Item - 2023.BU3.1

The Budget Committee recommended that the Mayor:

1. Propose a Budget to City Council based on a property tax rate increase on 5.5 percent.

2. Propose a Capital Budget and plan to City Council based on a 10 year extension of the City Building Levy.

3. Continue to work with City Officials to find opportunities for further offsets and savings, and that any such savings be re-allocated as increases to budgets for City priorities including community safety and wellbeing, housing, public realm and natural infrastructure, community grants and programs, and investments in Neighbourhood Improvement Areas, in the Mayor's proposed Budget.

4. Propose a budget for the Toronto Police Service that is consistent with the budget approved by the Toronto Police Services Board, with the exception of the portion in which the Mayor has declared an interest.

5. Continue to work with Toronto Transit Commission Officials to look for opportunities to improve safety and service, and to include any additional proposals that improve safety and service on the Toronto Transit Commission, in the Mayor's Budget proposal to City Council.

6. Propose a budget for housing-related programs, totaling $615.8 million in net operating budget funding (excluding COVID-19 costs) for the Housing Secretariat, Shelter, Support and Housing Administration, and Toronto Community Housing Corporation / Toronto Senior Housing Corporation, consistent with the budget tabled by City Officials, with the exception of the portion of the Toronto Community Housing Corporation budget in which he has declared an interest.

7. Continue to Advocate to the other levels of government on the following issues:

a. commitment from the Provincial and Federal governments for the City’s 2023 COVID-19 financial impacts;

b. reimbursement from the Federal government for the outstanding portion of the City’s 2022 COVID-19 financial impacts;

c. reimbursement from the Federal government for the City’s 2022 refugee housing costs and commitment for the City’s 2023 refugee housing costs and those costs on an ongoing basis, all of which fall under the Federal government’s responsibility for refugees and immigration;

d. commitment from the Province for funding for wrap-around healthcare costs for the City’s supportive housing program, for 2023 and on an ongoing basis; and

e. increased investments by both the Federal and Provincial government in a robust mental healthcare system, including well-funded addictions recovery programs and incorporate any further commitments in the budget he proposes to City Council.

8. Advocate to both the Provincial and Federal governments for new fiscal framework for the City of Toronto, including new revenue tools and / or funding commitments for services which the other levels of government has downloaded onto the City, and request City Officials to continue to explore revenue tools which are currently permitted under the City of Toronto Act and which do not require Provincial cooperation to administer, including but not limited to a commercial parking levy.

9. Consider amending the 2023 Operating and Capital Budgets and present a revised Budget to City Council that does the following:

a. adequately respond to Toronto’s homelessness, mental health, and addiction crises;

b. address the need for improved public transit access and service;

c. advances our commitments to Toronto's climate and Vision Zero goals; and

d. prioritizes community responses and services for violence prevention and community safety.

10. Propose a budget to City Council that contributes $10 million annually from future Vacant Homes Tax revenues to the Capital Revolving Loan for Affordable Housing (XR1058), specifically for the purposes of the Multi-Unit Residential Acquisition Program, as identified in the 2023 Budget Briefing Note titled “Contributions to and Withdrawals from Reserves/Reserve Funds."

The Budget Committee recommended that City Council:

1. In accordance with section 7 of O. Reg. 529/22, amend the Mayor's proposed budget to include:

a. The 2023 Operating Budget for Technology Services of $143.380 million gross, $32.748 million revenue and $110.633 million net for the following services: 

b. An addition to the Toronto Police Services 2023 Operating Budget of $2.858 million gross and $2.858 million net, as presently allocated by the Toronto Police Services Board for telecommunications.

c. An addition to the Toronto Transit Commission Conventional and Wheel-Trans 2023 Operating Budget of $7.818 million gross and $7.818 million net for telecommunications.

d. An addition to the Toronto Community Housing Corporation 2023 Operating Budget of $2.595 million gross and $2.595 million net for telecommunications.

e. An addition to the Exhibition Place 2023 - 2032 Capital Budget and Plan of $6.840 million in 2023 to proceed with concept development, feasibility studies and preliminary design and preparation, as part of the stage gating process, for the enhancements and upgrades to be made to the City-owned stadium (BMO Field) in order to support the City hosting of FIFA Men's World Cup matches in 2026, and future year cash flow estimates for 2024 - 2032 of $15.356 million.

The Budget Committee:

1. Requested the City Manager and the Chief Financial Officer and Treasurer to report directly to City Council on the property tax rates, user fees and other matters requiring City Council authority to give effect to give effect to the Mayor's proposed budget and the Budget Committee's recommendation on the budgets in which the Mayor has declared an interest.

2. Authorized the public release of Confidential Attachment 1 to the report (October 28, 2022) from the Medical Officer of Health, once the City's budget is deemed adopted and has been communicated to Unions and affected staff.

3. Authorized the public release of Confidential Attachment 1 to the 2023 Capital and Operating Budget Notes - Toronto Public Health, once the City's budget is deemed adopted and has been communicated to Unions and affected staff.

4. Authorized the public release of the Confidential Attachment to the 2023 Capital and Operating Budget Notes - City Manager's Office, once the City's budget is deemed adopted and has been communicated to Unions and affected staff.

Confidential Attachment 1 to the report (October 28, 2022) from the Medical Officer of Health, is now public and can be accessed under background attachments.

Confidential Attachment 1 to the 2023 Capital and Operating Budget Notes - Toronto Public Health, is now public and can be accessed under background attachments.

The Confidential Attachment to the 2023 Capital and Operating Budget Notes - City Manager's Office, is now public and can be accessed under background attachments.

The Budget Committee will consider and make recommendations to the Mayor and City Council on the 2023 Capital and Operating Budgets.

The following schedule has been established for the consideration of the 2023 Capital and Operating Budgets:

Thursday, January 12, 2023

Service Group Presentation:

Community and Social Services:

Toronto Fire Services
Toronto Paramedic Services
Children's Services
Economic Development and Culture
Toronto Employment and Social Services
Parks, Forestry & Recreation
Court Services
Social Development, Finance & Administration
Seniors Services & Long Term Care
Housing Secretariat
Shelter, Support & Housing Administration

Agency Questions and Answers only - no presentations:

Toronto Community Housing Corporation (TCHC) / Toronto Seniors Housing Corporation
Toronto Public Health
Arena Boards of Management
Association of Community Centres
Exhibition Place
Heritage Toronto
TO Live
Toronto Atmospheric Fund
Toronto Parking Authority (rate)
Toronto Public Library
Toronto and Region Conservation Authority
Toronto Zoo
Yonge-Dundas Square

Accountability Officers Questions and Answers only - no presentations::

Office of the Auditor General
Office of the Integrity Commissioner
Office of the Lobbyist Registrar
Ombudsman Toronto

Service Group Presentation:

Corporate Services:

311 Toronto
Corporate Real Estate Management
Environment & Climate
Fleet Services
Office of the Chief Information Security Officer
Technology Services

Agency Questions and Answers only - no presentations:

CreateTO

Service Group Presentation:

Infrastructure and Development Services:

Toronto Water (rate)
Solid Waste Management Services (rate)
City Planning
Municipal Licensing & Standards
Transportation Services
Engineering & Construction Services
Office of Emergency Management
Policy Planning, Finance & Administration
Toronto Building
Transit Expansion
Waterfront Revitalization Initiative

Questions and Answers only - no presentations:

City Manager's Office, Finance and Treasury, & Other Services:

Office of the Chief Financial Officer and Treasurer
Office of the Controller
City Manager's Office
Legal Services
City Clerk's Office
City Council
Office of the Mayor

Friday, January 13, 2023

Agency Presentation:

Toronto Police Service

Agencies Questions and Answers only - no presentations:

Toronto Police Services Board
Toronto Police Services Parking Enforcement Unit

Agency Presentation:

Toronto Transit Commission

This report presents to Budget Committee the proposed 2023 Operating Budget for the Auditor General’s Office (the "Office").

This report presents to Budget Committee the proposed 2023 Operating Budget for the Office of the Integrity Commissioner (the "Office" or the "OIC").

This report presents to Budget Committee the proposed 2023 Operating Budget for Ombudsman Toronto.

This report presents to Budget Committee the proposed 2023 Operating and Capital Budgets for the Toronto Lobbyist Registrar (the "Office").

At its Special Meeting held today, January 9, 2023, the Toronto Police Services Board considered the following 2023 budget request reports:

• Toronto Police Service – 2023 Operating Budget Request;
• Toronto Police Service – 2023-2032 Capital Program Request;
• Toronto Police Service Parking Enforcement Unit – 2023 Operating Budget Request; and
• Toronto Police Services Board – 2023 Operating Budget Request.

The Board approved the foregoing reports and requested that copies of the draft Minutes be forwarded to the City’s Budget Committee for consideration.  The Board also directed that its decisions be transmitted to the City’s Budget Committee and Chief Financial Officer and Treasurer, to be considered as part of the City of Toronto’s 2023 budget process. 

For ease of reference, below are the substantive recommendations related to this year’s City Budget Process that the Board approved yesterday, with the effect that all four budget requests listed above were approved: 

Toronto Police Service – 2023 Operating Budget Request

(1)  Approve the Toronto Police Service’s (Service’s) 2023 net operating budget request of 1,166.5 Million (M), a $48.3M or 4.3% increase over the 2022 approved budget.

Toronto Police Service – 2023-2032 Capital Program Request

Toronto Police Service – 2023-2032 Capital Program Request

(1)  Approve the Toronto Police Service’s (Service) 2023-2032 Capital Program at a 2023 net request of $16.6 Million (M) and gross amount of $46.6M (excluding cash flow carry forwards from 2022), and a total of $219.4M net and $679.0M gross for the 10-year program, as detailed in Attachment A.

Toronto Police Service Parking Enforcement Unit – 2023 Operating Budget Request

(1)  Approve the Toronto Police Service Parking Enforcement Unit’s 2023 net operating budget request of $51.3 Million (M), a $0.49M or 0.95% increase over the 2022 approved budget.

Toronto Police Services Board – 2023 Operating Budget Request

(1)  Approve the Board’s 2023 net operating budget request of $2,176,800 which is a $207,000 increase over the 2022 approved budget; and

(2)  Approve the 2023 staff complement for the Board of 10.5 positions, which is an increase of 3 positions from 2022.

This report outlines the Toronto Public Health 2023 Operating Budget Submission for consideration by the Board of Health. Toronto Public Health's 2023 Operating Budget Submission is $369,555.4 thousand gross, $159,304.3 thousand net and 2,309.9 positions.

This 2023 Operating Budget Submission is $1,226.3 thousand gross lower, $30,958.5 thousand net higher and 423.9 positions lower than the 2022 Approved Operating Budget as outlined in Table 1 in this report.

The 2023 Operating Budget Submission includes in-year changes, base changes, and a confidential program efficiency pending City Council approval as detailed in the recommendations included in this report.

This report provides an overview of Toronto Public Health's 2023 Capital Budget and 2024-2032 Plan Request.

Toronto Public Health is recommending a 2023-2032 Capital Budget and Plan of $31.466million, including a 2023 Capital Budget of $5.062 million with future year commitments of$10.215 million and future year estimates of $16.189 million. The 10 Year Capital Budget andPlan Request will provide funding for sixteen projects.

At its meeting on Monday, January 9, 2023, the TTC Board considered the attached report entitled “TTC 15-Year Capital Investment Plan, Real Estate Investment Plan Update and 2023 – 2032 Capital Budget & Plan”.

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

It is recommended that the TTC Board: 

1. Endorse the TTC 2023-2037 Capital Investment Plan of $38.046 billion, as outlined in Appendix A of this report;

2. Endorse the TTC 2023-2037 Real Estate Investment Plan Update, including the implementation timeline, as outlined in Appendix B of this report;

3. Approve the staff recommended 2023 Capital Budget of $1.253 billion and future year planned estimates of $11.087 billion, for a total TTC 2023-2032 Base Capital Budget and Plan of $12.340 billion, as outlined in Appendix C of this report;

4. Approve the staff recommended TTC 2023 Capital Budget of $88.186 million and future year planned estimates of $62.780 million, for a total TTC 2023-2032 Capital Budget and Plan of $150.966 million for Transit-Related Expansion Projects including the completion of the remaining scope for the Toronto-York Spadina Subway Extension, the SRT Life Extension Overhaul and Line 3 bus replacement plan; and the Waterfront Transit planning, also outlined in Appendix C of this report;

5. Approve a 2023 year-end capital complement of 2,910 positions, reflecting an increase of 240 positions for capital project delivery as summarized in Appendix F of this report;

6. Renew its delegated authority to the TTC Chief Executive Officer to:

a. Enter into contribution agreement(s), where required, with government partners to receive any net new funding / financing for the TTC’s Green Bus program; and

b. Subject to commitment of matching funds from provincial and/or federal government partners, amend existing and pending contract(s) to increase the eBus procurement quantity and associated infrastructure works in proportion to any additional funds committed;

7. Endorse the TTC’s request to the provincial and federal government for ongoing intergovernmental funding support to address the TTC’s unfunded state of good repair backlog as identified in the 2023-2037 Capital Investment plan, including as priority, to provide provincial and federal matching funds totalling $1.7 billion for the new subway train procurement, and up to $2.4 billion in funding for the requisite Train Maintenance Storage Facility (TMSF);

8. Forward this report to the City Budget Committee and the City Manager as the official 2023-2032 Capital Budget and Plan submission for the Toronto Transit Commission; and,

9. Forward the 2023-2037 Real Estate Investment Plan Update to CreateTO and City Real Estate Management staff for their information.

The recommendations of the Toronto Transit Commission Board as set out above are submitted for City Council approval through the Budget Committee.

At its meeting on Monday, January 9, 2023, the TTC Board considered the attached report entitled “2023 TTC Conventional and Wheel-Trans Operating Budgets”.

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

It is recommended that the TTC Board:

1. Approve the recommended 2023 TTC Conventional Operating Budget of $2.237 billion in gross expenditures, $1.048 billion in revenues and a net funding requirement of $1.189 billion, inclusive of the $366.0 million TTC Conventional COVID-19 financial impact, as detailed in this report.

2. Approve the recommended 2023 Wheel-Trans Budget of $142.8 million in gross expenditures, $6.5 million in revenues and a net funding requirement of $136.3 million, inclusive of the $0.4 million Wheel-Trans COVID-19 financial impact, as detailed in this report.

3. Request the Provincial and Federal governments to continue to invest in public transit by:

a. Providing relief to offset the financial impacts of COVID-19 recovery, which are estimated to be $366.4 million in 2023, with forecasted impacts expected into 2024 and 2025; and

b. Continuing to work with the TTC and the City of Toronto to develop a long-term sustainable funding model for public transit.

4. Approve a 10-cent fare increase, on adult and youth single fares only, excluding fares for seniors, fair pass riders and all passes, as described in this report and outlined in Appendix C, effective April 3, 2023 generating $16.1 million in passenger revenues, net of PRESTO commissions.

5. Approve a 2023 year-end workforce complement of 16,787 positions, reflecting an increase of 36 operating positions and an increase of 240 positions for capital project delivery, as described in Appendix D.

6. Forward this report to the City Budget Committee and the City Manager as the official 2023 Operating Budget submission for the Toronto Transit Commission.

The recommendations of the Toronto Transit Commission Board as set out above are submitted for City Council approval through the Budget Committee.

This report responds to direction from the Mayor for the City Manager and Chief Financial Officer and Treasurer to present to Budget Committee, separately from the rest of the 2023 annual budget, the following budgets in which the Mayor has declared an interest, specifically noting:

• 2023 Technology Services Operating Budget;
• 2023 Budgets for Toronto Police Services, Toronto Transit Commission and Toronto Community Housing Corporation in each case as it relates (and only as it relates) to funds for telephone, wireless and internet services; and
• Out of an abundance of caution, the Capital Plan for Exhibition Place as it relates to capital funds for the BMO Field.

Consistent with this direction, this report presents the budgets in which the Mayor has declared an interest, as follows:

1. The 2023 Operating Budget for Technology Services of $143.380 million gross, $32.748 million revenue and $110.633 million net for the following services:

2. The Toronto Police Services 2023 Operating Budget includes a telecommunications budget of $2.858 million gross and $2.858 million net.

3. The Toronto Transit Commission Conventional and Wheel-Trans 2023 Operating Budget includes a telecommunications budget of $7.818 million gross and $7.818 million net.

4. The Toronto Community Housing Corporation 2023 Operating Budget includes a telecommunications budget of $2.595 million gross and $2.595 million net.

5. The Exhibition Place 2023 - 2032 Capital Budget and Plan includes $6.840 million in 2023 to proceed with concept development, feasibility studies and preliminary design and preparation, as part of the stage gating process, for the enhancements and upgrades to be made to the City-owned stadium (BMO Field) in order to support the City hosting of FIFA Men's World Cup matches in 2026. Future year cash flow estimates for 2024 - 2032 are $15.356 million.