that may provide the potential for service efficiencies and further savings".

Vote (Amend Item (Additional)) Jun-07-2016 4:35 PM

Result: Carried Majority Required - EX15.1 - Campbell - motion 2 Part 1
Total members that voted Yes: 43 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 1 Members that were absent are Ron Moeser

Vote (Amend Item (Additional)) Jun-07-2016 4:36 PM

Result: Carried Majority Required - EX15.1 - Campbell - motion 2 Part 2
Total members that voted Yes: 28 Members that voted Yes are Paul Ainslie, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Chin Lee, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that voted No: 15 Members that voted No are Maria Augimeri, Ana Bail„o, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Norman Kelly, Mike Layton, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Ron Moeser

3a - Motion to Amend Item (Additional) moved by Councillor James Pasternak (Carried)

That City Council direct the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B to include in their fall 2016 framework report, a financial summary with commentary on City of Toronto transfers and in-kind services to local school boards, including, but not restricted to:

 

a.  Student Nutrition Programs;

b.  School Resource Officers;

c.  swimming pools funding agreement;

d.  Section 37 funds to playgrounds and other asset improvements;

e.  daycare capital and operating; and

f.  any other cost centres not mentioned above.

Vote (Amend Item (Additional)) Jun-07-2016 4:37 PM

Result: Carried Majority Required - EX15.1 - Pasternak motion 3a
Total members that voted Yes: 29 Members that voted Yes are Maria Augimeri, Ana Bail„o, Jon Burnside, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Paula Fletcher, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Mike Layton, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson
Total members that voted No: 14 Members that voted No are Paul Ainslie, John Campbell, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Mary Fragedakis, Norman Kelly, Chin Lee, Josh Matlow, Pam McConnell, Gord Perks, John Tory, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Ron Moeser

3b - Motion to Amend Item (Additional) moved by Councillor James Pasternak (Lost)

That City Council request the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B to include in their fall 2016 framework report work strategies going forward and best anticipated outcomes for the sale and lease back of City of Toronto owned office buildings.

Vote (Amend Item (Additional)) Jun-07-2016 4:38 PM

Result: Lost Majority Required - EX15.1 - Pasternak - motion 3b
Total members that voted Yes: 17 Members that voted Yes are Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Mark Grimes, Michelle Holland, Chin Lee, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, John Tory
Total members that voted No: 26 Members that voted No are Paul Ainslie, Maria Augimeri, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that were Absent: 1 Members that were absent are Ron Moeser

4 - Motion to Amend Item moved by Councillor Justin J. Di Ciano (Carried)

That City Council amend Executive Committee Recommendation 2 by adding the words "incorporate the use of data-analytics to improve outcome measurement" as a new part 2.c. so that it now reads as follows:

 

2.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on strategies and processes to strengthen the City's strategic decision-making and financial oversight that will:

 

a.  support Council in setting priorities and outcomes in order to deliver its strategic agenda;

 

b.  have a multi-year focus;

 

c.  incorporate the use of data-analytics to improve outcome measurement;

 

d.  integrate program planning for City services and the infrastructure delivered by City programs, through divisions and agencies, with the City's financial planning and budgeting to achieve the strategic allocation of resources to meet intended outcomes; and

 

e.  strengthen the City's financial management and oversight of City programs and agencies.

Vote (Amend Item) Jun-07-2016 4:32 PM

Result: Carried Majority Required - EX15.1 - Di Ciano - motion 4
Total members that voted Yes: 43 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 1 Members that were absent are Ron Moeser

5 - Motion to Amend Item (Additional) moved by Councillor Shelley Carroll (Lost)

That City Council request the City Manager to develop and select an apolitical Blue Ribbon Panel to engage in discussions with the appropriate City Manager's and finance staff on the new Long Term Financial Plan and on draft proposals for the report in fall of 2016.

Vote (Amend Item (Additional)) Jun-07-2016 4:39 PM

Result: Lost Majority Required - EX15.1 - Carroll - motion 5
Total members that voted Yes: 20 Members that voted Yes are Maria Augimeri, Ana Bail„o, Shelley Carroll, Raymond Cho, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mark Grimes, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 23 Members that voted No are Paul Ainslie, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, John Filion, Mary Fragedakis, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Pam McConnell, Joe Mihevc, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, John Tory
Total members that were Absent: 1 Members that were absent are Ron Moeser

6a - Motion to Amend Item (Additional) moved by Councillor Paula Fletcher (Carried)

That City Council request the City Manager to consider the Ontario Auditor General's Reports respecting alternate service delivery and asset sales when reporting on the long term financial direction.

Vote (Amend Item (Additional)) Jun-07-2016 4:40 PM

Result: Carried Majority Required - EX15.1 - Fletcher - motion 6a
Total members that voted Yes: 37 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 6 Members that voted No are Christin Carmichael Greb, Stephen Holyday, Jim Karygiannis, Giorgio Mammoliti, Denzil Minnan-Wong, James Pasternak
Total members that were Absent: 1 Members that were absent are Ron Moeser

6b - Motion to Amend Item (Additional) moved by Councillor Paula Fletcher (Carried)

That City Council request the City Manager to report to the June 28, 2016 meeting of the Executive Committee with a proposed comprehensive consultation plan for the reports recommended in the Report (May 16, 2016) from the City Manager on the City's Long-Term Financial Direction.

Vote (Amend Item (Additional)) Jun-07-2016 4:41 PM

Result: Carried Majority Required - EX15.1 - Fletcher - motion 6b
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Jim Karygiannis, Norman Kelly, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 7 Members that voted No are John Campbell, Christin Carmichael Greb, Justin J. Di Ciano, Stephen Holyday, Chin Lee, Giorgio Mammoliti, James Pasternak
Total members that were Absent: 1 Members that were absent are Ron Moeser

7a - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Lost)

That City Council amend Executive Committee Recommendation 5 by inserting the words "with the exception of the sale of Toronto Hydro" after the words "undertake an asset optimization study," so that the Recommendation 5 now reads as follows:

 

5.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to undertake an asset optimization study, with the exception of the sale of Toronto Hydro including consideration of how possible proceeds could be used to address the City's capital deficit through the City Building Fund and report in the fall of 2016.

Vote (Amend Item) Jun-07-2016 4:33 PM

Result: Lost Majority Required - EX15.1 - Wong Tam - motion 7a
Total members that voted Yes: 19 Members that voted Yes are Maria Augimeri, Raymond Cho, Joe Cressy, Vincent Crisanti, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Michelle Holland, Jim Karygiannis, Mike Layton, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, David Shiner, Kristyn Wong-Tam
Total members that voted No: 24 Members that voted No are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Mark Grimes, Stephen Holyday, Norman Kelly, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, Michael Thompson, John Tory
Total members that were Absent: 1 Members that were absent are Ron Moeser

7b - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Lost)

That City Council amend Executive Committee Recommendation 5 by inserting the words "with the exception of the sale of Toronto Parking Authority" after the word "study" so that it now reads as follows:

 

5.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to undertake an asset optimization study, with the exception of the sale of Toronto Parking Authority, including consideration of how possible proceeds could be used to address the City's capital deficit through the City Building Fund and report in the fall of 2016.

Vote (Amend Item) Jun-07-2016 4:34 PM

Result: Lost (tie) Majority Required - EX15.1 - Wong-Tam - motion 7b
Total members that voted Yes: 21 Members that voted Yes are Raymond Cho, Joe Cressy, Vincent Crisanti, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Michelle Holland, Jim Karygiannis, Mike Layton, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Joe Mihevc, Cesar Palacio, Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 21 Members that voted No are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Mark Grimes, Stephen Holyday, Norman Kelly, Chin Lee, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Jaye Robinson, John Tory
Total members that were Absent: 2 Members that were absent are Maria Augimeri, Ron Moeser

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Jun-07-2016 4:42 PM

Result: Carried Majority Required - EX15.1 - adopt item as amended
Total members that voted Yes: 40 Members that voted Yes are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 3 Members that voted No are Maria Augimeri, Josh Matlow, Anthony Perruzza
Total members that were Absent: 1 Members that were absent are Ron Moeser

Point of Privilege by Councillor Josh Matlow

Councillor Matlow, rising on a Point of Privilege, stated that during his earlier remarks, he had said that Council's approach to transit planning was dishonest.  Councillor Matlow acknowledged that his remarks were unparliamentary and apologized to Council.


Point of Privilege by Councillor John Campbell

Councillor Campbell, rising on a Point of Order, asked for clarification on whether motion 1 by Councillor Matlow was actually a referral rather than an amendment and whether Members would now be speaking to the referral.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that Councillor Matlow's motion was an amendment as only part of the recommendations is being referred.


Point of Order by Councillor John Campbell

Councillor Campbell, rising on a Point of Order, stated that he would like further clarification from the City Clerk.

Ruling by Speaker Frances Nunziata
Speaker Nunziata, accepted the Point of Order and asked the Acting City Clerk to respond.

John Elvidge, Acting City Clerk advised the Council that a motion to refer is to refer an item in its entirety. As Councillor Matlow's motion only refers a part of the item, it is considered an amendment.


Point of Order by Councillor John Campbell

Councillor Campbell, rising on a Point of Order, stated that Councillor Fletcher's questions of Councillor Matlow were not a clarification of his motion.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that Councillor Fletcher should ask questions regarding clarification of the motion.


Point of Order by Councillor Giorgio Mammoliti

Councillor Mammoliti, rising on a Point of Order, stated Councillor Fletcher knows what Councillor Matlow's motion means and is just asking questions to extend the debate.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that Councillor Fletcher should ask questions regarding clarification of the motion.


Point of Privilege by Councillor Paula Fletcher

Councillor Fletcher, rising on a Point of Privilege, stated she has the right to clarify the intent of the motion and what the Council Member is trying to achieve with their motion.  Councillor Fletcher further stated that it is important for her to understand the motion in order to make an informed decision.

Declared Interests (City Council)

The following member(s) declared an interest:

Councillor Maria Augimeri - only as it pertains to motion 7b by Councillor Wong-Tam as her son is employed by a company doing work with the Toronto Parking Authority.

EX15.1 - The City of Toronto's Long-term Financial Direction

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on a framework for the City's multi-year financial and budget process.

 

2.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on strategies and processes to strengthen the City's strategic decision-making and financial oversight that will:

 

a.  support Council in setting priorities and outcomes in order to deliver its strategic agenda;

 

b.  have a multi-year focus;

 

c.  integrate program planning for City services and the infrastructure delivered by City programs, through divisions and agencies, with the City's financial planning and budgeting to achieve the strategic allocation of resources to meet intended outcomes; and

 

d.  strengthen the City's financial management and oversight of City programs and agencies.

 

3.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on the framework for a multi-year Expenditure Management Plan, which should include short-term and long-term strategies to deliver a business transformation program that:

 

a.  modernizes processes, improves productivity, embeds efficiencies to achieve excellence in service delivery and maximizes value for residents; and

 

b.  strategically manages assets to maximize their use in supporting service delivery.

 

4.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to report in the fall of 2016 on multi-year revenue strategy that:

 

a.  examines ways the City can optimize revenue generation from existing and new sources;

 

b.  identifies implementation costs, timing, and the sustainability of revenue options;

 

c.  establishes principles to guide the selection of potential revenues; and

 

d.  establishes a framework for the further application of both existing and new revenues.

 

5.  City Council request the City Manager and the Deputy City Manager and Chief Financial Officer to undertake an asset optimization study, including consideration of how possible proceeds could be used to address the City's capital deficit through the City Building Fund and report in the fall of 2016.

 

6. City Council direct the Deputy City Manager and Chief Financial Officer to prepare a fiscal impact summary for each Council meeting which summarizes the financial and staffing implications of Standing Committee reports on that agenda.

Decision Advice and Other Information

The City Manager and the Deputy City Manager and Chief Financial Officer gave a presentation on the City of Toronto's Long-term Financial Direction.

Origin

(May 16, 2016) Report from the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B

Summary

This is a report on the long-term financial outlook for the City of Toronto.

 

The City of Toronto is the sixth largest government in Canada, with a total 2016 operating and capital budget of nearly $15 billion. This represents an investment of over $5,200 per resident, supporting services vital to our community and economy.

 

The budget is decided by City Council on an annual basis. This is a highly transparent process, providing detailed financial data and encouraging public participation.

 

This report explores the underlying conditions of City finances by reviewing the expense and revenue patterns of recent budgets. The past six years demonstrate a consistent pattern and are the focus of this analysis.

 

In order to provide the clearest understanding of the total cost and levels of municipal services, the analysis is primarily focused on overall (gross) expenses and revenues. Where appropriate, data are adjusted to ensure comparability over time. The general approach is to broaden discussion from the short-term narratives that typically dominate a single budget cycle.

 

The basic patterns of the recent past are straightforward. Overall City expenses have been constrained over the past six years, rising much more slowly than earlier periods. Costs have declined slightly when adjusted for the combined effects of inflation and population growth.

 

This expense constraint has been supported by savings from cost-shared social programs and deferrals of operating and, particularly, capital expense. The practice of deferring necessary expense is most evident in the increased number of unfunded capital projects and priorities, now estimated at up to $29 billion over 15 years.

 

On the revenue side, reliance on property tax has decreased over the past six years. When adjusted for price inflation, property tax revenues have also actually decreased since 2010. Overall revenue growth has been supported by increases in utility rates for water and solid waste, Toronto Transit Commission (TTC) fares and other user fees and rapid growth in Municipal Land Transfer Tax (MLTT) revenues.

 

Each of these expense and revenue conditions has been critical in supporting the balanced budgets and selective increases in services achieved over the past six years. The analysis strongly suggests that the positive circumstances of the recent past are unlikely to continue and, at the very least, cannot form the basis for responsible future fiscal planning.

 

The report also provides a basic forecast of future expense pressures and revenue performance, adopting both a longer time frame and building in key inputs from City agencies. This analysis is necessarily high-level and will be subject to revision as Council provides specific direction and additional data emerges over time.

 

Quantitative projections confirm notable expense challenges in the future, in addition to typical labour and material cost pressures.

 

Projected expense pressures include:

 

-  funding requirements for TTC and Toronto Community Housing Corporation (TCHC)

 

-  annualized costs related to earlier capital and operating commitments

 

-  addressing prior year deferrals of employee benefit liabilities and adjustment in response to the loss of the Toronto Pooling Compensation grant.

 

At the same time, it is anticipated that revenue growth will slow in the absence of policy changes.

 

Projected overall revenues for future years will be influenced by:

 

-  continued low growth in property tax revenues

 

-  leveling off of increases related water and solid waste charges, TTC fares and other user fees

 

-  anticipated maturity of Municipal Land Transfer Tax revenues.

 

Looking towards future years, there are unlikely to be quick solutions or shortcuts to achieve balanced budgets as:

 

-  annual surpluses are falling and are, at any rate, an essential element of the already inadequate capital finance strategy

 

-  reserve funds are already at relatively low levels compared to other jurisdictions

 

-  funding from the governments of Ontario and Canada will be essential to City building, but cannot replace long-term gaps in operating funding or fully offset unmet capital needs.

 

The overall gap between expense and revenue will likely draw attention. The intention is explicitly not to set off a sense of immediate urgency, expense slashing or revenue grab.

 

It is more important to focus on shifting the underlying structure of both expense and revenue management than to search for short-term measures. In a very real way, decisions over a number of years have made both further expense tightening and revenue increases inevitable. It is no longer appropriate or feasible to defer difficult financial decisions to future years.

 

The time has come for a direct conversation concerning the City's finances.

 

Remediation cannot be accomplished in a single step or outlined in a single report. It is not possible or appropriate to jump from diagnosis to solution in the absence of a meaningful engagement with Council and Toronto's residents and businesses. The problems have developed over years, and solutions will take both time and effort.

 

The report therefore outlines a series of principles and directions to guide the development of new strategies to manage expense and expand revenue.

 

Many of the principles and potential measures to be considered will be controversial. But real change will be required to ensure the City's financial stability into the future and to support Council's policy direction to invest in and support the growth of our community.

 

The 2017 Budget cycle will overlap with the long-term considerations described in this report. The pressures expected for 2017 may pose challenges. As the City undertakes the budget process over the coming months, it will be important to ensure consistency between decisions taken in the short-term and the City's emerging long-term priorities.

Background Information

(May 16, 2016) Report and Attachment 1 from the City Manager, the Deputy City Manager and Chief Financial Officer, the Deputy City Manager, Cluster A and the Deputy City Manager, Cluster B on the City of Toronto's Long-Term Financial Direction
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-92968.pdf
(May 24, 2016) Presentation from the City Manager and the Deputy City Manager and Chief Financial Officer on the City of Toronto's Long-Term Financial Direction
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-93367.pdf

Communications

(May 19, 2016) Letter from John Kiru, Executive Director, Toronto Association of Business Improvement Areas (TABIA) (EX.Supp.EX15.1.1)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-60907.pdf
(May 24, 2016) Letter from Helen Armstrong, St. Stephen's Community House (EX.Supp.EX15.1.2)
(May 20, 2016) E-mail from Hamish Wilson (EX.Supp.EX15.1.3)
(May 20, 2016) Letter from Tim Maguire, President, CUPE Local 79 (EX.Supp.EX15.1.4)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61023.pdf
(May 20, 2016) Letter from Brooks Barnett, Manager, Government Relations and Policy, Real Property Association of Canada (REALPAC) (EX.Supp.EX15.1.5)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61024.pdf
(May 20, 2016) Letter from Henrik Bechmann (EX.Supp.EX15.1.6)
(May 19, 2016) Letter from Ryan Noble, Executive Director, North York Harvest Food Bank (EX.Supp.EX15.1.7)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61032.pdf
(May 24, 2016) Letter from Sheila Block, Canadian Centre for Policy Alternatives Ontario Office (CCPA) (EX.New.EX15.1.8)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61046.pdf
(May 24, 2016) Letter from John Camilleri, President, Canadian Union of Public Employees (CUPE) Local One - Toronto Hydro Workers (EX.New.EX15.1.9)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61047.pdf
(May 19, 2016) Letter from Michael Polanyi on behalf of the Commitment 2 Community Coalition (EX.Supp.EX15.1.10)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-61048.pdf
(May 24, 2016) Submission from Paul Codd (EX.New.EX15.1.11)

Speakers

Tim Maguire, President, Canadian Union of Public Employees, CUPE, Local 79
Michael Rosenberg
Adina Lebo, Chair, Canadian Association of Retired People - CARP
Sean Meagher, Executive Director, Social Planning Toronto
John Cartwright, President, Toronto and York Region Labour Council
Sheila Block, Senior Economist, Canadian Centre for Policy Alternatives Ontario Office
John Camilleri, President, Canadian Union of Public Employees, Local One, Toronto Hydro Workers
Helen Armstrong, Community Development and Social Action Worker, St. Stephen's Community House
Scott Travers, President, The Society of Energy Professionals
Michael Polanyi, Commitment to Community
Paul Codd
Derek Moran
Shirley Bush
Hamish Wilson
Steve Barnes, Wellesley Institute
Robert Wardlaw
Henrik Bechmann
Councillor Pam McConnell
Councillor Gord Perks
Councillor Janet Davis
Councillor Joe Cressey
Councillor Shelley Carroll
Councillor Mary Fragedakis
Councillor Paula Fletcher
Councillor Anthony Perruzza

Motions

1 - Motion to Amend Item (Additional) moved by Councillor Jaye Robinson (Carried)

That the Deputy City Manager and Chief Financial Officer be directed to prepare a fiscal impact summary for each Council meeting which summarizes the financial and staffing implications of Standing Committee reports on that agenda.


2 - Motion to Adopt Item as Amended moved by Mayor John Tory (Carried)

That Recommendations 1, 2, 3, and 5 be adopted.


3 - Motion to Adopt Item as Amended moved by Mayor John Tory (Carried)

That Recommendation 4 be adopted.

Vote (Adopt Item as Amended) May-24-2016

Result: Carried Majority Required
Total members that voted Yes: 10 Members that voted Yes are Paul Ainslie, Ana Bail„o, Gary Crawford, Frank Di Giorgio, Mary-Margaret McMahon, Denzil Minnan-Wong, Cesar Palacio, Jaye Robinson, Michael Thompson, John Tory (Chair)
Total members that voted No: 1 Members that voted No are David Shiner
Total members that were Absent: 2 Members that were absent are Michelle Holland, James Pasternak
Source: Toronto City Clerk at www.toronto.ca/council