Item - 2024.EX16.13

The Executive Committee recommends that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (July 2, 2024) from the Chief Financial Officer and Treasurer to amend the 2024 Approved Operating Budget, with no impact on the Net Operating Budget of the City.

2. City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C – Schedule 10, City Clerk’s Office by amending the fee in Column V for Fee Reference Number 80 to “Variable”.

The purpose of this report is to provide City Council with the Operating Variance for the four months ended April 30, 2024, as well as projections to the year-end, December 31, 2024. This report also requests City Council's approval for amendments to the 2024 Approved Operating Budget that have no impact on the City's Net Budget.

The following table summarizes the year-to-date financial position and year-end projections for the City's Tax-Supported Operations as of April 30, 2024.

Table 1: Tax-Supported Operating Variance Summary

As detailed in Table 1 above, for the four-month period, Tax-Supported Operations experienced a favourable net variance of $89.5 million. A favourable net variance is projected at year-end of $62.9 million. These figures are adjusted for Toronto Building, City Planning, which have surplus allocated to reserves by legislation or reserve draws if a deficit is experienced. It is important to note that the financial information presented is as of April 30, which is a snapshot in time and the year-end projection is based on current and expected future activities.

The funding provided by the New Deal struck with the Province of Ontario makes significant contributions towards transit and shelter related services. To date, $300.0 million has been received for Subway and Transit Safety, Recovery and Sustainable Operations, $200.0 million for Shelters and Homelessness, and $6.9 million related to operating costs of the Gardner Expressway and Don Valley Parkway, which are all reflected in the City’s year-to-date results and year-end projections.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-to-date net variance of $19.1 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $33.0 million.         

Table 2: Rate-Supported Operating Variance Summary

While the favourable year-to-date variance was driven by all three programs, Toronto Water accounts for just over fifty (50) percent of the variance. The year-end projections forecast all programs seeing a favourable net variance.

Rate-Supported Programs are funded entirely by 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 Waste Management Reserve Fund and the Wastewater and Water Stabilization Reserves respectively, to finance capital investments and ongoing capital repairs and maintenance.