Item - 2021.BU32.4

The Budget Committee recommends that:

1. City Council approve in-year budget adjustments to the 2021-2030 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (June 15, 2021) from the Chief Financial Officer and Treasurer.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the four month period ended April 30, 2021, as well as projected expenditures to December 31, 2021. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2021 Approved Capital Budget and Plan.

As illustrated in Table 1 below, City's 2021 capital expenditure was $688 million or 13.0% of the 2021 capital budget of $5.305 billion for the period ended April 30, 2021 and is projecting to expend $4.415 billion or 83.2% by December 31, 2021.

Table 1: Capital Variance Summary

*Note: Includes 2020 carry forward funding

The Capital spending pattern for the first four month typically ranges between 5% and 22% of the total Council Approved Capital Budget, with the 2021 experience of 13%. Total City projected spend of 83.2% by year-end is comprised of a Tax Supported Programs spending rate of 82.0% and a Rate Supported Programs spending rate of 86.4%.

Moving forward, the City will continue to plan annual capital projects in line with both affordability and achievability, based on the historical actual capacity. The strategy is expected to build on improvements experienced in 2020 and also improve capital spend rate in future years; enabling funding capacity otherwise going unspent to be directed to capital priorities.