Item - 2016.EX20.1

Tracking Status

  • City Council adopted this item on December 13, 2016 without amendments.
  • This item was considered by the Executive Committee on December 1, 2016 and adopted without amendment. It will be considered by City Council on December 13, 2016.

EX20.1 - City of Toronto Long-Term Financial Direction Update

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on December 13, 14 and 15, 2016, adopted the following:

 

1.  City Council receive the report (November 23, 2016) 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 for information.

City Council Decision Advice and Other Information

City Council considered Items EX20.1 and EX20.2 together.

 

The City Manager gave a presentation to City Council on Items EX20.1, EX20.2 and EX20.3.

Background Information (Committee)

(November 23, 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 on City of Toronto Long-Term Financial Direction Update
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98744.pdf
(November 30, 2016) Investing in Toronto's Future: Public Consultation on the City's Long-Term Financial Plan - November Survey Results prepared by Argyle Public Relationships
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98862.pdf
(December 1, 2016) Presentation from the City Manager on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98846.pdf

Background Information (City Council)

(December 13, 2016) City Manager's Presentation on EX20.1, EX20.2, and EX20.3: Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization Reports
https://www.toronto.ca/legdocs/mmis/2016/cc/bgrd/backgroundfile-99135.pdf

Communications (Committee)

(December 1, 2016) Submission from Michael Rosenberg (EX.New.EX20.1.1)
(December 1, 2016) Submission from Mike Connell (EX.New.EX20.1.2)
(December 1, 2016) Submission from Hamish Wilson (EX.New.EX20.1.3)
(December 1, 2016) Letter from Tony Elenis, President and Chief Executive Officer, Ontario Restaurant Hotel and Motel Association (ORHMA) (EX.New.EX20.1.4)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-64388.pdf
(December 1, 2016) E-mail from Sharon Yetman (EX.New.EX20.1.5)

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Stephen Holyday (Lost)

That City Council request the City Manager to report to the Budget Committee, as part of the 2017 Budget Process, details on the City services, enhancements and cost which were voluntarily adopted by Council, however could be the responsibility of the Federal or Provincial Government.

Vote (Amend Item (Additional)) Dec-13-2016 8:07 PM

Result: Lost Majority Required - EX20.1 - Holyday - motion 1
Total members that voted Yes: 16 Members that voted Yes are Maria Augimeri, Jon Burnside, John Campbell, Josh Colle, Vincent Crisanti, Paula Fletcher, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Giorgio Mammoliti, Josh Matlow, Denzil Minnan-Wong, Cesar Palacio, Jaye Robinson
Total members that voted No: 26 Members that voted No are Paul Ainslie, Ana Bail„o, Christin Carmichael Greb, Gary Crawford, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Mary Fragedakis, Norman Kelly, Mike Layton, Chin Lee, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that were Absent: 2 Members that were absent are Shelley Carroll, Ron Moeser

Motion to Adopt Item (Carried)

Vote (Adopt Item) Dec-13-2016 8:08 PM

Result: Carried Majority Required - EX20.1 - Adopt the item
Total members that voted Yes: 39 Members that voted Yes are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, 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, Michael Ford, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, 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, Jaye Robinson, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 3 Members that voted No are Maria Augimeri, Giorgio Mammoliti, Anthony Perruzza
Total members that were Absent: 2 Members that were absent are Shelley Carroll, Ron Moeser

Declared Interests (City Council)

The following member(s) declared an interest:

Councillor Vincent Crisanti - as it relates to the Municipal Land Transfer Tax as he is a member of the Toronto Real Estate Board.

EX20.1 - City of Toronto Long-Term Financial Direction Update

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council receive the report (November 23, 2016) 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 for information.

Decision Advice and Other Information

The City Manager and the Deputy City Manager and Chief Financial Officer gave a presentation on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports.

Origin

(November 23, 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 report provides an update on the City's Long-Term Financial Plan, as directed by Council in June 2016 (EX15.1). The Plan is currently under development and will provide scenarios for a sustainable financial framework for municipal services and city-building investments, involving both expense and revenue measures.

 

Long-term expense and revenue considerations should be integral to the annual budget process. Therefore this update report is being brought forward to inform current Council deliberations around the City's rate- and tax-supported budgets as follows:

 

-  2017 rate-supported operating and capital budgets (launched at the November 4, 2016 meeting of Budget Committee, finalized at the December 13, 2016 meeting of Council)

 

-  2017 tax-supported operating and capital budgets and 2018 outlook (launched at the December 6, 2016 meeting of Budget Committee, finalized at the February 15, 2017 meeting of Council).

 

In addition, two closely aligned staff reports are being brought forward to the Executive Committee on December 1, as requested by Council:

 

-  Asset Optimization Review - Toronto Hydro Corporation and Toronto Parking Authority

 

-  The City of Toronto's Immediate and Longer-Term Revenue Strategy Direction.

 

Each of the above reports will be presented on a standalone basis reviewed by Council and Committee as a separate items. In practice, however, issues and potential policy responses overlap - including decisions in response to these interrelated challenges.

 

The absence of integrated financial planning - across budgets, program areas and annual cycles - is a longstanding challenge for City governance and Council decision making. It has contributed to the emergence of significant gaps between Council's current fiscal framework and long-term aspirations.

 

This report presents a brief summary of the key financial challenges facing the City in order to provide a basis for integrated decision making in 2017 and beyond.

 

The primary fiscal challenges that must be addressed include:

 

-  2017 preliminary operating budget pressures and resolution of a balanced budget

-  2017-2026 preliminary capital plan and pressures

-  Continued unfunded capital projects

-  Improving performance of City assets

-  Long-term expense management, particularly with regard to City agencies

-  Long-term revenue management

 

The report also provides a summary of key initiatives advanced in support of the Long-Term Financial Plan over the past six months. This work includes various corporate and program-level initiatives, including a Council-directed public engagement process. This consultation was launched in early November and will be completed by the second quarter of 2017.

 

Council consideration of a consolidated set of expense and revenue options under the Long-Term Financial Plan is expected in the second quarter of 2017, well in advance of 2018 budget decisions.

Background Information

(November 23, 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 on City of Toronto Long-Term Financial Direction Update
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98744.pdf
(November 30, 2016) Investing in Toronto's Future: Public Consultation on the City's Long-Term Financial Plan - November Survey Results prepared by Argyle Public Relationships
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98862.pdf
(December 1, 2016) Presentation from the City Manager on EX20.1, EX20.2, and EX20.3 - Long-Term Financial Direction Update, Revenue Strategy, and Asset Optimization reports
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98846.pdf

Communications

(December 1, 2016) Submission from Michael Rosenberg (EX.New.EX20.1.1)
(December 1, 2016) Submission from Mike Connell (EX.New.EX20.1.2)
(December 1, 2016) Submission from Hamish Wilson (EX.New.EX20.1.3)
(December 1, 2016) Letter from Tony Elenis, President and Chief Executive Officer, Ontario Restaurant Hotel and Motel Association (ORHMA) (EX.New.EX20.1.4)
https://www.toronto.ca/legdocs/mmis/2016/ex/comm/communicationfile-64388.pdf
(December 1, 2016) E-mail from Sharon Yetman (EX.New.EX20.1.5)

Speakers

Michael Connell, Member, Friends Helping People End Poverty
Michael Rosenberg
Sean Meagher, Executive Director, Social Planning Toronto
Hamish Wilson
Sheila Block, Canadian Centre for Policy Alternatives Ontario Office
Tony Elenis, President and Chief Executive Officer, Ontario Restaurant Hotel And Motel Association (ORHMA)
Councillor Janet Davis
Councillor Girogio Mammoliti
Councillor Gord Perks
Councillor Joe Cressy
Councillor Joe Mihevc
Councillor Mike Layton
Councillor Shelley Carroll

Motions

1 - Motion to Adopt Item moved by Councillor Gary Crawford (Carried)
Source: Toronto City Clerk at www.toronto.ca/council