Item - 2018.EX35.25

Tracking Status

  • City Council adopted this item on June 26, 2018 without amendments.
  • This item was considered by the Executive Committee on June 19, 2018 and adopted without amendment. It will be considered by City Council on June 26, 2018.

EX35.25 - Capital Variance Report for the Year Ended December 31, 2017

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on June 26, 27, 28 and 29, 2018, adopted the following:

 

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

Background Information (Committee)

(June 13, 2018) Report from the Interim Chief Financial Officer on Capital Variance Report for the Year Ended December 31, 2017
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116708.pdf
Appendix 1 - Capital Variance Summary for the year ended December 31, 2017
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116721.pdf
Appendix 2 - Capital Projects for Closure
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116709.pdf
Appendix 3 - Major Capital Projects
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116722.pdf
Appendix 4 - Capital Dashboard for Programs/Agencies
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116710.pdf
(June 5, 2018) Report from the Interim Chief Financial Officer on Capital Variance Report for the Year Ended December 31, 2017 - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116052.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Jun-27-2018 9:48 AM

Result: Carried Majority Required - EX35.25 - Adopt the item
Total members that voted Yes: 34 Members that voted Yes are Paul Ainslie, Jon Burnside, Gary Crawford, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Michael Ford, Mary Fragedakis, Mark Grimes, Jim Hart, Michelle Holland, Stephen Holyday, Norman Kelly, Mike Layton, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Miganoush Megardichian, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Neethan Shan, Michael Thompson, John Tory, Lucy Troisi, Jonathan Tsao, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 11 Members that were absent are Maria Augimeri, Ana Bail„o, John Campbell, Christin Carmichael Greb, Josh Colle, Vincent Crisanti, Paula Fletcher, Jim Karygiannis, Anthony Perruzza, Jaye Robinson, David Shiner

EX35.25 - Capital Variance Report for the Year Ended December 31, 2017

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:

 

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

Origin

(June 13, 2018) Report from the Interim Chief Financial Officer

Summary

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

 

 

2017 Approved Budget

2017 Actual Expenditure

 

($M)

($M)

%

Tax Supported Programs

4,209.7

2,365.0

56.2%

Rate Supported Programs

1,137.8

808.1

71.0%

TOTAL

5,347.4

3,173.1

59.3%

 

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

 

($Million)

2017 Approved Budget $

2017 Actual Expenditure

Unspent $

Spending Rate %

         

Toronto Transit Commission

2,303.3

1,438.2

865.1

62.4%

Transportation Services

508.2

272.4

235.8

53.6%

Facilities Management, Real Estate and Environment

291.6

161.4

130.2

55.4%

Parks, Forestry and Recreation

237.4

144.0

93.4

60.7%

Corporate Initiatives

175.0

4.8

170.2

2.8%

Toronto Parking Authority

164.3

55.9

108.4

34.0%

Solid Waste Management Services

129.9

84.9

45.0

65.3%

Waterfront Revitalization Initiative

109.6

49.9

59.7

45.6%

Information & Technology

88.8

51.7

37.1

58.2%

Sub Total

4,008.1

2,263.3

1,744.9

56.5%

         

Other Programs

1,339.3

909.9

429.4

67.9%

Grand Total

5,347.4

3,173.1

2,174.3

59.3%

 

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.

Background Information

(June 13, 2018) Report from the Interim Chief Financial Officer on Capital Variance Report for the Year Ended December 31, 2017
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116708.pdf
Appendix 1 - Capital Variance Summary for the year ended December 31, 2017
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116721.pdf
Appendix 2 - Capital Projects for Closure
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116709.pdf
Appendix 3 - Major Capital Projects
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116722.pdf
Appendix 4 - Capital Dashboard for Programs/Agencies
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116710.pdf
(June 5, 2018) Report from the Interim Chief Financial Officer on Capital Variance Report for the Year Ended December 31, 2017 - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-116052.pdf

Motions

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