Item - 2020.BU15.2

The Budget Committee deferred the consideration of item BU15.2 to the February 4, 2020 meeting of the Budget Committee.

The Budget Committee, at its meeting of January 15, 16 and 17, 2020:

1.  Deferred the consideration of Item BU14.2 - 2020 Capital and Operating Budgets to the January 28, 2020 meeting of the Budget Committee.

2. Requested budget briefing notes as follows:

 Corporate Accounts

Toronto Police Services Board

22. The Chief Financial Officer and Treasurer on an update on the request by City Council in Item EX8.22 headed "Proposed Budget Process Changes to Remove Systemic Barriers to Hiring People with Disabilities" to report on the feasibility of exempting all operating and capital costs related to Accessibility for Ontarians with Disabilities Act compliance and accessibility initiatives from any 2020 proposed efficiency savings.

The Budget Committee will consider and make recommendations to the Executive Committee on the 2020 Capital and Operating Budgets.

The 2020 Staff Recommended Capital and Operating Budget Notes (attached as Background Information) were made available online on January 10, 2020 as part of the agenda for the Budget Committee meeting of January 15, 16 and 17, 2020.

The report from the Chief Financial Officer and Treasurer on Tax Supported 2020 Operating Budget and 2020-2029 Capital Budget and Plan and the report and Appendix 1 from the Executive Director, Financial Planning on Recommended 2020 Service Levels - Tax Supported Programs were distributed to all Members of Council on January 10, 2020 as part of the agenda for the Budget Committee meeting of January 15, 16 and 17, 2020. 

Supplementary reports BU15.2a through BU15.2kw were distributed to all Members of Council as items BU14.2a through BU14.2k on January 10, 2020 as part of the agenda for the Budget Committee meeting of January 15, 16 and 17, 2020.

At its meeting on September 23, 2019, the Board of Health considered Item HL9.9 headed "Toronto Public Health 2020 Operating Budget Request" and made recommendations to City Council.

This report outlines the Toronto Public Health 2020 Operating Budget Submission for consideration by the Board of Health. Toronto Public Health's 2020 Operating Budget Submission totals $269,629.5 thousand gross, $69,821.3 thousand net, and 1,919.2 positions. 

This submission is $12,900.2 thousand gross, $5,944.6 thousand net above the 2019 Operating Budget and reflects a reduction of 13 positions. The gross increase of $12,900.2 thousand from the 2019 Operating Budget is predominately related to the Ontario Seniors Dental Care Program. The net increase of $5,944.6 thousand from the 2019 Operating Budget is predominantly related to the impact of changes announced by the Province regarding the modernization of the public health sector ($4,357.7 thousand); an increase for the Student Nutrition Program to address the increased cost of food ($1,099.5 thousand); and an increase for the Student Nutrition Program - Independent Schools ($303.0 thousand).

The 2020 Operating Budget Submission includes 2020 base changes, efficiencies, a service enhancement and 2019 in-year changes, pending Council approval, as detailed in the recommendations included in this report.

At its meeting on September 23, 2019, the Board of Health considered Item HL9.8 headed "Toronto Public Health 2020-2029 Capital Budget and Plan Request" and referred the report (September 19, 2019) from the Medical Officer of Health to the Budget Committee for consideration during the 2020 Budget Process.

This report provides an overview of the Toronto Public Health 2020 Capital Budget and 2021-2029 Plan Request.

Toronto Public Health is recommending a 2020-2029 Capital Budget and Plan of $29.835 million including a 2020 Capital Budget of $2.676 million with future year commitments of $5.035 million and future year estimates of $22.124 million. This 10-Year Capital Budget and Plan Request will provide funding for twenty-two Information Technology projects.

At its meeting on September 23, 2019,  the Board of Health considered Item HL9.11 headed "The Canadian Institutes of Health Research - Healthy Cities Research Initiative - Planning Grant for Implementing Healthy Urban Policy (Pilot)" and referred the report (September 23, 2019) from the Medical Officer of Health to the Budget Committee for consideration during the 2020 Budget Process.

The Canadian Institutes of Health Research has announced a call for proposals for a Planning Grant for Implementing Healthy Urban Policy. The maximum amount awarded for each grant is $0.065 million. The purpose of the grant is to design active transportation and public space interventions. In addition, the grant aims to design an evaluation of the health effect of these interventions.

Toronto Public Health with Transportation Services is seeking to apply for $0.065 million of this funding in 2020. Toronto Public Health will apply as the lead applicant and will coordinate the funding to be assigned to the activities within the grant proposal.

The grant opportunity is composed of two parts: a five-day workshop in a leading healthy city and a post-workshop planning and knowledge translation event. The post-workshop event in Toronto will be an invitational event to apply the findings from the first workshop and develop a set of specific intervention and evaluation of activities.

This work will advance the mandates of both Toronto Public Health and Transportation Services as well as key initiatives such as the Vision Zero 2.0 Plan and the Complete Streets Guidelines.

This report provides a summary of the Planning Grant and seeks City Council approval for the Medical Officer of Health to increase the 2020 Operating Budget of Toronto Public Health by $0.065 million to receive the Canadian Institutes of Health Research Planning Grant, subject to approval of the application.

At its meeting on Tuesday, September 24, 2019, the Board of Directors of Create TO considered Item RA8.4  headed "Create TO 2020 Budget Request" and made recommendations to City Council.

In 2020 CreateTO will continue to identify, evaluate and provide strategic real estate solutions to meet the needs of the City of Toronto. CreateTO continues to deliver on its mandate of City Building by delivering value through affordable housing (Housing Now Program), revitalizing  neighbourhoods (Danforth Garage, Etobicoke Civic centre, Fort York Bridge), optimizing real estate through a City wide portfolio strategy, and providing real estate solutions to City agencies and divisions to support program needs.

The 2020 budget requests the addition of four Full Time Employees, two development leads and two financial analysts. These roles will help create additional capacity to advise on and deliver City priorities.

At its meeting of  October 25, 2019, the Audit Committee considered Item AU4.8  headed "Auditor General's Office 2020 Operating Budget":

1.  Approved the 2020 Operating Budget for the Auditor General's Office attached to the report (October 8, 2019) from the Auditor General, and directed that it be forwarded to City Council through the Budget Committee.

In accordance with Chapter 3 of the Toronto Municipal Code, the Auditor General submitted her 2020 Operating Budget request to the Audit Committee for consideration and recommendation to City Council.

The attached report provides information relating to the Auditor General's 2020 Operating Budget request of $6.701 million. This is essentially the same budget as last year and is equal to 1/20th of one per cent, or 0.05 per cent, of the City’s 2019 Approved Adjusted Budget.

The budget request supports the Auditor General providing the same level of capacity to undertake value for money audits and investigations as in 2019. It is recommended that the time-limited budget increases approved by City Council in 2017 to 2019 be retained permanently to preserve the level of service provided over the last three years.

The Auditor General's 2020 Work Plan is being presented to the Audit Committee at the same meeting as this 2020 Budget Request.

This report transmits to Budget Committee the Ombudsman's recommendation for Ombudsman Toronto's 2020 Operating Budget and Ombudsman Toronto's 2020-2029 Capital Plan.

This report transmits to Budget Committee the recommended 2020 Operating Budget for the Office of the Integrity Commissioner.

This report seeks Budget Committee’s recommendation for City Council to approve the Toronto Lobbyist Registrar’s 2020 Operating Budget Request of $1.451 million gross and net and its 2020-2029 Capital Budget and Plan.

At its meeting on Monday, December 16, 2019 the Toronto Transit Commission Board considered the attached report titled “2020 Toronto Transit Commission and Wheel-Trans Operating Budgets”. 

The Board adopted the recommendations in the staff report, as follows:

It is recommended that the Toronto Transit Commission Board:

- Approve the recommended 2020 Toronto Transit Commission Conventional Operating Budget as detailed in this report, with gross expenditures of $1.987 billion, revenues of $1.344 billion and a net City funding requirement of $642.6 million, reflecting an additional $20.6 million operating funding over the 2019 budgeted level;

- Approve the recommended 2020 Wheel-Trans Budget as detailed in this report, with gross expenditures of $156.5 million, revenues of $9.2 million and a net City funding requirement of $147.3 million, reflecting an increase of $6.3 million from the 2019 budgeted level;

- Approve a 10 cent fare increase, as described in this report and Appendix C effective March 1, 2020 generating $31.4 million in passenger revenues, net of PRESTO commissions;

- Approve a 2020 year-end workforce complement of 16,167 positions, reflecting an increase of 142 positions to support service delivery and 74 positions for capital project delivery, as described in Appendix D; and

- Forward this report to the City Budget Committee and the City Manager as the official 2020 Operating Budget submission for the Toronto Transit Commission.

At its meeting on Monday, December 16, 2019 the Toronto Transit Commission Board considered the attached report titled "Toronto Transit Commission 15-Year Capital Investment Plan & 2020-2029 Capital Budget and Plan".

The Board adopted the recommendations in the staff report, as follows:

It is recommended that the Toronto Transit Commission Board:

-  Approve the staff recommended Toronto Transit Commission 2020-2029 Base Capital Budget and Plan of $7.4 billion as outlined in Appendix A of this report;

-  Approve the staff recommended  Toronto Transit Commission 2020-2029 Capital Budget and Plan of $287.1 million for Transit Expansion Projects including the completion of the remaining scope for the Toronto-York Spadina Subway Extension, Scarborough Rapid Transit Life Extension Overhaul for Line 2 Subway Extension (formerly Scarborough Subway Extension) and Waterfront Transit as outlined in Appendix A of this report;

-  Direct the Chief Executive Officer to update the Capital Investment Plan on an annual basis based on refined cost and schedule estimates as projects progress through stage gates and to prioritize critical base capital needs in advance of the Board's consideration of the 2021 budget process;

-  Direct the Chief Executive Officer to engage the City Manager to pursue a tri-party partnership between the Federal government, Provincial government and the City of Toronto for a dedicated, long-term, stable and predictable funding plan to address the Toronto Transit Commission's rolling stock, state-of-good-repair, capacity building, service improvements and growth needs;

-  Forward this report to the City Budget Committee and the City Manager as the official 2020 - 2029 Capital Budget and Plan submission for the Toronto Transit Commission.

At its meeting held on December 16, 2019, the Toronto Police Services Board was in receipt of a report dated December 6, 2019 with regard to the following budget requests:

- Toronto Police Service 2020 operating budget,
- Toronto Police Service 2020 to 2029 capital program,
- Toronto Police Service 2020 Parking Enforcement Unit operating budget; and,
- Toronto Police Services Board 2020 operating budget.

At its meeting held on January 22, 2020, the Toronto Police Services Board was in receipt of a report dated January 11, 2020 from Chair Jim Hart regarding the Independent Civilian Review into Missing Persons Investigations – Account for Professional Services and Review's Request for Additional Budget Funding as part of the 2020 budget process.

At its meeting of January 23, 2020, the Executive Committee considered Item EX12.6 - Ravine Strategy Implementation and referred the following recommendation in the report (January 8, 2020) from the General Manager, Parks, Forestry and Recreation, the Chief Planner and Executive Director, City Planning; and the General Manager, Toronto Water to the Budget Committee:

2. City Council direct the General Manager, Parks, Forestry and Recreation to request as part of the 2021 Operating Budget process, for consideration, the following:

a. the necessary operating funds to support the creation of a dedicated Ravine Litter Cleanup program, with an estimated annual cost of $0.657 million, including timelines for phasing in this service level increase; and

b. operating funding to support enhanced invasive species management and ecological restoration in ravines, estimated at $2.050 million annually at full implementation.

The Executive Committee also requested the Budget Committee to advance the Ravine Litter Pick-Up program ($0.657 million) and the operating support to enhanced invasive species management and ecological restoration in ravines ($0.600 million) from 2021 to 2020 through the 2020 Operating Budget of Parks, Forestry and Recreation.

The Budget Subcommittee for City Hall and Etobicoke Civic Centre Consultation received for information the public presentations and the communications submitted by members of the public, at its meetings of:

January 20, 2020 - City Hall

9:30 a.m. to 5:00 p.m. meeting

6:00 p.m. onwards meeting

and

January 21, 2020 - Etobicoke Civic Centre

3:00 p.m. to 5:00 p.m. meeting

6:00 p.m. onwards meeting

The Budget Subcommittee for Scarborough and North York Civic Centre Consultation received for information the public presentations and the communications submitted by members of the public, at its meetings of:

January 20, 2020 - Scarborough Civic Centre

3:00 p.m. to 5:00 p.m. meeting

6:00 p.m. onwards meeting

and

January 21, 2020 - North York Civic Centre

3:00 p.m. to 5:00 p.m. meeting

6:00 p.m. onwards meeting

At its meeting held on November 21, 2019, the Toronto Police Services Board was in receipt of a report dated October 30, 2019, from Chief of Police Mark Saunders with regard to Vision Zero Enforcement Team to support City of Toronto Road Safety Plan – Vision Zero.

1. THAT the report recommendation be removed and replaced with the following:

It is recommended that the Toronto Police Services Board direct the Chief of Police to include the program cost in Toronto Police Service's 2020 Operating Budget Submission for consideration as part of the 2020 Budget process.

1. THAT the program be commenced at the time recommended in the report and paid for in the manner specified in the report, only until such time as permanent funding has been approved; and

2. THAT the Chief of Police report back to the Board at its July 2020 meeting with information that addresses how the new shift schedules may increase the Service’s capacity to perform more dedicated, proactive and strategic enforcement associated with the City’s Vision Zero objectives in addition to, or as a supplement to, an approach that uses Callback/Overtime resources.

At its meeting on January 27, 2020 the Toronto Transit Commssion Board considered the attached report titled "Toronto Transit Commission's 2020-2029 Key Capital Investment Priorities - Subway Infrastructure and Accelerated Vehicle Procurements". The Board adopted the recommendations in the report, as follows:

It is recommended that the Toronto Transit Commission Board:

1.     Approve key capital priorities for the application of $4.23 billion in net new funding made available through the dedicated City Building Fund and one-time Federal Gas Tax amount as follows:

a.    $3.09 billion to provide full funding between 2020 and 2029 for the following                   subway infrastructure investments:

1.  $1.50 billion of the total estimated cost of the $4.26 billion required to initiate the Line 1 Capacity Enhancement program.

 
2.  $817 million of the total estimated cost of the $3.92 billion required to initiate the Line 2 Capacity Enhancement program.

3.  $623 million of the total estimated cost of the $877 million required to continue implementation of Line 2 Automatic Train Control Re-signalling project.

4.  $158 million to fully fund Other Subway Infrastructure state-of-good-repair projects.

b.     $1.14 billion for net new investments toward the procurement of new vehicles and related systems, as follows:

New Subway Trains

1.  $458 million, representing approximately 1/3 of the 10-year cost for 62 trains, to replace the legacy fleet of T1 trains on Line 2 required for delivery in 2026 through 2030, and which will require an additional $122 million to fund the 1/3 cost between 2030 and 2034.

 
2.  $165 million, representing approximately 1/3 of the total estimated cost of $494 million towards procurement of 18 trains to meet growth in ridership demand on Line 1 required for delivery in 2026-2027.

T1 Subway Train Maintenance and Overhaul

 
3.  Subject to the approval of Recommendation 1.b.1, and in lieu of the previously planned T1 life extension overhaul, that $74 million be allocated for the state-of-good-repair preventative maintenance of T1 vehicles to ensure they remain safe and reliable until 2030 when they will be fully replaced at end-of-life by the 62 new trains.

 
4.  Subject to the approval of Recommendations 1.b.1 and 1.b.3 that $474 million approved in the 2020-2029 Capital Budget and Plan for the T1 life extension overhaul program provided to prolong the life of the T1 fleet by 10 years beyond its 30-year design life due to lack of available funding be reinvested in the purchase of vehicles.

Bus and Wheel-Trans Buses

5.  $772 million, with $686 million representing approximately 1/3 of the estimated 10-year cost, towards the procurement of 614 of the 1,575 buses required; $64 million for eBus charging system infrastructure; and $22 million to fully fund the next 4 years of Wheel-Trans bus procurements or 232 of the 498 buses required.

New Streetcars

6.  The remaining $140 million, representing approximately 1/3 of the total cost for the procurement of 60 new streetcars required to meet projected growth on streetcar routes until 2026.

2.  Approve an amended 2020-2029 Capital Budget and Plan of $11.92 billion and a 15-year Capital Investment Plan of $35.2 billion.

3.  Forward this report to the City's Budget Committee as the amended 2020-2029 Capital Budget and Plan for the Toronto Transit Commission for consideration with the City of Toronto's Capital Budget and Plan scheduled for City Council approval on February 19. 2020.