Item - 2021.EX26.5

The Executive 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 (September 3, 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 six month period ended June 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 $1.264 billion or 23.9 percent of the 2021 capital budget of $5.292 billion for the period ended June 30, 2021 and is projecting to expend $4.254 billion or 80.4 percent by December 31, 2021.

Table 1: Capital Variance Summary

*Note: Includes 2020 carry forward funding

The Capital spending pattern for the first six month typically ranges between 17 percent and 29 percent of the total Council Approved Capital Budget, with the 2021 experience of 23.9 percent. Total City projected spend of 80.4 percent by year-end is comprised of a Tax Supported Programs spending rate of 76.9 percent and a Rate Supported Programs spending rate of 89.6 percent.

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.