Item - 2023.EX3.2
Tracking Status
- City Council adopted this item on March 29, 2023 with amendments.
- This item was considered by the Executive Committee on March 21, 2023 and adopted without amendment. It will be considered by City Council on March 29, 2023.
EX3.2 - 2023 Financial Update and Outlook
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on March 29, 30 and 31, 2023, adopted the following:
1. City Council request the City Manager and the Chief Financial Officer and Treasurer, as part of the upcoming phase 2 report on the City's long term fiscal plan, to include the details on the $1.1 billion in property tax revenue spent on extensions of Federal and Provincial responsibilities, as noted in the report (March 7, 2023) from the City Manager and the Chief Financial Officer and Treasurer, including the origins of the various commitments and Council's option to adjust the City's response to prior commitments.
2. City Council request the City Manager and the Chief Financial Officer and Treasurer to create appropriate information packages for Councillors who wish to discuss City needs with Toronto Members of Parliament and Members of Provincial Parliament.
3. City Council request the City Manager to establish a program where Members of Council form delegations to meet with Members of Parliament and Members of Provincial Parliament to advocate for our budget issues.
4. City Council request that City staff clearly identify "Health and Safety", "Legislated" and "Council-Directed" service level or commitment descriptors in the Financial Impact section of future Council reports to assist in decision-making.
5. City Council support the Deputy Mayor, until the Mayoral By-Election, on her advocacy to the Federal and Provincial governments for Revenue tools and a new fiscal framework for the City of Toronto.
6. City Council request the Federal and Provincial Governments to recognize the serious financial risks faced by the City of Toronto in delivering the services and infrastructure needed by the residents of this City and the region and, begin discussions on a new fiscal framework to ensure long-term financial sustainability for the City.
7. City Council request the Provincial Government to provide revenue tools for the City of Toronto that grow with the economy in a similar fashion to provincial sales and income taxes.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-234882.pdf
Communications (City Council)
Motions (City Council)
That:
1. City Council request the Federal and Provincial Governments to recognize the serious financial risks faced by the City of Toronto in delivering the services and infrastructure needed by the residents of this City and the region and, begin discussions on a new fiscal framework to ensure long-term financial sustainability for the City.
2. City Council request the Provincial Government to provide revenue tools for the City of Toronto that grow with the economy in a similar fashion to provincial sales and income taxes.
Vote (Amend Item) Mar-29-2023 3:39 PM
| Result: Carried | Majority Required - EX3.2 - McKelvie - motion 1 |
|---|---|
| Total members that voted Yes: 22 | Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Gary Crawford, Vincent Crisanti, Paula Fletcher, Ausma Malik, Nick Mantas, Josh Matlow, Jennifer McKelvie, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Jaye Robinson, Dianne Saxe, Michael Thompson |
| Total members that voted No: 1 | Members that voted No are Stephen Holyday |
| Total members that were Absent: 2 | Members that were absent are Mike Colle, Anthony Perruzza |
That:
1. City Council request the City Manager to establish a program where Members of Council form delegations to meet with Members of Parliament and Members of Provincial Parliament to advocate for our budget issues.
Vote (Amend Item) Mar-29-2023 3:41 PM
| Result: Carried | Majority Required - EX3.2 - Cheng - motion 2 |
|---|---|
| Total members that voted Yes: 15 | Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Lily Cheng, Vincent Crisanti, Paula Fletcher, Stephen Holyday, Ausma Malik, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, James Pasternak, Gord Perks, Dianne Saxe |
| Total members that voted No: 8 | Members that voted No are Jon Burnside, Shelley Carroll, Gary Crawford, Nick Mantas, Jennifer McKelvie, Frances Nunziata (Chair), Jaye Robinson, Michael Thompson |
| Total members that were Absent: 2 | Members that were absent are Mike Colle, Anthony Perruzza |
That:
1. City Council request the City Manager and the Chief Financial Officer and Treasurer, as part of the upcoming phase 2 report on the City's long term fiscal plan, to include the details on the $1.1B in property tax revenue spent on extensions of Federal and Provincial responsibilities, as noted in the report (March 7, 2023) from the City Manager and the Chief Financial Officer and Treasurer, including the origins of the various commitments and Council's option to adjust the City's response to prior commitments.
Vote (Amend Item) Mar-29-2023 3:42 PM
| Result: Carried | Majority Required - EX3.2 - Holyday - motion 3a |
|---|---|
| Total members that voted Yes: 13 | Members that voted Yes are Paul Ainslie, Brad Bradford, Shelley Carroll, Lily Cheng, Gary Crawford, Vincent Crisanti, Stephen Holyday, Nick Mantas, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Jaye Robinson |
| Total members that voted No: 10 | Members that voted No are Alejandra Bravo, Jon Burnside, Paula Fletcher, Ausma Malik, Chris Moise, Amber Morley, Jamaal Myers, Gord Perks, Dianne Saxe, Michael Thompson |
| Total members that were Absent: 2 | Members that were absent are Mike Colle, Anthony Perruzza |
That:
1. City Council request that City staff clearly identify "Health and Safety", "Legislated" and "Council-Directed" service level or commitment descriptors in the Financial Impact section of future Council reports to assist in decision-making.
Vote (Amend Item) Mar-29-2023 3:43 PM
| Result: Carried | Majority Required - EX3.2 - Holyday - motion 3b |
|---|---|
| Total members that voted Yes: 15 | Members that voted Yes are Paul Ainslie, Brad Bradford, Jon Burnside, Shelley Carroll, Lily Cheng, Gary Crawford, Vincent Crisanti, Stephen Holyday, Nick Mantas, Jennifer McKelvie, Amber Morley, Frances Nunziata (Chair), James Pasternak, Jaye Robinson, Michael Thompson |
| Total members that voted No: 8 | Members that voted No are Alejandra Bravo, Paula Fletcher, Ausma Malik, Josh Matlow, Chris Moise, Jamaal Myers, Gord Perks, Dianne Saxe |
| Total members that were Absent: 2 | Members that were absent are Mike Colle, Anthony Perruzza |
That:
1. City Council invite the Provincial Government to send their independent Auditor to review the entirety of the City's operations and finances and seek opportunities to find efficiencies or solutions to the City's financial pressures.
Vote (Amend Item) Mar-29-2023 3:44 PM
| Result: Lost | Majority Required - EX3.2 - Holyday - motion 3c |
|---|---|
| Total members that voted Yes: 4 | Members that voted Yes are Lily Cheng, Stephen Holyday, James Pasternak, Anthony Perruzza |
| Total members that voted No: 20 | Members that voted No are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Gary Crawford, Vincent Crisanti, Paula Fletcher, Ausma Malik, Nick Mantas, Josh Matlow, Jennifer McKelvie, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), Gord Perks, Jaye Robinson, Dianne Saxe, Michael Thompson |
| Total members that were Absent: 1 | Members that were absent are Mike Colle |
That:
1. City Council direct that the upcoming phase 2 report on the City's long term fiscal plan contains an assessment of municipal service responsibilities in comparison to the City's budget and 10 year plan.
Vote (Amend Item) Mar-29-2023 3:46 PM
| Result: Lost (tie) | Majority Required - EX3.2 - Holyday - motion 3d |
|---|---|
| Total members that voted Yes: 12 | Members that voted Yes are Paul Ainslie, Brad Bradford, Jon Burnside, Gary Crawford, Vincent Crisanti, Stephen Holyday, Nick Mantas, Josh Matlow, Jennifer McKelvie, Frances Nunziata (Chair), James Pasternak, Jaye Robinson |
| Total members that voted No: 12 | Members that voted No are Alejandra Bravo, Shelley Carroll, Lily Cheng, Paula Fletcher, Ausma Malik, Chris Moise, Amber Morley, Jamaal Myers, Gord Perks, Anthony Perruzza, Dianne Saxe, Michael Thompson |
| Total members that were Absent: 1 | Members that were absent are Mike Colle |
That:
1. City Council support the Deputy Mayor, until the Mayoral By-Election, on her advocacy to the Federal and Provincial governments for Revenue tools and a new fiscal framework for the City of Toronto.
Vote (Amend Item) Mar-29-2023 3:47 PM
| Result: Carried | Majority Required - EX3.2 - Crawford - motion 4 |
|---|---|
| Total members that voted Yes: 23 | Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Gary Crawford, Vincent Crisanti, Paula Fletcher, Ausma Malik, Nick Mantas, Josh Matlow, Jennifer McKelvie, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Dianne Saxe, Michael Thompson |
| Total members that voted No: 1 | Members that voted No are Stephen Holyday |
| Total members that were Absent: 1 | Members that were absent are Mike Colle |
That:
1. City Council request the City Manager and the Chief Financial Officer and Treasurer to create appropriate information packages for Councillors who wish to discuss City needs with Toronto Members of Parliament and Members of Provincial Parliament.
Vote (Amend Item) Mar-29-2023 3:48 PM
| Result: Carried | Majority Required - EX3.2 - Fletcher - motion 5 |
|---|---|
| Total members that voted Yes: 24 | Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Gary Crawford, Vincent Crisanti, Paula Fletcher, Stephen Holyday, Ausma Malik, Nick Mantas, Josh Matlow, Jennifer McKelvie, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Dianne Saxe, Michael Thompson |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 1 | Members that were absent are Mike Colle |
Councillor Perks, rising on a Point of Order, stated that under Council's rules Members are not allowed to use City resources and facilities as part of an election campaign and that he is concerned that a Member of Council is currently doing that up in the Media Gallery. Councillor Perks further stated that he requested the Speaker to ask the Member to stop.
Councillor Holyday, rising on a Point of Order, stated that he appreciates the concerns raised, and while there was mention of a campaign, he does not think the seat has been declared vacant so he is not sure that is correct. Councillor Holyday further stated that he would like the Speaker to rule on that.
Rulings (City Council)
Members, I agreed to rule on points of order by Councillor Perks and Councillor Holyday.
Councillor Perks questioned whether conducting campaign-related scrums in the Chamber is a violation of the Use of Corporate Resources Policy.
Councillor Holyday questioned whether the policy is currently in effect since the Mayor’s seat has not been declared vacant.
My ruling is as follows:
First, the use of corporate resources policy is not yet in effect since the seat has not been declared vacant the nominations for office have not opened. The policy will be in effect once nominations open.
Second, the policy does permit informal campaign-related scrums in the public or common areas in City Hall and the civic centres.
Having said that, scrums conducted in this Chamber must not disturb the meeting. My advice to candidates for Mayor and the media is to consider holding campaign-related scrums in another public area of the building and not risk interfering with Council’s meeting here in the Chamber.
Declared Interests (City Council)
Councillor Mike Colle - as his son works for Ernst and Young and his consultancy team was responsible for producing the report appended to this staff report.
Written Declaration: https://secure.toronto.ca/council/declared-interest-file.do?id=11437
2a - Supplementary Report: 2023 Financial Update and Outlook
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235025.pdf
Attachment 1 - City of Toronto Financial Update and Outlook (March 20, 2023)
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235027.pdf
EX3.2 - 2023 Financial Update and Outlook
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council receive the report (March 7, 2023) from the City Manager and the Chief Financial Officer and Treasurer for information.
Origin
Summary
The purpose of this report is to provide a financial update and outlook to inform the City of Toronto's long-term financial planning and forthcoming updated Long-Term Financial Plan (LTFP).
Following the 2023 Budget, with the support of an independent third-party, the City has updated its financial model to assess the long-term fiscal risks anticipated in the next ten year period. This updated analysis expands on previous work completed by the City of Toronto and will help to inform future phases, including an updated LTFP to be presented to City Council later in 2023.
The updated financial model highlights the significant challenges that the City will face over the next ten years including both operating and capital budget pressures. The City currently has limited tools or strategies to address a challenge of this magnitude, demonstrating a need for enhanced analysis of potential options. For example, as reported in the September 30, 2022, quarterly updates, over 97% of the City's deferred revenues and reserve and reserve fund balances are fully committed, leaving just $290 million available for emergency or one-time back-stop purposes.
Beyond immediate and urgent financial challenges the City faces, municipalities need a new fiscal framework to address ongoing challenges with predictable, long-term funding. The updated financial outlook will be used to inform intergovernmental discussions. Staff continue to engage with their intergovernmental counterparts to promote ongoing and sustainable funding support.
Further exploratory work to determine appropriate solutions and offsets will be completed throughout 2023, including an additional analysis of revenue tools as was requested by City Council.
Background Information
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-234882.pdf
Speakers
Councillor Gord Perks
Motions
2a - Supplementary Report: 2023 Financial Update and Outlook
Origin
Summary
Further to the March 7, 2023 report submitted by the City Manager and Chief Financial Officer and Treasurer (Item EX3.2), this report transmits the independent third-party report as a supplementary item to '2023 Financial Update and Outlook' for information.
Background Information
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235025.pdf
Attachment 1 - City of Toronto Financial Update and Outlook (March 20, 2023)
https://www.toronto.ca/legdocs/mmis/2023/ex/bgrd/backgroundfile-235027.pdf