Item - 2016.EX16.37
Tracking Status
- City Council adopted this item on July 12, 2016 with amendments.
- This item was considered by the Executive Committee on June 28, 2016 and adopted without amendment. It will be considered by City Council on July 12, 2016.
EX16.37 - 2017 Budget Process - Budget Directions and Schedule
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on July 12, 13, 14 and 15, 2016, adopted the following:
1. City Council approve the 2017 Budget Process and Schedule which is designed to develop, review and adopt 2017 Rate Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by December 14, 2016 and the 2017 Tax Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by February 16, 2017 as set out in Appendix 1 to the report (June 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer, as amended by the following changes to the Budget Committee Public Presentation meetings in January 2017, as approved under Striking Committee Item ST10.1:
Budget Committee Public Presentation meetings will be held on January 5, 9 and 10, 2017.
2. City Council direct that all Agencies submit their respective final Board-approved 2017 Operating Budget and 2017 – 2026 Capital Budget and Plan requests no later than October 1, 2016.
3. City Council adopt an across the board budget reduction target of -2.6 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices, and that strategies including but not limited to the following strategies be used to achieve the -2.6 percent target:
a. fund any new or enhanced services from within existing budgets, and review for impact on staff time and planned service delivery any new or enhanced services with a "net zero" funding impact;
b. continue to control expenditures through cost saving measures;
c. explore all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery including from:
i. service delivery rationalization and restructuring;
ii. opportunities for alternative service delivery, including contracting out; and
iii. opportunities for public service delivery where alternative service delivery has not met stated savings objectives or met Council policy objectives;
d. review service levels and outcomes for relevance, value and impact, focussing on non-public facing services first;
e. maximize user fee revenue by reviewing full cost-recovery where applicable, review existing fines and permit fees and identify new fines and other user fees where appropriate;
f. provide a thorough justification for any new Full-time Equivalents; and
g. avoid "offloading" expenses to other City Programs and Agencies.
4. City Council direct that City Programs and Agencies submit their 2017 - 2026 Capital Budget and Plans requiring that:
a. Capital Plan submissions adhere to the debt levels approved by Council for the 2017 - 2025 Capital Plan as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current affordability targets;
b. annual cashflow funding estimates be examined to more realistically match cashflow spending to project activities and timing, especially in the first 5 years of the Capital Plan's timeframe; and
c. unfunded capital project estimates and timing be refined and submitted for prioritization.
5. City Council direct that the operating and capital guidelines detailed in Parts 3 and 4 above be applied to the Accountability Offices for the 2017 Budget process.
6. City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the 2017 budget process, to:
a. incorporate a gender equity perspective into the design, development, adoption and execution of all budgetary processes, in order to promote equitable, effective and appropriate resource allocation and establish adequate budgetary allocations to support gender equity and development programmes which enhance women’s empowerment and develop the necessary analytical and methodological tools and mechanisms for monitoring and evaluation;
b. restructure and target the allocation of public expenditures to promote women’s economic opportunities and equal access to productive resources and to address the basic social, educational and health needs of women, particularly those living in poverty;
c. make efforts to systematically review how women benefit from public sector expenditures; adjust budgets to ensure equity of access to public sector expenditures, both for enhancing productive capacity and for meeting social needs;
d. conduct reviews of city service delivery systems to eliminate any existing bias against women; and
e. facilitate, at all levels, more open and transparent budget processes.
7. City Council direct the City Manager to provide the following information as part of the 2017 tax supported budget:
a. detailed information about anticipated gapping of front line staff; and
b. detailed information on proposed changes to cost recovery or cost shared services.
8. City Council direct the City Manager to prepare the 2017 tax-supported net operating budget based on estimated revenue resulting from a residential property tax increase at or below the rate of inflation.
9. City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the 2017 budget process, to accelerate the use of digital solutions, measurements and analytics.
10. City Council request the City Manager to report back on the Social and Economic impact of Council's decision on this Item as part of the 2017 Budget process.
City Council Decision Advice and Other Information
The City Manager gave a presentation on the City of Toronto's 2017 Budget, Directions and Schedule.
City Council, under Striking Committee Item ST10.1, amended the January 2017 Budget Committee meeting dates as outlined in the decision above.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-94519.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2016/cc/bgrd/backgroundfile-94953.pdf
Communications (Committee)
Motions (City Council)
That City Council amend Executive Committee Recommendation 3e by adding the words ", provided that they are not contrary to the City's approved Poverty Reduction Stratetgy" after the words "where appropriate" so that Recommendation 3e now reads as follows:
e. maximize user fee revenue by reviewing full cost-recovery where applicable, review existing fines and permit fees and identify new fines and other user fees where appropriate, provided that they are not contrary to the City's approved Poverty Reduction Stratetgy;
Vote (Amend Item) Jul-12-2016 5:15 PM
| Result: Lost | Majority Required - EX16.37 - Layton - motion 1 |
|---|---|
| Total members that voted Yes: 16 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Kristyn Wong-Tam |
| Total members that voted No: 26 | Members that voted No are Paul Ainslie, Ana Bailão, 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, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3 by adding the following new Part h:
h. avoid Toronto Transit Commission fare increase above the rate of inflation.
Vote (Amend Item) Jul-12-2016 5:16 PM
| Result: Lost | Majority Required - EX16.37 - Perks - motion 2a |
|---|---|
| Total members that voted Yes: 16 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 26 | Members that voted No are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, John Filion, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, 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: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3 by adding the following new Part i:
i. avoid cuts to Toronto Transit Commission bus, streetcar, Scarborough Rapid Transit and Subway routes.
Vote (Amend Item) Jul-12-2016 5:18 PM
| Result: Lost | Majority Required - EX16.37 - Perks - motion 2b |
|---|---|
| Total members that voted Yes: 17 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 25 | Members that voted No are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, John Filion, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, Michael Thompson, John Tory |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3 by adding the following new Part j:
j. avoid impacting the quality of life of Toronto Community Housing Corporation tenants
Vote (Amend Item) Jul-12-2016 5:20 PM
| Result: Lost | Majority Required - EX16.37 - Perks - motion 2c |
|---|---|
| Total members that voted Yes: 17 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Joe Cressy, Vincent Crisanti, Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 25 | Members that voted No are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, 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: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3 by deleting the words "-2.6 percent" and inserting the words "-5 percent" so that it now reads:
3. City Council adopt an across the board budget reduction target of -5 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices; and that strategies including but not limited to the following strategies be used to achieve the -5 percent target:
a. fund any new or enhanced services from within existing budgets, and review for impact on staff time and planned service delivery any new or enhanced services with a "net zero" funding impact;
b. continue to control expenditures through cost saving measures;
c. explore all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery including from:
i. service delivery rationalization and restructuring; and
ii. opportunities for alternative service delivery, including contracting out;
d. review service levels and outcomes for relevance, value and impact, focussing on non-public facing services first;
e. maximize user fee revenue by reviewing full cost-recovery where applicable, review existing fines and permit fees and identify new fines and other user fees where appropriate;
f. provide a thorough justification for any new Full-time Equivalents (FTEs); and,
g. avoid "offloading" expenses to other City Programs and Agencies.
Vote (Amend Item) Jul-12-2016 5:13 PM
| Result: Lost | Majority Required - EX16.37 - Holyday - motion 3 |
|---|---|
| Total members that voted Yes: 5 | Members that voted Yes are Michelle Holland, Stephen Holyday, Giorgio Mammoliti, Josh Matlow, Jaye Robinson |
| Total members that voted No: 36 | Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, 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, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam |
| Total members that were Absent: 3 | Members that were absent are Josh Colle, Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3 by adding the following new Part h:
h. the City Manager report proposed Service Level or Service Standard reductions to the appropriate Standing Committee for consideration prior to Budget Committee review.
Vote (Amend Item) Jul-12-2016 5:17 PM
| Result: Lost | Majority Required - EX16.37 - Davis - motion 4a |
|---|---|
| Total members that voted Yes: 16 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 26 | Members that voted No are Paul Ainslie, Ana Bailão, 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, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, 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: 2 | Members that were absent are Ron Moeser, David Shiner |
2. City Council amend Executive Committee Recommendation 3 by adding the following new Part i:
i. avoid the reduction of the 200 new child care spaces approved in the 2016 budget.
Vote (Amend Item) Jul-12-2016 5:19 PM
| Result: Lost (tie) | Majority Required - EX16.37 - Davis - motion 4b |
|---|---|
| Total members that voted Yes: 21 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Joe Cressy, Vincent Crisanti, Janet Davis, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Michelle Holland, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Joe Mihevc, Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 21 | Members that voted No are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Glenn De Baeremaeker, Justin J. Di Ciano, John Filion, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Jaye Robinson, Michael Thompson, John Tory |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council deleting Executive Committee Recommendation 3:
Recommendation to be deleted
3. City Council adopt an across the board budget reduction target of -2.6 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices; and that strategies including but not limited to the following strategies be used to achieve the -2.6 percent target:
and adopt instead the following new recommendation 3.
3. City Council direct the City Manager to prepare the 2017 tax-supported net operating budget based on estimated revenue resulting from a residential property tax increase of 3.4 percent to cover the annualized costs of one time expenditures arising from the 2016 operating budget of $38 million, and strategies including but not limited to the following strategies be used to achieve the adjusted target equivalent to a -1.6 percent across the board:
Vote (Amend Item) Jul-12-2016 5:14 PM
| Result: Lost | Majority Required - EX16.37 - Davis - motion 4c |
|---|---|
| Total members that voted Yes: 12 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Paula Fletcher, Mike Layton, Chin Lee, Pam McConnell, Gord Perks, Anthony Perruzza, Kristyn Wong-Tam |
| Total members that voted No: 29 | Members that voted No are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, Michael Thompson, John Tory |
| Total members that were Absent: 3 | Members that were absent are Josh Colle, Ron Moeser, David Shiner |
That City Council amend Executive Committee Recommendation 3c. by adding the following new Part iii.:
c. explore all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery including from:
i. service delivery rationalization and restructuring;
ii. opportunities for alternative service delivery, including contracting out;and
iii. opportunities for public service delivery where alternative service delivery has not met stated savings objectives or met Council policy objectives.
Vote (Amend Item) Jul-12-2016 5:20 PM
| Result: Carried | Majority Required - EX16.37 - Carroll - motion 5 |
|---|---|
| Total members that voted Yes: 22 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, James Pasternak, Gord Perks, Michael Thompson, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 20 | Members that voted No are Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, John Filion, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, Anthony Perruzza, Jaye Robinson |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council request the City Manager to report back on the Social and Economic impact on these recommendations as part of the 2017 Budget process.
Vote (Amend Item (Additional)) Jul-12-2016 5:21 PM
| Result: Carried | Majority Required - EX16.37 - Thompson - motion 6 |
|---|---|
| Total members that voted Yes: 37 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Jon Burnside, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, 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, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 5 | Members that voted No are John Campbell, Josh Colle, Stephen Holyday, Giorgio Mammoliti, Jaye Robinson |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
That City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the 2017 budget process to:
a. incorporate a gender equity perspective into the design, development, adoption and execution of all budgetary processes, in order to promote equitable, effective and appropriate resource allocation and establish adequate budgetary allocations to support gender equity and development programmes which enhance women’s empowerment and develop the necessary analytical and methodological tools and mechanisms for monitoring and evaluation;
b. restructure and target the allocation of public expenditures to promote women’s economic opportunities and equal access to productive resources and to address the basic social, educational and health needs of women, particularly those living in poverty;
c. make efforts to systematically review how women benefit from public sector expenditures; adjust budgets to ensure equity of access to public sector expenditures, both for enhancing productive capacity and for meeting social needs;
d. conduct reviews of city service delivery systems to eliminate any existing bias against women; and
e. facilitate, at all levels, more open and transparent budget processes.
Vote (Amend Item (Additional)) Jul-12-2016 5:22 PM
| Result: Carried | Majority Required - EX16.37 - Wong-Tam - motion 7 |
|---|---|
| Total members that voted Yes: 23 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Michelle Holland, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, James Pasternak, Gord Perks, Kristyn Wong-Tam |
| Total members that voted No: 19 | Members that voted No are Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
Vote (Adopt Item as Amended) Jul-12-2016 5:23 PM
| Result: Carried | Majority Required - EX16.37 - Adopt the item as amended |
|---|---|
| Total members that voted Yes: 32 | Members that voted Yes are Paul Ainslie, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 10 | Members that voted No are Maria Augimeri, Joe Cressy, Janet Davis, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Gord Perks |
| Total members that were Absent: 2 | Members that were absent are Ron Moeser, David Shiner |
Councillor Perks, rising on a Point of Privilege, stated that Councillor Pasternak, in his remarks, had referred to "City staff previous budget shenanigans" and asked that Councillor Pasternak withdraw his remarks.
Councillor Pasternak, rising on a Point of Privilege, stated that Councillor Perks had twisted his words.
Rulings (City Council)
Challenged by Councillor Gord Perks
Vote Jul-12-2016 11:55 AM
| Result: Carried | Majority Required - Uphold the Chair - Perks Challenge |
|---|---|
| Total members that voted Yes: 23 | Members that voted Yes are Jon Burnside, John Campbell, Christin Carmichael Greb, Gary Crawford, Joe Cressy, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, John Filion, Mary Fragedakis, Michelle Holland, Stephen Holyday, Jim Karygiannis, Josh Matlow, Pam McConnell, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Michael Thompson, John Tory |
| Total members that voted No: 9 | Members that voted No are Paul Ainslie, Maria Augimeri, Shelley Carroll, Frank Di Giorgio, Sarah Doucette, Mike Layton, Chin Lee, Mary-Margaret McMahon, Gord Perks |
| Total members that were Absent: 12 | Members that were absent are Ana Bailão, Raymond Cho, Josh Colle, Janet Davis, Paula Fletcher, Mark Grimes, Norman Kelly, Giorgio Mammoliti, Ron Moeser, Jaye Robinson, David Shiner, Kristyn Wong-Tam |
37a - 2017 Budget Process - Budget Directions and Schedule
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-94720.pdf
EX16.37 - 2017 Budget Process - Budget Directions and Schedule
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council approve the 2017 Budget Process and Schedule which is designed to develop, review and adopt 2017 Rate Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by December 14, 2016 and the 2017 Tax Supported Operating Budget and 2017 to 2026 Capital Budget and Plan by February 16, 2017 as set out in Appendix 1 to the report (June 17, 2016) from the City Manager and the Deputy City Manager and Chief Financial Officer.
2. City Council direct that all Agencies submit their respective final Board-approved 2017 Operating Budget and 2017 – 2026 Capital Budget and Plan requests no later than October 1, 2016.
3. City Council adopt an across the board budget reduction target of -2.6 percent net below the 2016 Approved Net Operating Budgets for all City Programs, Agencies, Toronto Community Housing Corporation, and Accountability Offices; and that strategies including but not limited to the following strategies be used to achieve the -2.6 percent target:
a. fund any new or enhanced services from within existing budgets, and review for impact on staff time and planned service delivery any new or enhanced services with a "net zero" funding impact;
b. continue to control expenditures through cost saving measures;
c. explore all services for efficiency savings including opportunities from business process reengineering, streamlining, transformation and innovation to service delivery including from:
i. service delivery rationalization and restructuring; and
ii. opportunities for alternative service delivery, including contracting out;
d. review service levels and outcomes for relevance, value and impact, focussing on non-public facing services first;
e. maximize user fee revenue by reviewing full cost-recovery where applicable, review existing fines and permit fees and identify new fines and other user fees where appropriate;
f. provide a thorough justification for any new Full-time Equivalents (FTEs); and,
g. avoid "offloading" expenses to other City Programs and Agencies.
4. City Council direct that City Programs and Agencies submit their 2017 - 2026 Capital Budget and Plans requiring that:
a. Capital Plan submissions adhere to the debt levels approved by Council for the 2017 - 2025 Capital Plan as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current affordability targets;
b. annual cashflow funding estimates be examined to more realistically match cashflow spending to project activities and timing, especially in the first 5 years of the Capital Plan's timeframe; and
c. unfunded capital project estimates and timing be refined and submitted for prioritization.
5. City Council direct that the operating and capital guidelines detailed in Recommendations 3 and 4 above be applied to the Accountability Offices for the 2017 Budget process.
6. City Council direct the City Manager to provide the following information as part of the 2017 tax suported budget:
a. detailed information about anticipated gapping of front line staff; and
b. detailed information on proposed changes to cost recovery or cost shared services.
7. City Council direct the City Manager to prepare the 2017 tax-supported net operating budget based on estimated revenue resulting from a residential property tax increase at or below the rate of inflation.
8. City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer, as part of the 2017 budget process, to accelerate the use of digital solutions, measurements and analytics.
Origin
Summary
The purpose of this report is to establish the 2017 Budget process and schedule to review and approve the Tax and Rate Supported 2017 Operating Budget and the 2017 to 2026 Capital Budget and Plan for the City of Toronto.
The recommended 2017 Budget Process and Schedule is designed to ensure that the Rate Supported Operating Budgets and 10-Year Capital Plans are approved by December 14, 2016 and the Tax Supported Operating Budget and 10-Year Capital Plan are approved by February 16, 2017. To ensure adequate time to review agency budget submissions, it is recommended that City Council direct all Agencies to submit their final Board-approved budget submissions by October 1, 2016.
This report also lays out the 2017 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2016 Budget process as well as anticipated costs and revenues associated with maintaining 2016 approved service levels. These projected pressures are presented to assist Budget Committee and Council in establishing recommended budget targets and directions for City Programs, Agencies and Accountability Offices in order to address significant budget pressures forecasted for 2017. These estimates are projected based on current information and are not final. These estimates will change with the receipt of actual budget submissions.
A net tax supported revenue increase of $66 million is projected for 2017. This estimate is driven by an assumed 2 percent residential tax rate increase of $52 million, assessment growth of $40 million or 1 percent and only a marginal increase of $20 million in Municipal Land Transfer Taxes that will be reduced to account for the reversal of $38 million in approved one-time 2016 revenues and other net revenue reductions of $8 million.
Operating expenses are forecasted to increase by $582 million with Capital Financing and other Non-Program expenses ($166 million), Toronto Transit Commission ($178 million), Toronto Community Housing Corporatin ($96 million) and Toronto Police Services ($19 million) projected as the key service cost drivers. With revenues fixed at $66 million, budget reduction strategies are required to offset net base pressures of $516 million in order to balance the 2017 Operating Budget. These strategies would simply address current service costs and exclude any funding for new and enhanced service investments.
Given the limited funding for City services, there is no additional financial capacity to fund any new capital works in 2017. As a result, City Programs, Agencies and Accountability Officers must submit 2017 – 2026 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2025 Capital Plan’s annual debt funding approved by Council as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current debt targets as provided by the Deputy City Manager and Chief Financial Officer.
Staff are requested to continue to refine their estimates for the unfunded capital projects valued at $29 billion identified in 2016 and to submit these to establish priorities. Staff have begun developing a funding plan for priority capital projects, which will include a review of debt capacity, the application of new and existing revenue options, as well as the eligibility of Federal and Provincial funding programs over the next 12 to 24 months. The ensuing list of new unfunded capital projects will be considered in concert with the City Manager and Chief Financial Officer's report on a multi-year revenue strategy which will then form the basis for the development of a funding plan for priority capital projects as part of the City's Long Term Financial Plan. The funding plan would then be submitted to Council for its consideration and approval.
Revenue tools currently under study may not be available for the 2017 Budget process and should not be considered as providing any significant relief for 2017. Should any become available for use, they must be considered as a bridging strategy to sustainable operating budgets only. New revenue sources must be considered for the sizable unfunded capital needs that have been identified as critical to maintaining reliable City service delivery and meeting city building and other strategic objectives.
In prior years, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets have been met with varying degrees of compliance and impact. Beginning with the 2017 Budget process, Budget Committee is requested to recommend budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.
In addressing 2017 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2017 with the City's emerging longer-term priorities.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-94519.pdf
Communications
Speakers
Councillor Gord Perks
Motions
That the recommendations in the letter (June 22, 2016) from the Budget Committee [Item EX16.37a] be adopted.
37a - 2017 Budget Process - Budget Directions and Schedule
Origin
Summary
The purpose of this report is to establish the 2017 Budget process and schedule to review and approve the Tax and Rate Supported 2017 Operating Budget and the 2017 to 2026 Capital Budget and Plan for the City of Toronto.
The recommended 2017 Budget Process and Schedule is designed to ensure that the Rate Supported Operating Budgets and 10-Year Capital Plans are approved by December 14, 2016 and the Tax Supported Operating Budget and 10-Year Capital Plan are approved by February 16, 2017. To ensure adequate time to review agency budget submissions, it is recommended that City Council direct all Agencies to submit their final Board-approved budget submissions by October 1, 2016.
This report also lays out the 2017 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2016 Budget process as well as anticipated costs and revenues associated with maintaining 2016 approved service levels. These projected pressures are presented to assist Budget Committee and Council in establishing recommended budget targets and directions for City Programs, Agencies and Accountability Offices in order to address significant budget pressures forecasted for 2017. These estimates are projected based on current information and are not final. These estimates will change with the receipt of actual budget submissions.
A net tax supported revenue increase of $66 million is projected for 2017. This estimate is driven by an assumed 2 percent residential tax rate increase of $52 million, assessment growth of $40 million or 1 percent and only a marginal increase of $20 million in Municipal Land Transfer Taxes that will be reduced to account for the reversal of $38 million in approved one-time 2016 revenues and other net revenue reductions of $8 million.
Operating expenses are forecasted to increase by $582 million with Capital Financing and other Non-Program expenses ($166 million), Toronto Transit Commission ($178 million), Toronto Community Housing Corporatin ($96 million) and Toronto Police Services ($19 million) projected as the key service cost drivers. With revenues fixed at $66 million, budget reduction strategies are required to offset net base pressures of $516 million in order to balance the 2017 Operating Budget. These strategies would simply address current service costs and exclude any funding for new and enhanced service investments.
Given the limited funding for City services, there is no additional financial capacity to fund any new capital works in 2017. As a result, City Programs, Agencies and Accountability Officers must submit 2017 – 2026 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2025 Capital Plan’s annual debt funding approved by Council as part of the 2016 Budget process, and projects be added in the new tenth year, 2026, that can be accommodated within current debt targets as provided by the Deputy City Manager and Chief Financial Officer.
Staff are requested to continue to refine their estimates for the unfunded capital projects valued at $29 billion identified in 2016 and to submit these to establish priorities. Staff have begun developing a funding plan for priority capital projects, which will include a review of debt capacity, the application of new and existing revenue options, as well as the eligibility of Federal and Provincial funding programs over the next 12 to 24 months. The ensuing list of new unfunded capital projects will be considered in concert with the City Manager and Chief Financial Officer's report on a multi-year revenue strategy which will then form the basis for the development of a funding plan for priority capital projects as part of the City's Long Term Financial Plan. The funding plan would then be submitted to Council for its consideration and approval.
Revenue tools currently under study may not be available for the 2017 Budget process and should not be considered as providing any significant relief for 2017. Should any become available for use, they must be considered as a bridging strategy to sustainable operating budgets only. New revenue sources must be considered for the sizable unfunded capital needs that have been identified as critical to maintaining reliable City service delivery and meeting city building and other strategic objectives.
In prior years, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets have been met with varying degrees of compliance and impact. Beginning with the 2017 Budget process, Budget Committee is requested to recommend budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.
In addressing 2017 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2017 with the City's emerging longer-term priorities.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-94720.pdf