Item - 2022.EX34.14
Tracking Status
- City Council adopted this item on July 19, 2022 without amendments.
- This item was considered by the Executive Committee on July 12, 2022 and adopted without amendment. It will be considered by City Council on July 19, 2022.
EX34.14 - Operating Variance Report for the Year Ended December 31, 2021
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on July 19, 20, 21 and 22, 2022, adopted the following:
1. City Council approve a budget transfer of $17.524 million from Other Corporate Expenses Account to Toronto Transit Commission, related to the transfer of a City held provision towards settled Toronto Transit Commission Cost of Living Adjustments.
2. City Council approve a one-time temporary withdrawal of $43.700 million from the Child Care Capital Reserve Fund (XR1103) to offset the timing difference between expenditures reflected in 2021 and Provincial funding reimbursement reflected in 2022 and City council authorize the return of $43.700 million to this reserve consistent with provincial funding related to the transfer payment received in 2022.
3. City Council approve COVID-19 related obligations, deferred costs and recommended allocations as detailed in Appendix D to the report (June 27, 2022) from the Chief Financial Officer and Treasurer.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-228258.pdf
Motions (City Council)
Adopt the Item as it pertains to the interest declared by Mayor Tory.
Vote (Adopt Item) Jul-19-2022 12:08 PM
Result: Carried | Majority Required - EX34.14 - Adopt the Item as it pertains to the interest declared by Mayor Tory |
---|---|
Total members that voted Yes: 24 | Members that voted Yes are Paul Ainslie, Ana Bailão, Brad Bradford, Robin Buxton Potts, Shelley Carroll, Mike Colle, Gary Crawford, John Filion, Paula Fletcher, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 1 | Members that were absent are John Tory |
Adopt the balance of the Item.
Vote (Adopt Item) Jul-19-2022 12:10 PM
Result: Carried | Majority Required - EX34.14 - Adopt the balance of the Item |
---|---|
Total members that voted Yes: 25 | Members that voted Yes are Paul Ainslie, Ana Bailão, Brad Bradford, Robin Buxton Potts, Shelley Carroll, Mike Colle, Gary Crawford, John Filion, Paula Fletcher, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 0 | Members that were absent are |
Declared Interests (City Council)
Mayor John Tory - as it pertains to his previously declared interest with the Rogers Family Trust and the Rogers Company provides telephone, cellular and wireless services to the City of Toronto and there are recommendations in Appendix D related to that arising out of the report.
Written Declaration: https://secure.toronto.ca/council/declared-interest-file.do?id=11178
EX34.14 - Operating Variance Report for the Year Ended December 31, 2021
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council approve a budget transfer of $17.524 million from Other Corporate Expenses Account to Toronto Transit Commission, related to the transfer of a City held provision towards settled Toronto Transit Commission Cost of Living Adjustments.
2. City Council approve a one-time temporary withdrawal of $43.700 million from the Child Care Capital Reserve Fund (XR1103) to offset the timing difference between expenditures reflected in 2021 and provincial funding reimbursement reflected in 2022 and authorize the return of $43.700 million to this reserve consistent with provincial funding related to the transfer payment received in 2022.
3. City Council approve COVID-19 related obligations, deferred costs, and recommended allocations as detailed in Appendix D to the report (June 27, 2022) from the Chief Financial Officer and Treasurer.
Origin
Summary
The purpose of this report is to provide Council with the City of Toronto's Operating Variance results for the year ended December 31, 2021 and the City's financial position before and after receiving COVID-19 funding support.
The City's Tax Supported Operations final year-end experience was consistent with the 2021 balanced net budget following offsets to all COVID-19 financial impacts through a combination of secured federal and provincial funding support and offsetting internal City savings.
Since March of 2020, the City of Toronto, consistent with other major Canadian and Greater Toronto and Hamilton Area (GTHA) municipalities have been experiencing significant financial impacts, both in the form of added costs and significant revenue losses as a direct result of the COVID-19 pandemic.
The 2021 budget was again challenged by the financial impacts arising from the pandemic. Added costs and revenue losses in 2021 attributed to COVID-19 totalled an estimated $1.9 billion prior to internal City savings and offsets with significant pressures continued to be experienced in Transit and Shelter services as well as within Corporate Revenues.
- COVID-19 related net financial impacts totalled $1.627 billion after internal offsets and prior to COVID-19 support funding as reflected in table 1 below.
- Net COVID-19 pressures were addressed through COVID-19 funding support from the Government of Canada and Province of Ontario, mainly in the form of Safe Restart Agreement (SRA), added Reaching Home (RH) funding and other funding programs.
Table 1 below details the budgeted 2021 City-wide COVID-19 related financial impacts against secured COVID-19 support funding; and the resulting financial position that is reflected in the year-end variance projections:
Table 1: 2021 Projected COVID-19 Financial Impacts
Category ($M) | Budgeted COVID-19 Impacts | Added Net COVID-19 Impacts | Revised COVID -19 Net Impacts & Funding Received |
Transit | 796.4 | 0.0 | 796.4 |
Municipal* | 459.7 | 18.2 | 458.9 |
Shelter | 281.3 | 24.5 | 305.8 |
Public Health** | 59.0 | (12.6) | 46.4 |
Total City | 1,596.4 | 30.1 | 1,626.5 |
* Includes TCHC impact of $37.5 million
** Based on Budgeted impacts and excludes immunization costs for Public Health
Tax Supported Programs:
The following table summarizes the financial position of the City's Tax Supported Operations for year ended December 31, 2021.
Table 2:
Favourable / (Unfavourable) | Budget | Actual | Var |
City Operations | 2,799.9 | 2,602.5 | 197.5 |
Agencies | 3,062.8 | 3,043.9 | 18.8 |
Corporate Accounts* | (1,373.5) | (1,236.7) | (136.9) |
Variance (Prior to Legislated/Directed Adjustments) |
4,489.2 | 4,409.7 | 79.4 |
Less: Toronto Building & City Planning (Legislated / Council Directed) |
2.8 | 82.3 | (79.4) |
Variance | 4,492.0 | 4,492.0 | 0.0 |
*Includes Recommended Reallocations and Adjustments
As noted in Table 2 above, for the year ended December 31, 2021 Tax Supported Operations experienced no net variance following adjustments associated with council directed and legislated allocations; as well as adjustments for COVID-19 related obligations, deferred costs, and allocations.
Rate Supported Programs:
Rate Supported Programs reported a favourable year-end variance of $51.3 million. The favourable variance is attributed to lower than budgeted expenditures from Solid Waste Management due to reduced volumes and delays in organic processing facility expansion. Revenues from Solid Waste Management were also favourable due to improved market rates for sale of recyclables, offset by losses from a Renewable Natural Gas project delay.
Parking Authority had a favourable net variance of $11.7 million mainly due to lower than expected salary costs, and favourable revenue in both on and off street parking.
Toronto Water also saw a net favourable variance resulting from lower water production, salary savings and lower than expected energy rates and consumption. This was partially offset by unfavourable revenue driven by lower than anticipated sale of water.
Rate Supported Programs are funded entirely by the user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water's respective year-end surpluses, if any, must be transferred to the Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance.
Table 3: Rate Supported Net Variance Summary ($ Millions)
Variance ($M) | 2021 Year-End |
Favourable / (Unfavourable) | Budget | Actual | Variance |
Solid Waste Management Services | 0.0 | (31.6) | 31.6 |
Toronto Parking Authority | 2.2 | (9.5) | 11.7 |
Toronto Water | 0.0 | (8.0) | 8.0 |
Total Variance |
2.2 | (49.0) | 51.3 |
Background Information
https://www.toronto.ca/legdocs/mmis/2022/ex/bgrd/backgroundfile-228258.pdf
Motions
Adopt the Item as it pertains to adjustments to the allocation to the Police Vehicle and Equipment Reserve for the reimbursement of information technology equipment.
Vote (Adopt Item) Jul-12-2022
Result: Carried | Majority Required |
---|---|
Total members that voted Yes: 7 | Members that voted Yes are Paul Ainslie, Ana Bailão, Gary Crawford, Jennifer McKelvie, Denzil Minnan-Wong (Chair), James Pasternak, Michael Thompson |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 1 | Members that were absent are John Tory |
Adopt the balance of the Item.
Vote (Adopt Item) Jul-12-2022
Result: Carried | Majority Required |
---|---|
Total members that voted Yes: 8 | Members that voted Yes are Paul Ainslie, Ana Bailão, Gary Crawford, Jennifer McKelvie, Denzil Minnan-Wong, James Pasternak, Michael Thompson, John Tory (Chair) |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 0 | Members that were absent are |
Declared Interests
Mayor John Tory - as it relates to his involvement with the Rogers family which in turn is related to Rogers Communications Inc. providing services, and there are some recommendations in Appendix D that make it prudent for him to declare the interest.
Written Declaration: https://secure.toronto.ca/council/declared-interest-file.do?id=11138