Item - 2017.EX25.18

Tracking Status

  • City Council adopted this item on May 24, 2017 with amendments.
  • This item was considered by Executive Committee on May 16, 2017 and was adopted with amendments. It will be considered by City Council on May 24, 2017.
  • See also BU32.7

EX25.18 - 2018 Budget Process - Budget Directions and Schedule

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on May 24, 25 and 26, 2017, adopted the following:

 

1.  City Council approve the 2018 Budget Process and Schedule which is designed to develop, review and adopt 2018 Rate Supported Operating Budget and 2018 to 2027 Capital Budget and Plan by December 7, 2017 and the 2018 Tax Supported Operating Budget and 2018 to 2027 Capital Budget and Plan by February 13, 2018 as set out in Appendix 1 to the report (May 8, 2017) from the City Manager and the Deputy City Manager and Chief Financial Officer.

 

2.  City Council direct that all City Agencies submit their respective Operating Budget and 2018 - 2027 Capital Plan requests to the Deputy City Manager and Chief Financial Officer in accordance with the following requirements:

 

a.  budget targets approved by City Council;

 

b.  submission format, submission components and the period that it covers as established by the Deputy City Manager and Chief Financial Officer, and that staff make best efforts that such submission components include the cost of capital and operating commitments the City has made in policies, plans and strategies that Council has adopted;

 

c.  the City's 2018 Operating and Capital Budget Submission Guidelines and Instructions Manual; and

 

d.  budget submission deadlines as established by the Deputy City Manager and Chief Financial Officer, so that City staff can fully review Agency budget submissions as part of the Administrative Review process.

 

3.  City Council direct City Divisions to make best efforts to include in the 2018 budget submissions the cost of capital and operating commitments the City has made in policies, plans and strategies that Council has adopted.

 

4.  City Council direct all City Divisions and Agencies to identify clearly and transparently:

 

a. the service implications, major and minor, back office and front line service, efficiency-related and not efficiency related, in the preparation of the 2018 Budget;

 

b.  growth pressures; and

 

c.  unfunded projects and programs that have been approved by Council or the relevant Agencies and Boards, and that are awaiting funding.

  

5.  City Council direct all City Programs and Agencies to provide as part of their 2018 Budget submissions to the Deputy City Manager and Chief Financial Officer to provide any operating and capital costs related to the actions the divisions are required to take to meet the City's compliance with AODA legislation and accommodation of seniors issues outlining the following:

 

a.  actions funded and/or accommodated within respective budgets to date;

 

b.  actions requested but not funded to date;

 

c.  actions required but not yet funded; and

 

d.  the cost of any new strategies or actions that the City should consider.

  

6.  City Council direct that all City Agencies submit their final Board-approved 2018 Operating Budget and 2018 – 2027 Capital Budget and Plan requests no later than October 1, 2017.

 

7.  City Council approve the following Operating Budget target and guidelines for the preparation and submission of 2018 Operating Budget requests by all City Programs, and Agencies:

 

a.  all City Programs and Agencies be directed to prepare their 2018 net operating budgets equal to  the 2017 Approved Net Operating Budget; and

 

b.  all City Programs and Agencies continue to pursue cost containment, service efficiency, modernization, service level and revenue strategies to meet the budget  target set out in Part 7a above.

 

8.  City Council request Toronto Community Housing Corporation to prepare a separate budget for the implementation and funding of the recommendations of the forthcoming Tenants First report (to be considered by City Council in July 2017), and if the report is approved, that staff included the funding in the 2018 budget submission.

 

9.  City Council direct that City Programs and Agencies submit their 2018 – 2027 Capital Budget and Plans requiring that:

 

a.  Capital Plan submissions adhere to the debt levels approved by Council for the 2017 – 2026 Capital Plan as part of the 2017 Budget Process, and projects be added in the new tenth year, 2027, that can be accommodated within current debt affordability targets to be determined by the Deputy City Manager and Chief Financial Officer;

 

b.  annual cash flow funding estimates be examined to more realistically match cash flow spending to project activities and timing, especially in the first 5 years of the Capital Plan's timeframe;

 

c.  priority be placed on completing transit, transportation and social infrastructure projects funded through intergovernmental agreements in order to meet program conditions and deadlines to mitigate risk to the City;

 

d.  stage-gating be implemented for major capital projects with the requirement for Council approval be conditional on project cost estimates being based on detailed design completion and secured funding sources; and

 

e.  unfunded capital project estimates and timing be refined and submitted to inform the Long Term Financial Plan's expenditure and revenue strategies.

 

10.   City Council apply the recommended 2018 Operating Budget reduction target and guidelines and the capital budget guidelines detailed in Parts 7 and 9 above to the Accountability Offices for the 2018 Budget Process.

 

11.  City Council direct City Programs and Agencies to report on the equity impacts of the recommended efficiencies and service level changes included in the 2018 Operating Budget, with particular focus on the gender impact of these budget change proposals and the impact on persons with low-income.

 

12.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to review existing tax and fee waivers, discounts and exemptions, as part of the 2018 Budget process.

 

13.  City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded:

 

a.  all Child Care Services;

 

b.  Long-Term Care Facilities;

 

c.  all Housing Services, including the Toronto Community Housing Corporation;

 

d.  all Transit Services, including the Toronto Transit Commission; and

 

e.  the portions of the Gardiner Expressway and Highway 27 that were transferred to the City.

 

14.  City Council forward the supplementary report (May 23, 2017) from the Deputy City Manager and Chief Financial Officer (EX25.18c) to the Budget Committee for consideration with other priorities during the 2018 Budget Process.

Background Information (Committee)

(May 8, 2017) Revised Report and Appendices 1 to 4 from the City Manager and the Deputy City Manager and Chief Financial Officer on 2018 Budget Process - Budget Directions and Schedule
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103740.pdf

Background Information (City Council)

(May 19, 2017) Transmittal from the Toronto Accessibility Advisory Committee (EX25.18b)
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-104104.pdf
(May 23, 2017) Supplementary report from the Deputy City Manager and Chief Financial Officer on 2018 Implementation Costs for Various Approved Service Plans (EX25.18c)
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-104105.pdf

Communications (Committee)

(May 11, 2017) Submission from Sharon Howarth (EX.Supp.EX25.18.1)
(May 14, 2017) E-mail from Murray Lumley (EX.Supp.EX25.18.2)
(May 15, 2017) Letter from Cathy Crowe (EX.Supp.EX25.18.3)
(May 10, 2017) Letter from Susan Kwong, Social Planning Toronto, submitting a letter on behalf of leaders of various community organizations (EX.Supp.EX25.18.4)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-69410.pdf
(May 15, 2017) E-mail from Doris Power (EX.Supp.EX25.18.5)
(May 15, 2017) E-mail from Ronny Yaron (EX.Supp.EX25.18.6)
(May 16, 2017) Submission from Helen Armstrong, St. Stephen's Community House (EX.New.EX25.18.7)
(May 16, 2017) Submission from Mary Hynes, Older Women's Network (EX.New.EX25.18.8)

Communications (City Council)

(May 23, 2017) E-mail from Jannie Mills (CC.New.EX25.18.9)
(May 24, 2017) E-mail from Lyba Spring (CC.New.EX25.18.10)
(May 24, 2017) E-mail from Glenys Babcock (CC.New.EX25.18.11)
(May 23, 2017) E-mail from Murray Lumley (CC.New.EX25.18.12)
(May 23, 2017) E-mail from Heather McPherson (CC.New.EX25.18.13)
(May 24, 2017) E-mail from Melissa Goldstein (CC.New.EX25.18.14)
(May 24, 2017) E-mail from Deb Parent (CC.New.EX25.18.15)
(May 24, 2017) E-mail from Sharon Barrett Ewing (CC.New.EX25.18.16)
(May 24, 2017) E-mail from Michele Ann Williams (CC.New.EX25.18.17)
(May 24, 2017) E-mail from Liz Janzen (CC.New.EX25.18.18)
(May 24, 2017) E-mail from Heather Turner (CC.New.EX25.18.19)
(May 25, 2017) E-mail from Robert Metcalf (CC.New.EX25.18.20)
(May 25, 2017) E-mail from Sharon Yetman (CC.New.EX25.18.21)

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Gary Crawford (Carried)

That City Council adopt the following recommendation contained in the supplementary report (May 23, 2017) from the Deputy City Manager and Chief Financial Officer [EX25.18c]:

 

1. This report be referred to the Budget Committee for consideration with other priorities during the 2018 Budget Process.

Vote (Amend Item (Additional)) May-25-2017 4:11 PM

Result: Carried Majority Required - EX25.18 - Crawford - motion 1
Total members that voted Yes: 42 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, 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, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Joe Cressy, Joe Mihevc
Total members that were Absent: 0 Members that were absent are

2a - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded all Housing Services, including Toronto Community Housing Corporation.

Vote (Amend Item (Additional)) May-25-2017 4:12 PM

Result: Carried Majority Required - EX25.18 - Mammoliti - motion 2a
Total members that voted Yes: 27 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, 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, Giorgio Mammoliti, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, John Tory
Total members that voted No: 17 Members that voted No are Ana Bail„o, Shelley Carroll, Joe Cressy, Janet Davis, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Gord Perks, Neethan Shan, Michael Thompson, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

2b - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded all Transit Services, including Toronto Transit Commission.

Vote (Amend Item (Additional)) May-25-2017 4:13 PM

Result: Carried Majority Required - EX25.18 - Mammoliti - motion 2b
Total members that voted Yes: 25 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, John Tory
Total members that voted No: 19 Members that voted No are Ana Bail„o, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, John Filion, Mary Fragedakis, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Neethan Shan, Michael Thompson, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

2c - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded all Child Care Services.

Vote (Amend Item (Additional)) May-25-2017 4:14 PM

Result: Carried Majority Required - EX25.18 - Mammoliti - motion 2c
Total members that voted Yes: 27 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Gary Crawford, Vincent Crisanti, 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, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, John Tory
Total members that voted No: 17 Members that voted No are Ana Bail„o, Shelley Carroll, Josh Colle, Joe Cressy, Janet Davis, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Neethan Shan, Michael Thompson, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

2d - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded the portions of the Gardiner Expressway and Highway 27 that were transferred to the City.

Vote (Amend Item (Additional)) May-25-2017 4:15 PM

Result: Carried Majority Required - EX25.18 - Mammoliti - motion 2d
Total members that voted Yes: 38 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, 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, Mike Layton, Giorgio Mammoliti, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 6 Members that voted No are Ana Bail„o, Joe Cressy, Jim Karygiannis, Norman Kelly, Chin Lee, Josh Matlow
Total members that were Absent: 0 Members that were absent are

2e - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Carried)

That City Council request the City Manager to report to the Executive Committee on the cost savings to the City if the Province uploaded Long-Term Care Facilities.

Vote (Amend Item (Additional)) May-25-2017 4:16 PM

Result: Carried Majority Required - EX25.18 - Mammoliti - motion 2e
Total members that voted Yes: 28 Members that voted Yes are Paul Ainslie, Maria Augimeri, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Michael Ford, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Giorgio Mammoliti, Pam McConnell, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, John Tory
Total members that voted No: 16 Members that voted No are Ana Bail„o, Shelley Carroll, Joe Cressy, Janet Davis, John Filion, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Neethan Shan, Michael Thompson, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

2f - Motion to Amend Item (Additional) moved by Councillor Giorgio Mammoliti (Lost)

That City Council direct the City Manager to issue a news release on City Council's decision on this Item, which highlights all Members of Council who have voted for motions that will result in property tax increases, such news release to be sent to all media outlets and all registered resident and ratepayer groups.

Vote (Amend Item (Additional)) May-25-2017 4:17 PM

Result: Lost Majority Required - EX25.18 - Mammoliti - motion 2f
Total members that voted Yes: 15 Members that voted Yes are Paul Ainslie, John Campbell, Shelley Carroll, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Giorgio Mammoliti, Frances Nunziata (Chair), Cesar Palacio, David Shiner, Kristyn Wong-Tam
Total members that voted No: 29 Members that voted No are Maria Augimeri, Ana Bail„o, Jon Burnside, Christin Carmichael Greb, Josh Colle, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

3a - Motion to Amend Item moved by Councillor Mike Layton (Lost)

That City Council exempt from the proposed budget target any service levels related to the delivery of:

 

1. Poverty reduction programs
2. Shelter services
3. Affordable housing program implementation
4. Toronto Public Health programs, including Student Nutrition
5. Staff levels for residents at Long Term Care Homes
6. The childcare growth strategy

Vote (Amend Item) May-25-2017 4:07 PM

Result: Lost Majority Required - EX25.18 - Layton - motion 3a
Total members that voted Yes: 17 Members that voted Yes are Maria Augimeri, Ana Bail„o, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 27 Members that voted No are Paul Ainslie, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Michael Ford, 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, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

3b - Motion to Amend Item (Additional) moved by Councillor Mike Layton (Lost)

That City Council direct the City Manager as part of the 2018 Budget process, to host, with support from Divisional staff, public consultations on service levels and priorities before Divisional budget submissions are completed as part of the 2018 Budget process.

Vote (Amend Item (Additional)) May-25-2017 4:18 PM

Result: Lost Majority Required - EX25.18 - Layton - motion 3b
Total members that voted Yes: 18 Members that voted Yes are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Paula Fletcher, Michael Ford, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 26 Members that voted No are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, 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, Norman Kelly, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

3c - Motion to Amend Item (Additional) moved by Councillor Mike Layton (Carried)

That City Council direct City Divisions to make best efforts to include in the 2018 budget submissions the cost of capital and operating commitments the City has made in policies, plans and strategies that Council has adopted.

Vote (Amend Item (Additional)) May-25-2017 4:19 PM

Result: Carried Majority Required - EX25.18 - Layton - motion 3c
Total members that voted Yes: 32 Members that voted Yes are Maria Augimeri, Ana Bail„o, John Campbell, Christin Carmichael Greb, Shelley Carroll, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Michelle Holland, 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, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 12 Members that voted No are Paul Ainslie, Jon Burnside, Josh Colle, Justin J. Di Ciano, John Filion, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Jaye Robinson
Total members that were Absent: 0 Members that were absent are

4a - Motion to Amend Item (Additional) moved by Councillor Joe Mihevc (Carried)

That City Council direct all City divisions, agencies and commissions to identify clearly and transparently the service implications, major and minor, back office and front line service, efficiency-related and not efficiency related, in the preparation of the 2018 budget

Vote (Amend Item (Additional)) May-25-2017 4:20 PM

Result: Carried Majority Required - EX25.18 - Mihevc - motion 4a
Total members that voted Yes: 35 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Christin Carmichael Greb, Shelley Carroll, Josh Colle, 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, 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, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 9 Members that voted No are Jon Burnside, John Campbell, Gary Crawford, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Jaye Robinson
Total members that were Absent: 0 Members that were absent are

4b - Motion to Amend Item (Additional) moved by Councillor Joe Mihevc (Carried)

That City Council direct all City divisions, and agencies, boards and commissions to identify clearly and transparently:

 

a.  growth pressures; and

 

b.  unfunded projects and programs that have been approved by Council or the relevant agencies, boards and commissions, and that are awaiting funding.

Vote (Amend Item (Additional)) May-25-2017 4:21 PM

Result: Carried Majority Required - EX25.18 - Mihevc - motion 4b
Total members that voted Yes: 36 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, 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, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 8 Members that voted No are Josh Colle, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, James Pasternak, Jaye Robinson
Total members that were Absent: 0 Members that were absent are

4c - Motion to Amend Item (Additional) moved by Councillor Joe Mihevc (Lost)

That City Council direct the City Manager and Deputy City Manager and Chief Financial Officer to use the municipal inflation rate as a basis for determining the tax rate.

Vote (Amend Item (Additional)) May-25-2017 4:22 PM

Result: Lost Majority Required - EX25.18 - Mihevc - motion 4c
Total members that voted Yes: 17 Members that voted Yes are Paul Ainslie, Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Jim Karygiannis, Mike Layton, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 27 Members that voted No are Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Norman Kelly, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

4d - Motion to Amend Item (Additional) moved by Councillor Joe Mihevc (Lost)

That when City Council sets the 2018 tax rate, the percentage increase be calculated on total taxes rather than on residential taxes.

Vote (Amend Item (Additional)) May-25-2017 4:23 PM

Result: Lost Majority Required - EX25.18 - Mihevc - motion 4d
Total members that voted Yes: 14 Members that voted Yes are Shelley Carroll, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Pam McConnell, Joe Mihevc, Gord Perks, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 30 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

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

That City Council amend Executive Committee Recommendation 4a by deleting the words "equal to" and replacing it with the words "2% less than" so the recommendation now reads as follows:

 

4.  City Council approve the following Operating Budget target and guidelines for the preparation and submission of 2018 Operating Budget requests by all City Programs, and Agencies:

 

a.  all City Programs and Agencies be directed to prepare their 2018 net operating budgets 2% less than the 2017 Approved Net Operating Budget; and

Vote (Amend Item) May-25-2017 4:09 PM

Result: Lost Majority Required - EX25.18 - Holyday - motion 5
Total members that voted Yes: 9 Members that voted Yes are John Campbell, Vincent Crisanti, Michael Ford, Michelle Holland, Stephen Holyday, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Jaye Robinson
Total members that voted No: 35 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Joe Cressy, 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, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

6a - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Lost)

That City Council adopt the following recommendation contained in the transmittal from the Toronto Accessibility Advisory Committee [EX25.18b]:

 

1.  City Council exempt all operating and capital costs related to AODA compliance and accessibility initiatives from the 2018 Budget targets recommended by the Executive Committee.

Vote (Amend Item) May-25-2017 4:10 PM

Result: Lost Majority Required - EX25.18 - Wong-Tam - motion 6a
Total members that voted Yes: 17 Members that voted Yes are Shelley Carroll, Joe Cressy, Janet Davis, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Jim Karygiannis, Mike Layton, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Gord Perks, Anthony Perruzza, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 27 Members that voted No are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, John Filion, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Norman Kelly, Chin Lee, Giorgio Mammoliti, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

6b - Motion to Amend Item (Additional) moved by Councillor Kristyn Wong-Tam (Lost)

That City Council:

 

1.  Request the General Manager, Parks, Forestry and Recreation to report to the Parks and Environment Committee on the costs, implementation and funding of the recommendations of the forthcoming Ravine Strategy, and if the Ravine Strategy is approved, City Council request staff to include the funding in the 2018 budget submission.

 

2.  Request the Chief Planner and Executive Director, City Planning to report to the September 7, 2017 meeting of the Planning and Growth Management Committee on a work plan update, including work that is on hold and projected to be completed after 2018, and to prepare a separate report for the implementation and funding of the work plan to be included in the 2018 budget submission.

Vote (Amend Item (Additional)) May-25-2017 4:24 PM

Result: Lost Majority Required - EX25.18 - Wong-Tam - motion 6b
Total members that voted Yes: 21 Members that voted Yes are Paul Ainslie, Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Gord Perks, Anthony Perruzza, Neethan Shan, Kristyn Wong-Tam
Total members that voted No: 23 Members that voted No are Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, Frank Di Giorgio, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Jim Karygiannis, Norman Kelly, Giorgio Mammoliti, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that were Absent: 0 Members that were absent are

7 - Motion to Amend Item (Additional) moved by Councillor David Shiner (Carried)

That City Council direct all City Programs and Agencies to provide as part of their 2018 Budget submissions to the Deputy City Manager and Chief Financial Officer to provide any operating and capital costs related to the actions the divisions are required to take to meet the City's compliance with AODA legislation and accommodation of seniors issues outlining the following:

 

a.  Actions funded and/or accommodated within respective budgets to date;

b.  Actions requested but not funded to date;

c.  Actions required but not yet funded; and

d.  The cost of any new strategies or actions that the City should consider.

Vote (Amend Item (Additional)) May-25-2017 4:25 PM

Result: Carried Majority Required - EX25.18 - Shiner - motion 7
Total members that voted Yes: 40 Members that voted Yes are Maria Augimeri, Ana Bail„o, Jon Burnside, Christin Carmichael Greb, Shelley Carroll, 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, 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, Neethan Shan, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 4 Members that voted No are Paul Ainslie, John Campbell, Michael Ford, Stephen Holyday
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) May-25-2017 4:25 PM

Result: Carried Majority Required - EX25.18 - Adopt the item as amended
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Michael Ford, Mark Grimes, Michelle Holland, Stephen Holyday, Norman Kelly, Chin Lee, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, John Tory
Total members that voted No: 14 Members that voted No are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Jim Karygiannis, Mike Layton, Pam McConnell, Joe Mihevc, Gord Perks, Neethan Shan, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

Point of Privilege by Councillor Jim Karygiannis

Councillor Karygiannis, rising on a Point of Privilege, stated that the Speaker should be patient and permit Members to get answers to their questions.


Point of Order by Councillor John Campbell

Councillor Campbell, rising on a Point of Order, stated that Councillor Karygiannis should ask Councillor Mammoliti questions to clarify his motion, not engage in debate with him.

Ruling by Deputy Speaker Shelley Carroll
Deputy Speaker Carroll accepted the Points of Privilege and Order and ruled that Councillor Karygiannis should only ask questions to clarify the content of Councillor Mammoliti's motion.


Point of Privilege by Councillor Shelley Carroll

Councillor Carroll, rising on a Point of Privilege, stated that Members should not get personal in their remarks as it invites other Members to respond.

Ruling by Speaker Frances Nunziata
Speaker Nunziata ruled that Councillor Carroll did not have a Point of Privilege.

18a - 2018 Budget Process - Budget Directions and Schedule

Background Information (Committee)
(May 11, 2017) Letter from the Budget Committee on 2018 Budget Process - Budget Directions and Schedule
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103826.pdf

EX25.18 - 2018 Budget Process - Budget Directions and Schedule

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council approve the 2018 Budget Process and Schedule which is designed to develop, review and adopt 2018 Rate Supported Operating Budget and 2018 to 2027 Capital Budget and Plan by December 7, 2017 and the 2018 Tax Supported Operating Budget and 2018 to 2027 Capital Budget and Plan by February 13, 2018 as set out in Appendix 1 to the report (May 8, 2017) from the City Manager and the Deputy City Manager and Chief Financial Officer.

 

2.  City Council direct that all City Agencies submit their respective Operating Budget and 2018 - 2027 Capital Plan requests to the Deputy City Manager and Chief Financial Officer in accordance with the following requirements:

 

a.  budget targets approved by City Council;

 

b.  submission format, submission components and the period that it covers as established by the Deputy City Manager and Chief Financial Officer, and that staff make best efforts that such submission components include the cost of capital and operating commitments the City has made in policies, plans and strategies that Council has adopted;

 

c.  the City's 2018 Operating and Capital Budget Submission Guidelines and Instructions Manual; and

 

d.  budget submission deadlines as established by the Deputy City Manager and Chief Financial Officer, so that City staff can fully review Agency budget submissions as part of the Administrative Review process.

 

3.  City Council direct that all City Agencies submit their final Board-approved 2018 Operating Budget and 2018 – 2027 Capital Budget and Plan requests no later than October 1, 2017.

 

4.  City Council approve the following Operating Budget target and guidelines for the preparation and submission of 2018 Operating Budget requests by all City Programs, and Agencies:

 

a.  all City Programs and Agencies be directed to prepare their 2018 net operating budgets equal to  the 2017 Approved Net Operating Budget; and

 

b.  all City Programs and Agencies continue to pursue cost containment, service efficiency, modernization, service level and revenue strategies to meet the budget  target set out in Recommendation 4a above.

 

5.  City Council request Toronto Community Housing Corporation to prepare a separate budget for the implementation and funding of the recommendations of the forthcoming Tenants First report (to be considered by City Council in July 2017), and if the report is approved, that staff included the funding in the 2018 budget submission.

 

6.  City Council direct that City Programs and Agencies submit their 2018 – 2027 Capital Budget and Plans requiring that:

 

a.  Capital Plan submissions adhere to the debt levels approved by Council for the 2017 – 2026 Capital Plan as part of the 2017 Budget process, and projects be added in the new tenth year, 2027, that can be accommodated within current debt affordability targets to be determined by the Deputy City Manager and Chief Financial Officer;

 

b.  Annual cash flow funding estimates be examined to more realistically match cash flow spending to project activities and timing, especially in the first 5 years of the Capital Plan's timeframe;

 

c.  Priority be placed on completing transit, transportation and social infrastructure projects funded through intergovernmental agreements in order to meet program conditions and deadlines to mitigate risk to the City;

 

d.  Stage-gating be implemented for major capital projects with the requirement for Council approval be conditional on project cost estimates being based on detailed design completion and secured funding sources; and

 

e.  Unfunded capital project estimates and timing be refined and submitted to inform the Long Term Financial Plan's expenditure and revenue strategies.

 

7.   City Council apply the recommended 2018 operating budget reduction target and guidelines and the capital budget guidelines detailed in Recommendations 4 and 5 above to the Accountability Offices for the 2018 Budget Process.

 

8.  City Council direct City Programs and Agencies to report on the equity impacts of the recommended efficiencies and service level changes included in the 2018 Operating Budget, with particular focus on the gender impact of these budget change proposals and the impact on persons with low-income.

  

9.  City Council direct the City Manager and the Deputy City Manager and Chief Financial Officer to review existing tax and fee waivers, discounts and exemptions, as part of the 2018 Budget process.

Origin

(May 8, 2017) Report from the City Manager and the Deputy City Manager and Chief Financial Officer

Summary

The purpose of this report is to establish the 2018 Budget process and schedule to review and approve the Tax and Rate Supported 2018 Operating Budget and the 2018 to 2027 Tax and Rate Capital Budget and Plan for the City of Toronto.

 

The recommended 2018 Budget Process and Schedule is designed so that the Rate Supported Budgets are approved by December 7, 2017 and the Tax Supported Budgets are approved by February 13, 2018. 

 

To ensure adequate time to review agency board budget submissions and to assess service and expense risks, it is recommended that City Council direct all City Agencies to submit their respective budget submissions in accordance with the submission timelines and requirements determined by the Deputy City Manager and Chief Financial Officer and submit their final Board-approved budget submissions no later than October 1, 2017.

 

This report also lays out the 2018 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2017 Budget process as well as anticipated costs and revenues associated with maintaining  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 2018. 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 expenditure increase of $343 million is projected for 2018. This estimate is driven by an assumed 2 percent residential tax rate increase. These estimates account for the reversal of $91 million in one-time bridging strategies approved in the 2017 Budget.

 

Operating expenses are forecasted to increase by $499 million with the City's key Agencies - Toronto Transit Commission ($126 million); Toronto Community Housing Corporation ($72 million); Toronto Police ($9 million) and Toronto Public Library and Public Health ($10 million) - and Capital Financing and other Non-Program expenses ($171 million), projected as the key service cost drivers. With revenues assumed to grow by $156 million, net budget pressures are estimated to be $343 million. Cost containment, service efficiency, modernization and service level changes as well as revenue strategies are required to offset net base pressures in order to balance the 2018 Operating Budget. These strategies will simply address current service costs and exclude any funding for new and enhanced service investments.

 

Given the limited funding for City services, there is little additional financial capacity to fund any new capital works in 2018. As a result, City Programs, Agencies and Accountability Officers must submit 2018 – 2027 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2026 Capital Plan's annual debt funding approved by Council as part of the 2017 Budget process, and projects be added in the new tenth year, 2027, that can be accommodated within current debt targets to be provided by the Deputy City Manager and Chief Financial Officer.

 

Prior to 2017, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets were met with varying degrees of compliance and impact.  Beginning with the 2017 Budget process, Budget Committee recommended budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.

 

This report recommends for Budget Committee's consideration an operating budget target that requires all Operating Budget (net) submissions to be equal to their 2017 Net Operating Budget, representing  a 0 percent increase over the 2017 Net Operating Budget and a status quo 10-Year Capital Budget and Plan based on the City's current debt limits.

 

In addressing 2018 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2018 with the City's emerging longer-term priorities.

Background Information

(May 8, 2017) Revised Report and Appendices 1 to 4 from the City Manager and the Deputy City Manager and Chief Financial Officer on 2018 Budget Process - Budget Directions and Schedule
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103740.pdf

Communications

(May 11, 2017) Submission from Sharon Howarth (EX.Supp.EX25.18.1)
(May 14, 2017) E-mail from Murray Lumley (EX.Supp.EX25.18.2)
(May 15, 2017) Letter from Cathy Crowe (EX.Supp.EX25.18.3)
(May 10, 2017) Letter from Susan Kwong, Social Planning Toronto, submitting a letter on behalf of leaders of various community organizations (EX.Supp.EX25.18.4)
https://www.toronto.ca/legdocs/mmis/2017/ex/comm/communicationfile-69410.pdf
(May 15, 2017) E-mail from Doris Power (EX.Supp.EX25.18.5)
(May 15, 2017) E-mail from Ronny Yaron (EX.Supp.EX25.18.6)
(May 16, 2017) Submission from Helen Armstrong, St. Stephen's Community House (EX.New.EX25.18.7)
(May 16, 2017) Submission from Mary Hynes, Older Women's Network (EX.New.EX25.18.8)

Speakers

Garcia Rose
Michael Rosenberg
Sharon Howarth
Riley Peterson, Toronto Youth Cabinet
Maggie Helwig, Reverend, Social Justice Committee, Anglican Diocese of Toronto
Andrea Budgey, Chair, Reduction Subcommittee, Anglican Diocese of Toronto
Mary T. Hynes, Older Women's Network
Miguel Avila-Velarde, Toronto Copwatch
Sean Meagher, Executive Director, Social Planning Toronto
Melissa Goldstein, Housing Action Now
Lyn Adamson, Climate Fast
Labiba Chowdhury
Councillor Gord Perks
Councillor Joe Cressy

Motions

1 - Motion to Amend Item moved by Councillor Ana Bail„o (Carried)

That City Council request Toronto Community Housing Corporation to prepare a separate budget for the implementation and funding of the recommendations of the forthcoming Tenants First report (to be considered by City Council in July 2017), and if the report is approved, that staff included the funding in the 2018 budget submission.


2 - Motion to Adopt Item as Amended moved by Councillor Ana Bail„o (Carried)

That the recommendations in the letter (May 11, 2017) from the Budget Committee [Item EX25.18a] be adopted as amended.

18a - 2018 Budget Process - Budget Directions and Schedule

Origin
(May 11, 2017) Letter from the Budget Committee
Summary

The purpose of this report is to establish the 2018 Budget process and schedule to review and approve the Tax and Rate Supported 2018 Operating Budget and the 2018 to 2027 Tax and Rate Capital Budget and Plan for the City of Toronto.

 

The recommended 2018 Budget Process and Schedule is designed so that the Rate Supported Budgets are approved by December 7, 2017 and the Tax Supported Budgets are approved by February 13, 2018.

 

To ensure adequate time to review agency board budget submissions and to assess service and expense risks, it is recommended that City Council direct all City Agencies to submit their respective budget submissions in accordance with the submission timelines and requirements determined by the Deputy City Manager and Chief Financial Officer and submit their final Board-approved budget submissions no later than October 1, 2017.

 

This report also lays out the 2018 operating revenue and expenditure projections which have been, in part, determined by decisions approved in the 2017 Budget process as well as anticipated costs and revenues associated with maintaining 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 2018. 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 expenditure increase of $343 million is projected for 2018. This estimate is driven by an assumed 2 percent residential tax rate increase. These estimates account for the reversal of $91 million in one-time bridging strategies approved in the 2017 Budget.

 

Operating expenses are forecasted to increase by $499 million with the City's key Agencies - TTC ($126 million); TCHC ($72 million); Toronto Police ($9 million) and Toronto Public Library and Public Health ($10 million) - and Capital Financing and other Non-Program expenses ($171 million), projected as the key service cost drivers. With revenues assumed to grow by $156 million, net budget pressures are estimated to be $343 million. Cost containment, service efficiency, modernization and service level changes as well as revenue strategies are required to offset net base pressures in order to balance the 2018 Operating Budget. These strategies will simply address current service costs and exclude any funding for new and enhanced service investments.

 

Given the limited funding for City services, there is little additional financial capacity to fund any new capital works in 2018. As a result, City Programs, Agencies and Accountability Officers must submit 2018 – 2027 Capital Budget and Plans on a status quo basis. This requires capital plan requests to adhere to the 2017 – 2026 Capital Plan’s annual debt funding approved by Council as part of the 2017 Budget process, and projects be added in the new tenth year, 2027, that can be accommodated within current debt targets to be provided by the Deputy City Manager and Chief Financial Officer.

 

Prior to 2017, the City Manager and Chief Financial Officer set targets for all City Programs and Agencies in advance of budget preparation. These targets were met with varying degrees of compliance and impact. Beginning with the 2017 Budget process, Budget Committee recommended budget targets for all City Programs, Agencies and Accountability Offices for approval by City Council.

 

This report recommends for Budget Committee's consideration an operating budget target that requires all Operating Budget (net) submissions to be equal to their 2017 Net Operating Budget, representing a 0 percent increase over the 2017 Net Operating Budget and a status quo 10-Year Capital Budget and Plan based on the City's current debt limits.

 

In addressing 2018 budgetary challenges, it will be necessary to ensure consistency between decisions to be taken in 2018 with the City's emerging longer-term priorities.

Background Information
(May 11, 2017) Letter from the Budget Committee on 2018 Budget Process - Budget Directions and Schedule
https://www.toronto.ca/legdocs/mmis/2017/ex/bgrd/backgroundfile-103826.pdf
Source: Toronto City Clerk at www.toronto.ca/council