Item - 2019.EX11.1

Tracking Status

  • City Council adopted this item on December 17, 2019 with amendments.
  • This item was considered by the Executive Committee on December 11, 2019 and adopted without amendment. It will be considered by City Council on December 17, 2019.

EX11.1 - Value-Based Outcomes Review: Findings

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on December 17 and 18, 2019, adopted the following:

 

1.  City Council receive the report (November 27, 2019) from the Chief Financial Officer and Treasurer for information.

 

2.  City Council request the City Manager to report back through the Executive Committee in the fourth quarter of 2020 on a coordinated Council-wide strategy for communicating to both intergovernmental partners and community members the need for Toronto to have a fully mature funding model that includes access to taxes that are better aligned to wealth-redistributive services that are delivered municipally.

City Council Decision Advice and Other Information

City Council considered Items EX11.1 and EX11.26 together.

Background Information (Committee)

(November 27, 2019) Report from the Chief Financial Officer and Treasurer on Value-Based Outcomes Review: Findings
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140710.pdf
Attachment 1 - Value-Based Outcomes Review: A Fiscal Modernization Agenda for the City of Toronto
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140893.pdf
(December 11, 2019) Presentation from the City Manager and the Chief Financial Officer and Treasurer on State of the City and Value-Based Outcomes Review
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-141001.pdf

Communications (Committee)

(December 9, 2019) Letter from Dave Wilkes, Building Industry and Land Development Association (EX.Supp.EX11.1.1)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99655.pdf
(December 9, 2019) Submission from Andrew Krystal, Carpenters of Ontario (EX.Supp.EX11.1.2)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99657.pdf
(December 10, 2019) Letter from Hillary Marshall, Greater Toronto Airports Authority (EX.Supp.EX11.1.3)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99686.pdf
(December 10, 2019) Letter from James St. John, Central Ontario Building Trades (EX.Supp.EX11.1.4)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99687.pdf
(December 11, 2019) Letter from Alana Powell, Association of Early Childhood Educators Ontario (EX.New.EX11.1.5)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99672.pdf
(December 11, 2019) Submission from Dave Mitchell, Canadian Union of Public Employees (EX.New.EX11.1.6)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99674.pdf

Communications (City Council)

(December 17, 2019) E-mail from Craig McLuckie, President, Toronto Industry Network (CC.New.EX11.1.7)
https://www.toronto.ca/legdocs/mmis/2019/cc/comm/communicationfile-99894.pdf

Motions (City Council)

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

That City Council direct the City Manager to report to City Council through the Executive Committee in the third quarter of 2020 on a plan to create consistent measures to determine who qualifies for support programs, integrating principles of customer service and modernization and leveraging income and other information from within the City and other orders of government, and with consideration of the legislative parameters.

Vote (Amend Item (Additional)) Dec-17-2019 2:23 PM

Result: Lost Majority Required - EX11.1 - Holyday - motion 1
Total members that voted Yes: 2 Members that voted Yes are Michael Ford, Stephen Holyday
Total members that voted No: 22 Members that voted No are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that were Absent: 2 Members that were absent are James Pasternak, Jaye Robinson

2 - Motion to Amend Item (Additional) moved by Councillor Shelley Carroll (Carried)

That City Council request the City Manager to report back through the Executive Committee in the fourth quarter of 2020 on a coordinated Council-wide strategy for communicating to both intergovernmental partners and community members the need for Toronto to have a fully mature funding model that includes access to taxes that are better aligned to wealth-redistributive services that are delivered municipally.

Vote (Amend Item (Additional)) Dec-17-2019 2:24 PM

Result: Carried Majority Required - EX11.1 - Carroll - motion 2
Total members that voted Yes: 21 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 3 Members that voted No are Michael Ford, Stephen Holyday, Denzil Minnan-Wong
Total members that were Absent: 2 Members that were absent are James Pasternak, Jaye Robinson

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Dec-17-2019 2:25 PM

Result: Carried Majority Required - EX11.1 - Adopt the item as amended
Total members that voted Yes: 22 Members that voted Yes are Paul Ainslie, Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Mark Grimes, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 2 Members that voted No are Michael Ford, Stephen Holyday
Total members that were Absent: 2 Members that were absent are James Pasternak, Jaye Robinson

Point of Privilege by Councillor Shelley Carroll

Councillor Carroll, rising on a Point of Privilege, stated that Deputy Mayor Minnan-Wong's comments that certain Members of Council are taxaholics, that the Budget Committee will not find efficiencies and that Councillors do not care is rhetoric.  Councillor Carroll requested the Speaker to rule on the tone of the Deputy Mayor's comments.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Privilege and asked the Deputy Mayor to retract his comment that Councillors do not care.

Deputy Mayor Minnan-Wong retracted his comments.


Point of Privilege by Councillor Shelley Carroll

Councillor Carroll, rising on a Point of Privilege, stated that Council has had nothing but a serious discussion and that Deputy Mayor Minnan-Wong's comment that the some Councillors are celebrating with the introduction of the new tax is inappropriate and asked the Speaker to rule on the tone of the Deputy Mayor's comments.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Privilege and ruled that some Members of Council had said they were celebrating.

EX11.1 - Value-Based Outcomes Review: Findings

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Executive Committee recommends that:  

 

1.  City Council receive this report for information

Decision Advice and Other Information

The City Manager and the Chief Financial Officer and Treasurer gave a presentation on State of the City and Value-Based Outcomes Review.

 

The Executive Committee considered Items EX11.1 and EX11.26 together.

Origin

(November 27, 2019) Report from the Chief Financial Officer and Treasurer

Summary

This report transmits the findings of the recently completed Value-Based Outcomes Review, conducted on behalf of the City of Toronto. The Value-Based Outcomes Review analysis and findings will inform the City's strategy for modernizing our financial decision-making to achieve Council's priorities and long-term financial sustainability.

 

Toronto plays a pivotal role in the region, province and country. The City is a magnet for immigration and economic growth. It delivers key services that provide enormous regional and national economic and social benefit. Toronto is the fastest growing city in North America and part of the second fastest growing region -- the City grew by 77,000 residents in the last year, and nearly 400,000 over the past 10 years. The Toronto Census Metropolitan Area's Gross Domestic Product is comparable to each of the provinces of Alberta and Quebec and represents 18.5 percent of national Gross Domestic Product. Within Ontario, Toronto and the surrounding area have been responsible for substantially all job growth dating back to 2003.

 

Over successive terms, the City's finances have been heavily relied upon to meet this growth and accompanying regional demand for services such as public housing, transit and transportation, and social services. As the Value-Based Outcomes Review highlights, the City does so without contributions towards operating expenses from a regional tax or rate base. This creates a significant pressure on the City to manage. The solutions to the City's unique pressures will require partnerships with other governments, including approaches to fairly fund city services and infrastructure which provide regional benefits.

 

The Value-Based Outcomes Review analysed actual spending by City divisions and major agencies from 2015 to 2018 with the goal of finding service delivery efficiencies, improving the value of services, and addressing long-standing challenges that have hindered previous transformation efforts. Funding for the Value-Based Outcomes Review was supported by the Province's Audit and Accountability Fund. Consistent with the Fund's requirements, the Value-Based Outcomes Review was used to explore efficiencies while preserving service levels.

 

In addition to new analysis, the review also validates a number of structural financial risks identified by previous City Managers and Chief Financial Officers. The City has developed a roadmap to address many of these risks through its financial management and operations modernization strategy, while planning for additional, intentional management to achieve progress over the next several years.

 

Key risks identified in the Value-Based Outcomes Review:

 

- Assessment of financial information has been made assuming service levels are maintained.

 

- The current capital plan is based on a set of assumptions which need to be reviewed. These assumptions include the estimates and timing of capital expenditures in addition to the funding requirements.

 

- The City must address financial challenges surrounding its 10-year capital plan

 

- Based on the current state of the capital plan the City faces immediate financial challenges.

 

- The City's capital plan must address its achievability and affordability. This is driven by assumptions about the amount of capital work the City is able to deliver in a given year and the forecasted cash flow required to fund the capital plan.

 

- The municipal costs associated with the growth of 170,000 residents from 2015 to 2018 have been managed largely through efficiencies.

 

- The Value-Based Outcomes Review identifies transformation opportunities that will contribute to funding growth in the future.
 

Opportunities identified in the Value-Based Outcomes Review related to moving the City towards financial sustainability include:

 

- Budgets and systems which create a true multi-year financial view focused on outcomes,

 

- Amended accountability for the fiscal plan including ownership of corporate savings and the capital plan,

 

- Clarity in the roles and responsibilities of City Council, the City's leadership, divisions and agencies,

 

- Changes which allow the City's leadership to adjust headcount to achieve outcomes within budget,

 

- Allocating savings to be used for transformation projects,

 

- Reengineering business processes to maximize the value of investments, and

 

- Mandated corporate programs across all divisions and agencies to better realize efficiencies and savings.

 

- In addition, there are opportunities to achieve efficiencies and improve value of services. These opportunities have been categorized by the consultant as: collection and enforcement; productivity; workforce optimization; alternative business models; and, infrastructure and asset management.
 

Undertaking the Value-Based Outcomes Review provided the City with additional insights and data. The findings of the review will support the Senior Leadership's commitment to achieve City Council's priorities and directions over the next several years, informed by sound, transparent and accountable financial management.

 

Actions currently underway to address the City's financial sustainability have been confirmed by the Value-Based Outcomes Review recommendations, such as modernizing the budget process, transforming financial systems, improving capital asset management, improving capital planning, exploring alternative service delivery, and improving procurement.

 

The Senior Leadership will bring forward opportunities identified in the Value-Based Outcomes Review that require Council authority in the 2020 budget process or later in the Council term as appropriate.

Background Information

(November 27, 2019) Report from the Chief Financial Officer and Treasurer on Value-Based Outcomes Review: Findings
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140710.pdf
Attachment 1 - Value-Based Outcomes Review: A Fiscal Modernization Agenda for the City of Toronto
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140893.pdf
(December 11, 2019) Presentation from the City Manager and the Chief Financial Officer and Treasurer on State of the City and Value-Based Outcomes Review
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-141001.pdf

Communications

(December 9, 2019) Letter from Dave Wilkes, Building Industry and Land Development Association (EX.Supp.EX11.1.1)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99655.pdf
(December 9, 2019) Submission from Andrew Krystal, Carpenters of Ontario (EX.Supp.EX11.1.2)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99657.pdf
(December 10, 2019) Letter from Hillary Marshall, Greater Toronto Airports Authority (EX.Supp.EX11.1.3)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99686.pdf
(December 10, 2019) Letter from James St. John, Central Ontario Building Trades (EX.Supp.EX11.1.4)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99687.pdf
(December 11, 2019) Letter from Alana Powell, Association of Early Childhood Educators Ontario (EX.New.EX11.1.5)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99672.pdf
(December 11, 2019) Submission from Dave Mitchell, Canadian Union of Public Employees (EX.New.EX11.1.6)
https://www.toronto.ca/legdocs/mmis/2019/ex/comm/communicationfile-99674.pdf

Speakers

Michael Rosenberg
Jane Mercer, Toronto Coalition for Better Childcare
Dave Mitchell, CUPE Local 79
Simon Collins, CUPE Local 79
Miguel Avila-Velarde
Janet Davis
Councillor Gord Perks
Councillor Stephen Holyday

Motions

Motion to Adopt Item moved by Mayor John Tory (Carried)

Vote (Adopt Item) Dec-11-2019

Result: Carried Majority Required
Total members that voted Yes: 7 Members that voted Yes are Paul Ainslie, Ana Bail„o, Gary Crawford, Denzil Minnan-Wong, Frances Nunziata, Michael Thompson, John Tory (Chair)
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 1 Members that were absent are James Pasternak
Source: Toronto City Clerk at www.toronto.ca/council