Item - 2018.EX35.25

The Executive Committee recommends that:

1.  City Council receive the report (June 13, 2018) from the Interim Chief Financial Officer for information.

The purpose of this report is to provide City Council with the City of Toronto capital performance for the year ended December 31, 2017. Actual capital expenditures for 2017 totalled $3.173 billion or 59.3 percent of 2017 approved Capital Budget of $5.347 billion (see Table 1).

For the year-ended December 31, 2017, Tax Supported Programs and Agencies reported capital expenditures of $2.365 billion representing 56.2 percent of their collective 2017 approved Capital Budget of $4.210 billion. Rate Supported Programs reported capital expenditures of $808.1 million, representing 71.0 percent of their collective 2017 approved Capital Budget of $1.138 billion.

Table 1: Summary of Capital Spending

The report also provides details on the 87 completed capital projects that have a combined budget of $272.628 million that were completed in the fourth quarter, 2017 and are ready to be closed. They have been completed with a total realized underspending of $38.095 million. The permanent underspending which has associated funding of $3.541 million in Provincial Grants, $6.398 million in Capital from Current, $18.500 million in debt, $2.163 million in Development Charges, $2.269 million in reserves/reserve funds, $0.952 million in Recoverable Debt and $4.272 million in other internal/external funds will be returned to their original Council approved funding sources.

For 2017, a total of 413 capital projects were completed with a combined capital budget of $919.234 million and an actual combined expenditure of $836.285 million, resulting in a total saving of $82.949 million or 9.0 percent.

A total of $4.008 billion or 75 percent of the 2017 approved Capital Budget is allocated to 9 Programs and Agencies, to which $1.745 billion or 80 percent of the underspending is also attributed, as illustrated in the Table 2 below.

Table 2: Key Drivers of underspending for 2017

Programs and Agencies reported that the rate of spending in 2017 was largely driven by expropriation process delays for the acquisition of various sites, unanticipated site conditions, longer than planned timelines to obtain necessary approvals or required permits and design issues. Further details on the progress of all approved capital projects for each City Program and Agency can be found in Appendix 4 of this report.