Agenda

This meeting of the Executive Committee will be conducted with members participating in person and remotely.

Members of Council, City Officials, and members of the public who register to speak will be provided with the video conference details closer to the meeting date.

To provide comments or make a presentation to the Executive Committee

The public may submit written comments or register to speak to the Committee on any item on the agenda. The public may speak to the Committee in person or by video conference.

Written comments may be submitted by writing to exc@toronto.ca

To speak to the Committee, please register by email to exc@toronto.ca or by phone at 416-392-7033. Members of the public who register to speak will be provided with instructions on how to participate in to the meeting.

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Closed Meeting Requirements: If the Executive Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006).

Notice to People Writing to the Executive Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication to City Council or its Committees and Boards. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or call 416-392-7033. 

toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its Committees and Boards.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - November 5, 2024

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on December 10, 2024.

Communications/Reports

The City Manager recommends that:  

1. City Council, as the sole Shareholder, request the Board of Directors of Toronto Community Housing Corporation to direct the Chief Executive Officer, Toronto Community Housing Corporation, to work with the Deputy City Manager, Development and Growth Services to advance housing development projects under the City's Public Developer Model, including providing development and construction management services and acting as a development partner and housing provider for projects on City lands, as well as continuing to undertake the development and redevelopment of their own lands in alignment with the City's housing priorities and housing targets as set in the HousingTO 2020-2030 Action Plan and revised in Item EX9.3 adopted by City Council in November 2023.

2. City Council direct the Deputy City Manager, Development and Growth Services to negotiate and execute a Master Service Agreement between the City of Toronto and Toronto Community Housing Corporation to support Recommendation 1, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

3. City Council request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to continue to bring forward potential housing sites and opportunities to the City of Toronto, for consideration and decision, and advance work on housing opportunities at the direction of the City.

4. City Council direct the Deputy City Manager, Development and Growth Services and Deputy City Manager, Corporate Services to negotiate and execute a Master Service Agreement between the City of Toronto and CreateTO to support Recommendation 3, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services and Deputy City Manager, Corporate Services, and in a form approved by the City Solicitor.

Toronto continues to face an unprecedented housing affordability crisis across the housing continuum, with a lack of deeply affordable and supportive homes for those with low-incomes, and high rents affecting middle-income earners who aspire to live and work in the city.

In Fall 2023, City Council adopted two key reports related to housing delivery:

- Item EX9.3, which set the stage for the generational change to transform and strengthen Toronto’s housing system and expedite delivery of the HousingTO and Housing Action Plan targets.

- Item EX10.2, which aligned the mandates of CreateTO and Toronto Community Housing (TCHC) and directed these organizations to work with the City on the delivery of the City's housing plans and targets, including new and explicit language on expectations and scope for greater alignment.

This report outlines additional steps to advance the City’s role as a Public Developer and supporter of partner projects, by bringing a singular focus to City-led and supported housing development, and strengthening coordination between the City, CreateTO and TCHC to achieve the City's affordable rental housing goals. Specifically, the City will increase its capacity to lead housing development, by establishing a Housing Development Office, reporting to the Deputy City Manager, Development and Growth Services, that will focus exclusively on advancing and accelerating the delivery of housing on City-led and City-supported sites. The City targets having a leader in place to lead the Office by Q2 2025, following a formal, competitive recruitment process.

Through this new Office, the City will either lead projects directly or leverage TCHC and CreateTO on a project-by-project basis, based on each organization’s unique expertise and best practices. Staff are recommending updated direction to both organizations, followed by a negotiated Master Service Agreement with the City for each respectively. While work is underway to establish the new Housing Development Office, it is critical that housing projects continue to move forward under the current project leadership structure to ensure no delay in the delivery of housing.

There are no operating funding impacts arising from this report at this time. Initial funding for a new leadership position to lead the new Housing Development Office in Development and Growth Services will be drawn from within existing allocations.

Staff will report back through future budget processes should new or reallocated resources be required to support the new Office, or its work with TCHC and CreateTO as the City’s housing development partners.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact statement.

The City Manager recommends that:  

1. The Executive Committee receive this report for information.

Toronto continues to face a housing affordability crisis across the housing continuum, with a lack of deeply affordable homes for low-incomes households, a lack of supportive housing, and high rents affecting middle-income earners who aspire to live and work in the city.

The City Manager will be submitting a report to the December 10, 2024 meeting of Executive Committee outlining additional steps to advance the City as a Public Developer, to expedite the delivery of critically needed housing on City-owned and City-supported sites.

There are no financial implications arising from this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact statement.

The Deputy City Manager, Development and Growth Services recommends that:  

Next Phase of Waterfront Revitalization

1. City Council endorse projects as outlined in Attachment 1 as the first set of priorities for the Next Phase of Waterfront Revitalization, subject to satisfactory cost-sharing being provided by the Government of Ontario and Government of Canada, and direct the City Manager or their designate to report back on these projects through the 2025 Budget process and through planned 2025 reports on the Ookwemin Minising Business and Implementation Plan and Quayside.

2. City Council authorize the Deputy City Manager, Development and Growth Services or their designate, in consultation with the relevant Divisions and subject to approval of required budgets, to negotiate, enter into and execute agreements with the Government of Canada, the Government of Ontario, provincial or federal organizations and any other private party, including amendments and renewals, to implement the projects outlined in Attachment 1, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

3. City Council authorize the Deputy City Manager, Development and Growth Services or their designate, in consultation with the relevant divisions, to negotiate, enter into and execute project delivery agreements with Waterfront Toronto, including amendments and renewals, for projects that have funding provided under a Council approved budget, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

4. City Council approve an extension to the Waterfront Toronto mandate substantially on the terms and conditions contained in Attachment 2, and request that the Government of Canada and Government of Ontario provide their support for these terms and conditions.

5. City Council request that the Government of Ontario introduce the necessary bills to enact required legislative amendments and obtain all necessary approvals as soon as possible to give effect to Recommendation 4 above.

6. City Council affirm the Toronto Waterfront Revitalization Corporation (Waterfront Toronto) as the revitalization lead for Ookwemin Minising, subject to tri-government funding.

7. City Council direct the Deputy City Manager, Development and Growth Services, in consultation with the Director, Waterfront Secretariat, to report back on an update of the 2006 Memorandum of Understanding between the City-Toronto Economic Development Corporation (TEDCO, now under CreateTO) and Waterfront Toronto, in collaboration with the Chief Executive Officer, CreateTO and the Chief Executive Officer, Waterfront Toronto.

Interim Bus Lanes on Queens Quay East

8. City Council direct the General Manager, Transportation Services, in collaboration with the Chief Executive Officer, Toronto Transit Commission, to report to City Council by the second quarter of 2025 on recommendations for interim bus lane implementation along Queens Quay East between Bay Street and Parliament Street.

Port Lands Flood Protection

9. City Council authorize the Deputy City Manager, Development and Growth Services or their designate to negotiate and execute an amended tri-government Contribution Agreement for the Port Lands Flood Protection project and any associated project delivery agreements with Waterfront Toronto, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services in a form acceptable to the City Solicitor, to extend the substantial completion date of the Port Lands Flood Protection project to September 30, 2025 and make other amendments as described in Attachment 3.

10. City Council authorize the Deputy City Manager, Development and Growth Services or their designate, to negotiate and execute any subsequent amendments to the tri-government Contribution Agreement for the Port Lands Flood Protection project and any associated delivery agreements with Waterfront Toronto as may be required, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services and in a form acceptable to the City Solicitor, provided that such changes can be accommodated within existing approved budgets.

In 2022 City Council approved, in principle, a Next Phase of Waterfront Revitalization and directed City staff to pursue discussions with provincial and federal staff, and report back on intergovernmental discussions.

This report provides an update on those discussions and recommends that City Council endorse a first set of projects for the Next Phase, contingent on tri-government funding and necessary agreements. Subject to approvals, these projects will help advance complete communities in Ookwemin Minising (formerly referred to as Villiers Island) and Quayside, and continue the successful tri-government partnership in delivering waterfront revitalization.

This report also recommends that City Council direct City staff to report back on these projects in the first half of 2025, including through the budget process; authorize City staff to negotiate and execute necessary agreements; affirm Waterfront Toronto as the revitalization lead for Ookwemin Minising; and endorse a mandate extension for Waterfront Toronto to support implementation.

In addition to the Next Phase of Revitalization, this report provides an update on Port Lands Flood Protection (PLFP) and recommends technical amendments to the tri-government PLFP contribution agreement and the PLFP Parks and Public Realm delivery agreement with Waterfront Toronto.

The Next Phase - A First Set of Projects

A first set of priority projects, which, if approved and collectively funded by all governments, will deliver vital public infrastructure over the next five to seven years to enable future development of housing, parks and public realm, and to advance planning for new destinations and attractions on the waterfront.

City staff recommend the following projects, with an order of magnitude estimate of $900-975 million, be considered for funding by all three orders of government. This prioritization is based on a business case completed by Waterfront Toronto and a one-year due diligence exercise conducted with government staff:

-Ookwemin Minising enabling infrastructure;

-Quayside enabling infrastructure;

-The completion of Biidaasige Park (the northwest portion, which was previously referred to as Promontory Park North) and a program of early activation ('meanwhile uses') on adjacent future development lands;

-A study of waterfront destinations and attractions; and

-Funding envelopes to advance the Marine Use Strategy and wider waterfront initiatives.

Ookwemin Minising enabling infrastructure is anticipated to enable the future development of approximately 4,500 new total housing units on Blocks 3, 7, 8, 12 and 16, with a Council approved target of 30 percent of residential gross floor area (GFA) allocated to affordable rental housing (See Figure 5). Additional funding will be required to secure the affordable housing when specific plans are determined. In Quayside, funding for the enabling infrastructure gap will help enable the approximately 4,700 proposed total housing units in both Phases 1 and 2, of which 869 will be affordable rental housing.

Government due diligence continues on affordable housing and transit, which could represent a second set of projects for the Next Phase. Affordable housing discussions for Quayside are ongoing with the Canada Mortgage and Housing Corporation (CMHC) regarding project financing. For Ookwemin Minising, City Council's 30 percent affordable housing target on public lands, including equity contributions, will be addressed through a detailed business and implementation plan and site-specific funding plans as implementation proceeds. On transit, active discussions continue regarding the Waterfront East Light Rail Transit (Waterfront East LRT) project and possible phasing opportunities.

City staff will provide City Council with updates on the funding approach, tri-government funding commitments, and cost sharing through the following reports planned for the first half of 2025:

-Ookwemin Minising Business and Implementation Plan (including updates on enabling infrastructure and completing Biidaasige Park);

-Advancing Affordable Housing Outcomes in Quayside - Phase 1; and,

-Waterfront East LRT Update.

Building on the First Two Phases of Tri-Government Partnership

Since 2001, over $2.9 billion in public investments have transformed Toronto's central waterfront. This revitalization effort has been supported by all three orders of government with leadership from Waterfront Toronto in partnership with agencies such as CreateTO, Infrastructure Ontario, and the Toronto and Region Conservation Authority (TRCA). Public funding provided over two phases (2001 and 2016) has delivered significant results:

-Almost 4,400 new homes on Waterfront Toronto supported sites which is a part of the over 9,600 units developed overall in the Lower Yonge, East Bayfront and West Don Lands precincts;

-58.5 hectares (144.6 acres) of new or improved public parks and public realm;

-Over 28,000 construction jobs through development; and,

-Nearly $10 billion in private sector development.

Revitalized neighbourhoods such as the West Don Lands and East Bayfront serve as a model for complete communities. As PLFP nears completion, these achievements will grow, supporting long-term resilience and new opportunities for growth.

Endorsement of the first set of projects for the Next Phase, as recommended in this report, will advance the priorities for each of the three orders of government and help to ensure that the phased approach to waterfront revitalization continues. It will represent a significant step forward in realizing the broader effort of waterfront revitalization, which, over 50+ years, is expected to result in housing for over 100,000 people and create space for approximately 50,000 jobs in the central waterfront east, including the Port Lands. This unique opportunity exists because approximately 70% of Ookwemin Minising is owned or co-owned by the City via CreateTO and via Waterfront Toronto, there is a proven tri-government delivery model, and ambitious standards are in place for designing and delivering complete and sustainable communities.

Central to all of the projects for the Next Phase is a City commitment to meaningful engagement with First Nations, Inuit, and Métis communities to reflect their histories, knowledge, and aspirations in all aspects of the waterfront’s transformation, and to foster opportunities for economic and cultural participation.

This opportunity requires firm commitments from all orders of government. As noted earlier, focused discussions on available funding are ongoing and will be reported on by City staff through various reports in the first half of 2025. Federal and provincial funding is subject to political decision-making and approvals, which are still pending. The City is prepared to prioritize funding of its one-third share of funding commitment, subject to cost sharing commitments from other orders of government.

Waterfront Toronto's Mandate

To enable implementation of the Next Phase, City staff recommend that City Council endorse an extension to the length of the mandate of Waterfront Toronto (legally known as the Toronto Waterfront Revitalization Corporation) from 2028 to 2035, with an option for a further extension to 2040 subject to a government review of the organization. Tri-government staff have noted that a mandate extension is important, however formal decision making and approvals are still pending. Accordingly, it is recommended that City Council request federal and provincial support for this mandate extension, and request the Government of Ontario to introduce the necessary legislation (and other approvals) required to put this mandate extension into effect as soon as possible.

A mandate extension for Waterfront Toronto of this length would align with the timeline to implement the first set of projects noted above (including enabling the first set of blocks on Ookwemin Minising), allow for uninterrupted implementation of projects underway such as Quayside, and provide the tri-government corporation with the operational certainty needed to move forward. It would strengthen the capacity of Waterfront Toronto to lead complex, multi-year revitalization efforts. The proposed extension follows a background study on waterfront revitalization that was completed by the City with the assistance of provincial and federal partners in 2020, with findings reported to City Council in 2021.

Discussions also continue between CreateTO, Waterfront Toronto, and the City on respective roles and responsibilities and the collaborative approach to be taken to unlock land on Ookwemin Minising for new housing. Staff from all parties agree that subject to tri-government funding, Waterfront Toronto should be the revitalization lead for Ookwemin Minising. This would occur in close collaboration, and in alignment with, the City and CreateTO. This report recommends that City Council affirm Waterfront Toronto as the revitalization lead for Ookwemin Minising, and direct City staff to report back with a recommended update to the 2006 City-Toronto Economic Development Corporation (TEDCO, now under CreateTO)-Waterfront Toronto Memorandum of Understanding to reflect a renewed partnership.

Central Waterfront East Transit

The full-vision Waterfront East LRT project is essential for Toronto’s growth, to accommodate the existing and planned density of housing, commercial uses, and regional destinations. Expanding transit continues to be an active discussion amongst all three governments. Discussions to date have acknowledged the importance of transit to serve the fast-growing neighbourhoods of the eastern waterfront and have noted that opportunities should be explored to phase and expedite transit service to the area.

To inform funding decisions regarding higher-order transit on the eastern waterfront, additional due diligence and discussions are required among the City, the Government of Ontario and the Government of Canada. Key topics include further work on costing and phasing, cost sharing possibilities, and potential funding sources. Staff are targeting a report back on the Waterfront East LRT project in early 2025. Updates on transit funding discussions will be provided in future Waterfront East LRT reports.

Immediate Interim Transit Improvements

As an immediate step to address urgent challenges, City staff in collaboration with TTC staff recommend that City Council direct staff to report back on interim bus lane implementation along Queens Quay East from Bay Street to Parliament Street in the second quarter of 2025. The interim bus lanes are not a replacement for higher-order transit. They are intended to address immediate challenges along the eastern waterfront related to bus travel times. Current delays are having a material impact on the East Bayfront community which is home to a rapidly growing resident population, businesses, and visitors including students attending local post-secondary institutions.

Work Ahead

It is important to note that while City staff recommend City Council approval of a first set of projects for the Next Phase, intergovernmental funding still needs to be confirmed following further discussion and approvals. Subject to City Council and other government approvals, City staff, government partners, and Waterfront Toronto will continue to advance project implementation, refine cash flows, and determine funding contributions. Updates will be provided in the upcoming 2025 Budget process and in planned reports on the Ookwemin Minising Business and Implementation Plan, Quayside and Waterfront East LRT in the first half of 2025.

The report seeks Council direction to endorse a recommended first set of priority projects for the Next Phase of Waterfront Revitalization, subject to cost-sharing being provided by the other levels of government. This recommendation advances a first set of priority projects discussed with federal and provincial partners and Waterfront Toronto.

There are future financial impacts for the full implementation of the Next Phase of Waterfront Revitalization projects which are substantial in scope and require significant capital investments from the City. The core components of the first set of Next Phase projects are identified in Figure 1.

The unfunded priority projects outlined in Figure 1 need to be further reviewed, scoped, and assessed in terms of their financial impacts. Additionally, they will require enhanced strategic capital infrastructure planning and coordination among City divisions and partnered agencies. Most importantly the projects require inter-governmental funding contributions. The City is prepared to prioritize funding of its one-third share of funding commitment, subject to cost sharing commitments from other orders of government.

First Set of Projects - Next Phase of Waterfront Revitalization

Current order of magnitude projections estimate that the required capital investment from the City is anticipated to be in the range of $300-325 million (one-third of $900-975 million). The cost estimates are for the first set of projects and do not include a potential second set of projects for the Next Phase, such as any future commitments which may be needed for transit or affordable housing.

Figure 1 includes an estimate of the approximate City share of the project costs. Funding sources and cashflows will be identified and refined as part of the annual budget process in future years as discussions are advanced and agreements are negotiated.

Figure 1 - First Set of Next Phase Projects

*Cost estimates are presented as an order of magnitude. Ranges are provided to account for changes that could occur as planning and design proceed.

Details on funding strategies, including the City's share, are to be confirmed and will be reported on through various reports in the first half of 2025.

Previous Commitments to Quayside (2024-2033 Capital Budget and Plan)

Major investments and effort are currently underway to prepare planning and related implementation studies to advance the Quayside project which includes transportation, public realm, and park infrastructure. The Quayside project was moved forward as a City priority in 2022 and was not cost shared by governments at that time. The 2024-2033 Capital Budget and Plan for Waterfront Revitalization Initiative includes $142 million in cash flow funding and future year commitments for Quayside transportation and parks, with any changes and additions to be considered in the 2025 Budget process. This amount does not include commitments related to Quayside affordable housing which will be reported on separately in the first half of 2025.

Next Steps

The next phase of due diligence will include the development of detailed financial planning that explores various options for funding the first set of Next Phase project implementations, including growth-related funding tools, intergovernmental funding, external partnership opportunities, and alternative funding sources. This financial planning will include projected cash flow to properly align project schedules with available funding and will be updated with progressively refined construction estimates as work advances. Details regarding intergovernmental funding opportunities and financial planning will be included and discussed in planned reports on the Ookwemin Minising Business and Implementation Plan and Quayside.

The Chief Financial Officer and Treasurer has been advised of the financial impacts associated with this initiative to be considered along with other priorities through the annual budget process.

The Deputy City Manager, Development and Growth recommends that:  

1. City Council receive this report for information.

In 2022 City Council approved, in principle, a Next Phase of Waterfront Revitalization and directed staff to report back with the results of intergovernmental discussions.

Staff of the three orders of government have been working with Waterfront Toronto and partners on opportunities to advance complete communities in a third phase of waterfront revitalization. Discussions are active and ongoing.

Staff will be in a position to provide a supplementary staff report for the December 10, 2024 meeting of Executive Committee.

Financial implications will be outlined in the forthcoming supplementary report. There are no financial impacts arising from the recommendations contained in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Executive Director, Municipal Licensing and Standards recommends that:  

1. Executive Committee receive this report for information.

On February 29th, 2024, Executive Committee adopted EX12.1 - Vehicle-for-Hire and Private Transportation Industries Update Request, requesting staff to analyze driver wages in the vehicle-for-hire industry, which includes taxicabs, limousines and private transportation companies.

A team of researchers specializing in research and analysis of the vehicle-for-hire industry in Toronto and internationally, consisting of Dr. Mischa Young from the Université de l’Ontario Français and Dr. Steven Farber and Dr. Mashrur Rahman from the University of Toronto, were retained to complete an assessment of the vehicle-for-hire industry to inform Council about the current state of driver wages. This academic study is supplemented by information about wages and incomes received during public consultations directly from drivers, companies and other stakeholders.

The researchers found that the median PTC driver gross earnings was $33.52 per hour in 2023 and $33.18 per hour in 2024 for every engaged hour of work, which includes the time between when a driver accepts a trip request and drops the passenger off. When accounting for all time spent logged onto a platform, including times where there is no passenger, the median driver gross earnings were $25.23 per hour in 2023 and $22.46 per hour in 2024.

The researchers also calculated driver expenses, including fuel, insurance, depreciation, maintenance, repairs, financing, fees and taxes and found that after expenses are accounted for, the median driver net earnings were $15.31 per hour in 2023 and $15.34 per hour in 2024 when accounting only for engaged time, and $7.94 per hour in 2023 and $5.97 per hour in 2024 when accounting for all time spent on the platform. Due to a lack of taxicab trip data provided to the City, the researchers were unable to conduct a similar data-driven study of taxicab and limousine driver wages.

Wages and employment standards are regulated by the Ontario government through legislation such as the Employment Standards Act and the Digital Platform Workers' Rights Act. This report summarizes this legislation and provides context about their applicability to drivers in the vehicle for hire industry.

There are no financial impacts arising from the recommendation in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The City Solicitor recommends that:  

1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains advice which is subject to solicitor-client privilege.

This report is supplementary to the report from the Executive Director of Municipal Licensing and Standards entitled "Analysis of Drivers Wages in the Vehicle-for-Hire Industry" dated November 26, 2024 (the "Drivers Wages Report"). This report provides legal advice that is subject to solicitor-client privilege.

There is no financial impact resulting from the adoption of the recommendations in this report.

The City Manager, Executive Director, Municipal Licensing and Standards and the General Manager, Transportation Services recommends that:  

Implement a cap on Private Transportation Company drivers with an exemption for zero emission and wheelchair accessible vehicles

1. City Council amend Chapter 546 to cap the number of Private Transportation Company driver licences such that the number of drivers to whom a licence may be issued by MLS shall be no greater than 80,429 PTC drivers, subject to the following:

a. The cap is to be reached by attrition as Private Transportation Company driver licences are cancelled or terminated; and

b. MLS may issue Private Transportation Company Driver licences in excess of the cap provided that, as a condition of holding their licence, the Private Transportation Company driver registers and operates only an Accessible or Zero-Emission Vehicle throughout the term of their Private Transportation Company driver licence.

2. City Council direct the Executive Director, Municipal Licensing and Standards, and the General Manager, Transportation Services, to monitor and publish key indicators of the vehicle-for-hire industry, including but not limited to sector efficiency; user fares; wait times; daily active vehicles; trips per day; and the number of Zero Emission Vehicles licensed as Private Transportation Companies, taxicabs and limousines, as well as monitor the impact of any new major transit projects on user mobility.

Create a centralized dispatch service for wheelchair accessible vehicles-for-hire

3. City Council direct the Executive Director, Municipal Licensing and Standards, to develop and implement a centralized dispatch service for on-demand wheelchair accessible vehicle-for-hire service.

4. City Council authorize the Executive Director, Municipal Licensing and Standards, to fund the centralized dispatch service using licensing fee revenues held in the Vehicle-for-Hire Reserve Fund.

Amend the wait time standard for accessible service requested through a Private Transportation Company platform

5. City Council amend Chapter 546-119(B)(1) to require Private Transportation Companies to ensure that wheelchair accessible vehicles are available when requested by a passenger through the Private Transportation Company's platform within a wait time of 15 minutes.

6. City Council delete Chapter 546-119(C).

7. City Council amend Chapter 546-116(G) to require Private Transportation Companies to also report on the wait times for each trip by an accessible taxicab that provides accessible transportation service through a Private Transportation Company.

8. City Council direct the by-law amendments in Parts 5 to 7 above come into effect on January 1, 2026.

Extend the model year age limit for wheelchair accessible vehicles

9. City Council amend Chapter 546-51 to increase the maximum age limit of wheelchair accessible vehicles used as a taxicab or Private Transportation Company vehicle to ten model years beyond December 31, 2025.

Clarify the maximum number of Standard Taxicab Owner and Toronto Taxicab Licences

10. City Council amend Chapter 546 to specify that the total maximum number of Standard Taxicab Owner licences and Toronto Taxicab Licences that the Executive Director, Municipal Licensing and Standards, can issue is 5,472, which is based on previous City Council decisions to issue taxicab owner licences and Toronto Taxicab Owner Licences.

Issue taxicab owner licences and transition from the Drivers' list to a first-come first-serve system  

11. City Council amend Chapter 546 as follows:

a. Delete Chapter 546-34 (B)-(G), 546-35 and 546-36

b. Amend 546-34(A) to remove the requirement that the notice must include the date of next available accessible vehicle training course.

c. Amend Chapter 546 to require that anyone who is sent a notice pursuant to 546-34(A) shall attend and complete an accessible vehicle training course and provide proof of such to Municipal Licensing and Standards, along with an application for a Toronto Taxicab Licence, within 90 days of the date of the notice failing which they will be removed from the Drivers’ list. This amendment shall subsequently be revoked on December 17, 2025.

d. Amend Chapter 546 to provide that a Toronto Taxicab Licence holder must register a vehicle with Municipal Licensing and Standards that qualifies as an accessible vehicle within 90 days of being issued a Toronto Taxicab Licence.

12. City Council amend Chapter 546 as follows, effective December 17, 2025:

a. Delete Chapter 546-34(A), 546-39 and 546-40 thereby eliminating the Drivers' list.

b. Toronto Taxicab Licences will be issued with priority given to the order that a complete application is received by Municipal Licensing and Standards.

c. Individuals applying to receive or renew a Toronto Taxicab Licence shall, if requested by Municipal Licensing and Standards, permit Municipal Licensing and Standards to take their photograph.

d. On the third Monday of every March, commencing March 2026, the Executive Director shall post the total number of Toronto Taxicab Licences available for issuance on the City of Toronto’s website.

e. MLS shall start accepting Toronto Taxicab Licence applications no earlier than 14 days from the date the total number of Toronto Taxicab Licences available for issuance are posted on the City of Toronto’s website.

f. Municipal Licensing and Standards will stop accepting Toronto Taxicab Licence applications no earlier than 180 days after MLS started accepting Toronto Taxicab Licence applications.

Permit Private Transportation Companies to dispatch accessible taxicabs

13. City Council amend Chapter 546 to permit a Private Transportation Company to accept, facilitate or broker requests for or advertise accessible transportation service in an accessible taxicab.

14. City Council amend Chapter 546 to exempt Private Transportation Companies from the requirements of 546-112(B) with respect to VFH drivers who provide accessible transportation service through a Private Transportation Company in an accessible taxicab.

15. City Council amend Chapter 546 to exempt Vehicle-for-Hire licence holders who provide accessible transportation service in an accessible taxicab through a Private Transportation Company from the requirements of 546-19(A) and (F), 546-20(A), 546-23 (B)-(D), 546-25(A)-(B) and 546-112(A).

16. City Council amend Chapter 546 to require that a Private Transportation Company shall not permit any individual to provide accessible transportation service in an accessible taxicab through their Private Transportation Company unless the individual holds a current Vehicle-for-Hire driver’s licence issued by MLS.

17. City Council direct the by-law amendments in Parts 13 to 16 above come into effect on January 1, 2025.

Require taxicab owners to operate with digital trip meters

18. City Council amend the definition of Trip Meter in Chapter 546-1 to add that it shall also digitally record and transmit business records required to be maintained under Chapter 546 in a format prescribed or approved by the Executive Director, Municipal Licensing and Standards, through a vendor approved by the Executive Director, Municipal Licensing and Standards.

19. City Council add a provision to Chapter 546 allowing the Executive Director, Municipal Licensing and Standards to:

a. Establish the criteria for the approval of a Trip Meter vendor;

b. Approve Trip Meter vendors in accordance with the established criteria; and

c. Publish a list of approved Trip Meter vendors.

20. City Council add a provision to Chapter 546 requiring that each applicant seeking approval as a Trip Meter vendor shall provide, at minimum, to the Executive Director, Municipal Licensing and Standards: 

a. The applicant’s full name;

b. Mailing address;

c. Contact information, including a phone number and e-mail address;

d. Information confirming its ability to comply with the Trip Meter vendor

requirements, in accordance with the criteria established by the Executive Director; and

e. Any other information required by the Executive Director, Municipal Licensing and Standards.

21. City Council add a provision to Chapter 546 that Municipal Licensing and Standards has the authority to audit a Trip Meter vendor and request information related to the audit, as required.

22. City Council add a provision that the Executive Director, Municipal Licensing and Standards, has the authority to revoke the approval of a Trip Meter vendor if:

a. Municipal Licensing and Standards has reasonable grounds to believe that the Trip Meter vendor no longer meets the requirements for inclusion on the approved list, in accordance with the criteria established by the Executive Director, Municipal Licensing and Standards;

b. Municipal Licensing and Standards has reasonable grounds to believe that the vendor or its officers, directors, or employees have not acted in accordance with the intent of the City of Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, or if incomplete or inaccurate information has been provided; or

c. Municipal Licensing and Standards has reasonable grounds to believe that the conduct of the vendor or its officers, directors, or employees has resulted, or will result, in a breach of the City of Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, or any other law.

23. City Council direct the by-law amendments in Parts 18 to 22 above come into effect on July 1, 2026.

Update business record requirements for taxicabs and Private Transportation Companies

24. City Council amend the requirements for business records that taxicab brokers and owners must maintain by amending Chapter 546-26 to include the following requirements:

a. Amend the meaning of business records in Chapter 546-26(A) to add the following:

i. Total distance driven for each trip.

ii. Total fare collected for each trip.

iii. Vehicle-for-Hire licence number of the driver that completed each trip.

b. Require taxicab brokers and taxicab owners that do not have an arrangement with a taxicab broker to maintain the business records required under Chapter 546-26 in relation to all trips that commence or terminate in Toronto.

25. City Council amend the requirements for collision records that taxicab brokers and owners must maintain by amending Chapter 546-26.1. to include the following requirements:

a. Require taxicab owners that do not have an arrangement with a taxicab broker to maintain collision records required under Chapter 546-26.1.

b. Require taxicab brokers and owners that do not have an arrangement with a taxicab broker to maintain collision records that also include the incident identification number issued by the Toronto Police Service and Collision Reporting Centre associated with each recorded collision, if available.

26. City Council amend the requirements for information that taxicab brokers and owners must keep by amending Chapter 546-27 to require taxicab owners that do not have an arrangement with a taxicab broker to keep a record of information showing a continuous account of the total distance driven for each day the taxicab was available for service, the times at which the taxicab went on the road each day, any time or times when it was off duty and the time at which it was last available for service to the public on that day.

27. City Council amend Chapter 546 to require taxicab owners to comply with the requirements under Chapter 546-10.1(A)-(C) regarding audit and investigative authority and record submission requirements.

28. City Council amend Chapter 546-116(F) to require every Private Transportation Company to include the incident identification number issued by the Toronto Police Service and Collision Reporting Centre associated with each recorded collision, if available.

29. City Council direct the by-law amendments in Parts 24 to 28 above come into effect on July 1, 2026.

Permit Private Transportation Companies to participate in the Zero Emissions Grant Program

30. City Council approve zero emission grant remittance plans from HOVR, Lyft and Uber, outlined in Attachments 1, 2 and 3 to this report, to enable them to begin participating in the Zero Emissions Grant Program on January 1, 2025.

Add a definition for all-weather tires

31. City Council add the following definition for "all-weather tire" to Chapter 546: a tire that is marked with the pictograph of a peaked mountain with a snowflake.

32. City Council authorize the City Solicitor to introduce the necessary bills to give effect to City Council's decision and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or by-law amendments as may be identified by the City Solicitor, and the Executive Director, Municipal Licensing Standards.

Toronto Municipal Code Chapter 546, Licensing of Vehicles-for-Hire, regulates the provision of vehicle-for-hire (VFH) services, such as taxicabs, limousines and private transportation companies (PTCs), in Toronto. Municipal Licensing and Standards (MLS) administers and enforces Chapter 546, which includes the issuance of licences to the various vehicle-for-hire business classes, including the drivers of taxicabs, limousines, and PTC vehicles. MLS also issues licences to entities that facilitate requests for vehicle-for-hire services, such as taxi brokers and PTCs.

This report responds to several Council directives requesting staff to review specific issues related to VFH, including options to limit the number of drivers, industry impacts on public policy goals related to transportation, emissions and equity, inactive taxicab owner licences, PTC participation in the Zero Emissions Grant Program, and taxicab tariffs and charges. This report also addresses on-demand wheelchair accessible service and taxicab data requirements, as initiated by staff based on the current state of the industry and stakeholder feedback.

Staff conducted a review on these issues to update and enhance the City's regulatory framework for the VFH industry by focusing on improving accessibility and addressing potential impacts of the VFH industry on Toronto's transportation and emissions reduction goals. To achieve this, and address stakeholder feedback and previous Council directives, this report outlines a suite of initiatives and recommends several bylaw amendments.

Recommendations include establishing a cap on the number of licenced PTC drivers as the number licensed on December 1, 2024 (80,429), with an exemption for zero emission and wheelchair accessible vehicles, as a proactive measure to mitigate the risk of increasing traffic congestion and emissions, and impact on public transit use, while balancing considerations for driver equity and user mobility.

This report also includes several initiatives to improve accessible service, including: issuing new wheelchair-accessible Toronto Taxicab Licences based on the current amount of vacant taxicab owner licences (628 total); updating the Accessibility Fund Program (AFP); creating a Centralized Dispatch Service (CDS) for on-demand wheelchair accessible service; establishing a 15-minute maximum wait time standard for PTC wheelchair accessible trips; permitting PTCs to dispatch wheelchair accessible taxicabs; and permanently extending the age limit for wheelchair accessible vehicles (WAVs) from seven to ten model years.

Other recommendations include: requiring taxicab owners to operate their vehicles with digital trip meters; requiring taxicab owners to report trip data; administrative amendments to clarify data reporting requirements; and permitting three PTCs to participate in the Zero Emissions Grant Program beginning in 2025.

The initiatives and recommendations in this report were informed by an extensive, year-long process with several inputs throughout the review, including five public consultation sessions, two focus groups and two surveys involving over 4,000 participants, jurisdictional research, substantial internal analysis, and third-party academic research conducted by the University of Toronto.

This report was prepared in consultation with Policy, Planning, Finance and Administration, and Legal Services.

Licensing Cap on PTC Drivers

As a proactive measure to mitigate further risk of increasing traffic congestion and emissions, and impact to public transit use, staff are proposing a licensing cap that would limit further growth in the number of licensed PTC drivers, with an exemption for zero emission and wheelchair accessible vehicles. The cap would result in projected annual foregone revenue of $0.87 million (based on an average net increase of roughly 3,000 PTC driver licences per month) from the two PTC driver licence fees: (1) the $16.94 PTC per driver fee; and (2) the $7.99 Accessibility Fund Program fee.

Licensing fees are based on a cost recovery model and therefore foregone revenue would have offset future cost (that will now be avoided) to administer the additional PTC driver licences.

Updates to the Accessibility Fund Program (AFP)

Staff recommend initiatives aimed at addressing stakeholder feedback and Council direction to consider equity and accessibility for the VFH sector (as per item 2021.GL27.19). Firstly, to improve the financial feasibility of operating an accessible vehicle, this report recommends changing the existing $16,189 - $20,287 grant, which is disbursed over seven years, to a single $55,000 upfront grant for taxicab owners who purchase a wheelchair accessible vehicle (WAV).

In addition, to support on-demand, wheelchair accessible taxicab services, staff recommend the creation of a centralized dispatch service and replacing the AFP's current service standard incentive with a $15 per-trip incentive ($25 for off-peak, night-time trips) to taxicab drivers for every WAV trip they complete.

Both initiatives will be fully funded by existing and future revenues in the VFH Reserve Fund, which was initially set up to support accessibility initiatives for vehicles-for-hire. Based on current projections for VFH licensing volumes and PTC trips, yearly contributions to the Fund are projected to be $5.28 million. To disburse updated AFP grants and incentives, MLS will need to withdraw an estimated total of $24.2 million from the Fund from 2025 to 2027 based on current projections for VFH licensing volumes. Also, based on experiences in other jurisdictions, the costs to administer the centralized dispatch service is estimated to be no more than $1 million.

To maintain the financial sustainability of the VFH Reserve Fund, the Executive Director, MLS, has existing authority to adjust the AFP regulatory charge that most licensees within the VFH industry are currently required to pay upon licence renewals, as well as for every trip completed on a PTC platform. MLS, in consultation with the Financial Planning Division, will monitor the Fund's balance and adjust the AFP regulatory charge, if necessary.

Zero Emission Grant Program

If Council approves HOVR, Lyft and Uber's PTC grant remittance plans, all three PTCs will be eligible to participate in the grant program beginning January 1, 2025.  The estimated foregone revenue would be $4.85 million between 2025-27. These projections were included in MLS' report submitted as part of item 2023.EC6.6. The actual amount in foregone revenue will depend on the number of taxicab and limousine owners who purchase a zero-emission vehicle (ZEV) and PTC trips taken in a ZEV between 2025-27. The recommended licensing cap's exemption for ZEV PTC drivers may incentivize more drivers to transition to ZEVs, which could result in a higher than anticipated amount of ZEV PTC trips. MLS will continue to monitor the volume of ZEV PTC trips, as it has the authority to recalibrate the grant amount so that total foregone revenues do not exceed $10 million.

Staff Complement

To implement this report's proposals and initiatives, MLS has identified the need for 1 permanent and 3 temporary full-time positions at a total cost of $361,000 in 2025, to support the administration of Toronto Taxicab Licences and new technology solutions that will help the City collect and publish VFH trip data. These positions will be funded from the VFH Reserve Fund and will be requested for consideration through the 2025 Budget Process.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The General Manager, Transportation Services recommends that:

1. The Executive Committee receive this report for information.

The purpose of this report is to provide the full 2024 Transportation Impact Study, included as Attachment 1 to this supplementary report.

There is no financial impact resulting from this report.

The General Manager, Transportation Services recommends that:  

1. Executive Committee receive this report for information. 

This report responds to direction from City Council in EX17.11 that Transportation Services work with the Chief Financial Officer and Treasurer to examine the capital budget and plan for the West Toronto Railpath Project, and to report back to the Executive Committee with an update on the project, including the process of due diligence and findings of an independent third-party estimate review.   

The West Toronto Railpath (WTRP) is a fully off-street pedestrian and cycling pathway that connects neighbourhoods, provides communities with greenspace and public realm amenity space, and serves as a safe active transportation corridor. The existing WTRP which runs 2.1 km from north of Dupont Street to Dundas Street West, was first endorsed by Council in 1998, and opened in 2008/2009.  

The second phase of the WTRP, known as the West Toronto Railpath Extension (WTRPE), will extend the Railpath an additional 2.1 km south to Sudbury Street, approximately 200m south of Queen Street. Much more than a pathway, the WTRPE is a significant infrastructure project that includes four bridges, including a 350 m long elevated section crossing the Barrie rail corridor, two public plazas and seven new community connections, providing direct access to the WTRP from Lansdowne Avenue, Shirley Street, Northern Place, Delaney Crescent, Brock Avenue, Dufferin Street and Queen Street.    

Once fully realized, the WTRP will be 4.2 km in length, providing a critical link connecting neighbourhoods from the Junction all the way to downtown and providing more than 26,000 residents with access to 6,000 jobs, as well as supporting the City’s TransformTO and congestion management goals. While the WRTP itself is 4.2 kms in length, it connects to key east-west cycling routes that complete over 20 kms of trail connection through the city, providing direct access for 82,000 residents and 179,000 jobs or 12 percent of Toronto’s total jobs within 250 metres of these key routes.

In May 2017, through MM29.47, City Council authorized the General Manager, Transportation Services, to negotiate, enter into agreements with Metrolinx for the design and construction of the WTRPE. Transportation Services and Transit Expansion staff are currently finalizing a Municipal Infrastructure Agreement with Metrolinx for delivery of the WTRPE. 

The WTRPE is at 100 percent design and is expected to be released for tender in January 2025. The third-party cost estimate peer review recently conducted and summarized in this report offers some assurance that the project costing provided to the City are appropriate for the purposes of identifying a suitable allowance for the project in Transportation Services Capital Budget 2025-2034. Further, the third-party review will provide a reliable baseline for the review of incoming contractor bids to realize the construction of this major infrastructure project. 

There are no financial implications resulting from the recommendations included in this report.  

This report contains a summary of the third-party peer review of the project cost estimates created by Metrolinx for the West Toronto Railpath Extension. Starting in 2020, Transportation Services has included requests for WTRPE funding in the annual budget submission. The 2024-2033 Capital Budget and Plan for Transportation Services adopted by City Council included $149 million in funding as per Table 1.

Table 1: Funding Sources for the West Toronto Rail Path Extension

In 2024, the City of Toronto secured $23 million towards the cost of the WTRPE project from the Federal government’s Active Transportation Fund. The project is also eligible to receive 25 percent in development charges funding as per the most recent Development Charges bylaw. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The City Manager recommends that:  

1. City Council request the Board of Directors of the Toronto Transit Commission (TTC) to direct the Interim Chief Executive Officer of the TTC to report to the Board in Q1 2025 on the completed analysis of Scarborough Rapid Transit Line 3 (SRT) infrastructure and land requirements, and the assets no longer required for transit operation purposes.

2. City Council endorse in principle to substantively remove the Scarborough Rapid Transit Line 3 infrastructure no longer required for transit operations so the corridor lands may be considered for future uses.

3. City Council direct the City Manager, in conjunction with appropriate City divisions and agencies, to report back to City Council in Q4 2025 on next steps for the Scarborough Rapid Transit Line 3 infrastructure, after the completion of necessary technical studies and detailed legal analysis, including final scope, recommended approach for infrastructure removal which prioritizes lands of third-party owners, identifying any portion of the elevated infrastructure that could remain for future uses, and estimated capital costs.

4. City Council direct the City Manager, in conjunction with appropriate City divisions and agencies, to report back in Q4 2025 with a plan for a 'future use' analysis of the surplus Scarborough Rapid Transit Line 3 corridor land, including a strategy to undertake public consultations in 2026, with consideration for local Scarborough needs and integrating opportunities for transit, active mobility, trails, parks, privately owned publicly-accessible spaces, cultural installations, and commemoration of the decommissioned SRT into a connected corridor.

5. City Council direct the City Manager to engage the Federal and Provincial Governments and related agencies such as Infrastructure Ontario, Metrolinx, and the Canadian Infrastructure Bank, as well as the University of Toronto Scarborough on partnerships and funding opportunities for required studies, planning, and execution of infrastructure removal and future uses of the corridor.

This report responds to City Council's request from March 2024 to assess scope, feasibility, costs, risks, and key considerations regarding the adaptive reuse of the right-of-way, infrastructure, and station assets which comprise the Toronto Transit Commission (TTC) decommissioned Scarborough Rapid Transit Line 3 (SRT). This request was made through Member Motions MM16.7 and MM16.29.

In July 2023, the SRT ceased operation and rapid bus replacement service was implemented. The Scarborough Subway Extension is planned for completion in 2030, extending the Bloor-Danforth Line 2 east and north into Scarborough. The TTC is currently converting the at-grade portion of the SRT line between Kennedy and Ellesmere stations, to a Bus Rapid Transit (BRT) line, which is planned to be operational by 2027.

Based on TTC's completed review and analysis, the 2.5-kilometre SRT guideway located between Ellesmere Station and one hundred metres east of McCowan Station at Grangeway Avenue, is no longer required for transit uses. Most of this portion of the SRT is elevated infrastructure except for an area located north of Ellesmere Station which includes a small portion at-grade and below-grade as it changes to an east-west orientation. As per Municipal Code Chapter 279, the TTC holds real estate and infrastructure assets for the purpose of a transportation system and therefore assets no longer required for transit operations are declared surplus.

Following direction from City Council regarding the preliminary feasibility assessment of adaptive re-use of the SRT infrastructure, staff across relevant City divisions and agencies completed the following:    

- a full review by the TTC of current and future operational requirements;

- an initial ownership analysis and legal review of easements and agreements with third-party landowners;

- an assessment of current developments, secondary plans, parks and other local requirements, and future development opportunities; and,

- a high-level estimate of the cost of required due diligence and technical studies.

Initial assessments indicate that adaptive reuse of the elevated guideway infrastructure presents legal risk that needs to be addressed, short-term and long-term capital expenditures, and implementation complexity overall. Specifically:

- the City does not have complete property ownership of the SRT corridor;

- the City has legal obligations to third-party landowners on portions of the SRT corridor including permission for restricted use to only transit operations; requirements to maintain infrastructure in good repair; and requirements to restore lands within one or two years once the transit system ceases operations, which was in July 2023;

- unfunded capital costs to undertake due diligence, retain third-party lands, redevelopment planning, and asset lifecycle requirements of aging infrastructure;

- the capital coordination of large projects in Scarborough Centre (i.e., Scarborough Subway Extension, Transit Oriented Developments, housing developments); and,

- overall redevelopment limitations of the narrow corridor.

Given these constraints, City staff recommend the SRT transit infrastructure be considered for substantive removal and derisked (i.e., addressing financial, legal, and asset lifecycle issues). The City can then review the true scope of the SRT corridor with appropriate visioning or 'future use' studies, and with dedicated capital budget. There may be city building opportunities by maintaining portions of the SRT corridor and exploring new connected land uses based on local Scarborough needs, and partnerships with active adjacent developments. These potential city building opportunities require deeper study such as transportation connections (i.e., active mobility, trails), parks, privately-owned publicly accessible spaces, and commemoration of the SRT.   

To move forward, the City should prioritize the following actions: 

- undertake a detailed legal review and title search of the SRT corridor to confirm ownership, and initiate discussions on current legal agreements;  

- undertake required technical studies, including analyzing scope, options, and cost estimates for the removal of SRT infrastructure to help determine next steps;

- confirm accountability for the structure’s maintenance, safety, and security during and after technical analysis and any future phases; and,

- plan a 'future use' study of the SRT corridor and a strategy for public consultation.

It is recommended the adaptive re-use of the SRT be pursued in a 'stage gate' process. This would enable City Council to fully understand scope, cost, risks, and timing of each step forward considering the City's financial constraints. Stage gates are as follows:

- approval to proceed with required legal and technical work to advance infrastructure removal;

- report back in Q4 2025 with final scope, recommended approach for infrastructure removal, identify portions that could remain, any new land rights required, estimated capital cost for next steps, plus a plan for a 'future use' analysis and strategy for public consultations; and,

- report back in 2026, with results of a public consultation and options for future uses of the SRT corridor.

Staff analysis indicates the adaptive reuse of the SRT is a complex, long-term undertaking that will require significant capital investment. A 2018 estimate indicated the decommissioning and demolition of the SRT was in the range of $150 million to $175 million. This cost is outdated, is not included in the current City's 10-Year Capital Budget and Plan, and it does not include the cost of future work, such as visioning exercises, redevelopment planning, new land agreements, and implementation costs for a reimagined SRT corridor.

This report recommends a 'stage gate' approach to the SRT adaptive reuse project, where the first stage would involve addressing the City's legal obligations and engaging third-party landowners, conducting technical due diligence, and estimating capital costs for infrastructure alteration or removal. In addition, capital budget for any short-term maintenance requirements needs to be determined to ensure the safety and integrity of the SRT assets in the interim. The funding required for this initial phase of work in 2025 is estimated to be $1.5 million and, if determined necessary, will be included for consideration in the 2025 Budget Process.

Subsequently, staff will report back in Q4 2025 with full scope, cost, risks, development options and dependencies, and timing for a reimagined SRT corridor for City Council's consideration. This staged approach will enable City Council to stay fully informed at each decision stage gate. Funding for future capital costs will be considered through the City's annual budget process along with all financial constraints and capital priorities.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information presented in the Financial Impact Section.

The City Manager recommends:

1. City Council direct the City Manager to facilitate Toronto’s membership in the Association of Municipalities of Ontario (AMO) and negotiate and enter into any agreements required while retaining its direct government to government relationships and its ability to enter into direct intergovernmental agreements, subject to the adoption of the 2025 budget.

2. City Council request the Mayor to include fees for membership in the Association of Municipalities of Ontario in the 2025 Operating Budget submission, estimated at $160,000 for 2025.

This report addresses the intergovernmental and financial considerations of Toronto rejoining the Association of Municipalities of Ontario (AMO). This report recommends that the City join AMO to reinforce Toronto's role as a leader in the municipal sector, and support Toronto's interest in fiscal sustainability, knowledge sharing and municipal collaboration.

AMO membership is an annual fee, based on a flat fee amount plus a per household charge. Should approval of Toronto's membership in principle be received, up to four City Councillors may represent the City at AMO. If membership is approved by Council, the membership cost of approximately $160,000 will be included in the 2025 Operating Budget submission as appropriate.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve the 2025 Tax and Rate Supported Interim Operating Spending Authorities totalling $7.352 billion as detailed by City Program and Agency in Appendix 1 attached.

The purpose of this report is to establish interim spending authorities in 2025 for City Programs and Agencies before the final adoption of the 2025 Tax and Rate Supported Operating and Capital Budget and Plan. The interim spending authority will allow Programs and Agencies to continue to deliver current services, meet existing contractual commitments, and continue work on previously approved capital projects until such time as the 2025 budgets are adopted. The 2025 Tax and Rate Supported Operating and Capital Budgets are expected to be adopted in February of 2025.

It should be noted that no funding for new or enhanced services or new capital projects, which are subject to budget adoption, are included in the recommended 2025 Interim Spending Authorities contained in this report.

The 2025 Tax and Rate Supported Interim Operating Spending Authorities total $7.352 billion. The 2025 Tax and Rate Supported Interim Capital Spending Authorities total $3.280 billion, including previously approved debenture financing of $0.645 billion.

Approving the recommendation in this report will ensure adequate spending authority is in place for all Programs and Agencies until the 2025 operating and capital budgets are adopted.

Operating:

As shown in Table 1 below, the 2025 Tax and Rate Supported Interim Operating Spending Authorities total $7.352 billion.  The funding requirements for each City Program and Agency are outlined in Appendix 1 of this report. Agencies are partially funded by the City and are able to cover a portion of expenditures through other revenue sources.  

Table 1: 2025 Tax and Rate Supported Interim Operating Spending Authorities

Capital:

The 2025 Interim Capital Spending Authorities recognize spending authority to continue work on previously approved capital projects. Cash flow fundings for 2025 commitments and funding carried forward from 2024 to 2025 are required to complete capital work total $3.280 billion including $0.645 billion in debt funding, which are summarized in Table 2 below and detailed in Appendix 2.

Table 2: 2025 Tax and Rate Supported Interim Capital Spending Authorities

The Chief Financial Officer and Treasurer, and the General Manager, Toronto Water recommend that:  

1. City Council adopt:

a. Effective January 1, 2025, an interim 3.75 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown below and in Appendix A attached to this report;

b. Effective January 1, 2025, an interim increase of 3.75 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix A attached to this report;

c. Effective January 1, 2025, the water and wastewater interim service fees, as set out in Appendix B attached to this report.

2. City Council adopt, with respect to assistance for low-income seniors and low-income disabled persons:

a. Effective January 1, 2025, the interim water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.4062 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3. With regards to the City’s transition from the Ministry of the Environment, Conservation and Parks (“MECP”) Transfer of Review Program (“TOR Program”) to the MECP’s new Consolidated Linear Infrastructure Environmental Compliance Approval application process for municipal wastewater collection and stormwater management systems (collectively, the “CLI ECAs”), City Council:

a. Adopt effective on the Issue Date for CLI ECA Number: 010-W601, being the Consolidated Linear Infrastructure Environmental Compliance Approval (“CLI ECA”) for the City's Sanitary Sewage Collection System and for CLI ECA Number: 010-S701, being the CLI ECA for the City's Stormwater Management System, Chapter 441, Fees and Charges, Appendix D, Schedule 3, Wastewater Services be amended to include the proposed new wastewater service fees for the CLI ECAs as set out in Appendix C attached to this report, which shall be adjusted annually for inflation (“CLI ECA Fees”).

b. Adopt effective on such date as mutually agreed to by the MECP and the General Manager, Toronto Water, Chapter 441, Fees and Charges, Appendix D, Schedule 3, Wastewater Services be amended to delete in their entirety items 21, 22 and 23, related to the City’s fees under the TOR Program, as set out in Appendix B attached to this report;

c. Authorize the General Manager, Toronto Water, to refund any CLI ECA Fee in full, subject to the following conditions:

i. an application under the CLI ECA is cancelled or withdrawn by an applicant in writing to the City within five business days of the date of receipt of the application by the City;

ii. the fee was paid by the applicant and received by the City; and

iii. a refund request is made by the applicant in writing;

d. Authorize the General Manager, Toronto Water, to negotiate, enter into and execute a mutual termination agreement with the MECP, or such other document(s) as may be required, to terminate the City’s participation in the TOR Program and, specifically, to terminate the City’s agreement with the Province, as represented by the MECP, dated October 3, 2018, and to address any issues related to the City’s transition from the TOR Program to the CLI ECAs, on such terms and conditions as are acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

4. City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code, Chapter 849 - Water and Sewage Services and Utility Bill, and any other necessary Municipal Code Chapters as may be required, to give effect to City Council's decision.

5. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

This report recommends the adoption by City Council of 2025 interim water and wastewater consumption rates and service fees as set out in this report. The adoption of these interim rates and fees is requested in advance of the 2025 Tax and Rate Supported Operating and Capital Budgets in order to establish these rates and fees and provide City staff with the necessary authority to implement them effective January 1, 2025. The recommended interim rates are established to meet Toronto Water operating and budget requirements which will be considered through the 2025 Operating and Capital Budget process ("2025 Budget Process"). These rates may be amended by City Council when the 2025 Rate supported Operating and Capital Budgets are adopted, which is expected in the first quarter of 2025.

Accordingly, this report recommends, effective January 1, 2025, an interim 3.75 percent water and wastewater consumption rate increase and inflationary and cost recovery increases for certain existing water and wastewater service fees, reflecting the cost of providing these services.

This report also recommends the establishment of proposed new fees to recover the City's costs related to the administration and review of applications in respect of pre-authorized wastewater and stormwater infrastructure alterations under the Ministry of the Environment, Conservation and Parks ("MECP") new Consolidated Linear Infrastructure Environmental Compliance Approval application process for municipal wastewater collection and stormwater management systems (“CLI ECAs”).  It is further recommended that these new fees be effective on the issue date by the MECP of the CLI ECAs to the City (anticipated later in 2025), and that the City’s current TOR Program fees be deleted effective on such date as mutually agreed to by the MECP and the General Manager, Toronto Water as part of the City’s transition from the TOR Program to the CLI ECAs. 

This report also provides additional information on water consumption, as well as further details on the recommended interim 2025 water and wastewater consumption rates and service fees.

The City of Toronto Water and Wastewater Program (the “Program”) is currently fully funded on a ‘pay-as-you-go’ basis through a combined water and wastewater rate without any reliance on property taxes or borrowing/debenture financing.  The property tax supported budget is not impacted by adoption of the recommendations contained in this report. 

This report recommends an interim water and wastewater consumption rate increase of 3.75 percent, effective January 1, 2025, for Block 1 rate consumers and Block 2 rate industrial process-use consumers in advance of the 2025 Budget Process.

As shown in Chart 1 below, the recommended interim rate increase impact on an average home consuming 230 cubic metres a year, billed at the Block 1 Rate, will be 3.75 percent or $39 over the calendar year (from $1,039 in 2024 to $1,078 in 2025).  The impact of the 3.75 percent increase on a commercial consumer at the Block 1 rate and an industrial process-use consumer at the Block 2 rate with annual consumption of 100,000 cubic metres will be $16,940 and $12,105 respectively, the latter reflecting a 30 percent discount from the Block 1 rate for eligible industrial process-use consumers. The rate increase impact on a large industrial process-use consumer of 1,000,000 cubic metres eligible for the Block 2 rate will be $118,755.

Chart 1: Impact of recommended interim water rates effective, January 1, 2025 

The proposed interim water and wastewater consumption rate increase of 3.75 percent, recommended in this report, if approved by City Council, is anticipated to generate approximately $ 53.35 million in additional revenue for Toronto Water's operational and capital program needs.

The recommended interim increases to certain water and wastewater service fees are set out in Appendix B and are based on projected 2025 inflationary increases for services costs such as costs of labour, energy, utilities and materials involved in providing the related services by Toronto Water, as well as Revenue Services. These proposed service fee increases are set at 4 percent and 3.5 percent, respectively and are in accordance with the City's User Fee Policy.

Further details are provided in appropriate sections of this report discussing the recommended increases to water and wastewater service fees.

The proposed 2025 interim increases to water and wastewater service fees, if approved by City Council, are expected to generate additional revenue of approximately $2.337 million, which is intended to offset the cost increases associated with delivering these services.

The recommended new fees related to the CLI ECAs will replace the City's current fees under the TOR Program.  Any incremental revenue impacts will be reported during the 2026 operating budget process once more information is available.

The Chief Financial Officer and Treasurer, and the General Manager, Solid Waste Management Services recommend that:

1. City Council adopt, effective January 1, 2025, the interim Solid Waste Management Services Rates and Fees as summarized by customer group in Appendix A and detailed in Solid Waste Management Services Municipal Code Chapter 441 in Appendix B.

2. City Council authorize that the necessary amendments be made to the Municipal Code Chapter 441 – Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to these Recommendations.

3. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to City Council's decision and authorize the City Solicitor to make any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer, and the General Manager, Solid Waste Management Services.

4. City Council direct that all the interim rates, fees and charges set out in Appendix A to this report, adopted by Council in Recommendation 1 and 2 above, continue in full force and effect until such time as they are amended or repealed by City Council.

This report recommends the adoption by City Council of interim 2025 Solid Waste Management Services (SWMS) Rates and Fees as set out in this report. The adoption of these interim rates and fees is requested in advance of the 2025 Tax and Rate Supported Operating and Capital Budgets to establish these interim rates and fees and provide City staff with the necessary authority to implement them effective January 1, 2025.

City Council may amend the interim rates when the 2025 Tax and Rate Supported Operating and Capital Budget is approved, which is expected in February 2025.

This report recommends an interim 3.75 percent increase in SWMS rates and fees effective January 1, 2025. The recommended increase, shown in Table 1 below by customer grouping, will allow Solid Waste Management Services to maintain all current service levels and address future capital needs.

Table 1: Interim Solid Waste Management Services Rates and Fees effective January 1, 2025 

Solid Waste Management Services is a utility funded program that recovers program costs from a combination of user fees and rates, other charges, and an agreement to provide recycling collection services on behalf of producers during the Extended Producer Responsibility transition timeframe (July 1, 2023, to December 31, 2025).

The 2025 interim rate increase of 3.75 percent provides funding to support Solid Waste Management Services operations and capital projects as well as waste diversion and reduction initiatives. Consideration during the 2025 budget process may result in amendments being made by City Council to the interim rates and service fees.

The interim 3.75 percent utility rate increase for 2025, as summarized by customer group in Appendix A, is recommended to maintain the contribution to the Waste Management Reserve fund and to finance future capital investments, which include the development of increased organics processing capacity, landfill gas utilization initiatives, Long-term Residual Waste Disposal options and the Dufferin Waste Facility Site Improvement project.

The proposed interim SWMS increase of 3.75 percent, if approved by City Council, is anticipated to generate approximately $13.400 million in additional revenue for SWMS operational and capital program needs. SWMS will continue to assess the projected future annual rates and increases on an annual basis to ensure that service levels and funding for the 10-year Capital Budget and Plan are able to be sustained.

While the impact of the proposed 3.75 percent rate increase will vary by customer depending on property type and bin size, for a residential property with a medium size bin the 3.75 percent rate increase will reflect added costs of $13.44 for the year.

The Chief Financial Officer and Treasurer recommends that:

1. City Council receive this report for information.

The purpose of this report is to provide the following information:

1. Performance of the Funds for the six month period ending June 30, 2024

2. General Market Update and Benchmark Performance

3. Compliance to the Council adopted City of Toronto Investment Policy

The City's General Group of Funds (General Fund) hold the working capital and amounts designated for the City's reserves and reserve funds. The General Fund is comprised of two pools of investments: (a) the Short Term Fund (liquidity funds managed internally), and (b) the Long Term Fund (funds not immediately required managed by the Toronto Investment Board). The General Fund had a book return of 4.8 per cent and generated $247.6 million for the six months ending June 30, 2023. 

As a result of the pandemic, the General Fund has held a larger position in the Short Term Fund (STF) to enhance the liquidity and to generally lower the overall risk (risk management).  On average, the Short Term Fund, including the short-term investments of the Long Term Fund (LTF), was about 59 per cent of the overall General Fund in 2024 compared to 48 per cent from the pre-pandemic level in 2019. This higher weighting in the Short Term Fund provided significant protection, as well as increased returns as short-term rates moved higher in recent years.

Staff re-assessed the City's liquidity position in late 2023 and advised the Chief Financial Officer and Treasurer (CFO&T) that excess funds within the Short Term Fund were available for longer term investment. At that time, a plan was set for $2 billion to be transferred from STF to the LTF in four quarterly installments during 2024. After the transfer STF including short term investments of the LTF is forecasted to be approximately 42 per cent of the total General Fund, returning to pre-pandemic liquidity level.

The City's Sinking Fund portfolio is separate from the General Fund and holds the investment funds for future debt repayments. For the six months ending June 30, 2024, the Sinking Fund portfolio had a book return of 3.8 per cent and generated $97.4 million in income.

Since January 1, 2018, the City's long-term investments (Long Term Fund and Sinking Fund) have been managed by the Toronto Investment Board (Board) under a Council adopted Investment Policy which is based on the prudent investor standard. Investment portfolios of different asset classes have been progressively phased in to make use of the broader range of investments that have become available. Although, the potential for volatility in total returns over the short-term investment horizon still exist, the overall portfolio risk has been reduced through asset mix diversification. The overall risk-adjusted total returns over the long-term investment horizon are expected to be higher.

The Board currently provides oversight of four external fixed income managers, four external global equity managers and two real asset managers that invest the long-term investments. As at June 30, 2024, approximately 90 per cent of both the Sinking Fund and the Long Term Fund were managed by external investment managers.  Both fixed income and equity investment asset classes are fully funded in accordance with the target asset mix in the Investment Policy with 70 per cent allocated to fixed income and 20 per cent to global equities. The Board completed contract negotiations with two real asset managers in the first half of 2024 with funding to commence in the second half of the year. Adding real assets to the current investment portfolios will enhance the overall portfolios' risk-adjusted investment return and align with the Council approved policy target asset mix.

The Toronto Investment Board has contracted a third-party data provider in order to monitor and report on the high-level Environmental, Social, and Governance (ESG) attributes of the City's long-term investment portfolios. This investment fund-level ESG reporting process will complement the existing corporate-level ESG performance report. At the end of June 2024, the City's long-term investment portfolios score was "A" and is aligned with the selected market benchmark as depicted in the investment policy.

For the year 2023 and first six months of 2024, all funds managed are compliant with the Investment Policy. The City's auditor, KPMG LLP, performed the Investment Policy compliance audit during the second half of 2024 and no issues were noted.

From an operating budget perspective, when recognizing only realized gains and losses, the General Fund earned $247.6 million, and will be allocated between the eligible reserve funds and operating budget in accordance with the Council-approved interest allocation to reserve funds policy after the year end when all the required data becomes available.

When recognizing only realized gains and losses, the Sinking Fund portfolio earned $97.4 million for the six month period ending June 30, 2024. These earnings are retained within the Sinking Funds and must be used for the purpose of retiring debenture debt at maturity.

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve in-year budget adjustments to the 2024-2033 Approved Capital Budget and Plan, as well as reallocations of funding sources for prior Approved Capital Budgets, as detailed in Appendix 3.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the nine-month period ended September 30, 2024, as well as the projected 2024 year-end expenditures. Furthermore, this report seeks Council's approval for in-year budget adjustments to previous approved Capital Budget and Plan as outlined in Appendix 3 of this report.

Table 1 below summarizes the City's 2024 actual capital expenditures compared with the 2024 Approved Capital Budget for the nine-month period ended September 30, 2024, and the projected expenditures by year-end, December 31, 2024.

Table 1: Capital Variance Summary 

The City's actual capital spending for the first nine months of 2024 totals $2.765 billion, or 43.4 percent of the 2024 Approved Capital Budget. This is in line with the experience from the previous year. The projected year-end spending rate of 75.3 percent, based on projections from City Programs and Agencies, closely aligns with last year’s forecast for the same reporting period. Capital spending will continue to be monitored, with updates to be provided in the year-end variance report to reflect annual expenditures.

The capital expenditures in the first nine months of 2024 totalled $2.765 billion and year-end expenditures are anticipated to increase to $4.793 billion or 75.3 percent of the total 2024 Adjusted Capital budget.

Appendix 1 summarizes the Year-To-Date (YTD) spending in the first nine months of 2024 and the projected year-end spending rate by City Programs and Agencies.

Appendix 3 includes recommended in-year capital budget adjustments to the 10-Year Capital Budget and Plan. The adjustments include a net funding increase of $39.502 million, primarily driven by the advancements of various parks and community projects funded by non-debt sources. The adjustments encompass a total reallocation and transfer of $31.713 million between projects, and a net acceleration of $215.772 million which is offset by the deferral of $176.807 million. In addition, the budget adjustment also includes a reallocation of funding source totalling $19.740 million for prior Approved Capital Budgets to align with the year-end funding requirements.

To date $197.5 million in funding has been received under the New Deal with the Province of Ontario for the upload of the Gardiner Expressway and Don Valley Parkway. The contribution is reflected in the City’s year-to-date financial results.

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to amend the 2024 Approved Operating Budget, with no impact on the Net Operating Budget of the City, as well as recommended expenditure authority as detailed in Appendix E.

The purpose of this report is to provide City Council with the Operating Variance for the nine months ended September 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 September 30, 2024.

Table 1: Tax-Supported Operating Variance Summary 

As detailed in Table 1 above, for the nine-month period, Tax-Supported Operations experienced a favourable net variance of $511.6 million. A favourable net variance is projected at year-end of $107.5 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 September 30, which is a snapshot in time and the year-end projection is based on current and expected future activities as known and anticipated as at September 30, 2024.

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.

The City continues to advocate to the Federal government for ongoing funding for the refugee claimants in the City’s shelter system. Included in the 2024 Operating Budget, Toronto Shelter and Support Services has a budgeted recovery of $250 million in the Interim Housing Assistance Program (IHAP) funding. Projection to year-end indicates that the actual costs for refugee claimants in 2024 will increase above $250 million in 2024 due to ongoing refugee arrivals. The City has submitted claims for expenses incurred through September 30, 2024, and will submit reimbursement claims for the final year-end actuals costs. As of today, Immigration, Refugees and Citizenship Canada (IRCC) has provided the City with $47.6 million in reimbursements for expenses incurred in the first quarter of 2024.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-to-date net variance of $29.7 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $38.0 million.         

Table 2: Rate-Supported Operating Variance Summary 

The favourable year-to-date variance and year-end projection are driven by all three programs: Toronto Water, Toronto Parking Authority and Solid Waste.

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.  Toronto Parking Authority surplus is split 75% to the City, with the remaining 25% reinvested in capital projects related to Toronto Parking Authority, consistent with the approved Income Sharing Agreement.

When adjusted for Toronto Building and City Planning, for the nine months ended September 30, 2024, the City experienced a favourable net variance in Tax-Supported programs of $511.6 million and is projecting a favourable net variance of $107.5 million for December 31, 2024.

Appendices

Appendices A, B and C provide a detailed summary of Net Expenditures, Gross Expenditures, Revenue for the nine-month results and projections to year-end by City Program and Agency, respectively. Appendix D details the recommended in-year budget adjustments that are financially neutral to the 2024 Operating Budget.

Appendix E details the Spending Authority requests, which subject to approval will be reflected in the year-end results, and Appendix F provides a dashboard with information for each City Program and Agency. Donations and Sponsorship funds are itemized by program in Appendix G and H respectively.

The Chief Financial Officer and Treasurer recommends that:

1. City Council direct that $211.1 million of funding in the “Tax Rate Stabilizing Reserve” for bridge funding temporarily held in that reserve as part of the enhanced multi-year budget strategy be transferred to the “Budget Bridging and Balancing Reserve Fund’ consistent with the strategy outlined in the 2024 Budget process.

This report summarizes the activities of the City of Toronto’s (City) Reserves and Reserve Fund balances for the nine months ended September 30, 2024.

Reserves and Reserve Funds established by Toronto City Council (Council) are key to support the financial management and operations of the City, and to minimize annual tax rate fluctuations. The funds help offset future capital needs, obligations such as employee expenses, fiscal pressures from ongoing programs, unforeseen costs, and revenue shortfalls.

Reserves and Reserve Funds balances as at September 30, 2024 totaled $5,857.7 million, an increase of $566.0 million from December 31, 2023 ($5,291.7 million). This net increase is the result of deliberate contributions for capital investments in housing, transit, capital infrastructure, and vehicle and equipment replacement as authorized by Council. The majority of the City's reserve and reserve fund balances ($5,647.3 million, or 96.4 percent) are committed to future Council directed activities that include capital and operating expenditures and rate-based activities.

There are total commitments and obligations of $15.721 billion against the $5,647.3 million balance in committed reserves, consistent with the approved 10-Year Capital Plan.  These commitments and obligations are nearly 3 times greater than the current reserve and reserve fund balances, requiring continued reserve contributions to support planned expenditures.

The remaining reserve and reserve fund balance of $210.4 million, or 3.6 percent of total reserves and reserve funds, is uncommitted and available to respond to various unanticipated costs, stabilize funding sources, including the tax base, or for emergency purposes such as extreme weather events.

There are no financial implications arising from the adoption of the recommendation in this report.

To ensure prudent financial management and considering uncertain levels of federal and provincial funding support in future years, the City must retain a contingency amount as part of its reserves and reserve funds to be in a position to address both unanticipated costs, while still maintaining a balanced budget. As an example, prudent financial management requires the City to retain a Tax Rate Stabilization Reserve balance as a contingency to address unanticipated and emergency events. The City has committed to maintaining a Tax Rate Stabilization Reserve balance of no less than 2 percent of annual property tax revenues for this purpose.

Reserve and Reserve Fund balances as at September 30, 2024, totaled $5,857.7 million, an increase of $566.0 million from the December 31, 2023 balance of $5,291.7 million. The net increase is the result of various Council approved contributions for capital investments in housing, transit and capital, and contributions to vehicle and equipment replacement.

As of September 30, 2024, 96.4 percent of the City’s reserve and reserve fund balances are fully committed to supporting future operating expenses, or other Council-directed commitments, and expenditures in the 10-year capital plan. The remaining 3.6 percent of the City's reserves and reserve funds are uncommitted and retained for emergency purposes such as stabilization of various funding sources, including the tax base, or for emergency purposes such as extreme weather events. The uncommitted amount represents 1.2 percent of the total 2024 approved Operating Budget of $17,119.6 million.

An administrative adjustment is recommended to transfer temporary bridge funding that is currently held in the Tax Rate Stabilizing Reserve to the newly established Budget Bridging and Balancing Reserve.  This adjustment is both consistent with the enhanced multi-year budget strategy outlined in the 2024 Budget Process, while also ensuring the balance of the Tax Rate Stabilization Reserve only reflects funds specifically available for tax rate stabilization purposes.

The Chief Financial Officer and Treasurer recommends that:

1. Executive Committee receive the Deferred Revenue Report as at September 30, 2024 for information.

This report provides an update of the deferred revenue balances as at September 30, 2024, and related earned revenue for the nine months ended September 30, 2024, for the City of Toronto (City).

The City receives monies from external parties and is obligated to set these monies aside for specific purposes outlined in Provincial legislation or third-party agreements. When these monies are received, they are recognized on the City's Statement of Financial Position as a liability called deferred revenue. The deferred revenue amounts are recognized as earned revenue when the committed investment is completed.  Related expenditures are recognized as tangible capital assets in the Statement of Financial Position or as operating expenses in the Statement of Operations and Accumulated Surplus.

For the nine-month period ended September 30, 2024, the City’s deferred revenues increased from $6,362.1 million to $7,602.9 million. The increase of $1,240.8 million was primarily driven by the City receiving more monies ($1,490.3 million) than amounts recognized as revenue ($249.5 million) in the period with the greatest driver being contributions from the City’s water and wastewater revenues that will be leveraged to support ongoing water and wastewater expenditures and commitments.

There are no financial implications arising from the adoption of the recommendation in this report.

A deferred revenue is recorded when funds are received by the City for a future obligation. Earned revenue is recognized when the future obligation, such as an investment, or delivery of goods or services, is completed. As an example, development charges are recorded as deferred revenues when the cash is first received, and earned revenue is recorded when the corresponding growth-related infrastructure investments are made.  

For budget purposes, earned revenue is budgeted based on planned expenditures in a fiscal year. However, since actual expenditures will vary from planned expenditures, the actual amount of deferred revenue recognized as earned revenue can differ based on actual activity. 

The City’s deferred revenues increased from $6,362.1 million to $7,602.9 million for the 9-months ended September 30, 2024. The increase of $1,240.8 million was primarily driven by an increase in contributions from the City’s water and wastewater revenues ($795.2 million), Development and Planning Act-related activities ($425.6 million), Federal Housing Accelerator Fund ($117.8 million), which were offset by amounts recognized in earned revenues of $249.5 million.

The Chief Financial Officer and Treasurer recommends that:  

1. Executive Committee receive this report for information.

Development charges are collected from new development and redevelopment projects for the purpose of recovering growth-related capital infrastructure costs. This report provides a statement of development charge (DC) balances and activity for 2023, as required by the Development Charges Act, 1997 (DC Act).

For the fiscal year ended December 31, 2023, the City collected $801.3 million of development charge contributions and earned interest of $57.7 million on its DC balances. This is offset by $466.9 million in earned revenue that was recognized to fund growth-related capital expenditures. As a result of these activities, the DC deferred revenue balance increased by $391.2 million from the prior year to reach $3,106.0 million at December 31, 2023. This amount is reported as deferred revenue in the City's audited consolidated financial statements.

The 10-Year Capital Budget and Plan includes $6,393.7 million in DC commitments and obligations to be funded through the City’s DC deferred revenue balances and forecasted future DC collections. Additionally, there is over $6 billion in further DC eligible projects that are not currently included in the City’s 10-Year Capital Plan and will continue to be considered for inclusion as part of future year capital budget processes.

There are no financial implications arising from the adoption of the recommendation in this report.

The City’s financial statements are prepared in accordance with Public Sector Accounting Standards (PSAS). Under PSAS, DCs are recognized as liabilities called “deferred revenues” on the City's Statement of Financial Position when received and are recognized as “earned revenue” on the City's Statement of Operations and Accumulated Surplus when the capital expenditures these funds are intended to support are incurred. Use of deferred revenues is restricted to activities specified in legislation or contractual agreements.

For the 2023 fiscal year, the City received $801.3 million in Development Charge contributions (net of $18.1 million in refunds) and earned $57.7 million of interest income on its DC balances. DC contributions are set aside in deferred revenue accounts until used, for each service category specified in the City’s by-law (Amendment 1137-2022, Chapter 415 – Development of Land, Toronto Municipal Code).

In the same period, the City recognized earned revenue of $466.9 million to match actual eligible capital project expenditures. DC deferred revenues are used to fund eligible growth-related projects. From a budget perspective, earned revenue allocations are budgeted based on planned eligible capital costs.

As a result, the City’s DC deferred revenue balance $3,106.0 million at December 31, 2023 (increase of by $392.1 million from 2022). The DC deferred revenue balance, along with forecasted future DC collections, is needed to fund DC commitments and obligations that total $6,393.7 million over the City’s 10-year planning period.  

Changes to the DC Act, including Bill 109, Bill 23, and Bill 185, negatively impacted the City’s revenues from DC and other growth funding tools. The impact of Bill 23 changes was estimated at $2.3 billion over 10 years, with Bill 185 reversing some of the changes by approximately $144 million.  These impacts coupled with added housing incentives in the form of forgone DC revenues will continue to be reflected in future reporting.

The Chief Financial Officer and Treasurer recommends that:

1. City Council direct that the 2021 and 2022 operating surpluses totalling $450,458 from six Arenas (George Bell, William H. Bolton, McCormick, Forest Hill, Ted Reeve, North Toronto [2021] and North Toronto [2022]) be payable to the City of Toronto and be used, in part, to fund the operating deficit of $115,361 for Moss Park Arena, resulting in a net operating surplus of $335,097 prior to the contribution to the Arena Boards of Management Vehicle and Equipment Replacement Reserve (XQ1705), as illustrated in Appendix A.

2. City Council direct the excess of the actual operating net surplus balance of $335,097 over the 2021 and 2022 budget equating to $324,937, be allocated to the Arena Boards of Management Vehicle and Equipment Replacement Reserve (XQ1705) and the remaining $10,160, be retained by the City as illustrated in Appendix A.

On an annual basis, the City of Toronto receives the audited financial statements from eight Arena Boards of Management (Arenas). The audited financial statements assist the City to determine whether additional operating subsidy payments need to be provided to or clawed back from the Arenas to settle their operating deficits or surpluses. City staff report annually on the Arenas' operating surpluses and deficits once the respective Boards financial statements have been audited and approved by Council. The audited financial statements are based on the Public Sector Accounting Board (PSAB) requirements for government not-for-profit entities while the operating deficits or surpluses align with the modified cash basis of accounting.

This report recommends the settlement of seven of the Arenas' operating surpluses and deficits based on their audited financial statements for the year ended December 31, 2022, with operating surpluses payable to the City and operating deficits funded by the City upon Council’s approval.

This report also recommends the settlement of North Toronto Arena's operating surplus based on the audited financial statements for the year ended December 31, 2021, with operating surplus payable to the City upon Council's approval. When City staff prepared the Arena Boards settlement for the fiscal year ended on December 31, 2021, the 2021 audited financial statements for North Toronto were not readily available to be included as part of the settlement process.

The 2020, 2021 and 2022 audited financial statements for Leaside Memorial Community Gardens Arena will be presented in a separate report for consideration and approval in first quarter of 2025.

While normally the prior year-end settlement reports for both Association of Community Centres and Arena Boards are submitted together to City Council in the following year, the 2022 settlement report for Arena Boards was delayed due to delays in completing the 2022 audits. City staff will present the 2023 Settlement Reports for both Association of Community Centres and Arena Boards at the first opportunity to the City Council for consideration and approval once the 2023 audit is completed.

The Arena Boards of Management final net settlement for the year 2022 for seven of the City's eight Arenas; and in 2021 specifically for North Toronto requires that surplus funds of $450,458 be paid to the City from George Bell, William H. Bolton, Forest Hill Memorial, McCormick, Ted Reeve and North Toronto Arenas and be used to fund the operating deficit of $115,361 for Moss Park Arena, resulting in a net operating surplus of $335,097 of which $324,937 represents the excess of the actual operating net surplus over the 2021 and 2022 budget and $10,160  payable to the City after allocation to the reserve. A summary of net funding to the Arenas and surpluses payable to the City are detailed in Appendix A.

As directed by Council in April 2004, the excess of the actual operating net surplus balance of $324,937 over the 2021 and 2022 budget will be transferred to the Arena Boards of Management Vehicle and Equipment Replacement Reserve (XQ1705) and applied proportionately among those Arenas who are in a surplus position which exceeded their budget target.

The Leaside Memorial Community Gardens Arena's 2020, 2021 and 2022 settlement will be included in a separate report including amendments to the City loan agreement with Leaside Arena to determine whether a deficit/surplus settlement will be required to be rolled into the outstanding balance of the loan to build Leaside Arena's second pad.

The Chief Procurement Officer recommends that:

1. City Council amend the Social Procurement Policy, as set out in Attachment 1, effective January 1, 2025.

2. City Council direct the Chief Procurement Officer to continue divisional, business and community engagement, in consultation with the Executive Director, Social Development, Finance and Administration, and report back to the Executive Committee by Q4 2026 on the results of this engagement and with recommendations for additional enhancements for the Social Procurement Policy and Program.

3. City Council direct the Chief Procurement Officer, in consultation with the City Solicitor, the City Clerk, the Chief People Officer and the Executive Director, Social Development, Finance and Administration, to identify the legal, privacy, and information management requirements and equity considerations that would allow for the collection, storage and use of disaggregated socio-demographic data from individuals in relation to the City's Social Procurement Policy and Program and report back to the Executive Committee by Q4 2026 with recommendations.

The purpose of this report is to outline the results of a review of the Social Procurement Program (the "Program") and recommend policy and program improvements. The report summarizes Program output data from 2017 to 2023 to assess the Program's success at meeting its two primary objectives: supporting workforce development and advancing supply chain diversity.

The Program was implemented in 2017 by the Purchasing and Materials Management Division (PMMD), with support from the Social Development, Finance & Administration Division (SDFA), to leverage the City's purchasing power to achieve wider social, economic and workforce development objectives, specifically:

-Supporting inclusive economic development by improving access to the City's supply chain for people from Indigenous, Black, and Equity-deserving communities;

-Leveraging meaningful training and employment opportunities for people experiencing economic disadvantage, including those belonging to Indigenous, Black, and Equity-deserving communities; and

-Shifting the City's procurement culture towards supporting the City's social and equity goals.

In 2021, City Council requested a five-year review of the Program, and instructed staff to report back on successes and opportunities for improvements. As a result of the review, this report recommends:

-Conducting additional business and community engagement, to further develop recommendations from the review findings, particularly with respect to workforce development;

-Identifying the legal, privacy, and information management requirements and equity considerations, in alignment with the City’s Data for Equity Strategy and Guidelines, that would allow for the collection, storage and use of disaggregated socio-demographic data from individuals in relation to the City's Social Procurement Policy and Program; and,

-Amending the Social Procurement Policy to:

-Prioritize commitments in the Reconciliation Action Plan and Confronting Anti-Black Racism Action Plan for supply chain diversity;

-Expand social procurement beyond supplier certification;

-Define Social Enterprises separately from Diverse Suppliers; and,

-Improve clarity.

Program enhancements are proceeding under the Chief Procurement Officer’s authority, including publishing a public social procurement dashboard and updating solicitation templates to clarify requirements, particularly around workforce development target-setting.

There are no financial implications arising from the recommendations in this report. The engagement and program improvements recommended for the Social Procurement Policy will be funded through PMMD's base operating budget in 2025. Future year budget impacts will be considered through future budget processes.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The Chief Procurement Officer recommends that:

1. City Council receive this report for information.

At its meeting on May 10, 11 and 12, 2023, City Council directed the Chief Procurement Officer to co-develop an Indigenous Procurement Strategy with Indigenous businesses and communities and present to City Council on progress towards developing the Strategy no later than the third quarter of 2024. This report provides an update on this work.

Purchasing and Materials Management Division (PMMD) was approved through the 2023 Operating Budget process to hire a Policy Development Officer dedicated to co-developing the Indigenous Procurement Strategy with Indigenous businesses and communities. The recruitment was completed and the position was filled in April 2024. Since that time, PMMD has developed a work plan to guide the co-development of a First Nations, Inuit and Métis Procurement Policy (this is an updated working title reflective of work to-date).

Since PMMD has never engaged with the Indigenous community, the goal for 2024 has been to build relationships and to foster connections with Indigenous partners, agencies and businesses. PMMD has completed two engagement sessions with First Nations, Inuit and Métis businesses, one session with Indigenous agencies and partners, and one planning session to complete the Terms of Reference for an Advisory Circle. The first meeting of the Advisory Circle is planned in December. PMMD also sponsored three community conferences on First Nations, Inuit and Métis economic development.

2025 will be a year of engagement, and national engagement with Indigenous businesses, agencies and partners is being planned. The policy will be drafted in 2026, with the goal of circulating to Indigenous businesses, agencies and partners in 2027 for feedback and revisions. In 2028, the policy will be presented to City Council for approval, followed by implementation and monitoring, and an education campaign for both businesses and staff.

There are no financial implications arising from the recommendations in this report. The work to develop a First Nations, Inuit and Métis Procurement Policy, and the staff resources to support Indigenous procurement in 2025, will be funded through PMMD's 2025 base operating budget. Future year budget impacts will be considered through future budget processes.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The Deputy City Manager, Corporate Services, recommends that: 

1. Executive Committee direct the Executive Director, Corporate Real Estate Management, in consultation with the President and Chief Executive Officer, TO Live, and the Executive Director, Financial Planning, to support the implementation of the enhanced State of Good Repair plan for the St. Lawrence Centre for the Arts.

This report responds to City Council’s request (Item EX17.17) for the Deputy City Manager, Corporate Services, to report back to the Executive Committee on the enhanced State of Good Repair (SOGR) plan for the St. Lawrence Centre for the Arts (STLC). Corporate Real Estate Management (CREM) and Financial Planning Division (FPD) provided advice to TO Live on its 10-year enhanced SOGR plan for the STLC, to ensure the plan followed industry standard construction and SOGR planning and program management including a reasonable projected spend over the 10-year planning horizon based on ability to execute the required SOGR projects.

The enhanced SOGR plan outlined in this report and provided to TO Live uses the 2024 STLC building condition assessment (BCA) as a baseline to ensure the facility meets health and safety, legislative requirements, the City’s accessibility standards and aligns with the Transform TO strategy to achieve net-zero emissions by 2040. The enhanced SOGR plan will not fund any non-critical enhancements to the building. 

CREM will continue to partner with TO Live and the Executive Director, FPD to ensure the STLC SOGR program is planned and delivered in alignment with industry standards and the BCA. This includes the proper phasing of the SOGR program to allow adequate planning and design phases in a complex real estate asset such as the STLC. Projected spend through subsequent years should also reflect realistic and executable construction plans that minimizes disruption and enables TO Live to remain operational during construction where possible.

The estimated capital expenditures forecasted to complete the recommended enhanced state of good repair on the St. Lawrence Centre for the Arts is $81.5 million over a 10-year period.

Per EX17.17- Update on the St. Lawrence Centre for the Arts Redevelopment, the remaining balance of $41.9 million from the STLC Redevelopment project is available for reallocation towards the enhanced state of good repair. The enhanced SOGR program includes accessibility upgrades required by the Accessibility for Ontarians with Disabilities Act (AODA) and meeting the City's net zero requirements is $81.5 million.

The unfunded portion (approximately $39.6 million) of the enhanced state of good repair plan, informed by the 2024 STLC BCA and the updated cash flow provided by CREM, will be submitted through the 2025 budget process for consideration alongside other City priorities.

The Chief Financial Officer and Treasurer has been advised of the financial impacts associated with this program to be considered along with other priorities in future budget processes.

The Executive Director, Corporate Real Estate Management, recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Social Development and Finance Administration, and City Librarian, Toronto Public Library to negotiate a nominal land lease (the "Land Lease") between the City (as landlord), and Community Music Schools of Toronto (the "Tenant"), for the part of the property municipally known as 1785 Finch Avenue West, as outlined on Appendix C (the "Leased Premises"), substantially on the major terms and conditions set out in Appendix A, and on such other or amended terms and conditions as may be deemed appropriate by the Executive Director, Corporate Real Estate Management, or their designate, and in a form satisfactory to the City Solicitor.

2. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the City Librarian, Toronto Public Library to negotiate a licence agreement (the "Licence Agreement") with the Tenant, for nominal consideration, in relation to the Leased Premises for the purposes of construction staging, and any other purposes deemed appropriate by the Executive Director, Corporate Real Estate Management, and on such terms and conditions as deemed appropriate by the Executive Director, Corporate Real Estate Management, or their designate, and in a form satisfactory to the City Solicitor.

3. City Council authorize each of the Executive Director, Corporate Real Estate Management and the Director of Real Estate Services severally to execute and deliver the Land Lease, the Licence Agreement and any related documents contemplated thereunder on behalf of the City.

4. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, to administer and manage the Land Lease and the Licence Agreement, including the provision of any consents, approvals, waivers, notices and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters to City Council for its determination and direction.

5. City Council consent to the Toronto Public Library Board's decision dated June 19, 2023 to transfer the property known municipally as 1785 Finch Avenue West (the "Property") to the City and direct staff to take all steps necessary to comply with the City's real estate disposal process set out in Chapter 213, Sale of Real Property of the City of Toronto Municipal Code.

6. City Council forward the report (November 26, 2024) from the Executive Director, Corporate Real Estate Management to the Toronto Public Library Board for information.

This report seeks authority for the City, as landlord, to enter into a nominal lease agreement (the "Land Lease") with Community Music Schools of Toronto (the "Tenant") in respect of a portion of the property at 1785 Finch Avenue West (the "Leased Premises"), to design, build, finance, and operate a new not-for-profit music school. The Leased Premises is a portion of the current parking surface, along with an unused loading dock area, of the site of Toronto Public Library's ("TPL") York Woods Branch ("York Woods Library").

With City Council endorsement and direction to explore the feasibility of building a music school next to York Woods Library, City staff now recommend advancing this site for the proposed new music school which will serve the Jane Finch community. The TPL Board supports the proposed Land Lease to the Tenant. Social Development, Finance, and Administration and Economic Development and Culture have advised on the community consultation process, by engaging with a third-party consultant and the Tenant. Additionally, the proposed development of the music school in the Jane Finch community aligns with Action 1.13 of the Jane Finch Community Development Plan (EC10.1); a short-term action aimed at ensuring artists and organizations have access to local spaces to practice, create, exhibit, and operate their organizations.

The Tenant is a charitable organization founded in 1999 with a mission to help Toronto youth access high-quality music education. The Tenant's music programs are geared towards students ages three to 18 and are heavily subsidized to provide families who would not usually have access to music education due to their financial situation. Students participating in the Tenant's music programs can access instruments, music education, mentorship, and performance opportunities in a safe, supportive, and creative environment.

The Land Lease will be provided to the Tenant for a nominal sum of $10 plus Harmonized Sales Tax ("HST") for the term of the Land Lease, and will be cost neutral to the City as outlined in Appendix A. The opportunity cost of the Land Lease, expressed in net present value terms, for the 49-year and 364 days lease period, which consists of an initial term of 30 years and two options to extend, being one option to extend for a further 10-year period and a second option to extend for a further period of nine years and 364 days, is approximately $4,565,357.

The Tenant will be responsible for all costs related to the project, both capital and operating, as well as state of good repair, substantially on the major terms and conditions set out in Appendix A.

The Chief Financial Officer and Treasurer has been advised of the financial impacts associated with this report to be considered along with other priorities in future budget processes.

The Deputy City Manager, Corporate Services and the Deputy City Manager, Community and Social Services recommend that:  

1. City Council authorize the Board of Directors, Toronto Port Lands Company, to direct the Chief Executive Officer, CreateTO, to negotiate and execute an amendment to the Ground Lease between the City of Toronto Economic Development Corporation and Basin Media Studios GP Inc., as general partner for and on behalf of Basin Media Studios LP, dated August 29, 2022, as amended, substantially in line with the proposed changes outlined in Confidential Attachment 1 and in a form approved by the Chief Legal Counsel, CreateTO.

2. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains information about a position, plan, or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of Toronto Port Lands Company.

3. City Council direct the City Manager in consultation with the General Manager, Economic Development and Culture, and Deputy City Manager, Corporate Services, to assess opportunities to align the mandate of the Toronto Port Lands Company with the City’s economic development objectives in the Port Lands, such as supporting film production, and with the Port Lands Planning Framework and other area-specific Planning documents, and report back to City Council by Q3 2025 with any required changes to the Toronto Port Lands Company Shareholder Direction.

The purpose of this report is to seek City Council's approval to amend the Ground Lease between Toronto Port Lands Company (TPLC), legally the Toronto Economic Development Corporation, and Basin Media Studios GP Inc. (the "Tenant") related to the Basin Studios project at 29 and 75 Basin Street. Amendments to the Ground Lease have been requested by the tenant in response to extraordinary market and economic pressures encountered with the project since 2021.

The Basin Studios project is an approximately $300 million, purpose-built, state-of-the-art film, television, and digital media hub in Toronto’s Port Lands. The development encompasses over 485,000 square feet of new purpose-built studio and support space, including 12 new sound stages. The project site involves an approximately 8.9-acre property owned by TPLC at 29 Basin Street (the "29 Basin Property") and 5-acre property owned by the Tenant at 75 Basin Street (the "75 Basin Property").  

In 2021, City Council approved the term sheet for the 29 Basin Property and authorized TPLC to execute the term sheet and any lease resulting therefrom conditional on CreateTO Board approval. In 2022, TPLC executed the Ground Lease with the Tenant for the 29 Basin Property, consistent with City Council authority. The proposed amendments to the Ground Lease are summarized in Confidential Attachment 1.

CreateTO and City staff are satisfied that the proposed amendments will allow the project to proceed and deliver the development proposal for the 29 Basin Property and do not introduce any new financial liabilities or risks to the City.  

In addition, staff will conduct an assessment of opportunities to continue to align the mandate of the Toronto Port Lands Company with the City’s economic development objectives in the Port Lands, such as supporting film production, and with the Port Lands Planning Framework and other area-specific Planning documents, and report back to City Council by Q3 2025 with any required changes to the Toronto Port Lands Company Shareholder Direction.

This report has been prepared in consultation with the following City divisions and agencies: City Manager's Office, Corporate Real Estate Management, CreateTO, Development and Growth Services, Economic Development and Culture, and Legal Services.

The estimated financial impact of the adoption of the proposed Ground Lease amendments is provided in Confidential Attachment 1.

The Chief Financial Officer and Treasurer has been advised of the estimated financial impacts associated with this report to be considered along with other priorities in future budget processes.

The City Clerk recommends that:

1. City Council authorize the City Clerk, or their designate, to accept these in-kind archival donations from Vid Ingelevics, Robert Burley, and Ted Yarwood for Toronto Archives.

2. City Council authorize the City Clerk, or their designate, to accept an additional donation of $34,074.07 from the Estate of Katherine Anne Hartley for the Toronto Archives bringing the total donation to $197,037.03.

3. City Council increase the 2024 Operating Budget for City Clerk's by $34,074.07 gross, $0 net, one-time, to deposit the donation into the Clerks Equipment Reserve (XQ1507) and authorize the City Clerk, or their designate, to withdraw the donated amount to support future programming in the Toronto Archives.

The purpose of this report is to request approval from City Council to accept three 2024 in-kind archival donations from photographers Vid Ingelevics ($122,600), Robert Burley ($86,500), and Ted Yarwood (estimated at $50,000), and an additional monetary donation of $34,074.07 from the Estate of Katherine Anne Hartley to Toronto Archives bringing the total donation to $197,037.03.

The value of these donations exceeds or is estimated to exceed the $50,000 threshold for donation acceptance under the Donations to the City of Toronto for Community Benefits Policy. City Council approval is required in accordance with Municipal Code Chapter 71 Financial Control, where the value of this bequest exceeds the $50,000 threshold for division heads to accept and spend donated funds under Article X, Section 71-19.

The donated records will be used to enhance Toronto Archives' holdings while the monetary donation will be used to support Toronto Archives' future programming. There are no future year pressures created from accepting these donations.

The monetary donation will be held in the City Clerks Equipment Reserve (XQ1507) until funding is required for future programming. A budget request will be submitted when funds are to be utilized.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The City Clerk recommends that:  

1. Executive Committee receive this report for information.

This report presents a consolidation of the Human Resource Management and Ethical Framework ("Framework") that incorporates past Council decisions. The City Clerk is providing this report to be received for information in response to Council's direction on the Integrity Commissioner's report CC11.2 "Addressing Workplace Harassment and Discrimination" in which the Integrity Commissioner had noted various Council decisions were not reflected in the Framework.

There are no financial impacts from the adoption of the recommendations. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

Councillor Chris Moise recommends that:

1. City Council direct the City Manager, in consultation with the City Clerk, the City Solicitor and the Integrity Commissioner, to develop a Code of Conduct for Public Members of Council Advisory Bodies that aligns with City Council’s approved Codes of Conduct for Members of Council, Local Boards and Adjudicative Boards, as appropriate, and report to City Council in the second quarter of 2025 with the recommended Code of Conduct for adoption.

On June 15, 2022, City Council adopted 2022.CC45.1 – Review of Codes of Conduct for Members of Council, Local Boards and Adjudicative Boards. This report updated the Codes of Conduct for Members of Council, Members of Local Boards (Restricted Definition) and Members of Adjudicative Boards, including expanding and clarifying Members’ responsibilities for their roles and conduct outside of meetings. The report did not address the creation of a Code of Conduct for individuals appointed by City Council to Council Advisory Bodies. These Council appointees remain guided by the City of Toronto’s Public Appointments Policy, Section 9.2 “General Standards of Conduct.”

Ensuring Public Member appointees to Council Advisory Bodies clearly understand their role in maintaining the integrity of the City’s government and upholding its reputation is critical as the City seeks to expand resident and stakeholder engagement in its decision-making processes. Building on efforts to date to strengthen the Codes of Conduct for public officials, the City should review and establish a Code of Conduct for Public Members of Council Advisory Bodies in keeping with the City of Toronto’s commitment to the highest standards of ethical conduct.

This letter seeks to recommend that City Council direct the City Manager, in consultation with the City Clerk, the City Solicitor and the Integrity Commissioner, to develop a Code of Conduct for Public Members of Council Advisory Bodies that aligns with City Council’s approved Codes of Conduct for Members of Council, Local Boards and Adjudicative Boards, as appropriate, and report to Council in the second quarter of 2025 with the recommended Code of Conduct for adoption.

Councillor Paul Ainslie recommends that:

1. City Council request the Mayor to consider as part of her development of the 2025 budget, increasing the Parks Forestry and Recreation Capital Budget to include the revenues generated from Guild Inn Estates sublease to be reinvested back into Guild Park and Gardens as a new source of long-term funding for site capital projects.

I am writing to express my support increase the Parks, Forestry, and Recreation Capital Budget as I believe that reinvesting the revenues generated from the Guild Inn Estates sublease back into Guild Park and Gardens is a sustainable approach to ensuring the long-term vitality of this cherished community asset.

Guild Park and Gardens is a significant cultural and historical landmark that offers numerous benefits to our community, including:

- Preservation of Heritage: The park preserves important historical buildings fragments and landscapes.
- Environmental Stewardship: It provides essential green space and supports biodiversity.
- Community Engagement: It hosts a variety of cultural events and educational programs.
- Economic Benefits: It attracts visitors and contributes to local tourism through the Clark Centre for the Arts, Guild Inn Estates and Significant photography and park permits. 
 

By reinvesting the sublease revenues, we can:

- Fund Critical Repairs and Improvements: Provides a dedicated funding source for future projects, including the construction of public washrooms, the implementation of Parks, Forestry, and Recreation's three-year plan for Guild Park's trails, gardens, and management, and the installation of wayfinding signage.
- Arts Services - Public Art: Additional funding will accelerate plans to restore the log cabin, assess the Greek Theatre's structural integrity, remediate public art and architectural features, install surplus stones, and advance preparations for the Guild of All Arts' 100th-anniversary celebration.

- Enhance Visitor Experience: Improving the performance and backstage facilities at the Greek Theatre to match contributions to future provincial and federal performance funding.
- Protect Natural Environment: Invests in ecological restoration and conservation efforts by securing sustainable funding for increasingly popular urban parks.

Thank you for your time and consideration in considering this recommendation as you develop the 2025 budget. By doing so, you will not only strengthen Guild Park and Gardens but also demonstrate a commitment to preserving our city's heritage and fostering vibrant public spaces.

The Service Excellence Committee recommends that:

1. The Executive Committee request the Executive Director, Customer Experience, to review extending access and training to the offices of Mayor and all Councillors for the 311 Business Intelligence Tool, and to consult with those offices on potential modifications or enhancements to reporting features, and to report back to the Service Excellence Committee in 2025 on progress.

At its meeting on November 25, 2024, the Service Excellence Committee considered Item SE6.1 and made recommendations to the Executive Committee.

Summary from the report (November 4, 2024) Report from the Interim Executive Director, Customer Experience:

The purpose of this report is to provide an update to the Service Excellence Committee on work undertaken by the Customer Experience Division since May 2024. This work supports requests from the Committee to report back on a prototype report ward dashboard and to consider whether additional features could be added (e.g., multi-year data, predictive trends, etc.), where feasible.

The Customer Experience Division has been working on the concept of ward dashboards since March 2024. Multiple options were considered and Customer Experience Division and Technology Services Division have determined that the City's existing 311 Business Intelligence reporting tool, is the best option to deliver Ward Dashboards. The 311 Business Intelligence tool has the required functionality to deliver the data Council members have requested be included in ward dashboards.

The 311 Business Intelligence tool is preferred as it is a cost-effective solution that is already integrated with key systems. As 311 Business Intelligence is already used by the City, there is no additional cost to add data to this platform or to add users to provide more access to this data.

Additionally, 311 Business Intelligence is integrated with the 311 Customer Relationship Management tool as well as with integrated divisional work management systems.

While other technologies may provide more powerful visualizations, 311 Business Intelligence offers a more comprehensive, end-to-end solution that better aligns with the City's needs for data consolidation, analysis, and reporting. The 311 Business Intelligence tool's flexibility in integrating with existing data sources, such as Salesforce, and other divisional work management systems, is crucial for long-term scalability.

311 Business Intelligence captures service request information for the following Integrated Service Divisions: Solid Waste Management, Municipal Licensing & Standards (including Toronto Animal Services), Toronto Water, Transportation Services, and Urban Forestry (within Parks, Forestry and Recreation). Integrated Service Division staff currently have access to this platform and service request data along with some Councillor offices. Customer Experience Division staff will work with councillor offices to offer training and grant access to 311 Business Intelligence for those interested in viewing this data.

The Service Excellence Committee recommends that:

1. The Executive Committee request the Executive Director, Customer Experience, in collaboration with the City Manger's Office, to analyse, compare and report to the Service Excellence Committee on alignments or contrasts between 311/Customer Experience data and the Listening to Toronto Survey results, and provide recommendations on any enhanced communication opportunities. 

Summary

At its meeting on November 25, 2024, the Service Excellence Committee considered Item SE6.3 and made recommendations to the Executive Committee.

Summary from the report (November 8, 2024) Report from the City Manager:

 
In support of service excellence and continuous improvement, the City Manager initiated a public opinion poll to gather feedback from Torontonians on a number of topics including City services (such as parks and social services), quality of life (such as cleanliness and public safety), and priorities for the City's budget.

The Listening to Toronto survey was conducted by Ipsos LP and in the field between August 28, 2024, to September 18, 2024. The insights from the survey will serve as baseline benchmarks against which future polling results can be measured. The results will augment data available via 311 and data collection initiatives led by City divisions. Taken together, these data sets will provide an understanding of service performance and guide City decision-making to better meet the needs of Toronto residents.